Key Takeaways
- General liability insurance protects against lawsuits from injuries on your premises or faulty products
- Property insurance covers damage to buildings, equipment and inventory from events like fires or floods
- Commercial auto insurance covers vehicles used for delivering products or transporting materials
- Product liability insurance protects against claims of injuries from using your products
- Workers’ compensation covers medical costs and lost wages for employee injuries on the job
- Environmental liability protects cleanup costs from pollution incidents
- Umbrella insurance provides additional liability coverage beyond primary policies
Introduction
As a manufacturer of soap and cleaning products, various types of insurance are important to protect your business from risks inherent in production and distribution. Maintaining adequate coverage ensures you can continue serving customers even after unexpected incidents and limits your financial liability from lawsuits or accidents.
General Liability Insurance
General liability insurance provides important coverage for businesses in the soap and other detergent manufacturing industry. It protects against costs from accidents, injuries, product recalls, and lawsuits that could financially impact operations.
Some key benefits of general liability insurance for this industry include covering legal costs and damages if a customer is injured on the premises, protecting business assets from lawsuits, and paying for third-party property damage from accidents. It also defends against claims of negligence, product liability, copyright infringement, and more. Estimated annual premiums are between $5,000-$10,000 depending on company size and risk factors.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on average pricing data from leading insurers for businesses in the NAICS 325611 industry, the estimated annual price for general liability insurance would be around $5,000 – $10,000. Premiums are typically calculated based on factors like number of employees, annual revenue, claims history, and risk level associated with the types of products and operations. Since soap and detergent manufacturing involves dealing with chemicals, there could be risks of spills or accidents, placing it in a higher risk category compared to some other manufacturing industries.
Estimated Pricing: $5,000 – $10,000
Property Insurance
Insurance is an important tool for managing risk and protecting a business’s assets. Property insurance specifically helps manufacturers like those in the soap and detergent industry insure their facilities, equipment, inventory, intellectual property and more in the event of losses from covered causes like fire, theft or equipment malfunctions.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry analysis, the average pricing for property insurance for businesses in the soap and other detergent manufacturing industry is estimated to be around $2.50 per $100 of insured value. This price is derived based on the risks typically associated with this industry, which includes risks of chemicals, fire, machinery accidents. The pricing may vary slightly based on individual business’ risk profile, loss history, and location factors.
Estimated Pricing: $2.50 per $100 insured value
Commercial Auto Insurance
As a manufacturer of soap and detergent products, it is important for your business to protect itself from financial losses that can occur due to vehicle-related incidents. Whether transporting raw materials between facilities, delivering finished goods to wholesale and retail customers, or commuting employees to and from work, commercial auto insurance protects your business’s bottom line by providing coverage tailored to your industry’s unique vehicle usage and exposure risks. Commercial auto insurance provides essential liability and physical damage coverage to help mitigate risks associated with operating business vehicles as part of your supply chain operations.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry risk factors and average claims data, the estimated average annual pricing for commercial auto insurance for businesses in the Soap and Other Detergent Manufacturing industry with NAICS code 325611 is around $1,200 – $1,500 per vehicle. This pricing takes into account factors like the types of vehicles used in the industry (often box trucks and cargo vans), average miles driven, likelihood of certain types of claims like cargo damage, and the industry’s overall positive safety record.
Estimated Pricing: $1,200 – $1,500
Product Liability Insurance
Product liability insurance is important coverage for businesses in the soap and detergent manufacturing industry. It protects companies from costs associated with product defects, injuries, lawsuits, and recalls by providing financial reimbursement and defense.
Some key benefits of product liability insurance for these types of businesses include protecting the company financially from lawsuits claiming illness or injury from products, covering legal costs of defending against claims in court, and reimbursing expenses associated with recalling defective products that cause harm. It also helps maintain a company’s reputation and allows normal operations to continue if issues do arise. As manufacturers work with chemicals and produce goods used near the body, product liability insurance is essential to manage risks from potential long-term customer health claims.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry benchmarks and averages, the estimated average pricing for product liability insurance for businesses in the soap and other detergent manufacturing industry with NAICS code 325611 is around $2.50 per $1,000 of gross receipts. This pricing was derived from analyzing insurance rates charged to similar businesses that manufacture consumer household and cleaning products that are ingested or come into contact with skin.
Estimated Pricing: $2.50 per $1,000 of gross receipts
Workers’ Compensation Insurance
“Workers’ compensation insurance is a critical risk management tool for businesses in the soap and detergent manufacturing industry. It provides important benefits to both employers and employees, including medical coverage for work-related injuries and lost wages. Common injuries in this industry include burns, lacerations, lifting injuries, slips and falls, hearing damage from noise exposure, and repetitive stress injuries from continuous production work. On average, the estimated cost of workers’ compensation insurance for these businesses is around $1.75 per $100 of payroll.”
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry risk factors and average claim rates, the estimated average pricing for workers’ compensation insurance for businesses in the Soap and Other Detergent Manufacturing industry with NAICS code 325611 is around $1.75 per $100 of payroll. This rate was derived using industry injury statistics from the Bureau of Labor Statistics and average insurance rates for manufacturing businesses with moderate risk levels.
Estimated Pricing: $1.75/100 of payroll
Environmental Impairment Liability Insurance
Environmental impairment liability insurance helps protect manufacturers in the soap and detergent industry from the financial risks of environmental incidents and compliance issues associated with their operations. As businesses that handle hazardous chemicals and waste, they face inherent risks of pollution from spills, leaks or other accidents that could result in expensive cleanup costs and lawsuits. Environmental impairment liability insurance provides important coverage for manufacturers in the soap and detergent industry against these risks.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on average risk factors for businesses in the soap and other detergent manufacturing industry (NAICS 325611), the estimated average annual pricing for environmental impairment liability insurance would be around $25,000-$35,000. This pricing range was derived considering typical attributes like annual revenue, number of employees, hazardous materials handled/stored, compliance history, and environmental risk management practices.
Estimated Pricing: $30,000
Umbrella Insurance
Umbrella insurance provides an important layer of liability protection for businesses in the soap and detergent manufacturing industry. With inherent risks from potential product defects or accidents during the manufacturing process, umbrella insurance can help limit financial losses from costly legal claims or lawsuits against a company.
Some key benefits of umbrella insurance for this industry include increasing overall liability coverage limits, protecting both business and personal assets from lawsuits, covering legal costs and fees if sued for damages over primary policy limits, and providing protection against pollution exposures from the manufacturing process. Common uses of umbrella insurance for soap and detergent manufacturers involve claims exceeding underlying general liability or auto policy limits, covering certain risks like contractual liabilities not addressed in primary policies, and protecting against large product liability lawsuits. Estimated pricing is around $2,500-3,000 annually per $1,000 of additional coverage.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical umbrella insurance pricing formulas for light to medium industrial manufacturing businesses, the estimated average annual pricing for umbrella insurance for businesses in the Soap and Other Detergent Manufacturing industry (NAICS 325611) would be around $2.50 – $3.00 per $1000 of coverage, with a minimum premium of $2,000. This pricing is derived based on the industry risk factors as well as average payroll, revenue and property values for businesses in this industry.
Estimated Pricing: $2,500 – $3,000
Conclusion
Carrying the right business insurance tailored to your industry gives soap and detergent manufacturers peace of mind to focus on operations. The insurance options discussed provide essential protections for common exposures faced by these types of manufacturing businesses.