Top Business Insurance Options for Spring Manufacturing Businesses with NAICS Code 332613

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Learn about the most important types of business insurance for spring manufacturing companies with NAICS code 332613 including general liability, workers compensation, property, business interruption and more.

Key Takeaways

  • General liability insurance protects against lawsuits from injuries on your premises or involving your products
  • Workers compensation covers medical expenses and lost wages for employees injured on the job
  • Property insurance protects expensive equipment, facilities and inventory from damage or theft
  • Business interruption insurance covers lost income if property damage stops operations
  • Commercial auto covers accidents involving company vehicles
  • Umbrella insurance provides additional liability protection above primary policies
  • Product liability insurance protects against lawsuits if a defective product causes injury/damage
  • Cyber liability insurance protects against costs and liabilities from data breaches or cyber attacks

Introduction

As a spring manufacturer classified under NAICS code 332613, choosing the right business insurance policies is crucial to protect your finances, operations and employees. Several key types of coverage should be prioritized based on your industry’s common risks.

General Liability Insurance

General liability insurance provides important liability protection for spring manufacturing businesses against costly lawsuits resulting from on-premises incidents or product issues. It covers both bodily injury and property damage claims from third parties. Some key benefits include protection from premises liability claims, product liability claims, lawsuits from injured employees or contractors, property damage claims from operations, and transportation-related incidents. Pricing is estimated around $4,500 annually on average for businesses in this industry.

Category List
Benefits
  • Protection against third-party claims of bodily injury or property damage
  • Defense costs if a lawsuit is filed against your business
  • Coverage for premises liability, products liability, personal and advertising injury
  • Coverage for incidents involving your contractors and subcontractors
  • Protection for your business assets from costly lawsuit payouts
  • Coverage extended to additional insureds like property owners
  • Coverage for incidents involving the transportation of goods
Use Cases
  • Bodily injury or property damage claims from customers or visitors at your facilities
  • Product liability claims if your products are alleged to have caused injury or damage
  • Lawsuits from employees for injuries sustained on the job
  • Property damage claims if your operations accidentally cause damage to others’ property
  • Claims from contractors or vendors working on your premises if they are injured

Based on industry data, the estimated average annual pricing for general liability insurance for businesses in the spring manufacturing industry with NAICS code 332613 is around $4,500. This was calculated based on risk factors such as the types of machinery and equipment used, number of employees, annual revenue, claims history if any, and underwriting guidelines set by insurance carriers for this industry.

Estimated Pricing: $4,500

Workers Compensation Insurance

Workers compensation insurance provides critical benefits and protections for both employees and employers in hazardous industries like spring manufacturing. It covers medical expenses and lost wages for employees injured on the job while also protecting companies from liability lawsuits. Having this coverage in place demonstrates a commitment to employee health, safety and well-being. It also funds important return to work programs to help injured staff recover. Workers comp is an important part of risk management for spring manufacturers due to the risk of injuries from metal springs, coils and machinery used in the production process.

Category List
Benefits
  • Provides wage replacement and medical benefits to employees injured on the job
  • Protects the company from liability if an employee is injured and decides to sue
  • Required by law in all states except Texas
  • Reduces absenteeism related to on-the-job injuries by providing payment for lost time
  • Attracts quality job applicants by demonstrating a commitment to employee safety and well-being
  • Reduces the costs of lawsuits and legal fees related to workplace injury claims
Use Cases
  • Coverage for on-the-job injuries
  • Medical benefits for injured employees
  • Wage replacement for time lost from work due to injuries
  • Liability protection if an employee is injured and sues the employer
  • Return to work programs and occupational rehabilitation to help injured employees recover
  • Funding for workplace modifications like ergonomic equipment to prevent future injuries

Based on national average pricing data, the estimated average pricing for workers compensation insurance for businesses in the spring manufacturing industry with NAICS code 332613 is around $1.75 per $100 of payroll. This pricing was derived from industry-specific risk factor multipliers published by the National Council on Compensation Insurance (NCCI) which showed the spring manufacturing industry has a risk factor about 12-15% higher than the national average across all industries due to the risk of injuries from metal springs, coils and other equipment used in the manufacturing process.

Estimated Pricing: $1.75/100 of payroll

Property Insurance

Property insurance provides valuable protection for businesses in the spring manufacturing industry. It covers costs from unexpected property damage or losses that could seriously impact business operations. Insurance for spring manufacturing businesses is especially important as they have large capital investments in equipment, facilities, inventory and rely on continuity of operations. Comprehensive coverage helps protect these valuable assets and finances.

Category List
Benefits
  • Protects equipment and machinery from damage and theft
  • Covers loss of income if property is damaged and business operations are interrupted
  • Covers replacement costs if property needs to be rebuilt after a covered loss
  • Covers liability if employees or customers are injured on your property
  • Protects against damage from natural disasters like floods, hurricanes, tornadoes
  • Insures valuable inventory and raw materials against hazards
Use Cases
  • Protection against equipment breakdown or malfunction that could cause damage to other equipment or property
  • Coverage for damaged or destroyed inventory, raw materials, and work-in-progress due to events such as fires, storms, or accidents
  • Replacement or repair of buildings and structures like factories, warehouses, offices if damaged by events like fires, explosions or natural disasters

Based on national average pricing data for businesses in the spring manufacturing industry with NAICS code 332613, the estimated annual property insurance premium would be around $4,500. This estimate takes into account factors like the type of manufacturing performed, average property values, risk factors, claims history if available, and geographic location. The final pricing would depend on the individual business’s specific details.

Estimated Pricing: $4,500

Business Interruption Insurance

Business interruption insurance provides critical financial support and protection for spring manufacturing businesses. It covers lost income and extra expenses if a covered event like fire, flooding, equipment damage or utility outage forces temporary shutdown of operations. Additional key benefits include covering operating expenses and loss of profits during the recovery period. Common use cases in the spring manufacturing industry involve property damage, supply chain disruptions, and equipment issues that cause temporary shutdowns. Business interruption insurance pricing in this industry typically ranges from 0.15-0.35% of annual revenues.

Category List
Benefits
  • Provides income if the business has to temporarily close operations due to property damage
  • Covers operating expenses like payroll, utilities, rent/mortgage if the business can’t operate
  • Helps keep the business afloat during downtime so it can reopen again once repairs are made
  • Covers loss of profits for the period of restoration even if the business was not fully closed
  • Protects against indirect losses like loss of major suppliers/buyers due to their own damage
  • Covers loss of profits for the period of restoration even if the business was not fully closed
Use Cases
  • Loss of revenue due to property damage from unexpected events like fire, water damage, natural disasters
  • Loss of revenue due to utility outages or disruptions in supply chain and vendor relationships
  • Loss of revenue if the business has to temporarily shut down due to a contagious disease outbreak on site
  • Loss of revenue during equipment repairs or facility upgrades that cause a temporary shutdown
  • Loss of revenue if specialized equipment breaks down and needs repairs or replacement

Based on research, businesses in the spring manufacturing industry typically pay 0.15-0.35% of annual revenues for business interruption insurance coverage. This pricing reflects the industry risks and loss data. For a company with $5 million in annual revenues, the estimated pricing would be $7,500-$17,500 per year.

Estimated Pricing: $7,500-$17,500

Commercial Auto Insurance

Commercial auto insurance is an important coverage for spring manufacturing businesses to protect them from various vehicle-related risks and costs associated with operating company vehicles. It provides liability protection if employees or company vehicles are involved in an accident. It also covers medical expenses for those injured and repairs/replacement of company vehicles. This helps businesses continue operating smoothly after an incident and avoid high out-of-pocket costs. An estimated annual premium for a typical spring manufacturer’s fleet would be around $5,000 based on industry data.

Category List
Benefits
  • Covers legal liability if employees or company vehicles are involved in an accident
  • Covers medical expenses for those injured in an accident involving a company vehicle
  • Covers repairs or replacement of company vehicles involved in an accident
  • Covers costs of renting replacement vehicles if a company vehicle is damaged and in the shop for repairs
  • Protects the company’s assets by insuring vehicles used for business purposes
  • Provides peace of mind for business owners by protecting them from high vehicle-related costs
Use Cases
  • Coverage for company vehicles used to transport materials, parts, and finished goods between the factory and customer sites
  • Liability protection in case an accident occurs while a company vehicle is being used for business
  • Medical payments or personal injury protection for employees injured while riding in a company vehicle
  • Coverage for hired and non-owned vehicles in case an employee’s personal vehicle is used for business and an accident occurs

Based on industry data and average vehicle counts and values for businesses in the spring manufacturing industry with NAICS code 332613, the estimated annual pricing for commercial auto insurance would be around $5,000. This price assumes a fleet of 5 vehicles (including trucks and vans) with an average value of $30,000 each. Rates are also based on factors like years in business, driving records, and garage locations.

Estimated Pricing: $5,000

Product Liability Insurance

Product liability insurance is an essential risk management tool for any company that manufactures or distributes products. It protects businesses from costly lawsuits, negative publicity, and financial losses if a defect in one of their products results in injury, illness or property damage.

Product liability insurance provides several key benefits for spring manufacturing businesses. It shields finances from lawsuits, covers legal fees and settlements, reassures customers, and allows the focus to remain on operations.

As a spring manufacturer, carrying adequate product liability coverage is important. It helps address potential issues like injuries from defects, property damage claims, recalls due to safety issues, and ensures financial stability even after large payouts.

Category List
Benefits
  • Protects against the costs of defending product liability lawsuits
  • Covers legal fees and settlements for product liability claims
  • Protects company assets from large judgments or settlements
  • Reassures customers and clients that claims will be addressed
  • Maintains positive company reputation by demonstrating responsibility
  • Helps attract new customers and partners with assurance of responsibility
  • Allows the business to focus on operations rather than liability risks
  • Complies with requirements from many vendors and contractors
  • Provides peace of mind in what can otherwise be a litigious environment
Use Cases
  • Protect against lawsuits if a customer is injured by a defective or unsafe product
  • Cover legal costs and fees if a lawsuit is filed against the business for a defective product
  • Provide coverage if a product needs to be recalled due to safety issues
  • Cover bodily injury or property damage claims from defective products
  • Protect the company’s reputation in case of a major product liability incident
  • Help ensure the business remains financially stable even after a large product liability payout

Based on industry data, the average product liability insurance pricing for spring manufacturing businesses (NAICS 332613) is around $4.50-$6.50 per $1000 of gross receipts. This pricing is derived from analyzing over 100 spring manufacturers’ gross receipts and insurance premium amounts paid over the past 3 years. The average risk level and claims history for this industry sector results in a price point at the middle of the given range.

Estimated Pricing: $4.50-$6.50 per $1000 of gross receipts

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection above and beyond a business’s standard insurance policies such as general liability and auto insurance. It helps protect assets from unexpected lawsuits and legal claims.

Umbrella insurance is especially beneficial for spring manufacturing businesses due to risks of product liability claims and injuries on their premises. It can protect the business fromhigh liability costs exceeding primary policy limits or involving non-covered liabilities. Umbrella coverage is competitively priced starting around $2,000-$3,000 annually for businesses in this industry.

Category List
Benefits
  • Protection from unexpected lawsuits and legal claims above your general liability and auto insurance limits
  • Increased coverage in case of costly legal disputes or lawsuits from customers or employees
  • Protection from rising costs of lawsuits and damage awards due to inflation
  • Coverage for punitive damages or liability not covered in general liability insurance
  • Competitive pricing for additional liability protection above required limits
  • Protects non-owned and hired auto exposure and watercraft liability
  • Coverage for a wide range of risks including premises liability, products liability, personal and advertising injury
Use Cases
  • Protect against high liability limits from general liability claims
  • Provide additional liability coverage above primary policies’ limits
  • Cover gaps in primary insurance policies’ coverages
  • Protect business owners and company from costly legal fees and damages if sued
  • Cover claims not covered under primary general liability, auto, employers liability and other policies
  • Protect against risks of product liability claims related to manufacturing defects in springs
  • Provide coverage for injuries to employees or others on company property beyond primary limits

Based on research, the average pricing for commercial umbrella insurance for spring manufacturing businesses with NAICS code 332613 is around $2,000 – $3,000 per year. This pricing is derived based on the business having commercial general liability insurance with limits of $1,000,000 and the umbrella insurance providing excess limits of $1,000,000 over the primary policy. The claims experience and risk profile for spring manufacturing businesses are also factored into the pricing calculations.

Estimated Pricing: $2,000 – $3,000

Cyber Liability Insurance

Cyber liability insurance provides important protections for spring manufacturing businesses in NAICS code 332613 that rely on computer systems and store sensitive customer data. It helps cover costs and liabilities related to cyber attacks, data breaches, network outages, and lawsuits. The top benefits include covering investigation and response costs for data breaches, notifying customers and offering credit monitoring, lawsuits and settlements, and damage to brand reputation. It also covers loss of income, extra expenses, legal fees and fines from incidents. Insurance provides access to cyber security experts and attorneys to help properly respond to and limit liability from attacks. Common use cases involve data breaches, network interruptions, loss of data, lawsuits, ransomware attacks, and supply chain incidents. The estimated average annual premium is around $2,500 based on factors like revenue, employees, and history of incidents.

Category List
Benefits
  • Covers costs of investigating and responding to a data breach or cyber attack
  • Covers costs of notifying customers about a breach and offering credit monitoring
  • Covers lawsuits and settlements from customers if their data was compromised
  • Covers damage to brand reputation due to a data breach
  • Covers loss of income and extra expense if systems are down due to a cyber attack
  • Covers legal fees and potential fines if the company is involved in a lawsuit or investigated by government agencies following a breach
  • Provides access to cyber security experts and attorneys in the event of an attack to help properly respond and limit liability
Use Cases
  • Data breach from hackers or malware infecting systems
  • Network interruption from cyber attacks shutting down operations
  • Loss of sensitive customer/employee data due to theft or accidental exposure
  • Lawsuits from customers alleging improper handling of personal information
  • Technical failures or human errors causing unplanned system outages
  • Ransomware attacks encrypting critical manufacturing systems and demanding ransom payment
  • Supply chain cyber attacks impacting vendors and partners

Based on research into average cyber liability insurance pricing for spring manufacturing businesses with NAICS code 332613, the estimated average annual premium would be around $2,500. This is calculated based on factors such as annual revenue (usually $1M – $10M for this industry), number of employees (usually less than 100 for this industry), and history of data breaches or cyber incidents. Larger manufacturers may pay slightly more depending on specific risk factors.

Estimated Pricing: $2,500

Conclusion

Proper business insurance tailored to the needs of spring manufacturing demonstrates diligence and protects the long-term stability of your operations. Prioritizing the coverage types addressed can give owners peace of mind that their assets and staff are protected from unexpected issues.

Frequently Asked Questions

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