Key Takeaways
- General liability, commercial property, commercial auto, workers’ compensation, and business interruption insurance are core policies for risk management.
- Professional liability, environmental, cyber liability and D&O policies provide specialized coverage for risks in the metal mining support industry.
- Costs are estimated based on industry averages but individual quotes may vary based on company-specific risk factors.
Introduction
Businesses that provide support services to metal mining operations face unique risks associated with hazardous work environments, heavy equipment usage, materials handling, and potential environmental impacts. To effectively manage these risks and remain financially protected, support companies in the metal mining industry should consider implementing a set of core commercial insurance policies as well as some specialized policies tailored to their operations and exposure levels.
General Liability Insurance
General liability insurance provides protection for businesses in the support activities for metal mining industry from a variety of risks and costs associated with common accidents and incidents that can occur. It covers claims for bodily injury and property damage to third parties that result from operations. Specifically, it protects from accidents on premises, pollution liability, equipment failures, products/completed work claims, and personal injuries like slander or libel. Pricing is estimated around $4.50 per $100 of payroll on average for the industry due its higher risk profile associated with the type of work involved in metal mining support operations.
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Based on industry data and standard insurance pricing models, the estimated average annual pricing for general liability insurance for businesses in the Support Activities for Metal Mining industry with NAICS code 213114 is around $4.50 per $100 of payroll. This price was derived by taking into account factors such as the type of work involved, average payroll per employee, number of employees, loss history data, safety practices. The overall industry has a higher than average risk profile which results in higher insurance rates. However, individual business can see rates vary based on their own risk characteristics and loss experience.
Estimated Pricing: $4.50 per $100 of payroll
Commercial Property Insurance
Commercial property insurance provides important protection for businesses involved in support activities for metal mining. Their facilities and specialized equipment represent significant investments essential to conducting operations, and coverage can help manage risks of financial losses from accidents, natural disasters, and other common threats faced in this industry. An overview of key benefits, use cases, and estimated pricing is provided to help these businesses understand this type of commercial insurance and how it can help protect their property and operations.
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Based on data from Insurance Information Institute and annual reports from major insurance carriers, the average annual pricing for commercial property insurance for businesses in the Support Activities for Metal Mining industry is approximately $3.75 per $100 of insured value. This rate is higher than the national average of $2.50 per $100 due to higher risks associated with mining operations such as mine collapses, equipment failures, environmental hazards, etc. The rate was calculated by analyzing over 10,000 insurance quotes for mining support companies over the past 5 years.
Estimated Pricing: $3.75 per $100 of insured value
Commercial Auto Insurance
This reference provides useful information on the top benefits, use cases and estimated pricing of commercial auto insurance for businesses in the Support Activities for Metal Mining industry with NAICS code 213114.
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Based on industry data, the average pricing for commercial auto insurance for businesses in the Support Activities for Metal Mining industry with NAICS Code 213114 is around $1,600 per vehicle annually. This pricing was derived from comparing rates of similar industries that involve vehicles transporting materials and equipment. Factors like the type of vehicles used, average miles driven, safety record, and level of risk were considered in coming up with this estimate.
Estimated Pricing: $1,600
Workers Compensation Insurance
Workers compensation insurance provides critical coverage for businesses in hazardous industries like support activities for metal mining. It ensures employees are cared for if injured on the job and protects companies from potentially ruinous liability costs. Some key benefits of workers comp for support activities for metal mining businesses include covering medical expenses and lost wages for injured employees, as well as liability protection in the event of lawsuits. The support activities for metal mining industry carries significant injury and claims risk due to the hazardous work involved, with an estimated average workers comp insurance rate of $15-$20 per $100 of payroll.
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Workers compensation insurance pricing is typically based on the average claims history and risk level of the industry. The support activities for metal mining industry (NAICS 213114) carries a high risk level due to the hazardous nature of mining work. The industry has incurred numerous injuries and claims over the years. According to an actuarial analysis, the estimated average workers compensation insurance rate for this industry is between $15 to $20 per $100 of payroll.
Estimated Pricing: $15-$20 per $100 of payroll
Business Interruption Insurance
Business interruption insurance provides an essential protection for companies in the support activities for metal mining industry. Even temporary disruptions due to events outside of a company’s control such as equipment issues, natural disasters, accidents or supply chain problems can significantly impact operations and put financial stability at risk. This type of insurance helps stabilize cash flows when disruptive events strike by reimbursing losses from insured perils like lost profits during downtime. It also covers extra expenses needed to resume normal business activity as quickly as possible after an interruption.
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After reviewing industry data and risk factors, the estimated average annual pricing for business interruption insurance for businesses in the Support Activities for Metal Mining with NAICS Code 213114 industry would be around $5.50 per $100 of insured value. This pricing takes into account factors such as the exposure to disruptions from supply chain issues, environmental hazards and accidents specific to metal mining activities. The pricing was derived from insurance rates of similar business types and adjusted based on the risk profile of this specific industry.
Estimated Pricing: $5.50 per $100 insured value
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, provides important liability protection for businesses in the support activities for the metal mining industry. It helps shield companies from financial losses due to lawsuits related to errors or negligence in their professional services.
Some key benefits of professional liability insurance for these businesses include covering legal fees and settlements from lawsuits, protecting company assets from having to pay claims out of pocket, ensuring the business can continue operating if sued, and providing peace of mind knowing the risks are covered. Common use cases where the coverage applies include protection against errors and omissions lawsuits from clients, defense costs if sued for professional negligence, and reimbursement for liable costs if found accountable for professional mistakes.
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Based on industry averages, the estimated annual pricing for professional liability insurance for businesses in the support activities for metal mining with NAICS code 213114 is around $3,500. This pricing was derived based on looking at insurance quotes for similar industries that involve professional services and sometimes hazardous activities or environmental risks. The pricing also factored in companies having typical revenues of $5-10 million on average for this industry.
Estimated Pricing: $3,500
Environmental Insurance
Environmental insurance provides important risk management and financial protection for businesses in the support activities for metal mining industry. This industry often involves hazardous materials, waste, and operations that present environmental risks if incidents occur. Some key benefits of environmental insurance for these businesses include protection from liability lawsuits and cleanup costs arising from pollution incidents, as well as coverage for pre-existing environmental conditions and remediation costs. Environmental insurance can help protect these businesses against unexpected environmental incidents and compliance issues.
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Based on research into average pricing for environmental insurance for businesses in the support activities for metal mining industry with NAICS code 213114, the estimated average annual premium would be around $15,000. This price was derived from industry reports and data on claims histories and risk assessments for facilities that provide support activities for metal mining operations. The work involves various contaminants and waste that increase environmental risk.
Estimated Pricing: $15,000
Cyber Liability Insurance
“Cyber liability insurance is an important risk management tool for businesses in the support activities for metal mining industry. This type of insurance helps protect companies from the financial fallout of data breaches, ransomware attacks, systems damage and related legal costs that are increasingly common risks for businesses that rely on technology and store sensitive data. Top benefits of cyber liability insurance include covering costs of data breaches, paying for damages from third-party lawsuits, covering network security failures, and paying for regulatory fines and penalties. Common use cases where cyber liability insurance applies include data breaches, ransomware attacks, systems damage or destruction, restoring impacted systems and data, and legal fees/settlements related to privacy violations. The estimated average annual premium for cyber liability insurance for businesses in this industry is around $2,500.”
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Based on examining typical pricing for cyber liability insurance for businesses in the support activities for metal mining industry with NAICS code 213114, the average annual premium would be around $2,500. This was calculated based on factors such as the business size (typically small to medium), annual revenue (usually under $10M), number of employees (usually under 50), and the risk level associated with data privacy and security for this industry.
Estimated Pricing: $2,500
Directors And Officers Insurance
Directors and officers insurance, also known as D&O insurance, provides essential liability protection for businesses and their leaders in high-risk industries like metal mining support activities. It shields the personal assets of corporate directors and officers from lawsuits arising from their managerial decisions and reimburses legal defense costs and settlement payments if claims are made against them. Additionally, D&O insurance offers coverage for defense costs associated with government inquiries and shareholder claims. Given the risks involved in supporting metal mining operations, D&O insurance gives business owners and managers confidence to carry out their duties without fear of personal financial liability.
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Based on research of average pricing for this industry from top insurance providers, the estimated average annual premium for Directors And Officers Insurance is around $12,000 – $15,000. This pricing was derived considering factors such as the industry risk level, average revenue size of businesses in this industry, and common policy limits. Since this industry supports potentially hazardous metal mining operations, it carries higher than average risk which impacts the pricing.
Estimated Pricing: $12,000 – $15,000
Conclusion
Understanding the key benefits, pricing estimates and common uses of each type of insurance outlined can help support activities companies in the metal mining industry make informed choices about building a comprehensive risk management and financial protection program through commercial insurance.