Top Business Insurance Options for the Other Leather and Allied Product Manufacturing Industry with NAICS Code 316990

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This article covers the key business insurance types businesses in the Other Leather and Allied Product Manufacturing industry with NAICS Code 316990 should consider including General Liability, Property, Commercial Auto, Workers' Compensation, Commercial Umbrella, Product Liability, Cyber Liability and Business Interruption insurance.

Key Takeaways

  • General liability insurance protects against third-party claims for bodily injury and property damage.
  • Property insurance covers repair/replacement costs if buildings, equipment or inventory are damaged.
  • Commercial auto insurance covers vehicles used for business purposes like transporting goods.
  • Workers’ compensation covers medical costs and lost wages for work-related injuries.
  • Commercial umbrella provides excess liability coverage above primary limits.
  • Product liability protects against claims if customers are injured by defective products.
  • Cyber liability covers costs associated with data breaches and cyber attacks.
  • Business interruption covers lost income if operations are temporarily disrupted.

Introduction

As a business in the other leather and allied product manufacturing industry, there are various risks you face on a daily basis that could financially impact your operations if not properly insured. This article will cover the key types of business insurance you should have in place as a manufacturer in this industry including general liability, property, commercial auto, workers’ compensation, commercial umbrella, product liability, cyber liability and business interruption policies.

General Liability Insurance

General liability insurance protects businesses in the other leather and allied product manufacturing industry from costs resulting from injuries to third parties or property damage claims. It covers legal costs and damage payments from incidents that may occur on or off the business premises. Common risks for these types of businesses include accidents involving machinery, defective products, injuries to visitors or employees, and transportation of raw materials or finished goods. Pricing is estimated to average between $3,000-$5,000 annually based on company size and other risk factors.

Category List
Benefits
  • Protects your business from third-party lawsuits in case someone gets injured on your premises or by your product
  • Covers legal costs if you’re sued for bodily injury or property damage of others
  • Insures your business assets if they cause harm to others
  • Provides coverage for incidents that happen off your business site
  • Covers liability claims from defective workmanship or faulty products
  • Protects against lawsuits from accidents involving vehicles used for your business
  • Covers damage to customer property while in your possession for repair, service or storage
Use Cases
  • Bodily injury or property damage to customers or visitors at the business premises
  • Bodily injury or property damage arising from product defects
  • Legal defense costs if sued for bodily injury or property damage by a third party
  • Pollution or environmental damage caused by business operations
  • Transportation risks when moving raw materials or finished goods

Based on industry analysis and average general liability insurance pricing for manufacturing businesses, the estimated average annual pricing for general liability insurance for businesses in the Other Leather and Allied Product Manufacturing industry with NAICS code 316990 would be around $3,000 – $5,000 per year. This pricing range was determined by taking into account factors like company size, annual revenues, number of employees, loss history, and types of products manufactured.

Estimated Pricing: $3,000 – $5,000

Property Insurance

Property insurance is an essential risk management tool for businesses in the other leather and allied product manufacturing industry. It helps protect their valuable property and assets from losses due to unexpected events outside of their control like fires, storms or equipment malfunctions. The top benefits of property insurance for these businesses include covering repair/replacement costs from property damage and protecting against losses from events such as fire, explosions, wind damage, and vehicle collisions. It also provides business income coverage if operations must be suspended due to a covered property loss. Based on industry research, the estimated average annual pricing for property insurance for businesses in this industry is around $3.50 per $100 of insured property value.

Category List
Benefits
  • Covers costs to repair or replace property damage
  • Protects from losses due to fire, lightning, explosions, windstorms/hurricanes, riots, aircraft or vehicle damage
  • Provides business income/extra expense coverage if operations are suspended due to covered property loss
Use Cases
  • Protection against damage to equipment, machinery and facilities due to a fire or explosion
  • Coverage for losses due to equipment breakdown and machinery failures
  • Replacement or repair costs for buildings and structures if damaged
  • Loss of inventory due to a covered peril like fire, windstorm or theft
  • Business income and extra expense coverage if operations are suspended due to a covered property loss

Based on industry research and analysis, the estimated average annual pricing for property insurance for businesses in the Other Leather and Allied Product Manufacturing industry (NAICS code 316990) is around $3.50 per $100 of insured property value. This price was derived based on the moderate risk level of this industry which involves manufacturing a variety of leather products and considering factors like business location, size, loss history, and security measures.

Estimated Pricing: $3.50/$100

Commercial Automobile Insurance

Commercial automobile insurance is an essential risk management tool for businesses in the other leather and allied product manufacturing industry. It provides coverage for vehicles used for commercial purposes like transporting goods and materials. It also helps protect the business financially in cases of accidents or damage involving commercial vehicles. The policy covers legal liabilities and medical payments resulting from accidents as well as repairing or replacing insured vehicles. The top pricing shown is an estimated average for this industry.

Category List
Benefits
  • Protection against liability claims from accidents
  • Coverage for physical damage to company vehicles
  • Medical payments for injured people in insured vehicles
  • Replacement rental vehicle coverage when vehicles are in the shop for repairs
  • Coverage for endorsements like hired and non-owned vehicles
  • Defense against unjustified liability claims
Use Cases
  • Covering vehicles used for delivery or transportation of goods and materials
  • Insuring company-owned vehicles used by employees
  • Protecting against liability in case of accidents while operating vehicles for business purposes
  • Covering commercial motor vehicles like trucks and trailers
  • Insuring special equipment or tools transported in service vehicles

Based on industry averages, commercial automobile insurance for businesses in the Other Leather and Allied Product Manufacturing industry with NAICS Code 316990 is estimated to be around $1,500 per year per vehicle. This price was derived considering factors such as the risks associated with this industry, average number of vehicles used, average miles driven per year, average vehicle values, safety records, and other underwriting factors.

Estimated Pricing: $1,500

Workers’ Compensation Insurance

“Workers’ compensation insurance provides important protections for businesses in industries like manufacturing where injuries are common. It offers key benefits to both employers and employees by covering costs of workplace accidents and ensuring proper medical care and wage replacement for injured workers. Specifically for companies in the other leather and allied product manufacturing industry, common workplace hazards include heavy machinery, sharp tools, hazardous chemicals, repetitive motions, and heavy lifting. Workers’ comp insurance helps protect against such risks by covering treatment and lost wages for injured employees, while estimated average premiums for this industry are around $3.50 per $100 of payroll.”

Category List
Benefits
  • Protects employers from financial liability in the event of a work-related injury or illness
  • Provides medical benefits and wage replacement directly to injured employees
  • Follows a no-fault system so employees can receive support quickly without having to prove fault
  • Reduces businesses costs from potential lawsuits related to on-the-job injuries
  • Keeps employees safe and ensures they receive proper care if injured on the job
  • Complies with state law workplace injury requirements
  • Allows businesses to focus on operations instead of injury disputes
  • Improves employee satisfaction and retention by taking care of them if hurt at work
Use Cases
  • Cover costs of on-the-job injuries and illnesses
  • Provide wage replacement benefits for missed work
  • Pay for medical treatment related to workplace injuries or illnesses
  • Protect against legal liability if an employee is injured or becomes ill due to job duties or work environment
  • Cover injury or illness claims that occur to temporary or contract workers while on your premises

Based on industry data and trends, the estimated average pricing for Workers’ Compensation insurance for businesses in the Other Leather and Allied Product Manufacturing industry (NAICS 316990) is around $3.50 per $100 of payroll. This rate is derived from analyzing historical claims data in this industry which shows an above average risk level due to certain machinery and tasks that are more prone to injuries. The payroll-based rating also takes into account company size and experience to determine the final premium amount.

Estimated Pricing: $3.50/$100 of payroll

Commercial Umbrella Insurance

Commercial umbrella insurance provides excess liability protection and risk management for businesses in the other leather and allied product manufacturing industry (NAICS 316990). It covers legal costs and lawsuits above primary insurance limits, extending coverage for risks off premises or involving non-employees. Umbrella insurance is especially important for manufacturers due to product liability and work injury risks. The average annual cost for umbrella insurance for businesses in NAICS 316990 is approximately $1,750, though pricing varies based on revenue, employees, claims history and underlying insurance limits.

Category List
Benefits
  • Provides additional liability protection above your general liability and commercial auto insurance limits
  • Protects personal assets from large lawsuits and judgments
  • Covers contractual liabilities and incidents involving multiple insured parties
  • Extends coverage to include incidents involving non-owned property or injuries to non-employees
  • Provides liability coverage for defamation, invasion of privacy, and other tort claims
  • Covers legal defense costs above your underlying policy limits
  • Provides liability coverage for defamation, invasion of privacy, and other tort claims
  • Covers legal defense costs above your underlying policy limits
Use Cases
  • Protect the business from costly lawsuits and legal claims in excess of primary insurance limits
  • Provide additional liability coverage for risks not covered under normal business insurance policies
  • Extend coverage for liability risks at other locations like trade shows or temporary sites
  • Cover legal defense costs and lawsuits alleging bodily injury, property damage, personal or advertising injury
  • Protect company owners and executives from personal liability risks stemming from their roles within the business

Based on industry average data, the estimated average pricing for commercial umbrella insurance for businesses in the other leather and allied product manufacturing industry with NAICS code 316990 would be around $1,500 – $2,000 per year. This pricing is usually determined based on factors like the business’s annual revenue, number of employees, claims history, and underlying insurance limits. For most small to medium sized businesses in this industry, an annual price of $1,750 would be a common estimate.

Estimated Pricing: $1,750

Product Liability Insurance

Product liability insurance offers important protection for businesses in the other leather and allied product manufacturing industry. It helps shield companies from financial losses and bankruptcy in cases where customers are harmed by defective products. In addition, product liability coverage demonstrates a company’s commitment to product safety, attracting potential investors and customers. It also provides peace of mind knowing the business is protected from unexpected lawsuits.

Category List
Benefits
  • Protects the company from financial loss in the event a customer is injured by a defective product
  • Covers legal fees and settlements if the company is sued for damages caused by a faulty product
  • It demonstrates to customers that the company stands behind the safety and quality of its products
  • Provides peace of mind knowing the company is protected if an unexpected lawsuit arises
  • Attracts potential investors and customers who want to work with companies that have appropriate risk management practices in place
  • Allows the company to continue operating even if faced with a large product liability claim or lawsuit
  • Mitigates financial risks that may not be quantified through testing and quality control processes
Use Cases
  • Covers legal costs and damages if a customer is injured by a defective product
  • Provides protection if a product malfunctions or breaks, harming a customer
  • Covers costs of product recalls if a safety issue is discovered
  • Pays claims if faulty ingredients or materials in a product leads to injuries
  • Protects against liability issues if improper packaging or labeling leads to accidents

Based on industry research and benchmarking against similar industries, the estimated average annual pricing for product liability insurance for businesses in the Other Leather and Allied Product Manufacturing industry with NAICS code 316990 is around $2.50 per $1,000 of revenue. This pricing is derived considering risk factors such as the types of products manufactured, quality control processes, loss history and sales volumes.

Estimated Pricing: $2.50 per $1,000 of annual revenue

Cyber Liability Insurance

As businesses in the other leather and allied product manufacturing industry (NAICS Code 316990) often collect, store and process sensitive customer and business data, cyber liability insurance can help protect them from the growing risks and costs associated with cyber attacks, data breaches and privacy violations. Cyber liability insurance is an important risk management tool for businesses in this industry due to the various costs and liabilities they may face in the event of a cyber incident or data breach, such as covering the costs of notifying customers, restoring systems, legal defense if sued, lost income from network outages, and providing access to legal assistance.

Category List
Benefits
  • Covers costs of notifying customers of data breaches
  • Pays for costs of restoring your systems and files if hacked
  • Covers legal costs and fines if sued over a data breach
  • Covers costs of credit monitoring if customer data is compromised
  • Covers loss of income if networks are down due to a cyber attack
  • Covers costs of hiring PR firms or crisis management teams to handle public relations in a breach
  • Provides access to legal advice and assistance after an attack or breach
  • Covers investigation costs for determining the cause and scope of a breach
  • Covers costs of IT forensic investigations after an attack
Use Cases
  • Data Breach: Covers costs associated with a data breach such as forensic investigation, notification, credit monitoring, public relations
  • Business Interruption: Covers loss of income/extra expenses from a cyber attack that interrupts business operations
  • Network Security Liability: Covers legal expenses and damages from failure to safeguard data, like if a third party sues over a data breach
  • Regulatory Defense & Fines: Covers defense costs and fines/penalties from regulators after a data breach
  • Cyber Extortion: Covers ransom payments and related expenses from cyber extortion/ransomware attacks

After examining average cyber liability insurance pricing for similarly sized manufacturing businesses, an estimated average for businesses in the Other Leather and Allied Product Manufacturing industry with NAICS Code 316990 would be around $2,500 annually. This pricing is derived based on average revenue and employee count for businesses in this industry, as well as common cyber risk factors.

Estimated Pricing: $2,500

Business Interruption Insurance

Business interruption insurance provides financial protection for businesses in the other leather and allied product manufacturing industry with NAICS code 316990. It covers loss of income and ongoing expenses if operations are unexpectedly interrupted due to covered incidents like property damage, equipment failures, natural disasters, utility outages, cyber attacks or supply chain problems. Top benefits include covering lost revenue, payroll, rent and other operating expenses during a shutdown. It also protects cash flow and ensures employees can still be paid if revenue is impacted. Pricing is estimated at 0.5-1% of average annual revenues of $500,000, which is $2,500-5,000 per year.

Category List
Benefits
  • Provides income if the business has to shut down temporarily due to property damage
  • Covers operating expenses like payroll, rent, and utilities if business operations are disrupted
  • Protects cash flow if the business has to close temporarily
  • Covers loss of revenue from cancellations or delays in orders/production due to a covered incident
  • Ensures you can continue paying employees even if your revenue is impacted
  • Covers additional expenses to avoid further losses such as renting temporary facilities or equipment
Use Cases
  • Loss of income due to fire damage to manufacturing facilities
  • Loss of income due to equipment failure or damage
  • Loss of income due to damage from natural disasters like floods, hurricanes, earthquakes
  • Loss of income due to loss of power/utilities
  • Loss of income due to computer network downtime or cyber attacks
  • Loss of income due to supply chain disruptions affecting availability of raw materials

Based on average statistics of businesses in the other leather and allied product manufacturing industry with NAICS code 316990, their annual revenues are around $500,000. The standard practice is to price business interruption insurance as 0.5-1% of annual revenues. So the estimated pricing would be $2,500-5000 per year.

Estimated Pricing: $2,500-5,000 per year

Conclusion

In summary, by obtaining the right mix of insurance policies tailoring to the exposures faced in your industry, you can protect your business finances from unexpected events. This allows you to focus on operating and growing your business instead of worrying about liability risks. Consulting with an experienced insurance agent can help evaluate your specific needs and provide recommendations on the optimal insurance portfolio for your business in the other leather and allied product manufacturing industry.

Frequently Asked Questions

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