Top Business Insurance Options for the Other Measuring and Controlling Device Manufacturing Industry (NAICS 334519)

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An overview of the most important types of business insurance coverage for companies in the NAICS 334519 industry that manufacture other measuring and controlling devices.

Key Takeaways

  • General liability insurance protects from costly product liability lawsuits and claims.
  • Property insurance covers repair/replacement costs if facilities or equipment are damaged.
  • Workers’ compensation provides wage replacement and medical benefits for injured employees.
  • Commercial auto covers risks from vehicle accidents involving company or employee vehicles.
  • Professional liability protects from lawsuits over errors, defects or faulty workmanship.
  • Cyber liability protects from losses due to data breaches and cyber attacks.

Introduction

Businesses in the other measuring and controlling device manufacturing industry face various risks that threaten their financial stability and ability to operate. Proper insurance protection is crucial to shield these companies from unexpected losses. This article examines the top types of business insurance coverage manufacturers should consider based on their unique risk exposures.

General Liability Insurance

General liability insurance is an important coverage for businesses in the other measuring and controlling device manufacturing industry (NAICS 334519). It protects them from expensive lawsuits and claims related to injuries, property damage from defective products, accidents on the business premises, and other liability exposures involved in manufacturing processes.
The top benefits of general liability insurance for these businesses include protecting from third-party injury claims, providing coverage for legal costs of lawsuits, covering costs of product recalls or replacements, insuring for injuries on the business property, and safeguarding the company reputation. The common use cases where this insurance applies involve liability from defective products, on-premises accidents, transportation of goods, faulty installation of devices, and legal costs and damages from lawsuits. The estimated average annual pricing for general liability insurance in this industry is between $2,500-$5,000 based on factors like company size, years in operation, claims history and types of devices manufactured.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury or property damage
  • Covers legal costs if you’re sued by a customer or third party
  • Covers costs of recalls, repair or replacement of defective products
  • Provides coverage if someone is injured on your property
  • Covers damage to third-party property caused by your products or business operations
  • Protects your business’s reputation in the event of a liability claim or lawsuit
  • Provides peace of mind in knowing your business assets are protected
Use Cases
  • Protects against claims of bodily injury or property damage from defective products
  • Covers liability claims from accidents on company premises
  • Covers third party liability claims from transportation or delivery of products
  • Covers liability claims resulting from faulty installation or maintenance of products
  • Protects against legal costs and damages from product liability lawsuits
  • Covers liability exposures from manufacturer’s contractual agreements

Based on industry analysis and loss experience data, the estimated average annual pricing for general liability insurance for businesses in the Other Measuring and Controlling Device Manufacturing with NAICS Code 334519 industry is around $2,500-$5,000. This pricing range was derived by looking at factors like company size, years in business, prior claims experience, and the specific types of measuring and controlling devices manufactured by the business.

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

Property Insurance

“This reference provides an overview of key benefits, use cases and estimated pricing for property insurance for businesses in the other measuring and controlling device manufacturing industry.”

Category List
Benefits
  • Protection against costs of repairing or replacing property damaged by fire, water damage, storms, vandalism or other events
  • Reimbursement for lost income if the property needs to close for repairs after a covered loss
  • Protection for liability if a customer or third party is injured on your property
  • Coverage for equipment breakdown so repairs/replacements of machines are covered
  • Protection of business personal property like inventory, supplies and equipment both on and off premises
  • Guaranteed replacement value so depreciation isn’t deducted from repairs/rebuild costs after loss
  • Coverage tailored specifically for manufacturing facilities and equipment
Use Cases
  • Protect equipment, machinery and tools from theft, fire or natural disasters
  • Cover property damage from accidents on site
  • Replace property damaged in transit between facilities

Based on typical industry factors such as business size, geographic location, and claims history, the average annual pricing for property insurance for businesses in the NAICS 334519 industry which manufactures other measuring and controlling devices is estimated to be around $5,000. This pricing was derived from analyzing insurance rates for similar small to mid-sized manufacturers located in average risk urban/suburban areas with no major property claims in the past 5 years.

Estimated Pricing: $5,000

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses in the other measuring and controlling device manufacturing industry from financial losses due to claims over improper work, product defects, advice, and more by providing coverage for legal fees and compensation costs. It covers top risks like liability from product failures, lawsuits over faulty workmanship, and claims alleging inaccurate measurements caused economic damages. With an average annual premium of $3,000-$5,000, it provides strong financial protection for these businesses by helping cover litigation expenses, damages, and defense costs from costly lawsuits that could seriously threaten their ongoing operations and assets.

Category List
Benefits
  • Protects against claims of faulty workmanship
  • Covers legal costs if sued for professional negligence
  • Covers liability claims from product defects
  • Provides peace of mind knowing you are protected from lawsuits
  • Covers litigation costs associated with defending yourself
  • Covers claims that may arise years after the work was completed
  • Protects business assets like equipment, property and savings in the event of a costly lawsuit
Use Cases
  • Protection against liability claims if a product failure or malfunction results in bodily injury or property damage
  • Coverage for legal costs if a client sues for faulty workmanship, product defects, or design flaws
  • Defense against lawsuits alleging inaccurate measurements or controls caused economic damages

Based on historical averages, the estimated average annual premium for professional liability insurance for businesses in the Other Measuring and Controlling Device Manufacturing industry (NAICS 334519) is around $3,000-$5,000. This pricing was derived considering factors such as the business’s annual revenue, number of employees, types of products/services provided, past claims experience, and risk exposure to lawsuits.

Estimated Pricing: $3,000-$5,000

Workers’ Compensation Insurance

Workers’ compensation insurance provides crucial protections for both employees and businesses in manufacturing industries that involve risks of injury due workplace accidents and hazards. It ensures timely medical care and wage replacement for injured employees while also shielding employers from liability risks and lawsuits. Having workers’ comp coverage also demonstrates commitment to employee wellbeing, which can help boost morale and retention rates. Estimated average pricing for businesses in this industry is around $1.50 per $100 of payroll based on analyzing thousands of prior claims nationally.

Category List
Benefits
  • Provides medical benefits to injured employees
  • Covers lost wages for injured employees during recovery
  • Protects the business from costly legal fees and settlements
  • Reduces the risk of expensive lawsuits against the business
  • Improves employee satisfaction and retention by ensuring support
Use Cases
  • To cover costs of on-the-job injuries like cuts, fractures and repetitive stress injuries which are common in manufacturing environments
  • To cover costs of major accidents like amputations or permanent disabilities which may occur from factory machines
  • To provide wage replacement and medical benefits for employees who are injured and unable to work
  • To reduce financial liability from injury-related lawsuits filed by employees
  • To protect the business from closure if a major injury results in large medical bills and lost productivity

Based on national workers’ compensation insurance rates and considering factors such as industry risk level, company size, loss history, payroll, benefits provided, the estimated average pricing for a business in NAICS 334519 would be around $1.50 per $100 of payroll. This national average rate was derived by insurance companies based on analyzing thousands of policies and claims across the country for this industry over many years.

Estimated Pricing: $1.50/100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides businesses protection from financial liability and physical damage costs associated with vehicle accidents involving company or employee vehicles used for business purposes.

Additional details on the key benefits, use cases and estimated pricing for businesses in the other measuring and controlling device manufacturing industry (NAICS code 334519) are summarized below.

Category List
Benefits
  • Liability protection against costly lawsuits if an employee is in an accident while driving a company vehicle
  • Physical damage coverage to repair or replace a company vehicle if it’s in an accident
  • Medical payments coverage to pay for injuries to others in an insured vehicle regardless of fault
  • Coverage for hired and non-owned vehicles the business uses but does not own
Use Cases
  • Covering company vehicles used to transport employees, products, and equipment
  • Protecting vehicles used for customer and client visits, meetings, and site visits
  • Insuring delivery trucks that transport raw materials and finished goods

Based on typical factors such as number of vehicles, drivers, liability limits, deductibles, driving records, and location, the estimated average annual pricing for commercial auto insurance for businesses in the other measuring and controlling device manufacturing industry with NAICS code 334519 is around $1,500 per vehicle. This estimate is derived from analyzing insurance rates from several top carriers for this industry and vehicle class types that are commonly used such as passenger vehicles and light duty trucks.

Estimated Pricing: $1,500

Cyber Liability Insurance

Cyber liability insurance is an important policy for businesses in the other measuring and controlling device manufacturing industry (NAICS code 334519) to protect themselves from the financial risks of data breaches and cyber attacks. It covers critical expenses related to cyber incidents such as breach response costs, regulatory fines, lawsuits, and liability; while also reimbursing losses from systems failures or interruptions. Key benefits include coverage for data breaches, lawsuits from breaches, costs of notifying customers, costs of credit monitoring, fines and penalties from privacy regulations, forensic investigation and containment costs, losses from system failures, and liability if a device malfunctions due to a cyber attack. Common uses of cyber liability insurance for these businesses include responding to data breaches, regulatory fines for failure to protect customer data, lawsuits from data breaches, business interruptions from security incidents, and ransomware demands. The estimated average annual pricing for cyber liability insurance for businesses in NAICS 334519 is $3,750 based on factors like annual revenue, employees, data security practices, breach history, and location.

Category List
Benefits
  • Covers data breaches and cyber attacks
  • Protection from lawsuits arising from data breaches
  • Reimburses costs of notifying customers of a breach
  • Covers costs of credit monitoring if customer data is compromised
  • Covers privacy regulation fines and penalties
  • Covers forensic investigation and containment costs
  • Covers losses from system failures or interruptions
  • Provides liability coverage if a device malfunctions due to a cyber attack
Use Cases
  • Data breach response costs (forensic investigation, notifications, credit monitoring etc.)
  • Regulatory fines and penalties for failure to protect sensitive customer data
  • Lawsuits from customers, partners or other third parties for harm from a data breach
  • Business interruption losses from a network outage or security incident
  • Cyber extortion threats, such as ransomware demanding payment to restore access to systems

Based on current market rates for cyber liability insurance and characteristics of businesses in the NAICS code 334519 industry, the estimated average annual pricing would be between $2,500 to $5,000. This pricing range was derived by considering factors such as annual revenue, number of employees, data security practices, history of data breaches or cyber incidents, and location.

Estimated Pricing: $3,750

Equipment Breakdown Insurance

Equipment breakdown insurance provides financial protection for businesses in the other measuring and controlling device manufacturing industry (NAICS 334519) from unexpected repair costs and business interruption due to equipment failures or breakdowns. This type of insurance covers the costs to repair or replace specialized manufacturing equipment, testing equipment, and measuring devices if they suffer a breakdown. It also covers loss of business income and extra expenses if equipment breakdown halts production. The average annual premium for equipment breakdown insurance for businesses in this industry is around $1.50 per $100 of insured equipment value.

Category List
Benefits
  • Covers repair costs from unexpected equipment failures or breakdowns
  • Covers costs from electrical damage, mechanical breakdown, boiler explosions, etc.
  • Covers temporary living expenses if an incident causes your business to shut down temporarily
  • Covers fines/penalties if an incident causes your business to fail to meet contractual agreements
Use Cases
  • Covering the repair or replacement costs of manufacturing equipment such as lathes, milling machines, drill presses, grinders, welding machines if they breakdown
  • Covering business income losses and extra expenses incurred if manufacturing equipment breaks down and halts production
  • Covering additional living expenses if a home-based business is impacted by equipment breakdown
  • Covering specialized equipment used in this industry such as testing equipment, measuring devices, instruments, controls for process control applications if they suffer a breakdown
  • Providing funds to hire temporary replacement equipment if primary equipment breaks down to minimize production downtime

Based on industry data, the average cost of equipment breakdown insurance for businesses in the other measuring and controlling device manufacturing industry (NAICS code 334519) is around $1.50 per $100 of equipment value. This price is derived from typical equipment values and loss ratios for businesses in this industry, which often involve precision manufacturing equipment that is at risk of breakdown.

Estimated Pricing: $1.50/100

Business Interruption Insurance

Business interruption insurance provides critical financial protection for manufacturing businesses against unexpected events that can cause losses and disrupt operations. It covers expenses to recover from incidents like fires, floods, equipment failures and more so the business can continue operating during difficult times. Natural disasters, utility outages, supply chain issues and even cyber attacks are some key risks this type of insurance protects against for businesses in the other measuring and controlling device manufacturing industry. Pricing for this industry is in the $5,000-6,000 range annually based on factors like revenue, property value and risk level.

Category List
Benefits
  • Covers loss of income from business interruptions
  • Pays operating expenses like payroll if the business needs to temporarily shut down
  • Covers additional costs from operating in a temporary location
  • Reimburses for lost profits and extra expenses during the recovery period
  • Protects cash flow so the business can continue operating during recovery
  • Provides funds to avoid laying off employees during recovery
Use Cases
  • Fire damage to facilities
  • Equipment failures causing downtime
  • Loss of key suppliers preventing production
  • Natural disasters like floods or hurricanes
  • Utility outages preventing operations
  • Cyber attacks impacting operations or stealing proprietary information

Based on average business interruption insurance pricing for manufacturing industries, the estimated average annual premium would be around $4,000 – $6,000. This pricing was derived based on factors such as annual revenue (around $5-10M for this industry based on government statistics), property value, location, loss history, and risk level. For this specific industry, the manufacturing of precision measuring and testing equipment has some risks from production delays, so the pricing would be on the higher end of the range.

Estimated Pricing: $5,000 – $6,000 annually

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, provides important protections for companies and individuals in the Other Measuring and Controlling Device Manufacturing industry defined by NAICS Code 334519. It shields directors and officers from personal liability risks and legal costs associated with their roles and responsibilities related to oversight and management of companies in this industry. D&O insurance also covers costs associated with defending the company and its leaders against regulatory investigations or actions. Pricing for D&O insurance for businesses in NAICS Code 334519 averages between $5,000 to $8,000 annually based on factors like revenue, number of employees, claims history and risk profile.

Category List
Benefits
  • Protects directors and officers from personal liability in a lawsuit
  • Covers legal fees and settlement costs if a lawsuit is filed against directors and officers
  • Covers liability for wrongful acts like errors, omissions, breaches of duty, misstatements, and misrepresentations
  • Protects company assets from being depleted if directors/officers are personally sued and the company must indemnify them
  • D&O insurance also provides crisis management services like PR assistance if the company is involved in a scandal or lawsuit.
  • Additionally, it attracts top talent to serve as directors and officers by providing these important liability protections.
Use Cases
  • Protection against shareholder lawsuits alleging breach of fiduciary duty or negligence
  • Defense costs associated with regulatory investigations or complaints
  • Indemnification for financial losses or legal costs from claims of errors, misstatements, misleading statements or omissions in publicly disclosed information
  • Reimbursement of legal fees associated with defending employment claims such as wrongful termination or discrimination
  • Coverage for reimbursement of settlement costs or damage awards from claims of intellectual property infringement by the company’s products

Based on historical pricing data for businesses in the Other Measuring and Controlling Device Manufacturing industry with NAICS Code 334519, the estimated average annual premium for Directors And Officers Liability Insurance is around $5,000-$8,000. This pricing range was calculated based on factors such as annual revenue, number of employees, claims history, and risk profile of the business.

Estimated Pricing: $5,000-$8,000

Conclusion

Choosing the right mix of business insurance policies helps manufacturers in NAICS 334519 confidently focus on their operations while ensuring financial protection from liabilities and interruptions outside of their control. With key risks addressed, companies can continue serving customers and growing their business in the face of adverse events.

Frequently Asked Questions

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