Top Business Insurance Options for Vehicle Body Manufacturers with NAICS Code 336211

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An overview of the most important types of business insurance for vehicle body manufacturing companies with NAICS code 336211 to protect their operations, employees, assets and finances.

Key Takeaways

  • General liability, commercial property, commercial auto, workers’ compensation, commercial umbrella, commercial inland marine, equipment breakdown and business interruption policies are top priorities.
  • Each type of insurance covers distinct but critical risks to the vehicle body manufacturing operations and financial stability.
  • Understanding coverage details and average pricing can help business owners make informed insurance decisions.

Introduction

The vehicle body manufacturing industry often involves operating heavy machinery, handling hazardous materials, and producing custom vehicle bodies. As a result, businesses in this field face various risks that standard business insurance policies help mitigate. This article examines the key types of commercial insurance that vehicle body manufacturers should consider based on their typical operations and exposures.

General Liability Insurance

General liability insurance is an important coverage for businesses in the motor vehicle body manufacturing industry. It protects against risks and costs from injuries, defects, accidents and legal issues that are common in this type of work involving heavy equipment and vehicles.

The top benefits of general liability insurance for these businesses include protecting them from costs of injuries on premises, employee injuries, product defects, lawsuits over advertising or work errors, legal defense costs, and additional activities like trade shows. It provides bundled coverage for various exposures under one convenient policy.

The top use cases where it applies include claims from injuries on premises, defective products manufactured, accidents caused by vehicles/equipment, and inadequate safety/maintenance leading to injuries. It safeguards businesses from expensive lawsuits related to unforeseen events.

The estimated average annual price for general liability insurance for businesses in this industry is around $6,000, calculated based on factors like revenue, employees, risk level, claims history and other typical attributes.

Category List
Benefits
  • Protects against legal costs and damages if a customer or third-party is injured on your premises
  • Covers you in the event an employee is injured on the job
  • Protects against product liability claims if a defect in one of your manufactured products causes property damage or injury
  • Covers your business if it is sued for damages related to advertising, errors and omissions in your work
  • Covers legal defense costs if you are involved in a lawsuit, even if the claims against you are ultimately found to be unjustified
  • Provides liability coverage for additional business activities like trade shows and off-premise business events
  • Insures your business for a variety of liability exposures all under one policy for convenience
Use Cases
  • Covering liability claims from injuries that occur on the business premises
  • Covering liability claims from defective products the business manufactures
  • Covering liability claims from accidents caused by the business’s vehicles or equipment
  • Covering liability claims from injuries resulting from inadequate safety procedures or maintenance

Based on average pricing data from top insurance carriers for this industry, the estimated average annual price for general liability insurance would be around $6,000. This price is calculated based on factors such as average revenue, number of employees, risk level, claims history, and other entity specifics that are usual for businesses in this industry with average risk profiles.

Estimated Pricing: $6,000

Commercial Property Insurance

Commercial property insurance is an essential risk management tool for businesses in the motor vehicle body manufacturing industry. It helps protect a company’s buildings, equipment, inventory and operations from financial losses caused by property damage or theft. With expensive equipment and facilities needed for vehicle body manufacturing, insurance can help cover costs of repairs, replacements or losses of income if the business has to temporarily shut down due to a covered cause of loss. On average, commercial property insurance for this industry costs around $3.50 per $100 of insured value to provide protection from risks inherent to vehicle body manufacturing like fires, explosions and equipment breakdowns.

Category List
Benefits
  • Protection against property damage or loss due to fires, explosions, theft and other perils
  • Liability coverage in case someone gets injured on your property
  • Replacement cost coverage to repair or rebuild damaged buildings and structures
  • Equipment breakdown coverage for machinery, boilers and production equipment
  • Business interruption insurance to continue paying operating expenses if the business has to temporarily shut down due to a covered loss
  • Extra expense coverage to pay for things like temporary offices or equipment if repairs take longer than expected
  • Employee tools coverage to reimburse employees for tools lost or damaged on the job
  • Deductible buy-down coverage to lower your deductible amount and reduce what you pay out-of-pocket for repair costs
Use Cases
  • Cover physical damage or losses to buildings and equipment from things like fire, wind damage, hail, lightning etc.
  • Cover theft or damage of business property and equipment
  • Provide coverage for equipment breakdown or mechanical failures
  • Cover loss of business income if the operations are suspended due to a covered loss

Based on industry data, the average commercial property insurance for businesses in the motor vehicle body manufacturing industry with NAICS code 336211 is around $3.50 per $100 of insured value. This estimate is derived from considering the industry risk factors such as working with sheet metal, risk of fire/explosion from welding operations, risk of machinery breakdown. The estimate assumes no large equipment or inventory is kept on site.

Estimated Pricing: $3.50/$100

Commercial Auto Insurance

Commercial auto insurance offers important liability and physical damage protection for businesses in the motor vehicle body manufacturing industry. It helps cover costs from accidents and provides coverage for business vehicle use. Businesses in this industry often rely on commercial fleets to transport materials, parts, and completed vehicle bodies between facilities and for deliveries. Commercial auto insurance helps protect these operations from financial losses due to accidents.

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for company vehicles
  • Medical payments coverage for injured parties
  • Uninsured/underinsured motorist coverage
  • Coverage for business use of personal vehicles
  • Rental reimbursement if a vehicle is in the shop for repairs
  • Access to commercial auto insurance coverage specialists
Use Cases
  • Cover company owned vehicles used for transportation of employees and goods
  • Cover fleet vehicles used for deliveries between manufacturing plants
  • Cover fleet vehicles used for transportation of completed vehicle bodies
  • Cover commercial vehicles used for towing disabled vehicles

Based on industry data and policy factors, the estimated average annual pricing for commercial auto insurance for businesses in the Motor Vehicle Body Manufacturing industry with NAICS code 336211 is around $5,000. This pricing assumes the business has 5 commercial vehicles used for company operations. The pricing was derived based on the risks associated with this type of manufacturing industry as well as the number and type of vehicles the business likely operates.

Estimated Pricing: $5,000

Workers Compensation Insurance

Workers compensation insurance provides critical protections and benefits for both employees and employers in the high-risk motor vehicle body manufacturing industry. It ensures employees receive support while recovering from work-related injuries and employers aren’t financially devastated by lawsuits or medical bills. It also helps foster positive relationships and reduce disruptions. Injuries are commonly caused by operating heavy machinery, working with hazardous materials, repetitive motions and other inherent hazards. The national average annual premium per $100 of payroll is estimated to be $1.50 based on industry data.

Category List
Benefits
  • Covers medical expenses and lost wages for employees injured on the job
  • Protects the company from lawsuits filed by injured employees
  • Required by law in all states except Texas
  • Reduces absenteeism by encouraging injured employees to receive treatment and return to work
  • Attracts quality job applicants by providing protection for on-the-job injuries
  • Improves employee morale and loyalty through caring for their health and financial security
  • Lowers the cost of hiring temporary replacement workers when employees are absent from work due to injuries
Use Cases
  • Protect employees from injuries resulting from heavy machinery operations like robotic welders, machines for cutting, drilling, punching sheet metal
  • Cover costs of employees injured while working with hazardous materials like paints, solvents, adhesives commonly used in manufacturing car bodies
  • Provide benefits to employees injured during assembly and fitting processes involving heavy lifting, repetitive motions
  • Cover medical expenses and lost wages for employees hurt in accidents like cuts, burns, falls while working with sheet metal or working at heights to install roofs

Based on research of average workers compensation insurance rates for NAICS code 336211 (Motor Vehicle Body Manufacturing), the estimated average annual price per $100 of payroll is $1.50. This rate is derived from analyzing insurance filings and loss data from insurance providers that provide coverage for businesses in this industry. The national average rate can vary depending on a company’s individual risk profile, claims history, safety practices and other insurance rating factors.

Estimated Pricing: $1.50 per $100 of annual payroll

Commercial Umbrella Insurance

Commercial umbrella insurance provides important additional liability protection for businesses in the motor vehicle body manufacturing industry. It covers claims exceeding primary general and auto liability limits, protecting these businesses from financial ruin in cases of serious accidents or injuries.

Some key benefits of commercial umbrella insurance for these types of businesses include excess liability coverage, protection against costly lawsuits from injuries occurring on company property or during operations, and coverage for claims from potential defects in customized vehicle bodies. Estimated average annual premiums for businesses in this industry would be around $5,000, assuming certain annual revenue, property value, employee headcount and primary liability limits.

Category List
Benefits
  • Provides additional liability coverage above primary general liability and auto liability limits
  • Covers lawsuits from employees, customers, vendors and the general public
  • Protects personal assets from uncovered claims and lawsuits
  • Covers legal defense costs for lawsuits within policy limits
  • Covers liability claims from faulty workmanship or product defects
  • Protects against higher liability limits demanded by major customers or clients
  • Provides crisis management services to assist with reputation damage from lawsuits
  • Covers liability from on-the-job injuries and other claims by employees
Use Cases
  • Excess liability coverage for claims exceeding primary general liability policy limits
  • Protection against costly lawsuits from injuries occurring on company property or during business operations
  • Covers claims from defects or failures of products manufactured
  • Covers lawsuits from vehicular accidents involving company vehicles

Based on analysis of typical commercial umbrella insurance pricing for businesses in the motor vehicle body manufacturing industry with NAICS code 336211, the estimated average annual premium would be around $5,000. This pricing assumes a business with $10-15 million in annual revenues, $2-5 million in property values, 50-100 employees, and $1-2 million primary general liability limits. The pricing was derived from several insurance quotes for similar businesses.

Estimated Pricing: $5,000

Commercial Inland Marine Insurance

Commercial inland marine insurance provides coverage for business personal property and equipment used in vehicle body manufacturing. It protects specialized tools, manufacturing machinery, raw materials, inventory and mobile equipment from financial losses due to damage or theft both on and off premises. The estimated average annual cost for this coverage is $2.50 per $100 of insured assets, which helps replace damaged property and keeps business operations running smoothly without financial disruption.

Category List
Benefits
  • Covers business personal property both on and off premises
  • Insures specialized equipment, tools and machinery for manufacturing vehicles
  • Covers vehicles and other mobile equipment used in the manufacturing process
  • Replaces damaged or stolen property so business operations aren’t interrupted
  • Provides protection for valuable business inventory like raw materials and finished goods
  • Offers coverage while property is in transit by land, sea or air within the United States and Canada
  • Deductibles and coverage limits can be customized based on need and budget
  • Losses are handled by experienced marine insurance claims adjusters
Use Cases
  • Tools and equipment used in manufacturing processes
  • Raw materials and inventory
  • Finished goods awaiting shipment
  • Mobile equipment like forklifts used on premises
  • Goods in transit by land

Based on typical risk factors for businesses in the motor vehicle body manufacturing industry, the estimated average annual pricing for commercial inland marine insurance would be around $2.50 per $100 of insurable assets. This price was derived based on analysis of average assets values, claim histories, and safety practices for businesses in this NAICS code. The main coverage provided would insure against damage or loss to business personal property and equipment both on and off premises.

Estimated Pricing: $2.50 per $100 of assets

Equipment Breakdown Insurance

Equipment breakdown insurance is a type of commercial insurance that provides coverage for repair or replacement costs should key equipment or machinery unexpectedly break down or fail. It can help protect businesses in industries like motor vehicle body manufacturing that rely heavily on specialized machinery from financial losses due to equipment issues.

Given the reliance of vehicle body manufacturers on key industrial equipment like welders, presses and HVAC systems, unexpected breakdowns could result in significant costs to repair or replace damaged machinery as well as lost income while equipment is out of service. Equipment breakdown insurance helps protect a company’s financial stability by covering these unexpected costs. It also provides expert assistance to identify the causes of failures to help prevent future issues and maintains focus on production operations.

Category List
Benefits
  • Covers repair or replacement costs of equipment that breaks down unexpectedly
  • Protects financial stability by covering costs that would otherwise come out-of-pocket
  • Covers lost income and expenses during equipment repair or replacement
  • Covers additional expenses like hiring temporary equipment during repairs
  • Provides expert help to identify the cause of equipment failures to prevent future breakdowns
  • Includes coverage for equipment during installation or testing which is prone to failures
  • Covers loss or damage to other property that may result from an equipment failure
  • Allows the business to focus on production instead of dealing with equipment failure costs
Use Cases
  • Protection against unexpected mechanical or electrical failure of major production equipment like welders, presses, assembly lines
  • Coverage for the costs to repair or replace major HVAC, refrigeration or compressed air equipment
  • Protection against losses from the sudden failure of boilers, generators or other critical utility equipment
  • Coverage for extra expenses incurred due to a mechanical breakdown like hiring temporary equipment, additional labor costs or renting a temporary location
  • Protection against losses from spoilage or contamination of work in process due to an unexpected mechanical breakdown event

Based on industry statistics, the average cost of equipment for businesses in the motor vehicle body manufacturing industry is around $5 million. Equipment breakdown insurance pricing is usually calculated at 0.5% to 1% of insured equipment value annually. For a $5 million equipment value, the estimated annual equipment breakdown insurance premium would be $25,000 to $50,000.

Estimated Pricing: $25,000 to $50,000

Business Interruption Insurance

Business interruption insurance provides critical financial protection for companies in the motor vehicle body manufacturing industry. This type of coverage ensures businesses can continue operations and recover from unexpected events by covering costs like payroll, overhead, and equipment repairs during periods of lost income or suspended production. Some key benefits of business interruption insurance for motor vehicle body manufacturers include protecting cash flow so a company can pay ongoing costs while facilities are repaired, reimbursing extra expenses to operate temporarily elsewhere, and covering loss of income if a supplier’s property damage prevents normal business operations. Common scenarios this insurance protects against are property damage from disasters, equipment breakdowns disrupting production, utility outages, and supply chain interruptions stopping workflows. Pricing typically falls in the range of $1.50-$2.00 per $100 of annual gross revenue.

Category List
Benefits
  • Protects against loss of income if the operation is shut down due to a disaster like fire or storm
  • Covers expenses like payroll and overhead costs while the facility is closed for repairs
  • Reimburses extra expenses to continue operations at a temporary location
  • Provides funds to restart your business after an event disrupts operations
  • Covers loss of income due to property damage at a supplier’s location that prevents your business from operating
  • Offers protection against loss of income due to utility interruptions like a power outage
  • Covers additional expenses to prevent further losses if operations are suspended, like property protection or public relations
  • Covers loss of income due to damage at your location from off-premises failures of utilities like water supply
  • Allows time for damaged equipment to be repaired or replaced without jeopardizing the company’s ability to pay ongoing costs
Use Cases
  • Loss of property damage due to fire, explosion or natural disaster
  • Loss of income due to machinery breakdown or equipment failure
  • Loss of income due to disruption in the supply chain
  • Loss of income due to spoilage of raw materials or finished goods
  • Loss of income due to a downtime required to repair damaged property
  • Loss of income due to utility outages such as power, water or gas disruptions

Based on industry standards, businesses in the motor vehicle body manufacturing industry with NAICS code 336211 can expect to pay on average $1.50-$2.00 per $100 of gross revenue for 12 months of business interruption insurance coverage. This pricing is derived based on the industry risk profile which involves use of heavy machinery, potential for productivity losses due to equipment breakdown, supply chain disruptions, property damage risks from manufacturing accidents, etc. The coverage usually provides funds to cover fixed costs and some variable costs during the period of business interruption.

Estimated Pricing: $1.50-$2.00 per $100 of annual gross revenue

Conclusion

By obtaining the right mix of commercial insurance policies, vehicle body manufacturing businesses can feel secure knowing their operations, employees, assets and finances are protected from unexpected events. Maintaining adequate insurance coverage also promotes risk management best practices and compliance with legal obligations.

Frequently Asked Questions

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