Key Takeaways
- General liability insurance protects against lawsuits from injuries on your premises or involving your operations.
- Property insurance covers costs to repair or replace damaged equipment, facilities and inventory.
- Workers compensation provides support for employees injured on the job.
- Product liability insurance protects against claims from defective products.
- Business auto covers risks of vehicle accidents during transporting goods.
Introduction
Footwear manufacturing involves risks that business owners need to plan for. To safeguard their finances and continue operations smoothly, maintaining proper insurance coverage is essential. This article examines top types of business insurance that footwear manufacturers with NAICS code 316210 commonly need to protect their operations and bottom line.
General Liability Insurance
General liability insurance is an important type of coverage for footwear manufacturing businesses. It protects the business from financial losses due to lawsuits filed by third parties for injuries or property damage that may occur on the business’ premises or in connection with its operations and products. The average annual premium for general liability insurance for footwear manufacturing businesses is about $2,500 based on factors like business size, number of employees, revenue, claims history and location. It is a common requirement for footwear manufacturers to carry this coverage to protect against risks of accidents and injuries that may occur during manufacturing operations or other business activities.
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Based on industry data, the average annual premium for general liability insurance for footwear manufacturing businesses (NAICS 316210) is around $2,500 per year. This pricing is derived based on factors such as business size, number of employees, annual revenue/sales, prior claims history if any, and geographic location. It is a common requirement for footwear manufacturers to have general liability insurance to cover risks of accidents and injuries that may occur on their premises or during manufacturing operations.
Estimated Pricing: $2,500
Property Insurance
Property insurance is crucial for footwear manufacturing businesses to protect their valuable assets and ensure business continuity. It covers costs to repair or replace damaged equipment, facilities, inventory and other property due to covered causes of loss.
Property insurance also provides liability coverage for accidents on business premises and replacement cost coverage to fully repair or rebuild properties. Maintaining adequate insurance can help ensure the long-term stability and success of a footwear manufacturing business.
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Based on industry research and analysis, the average property insurance pricing for footwear manufacturing businesses with NAICS code 316210 is estimated to be around $5.50 per $100 of insured value. This pricing was derived based on risk factors such as machinery used in production, storage of raw materials/finished goods, industry loss statistics, building construction/fire protection etc.
Estimated Pricing: $5.50 per $100 of insured value
Workers Compensation Insurance
Workers compensation insurance provides crucial financial protection for employees and their employers in hazardous industries like footwear manufacturing. It covers medical expenses and lost wages for injuries sustained on the job, helping both workers and companies mitigate risks. Given the risks of both acute and overuse injuries in manufacturing roles like operating machinery, welding, assembly work etc insurance is important to ensure employee care and employer liability protection. Common claims for the footwear industry include lacerations, repetitive stress injuries and hearing loss highlighting the need for coverage. Insurance rates are based on factors such as industry hazards, claim histories and safety protocols adopted.
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Based on industry data, the estimated average price for workers compensation insurance for businesses in the footwear manufacturing industry (NAICS 316210) is around $3.50 per $100 of payroll. This price was derived from insurance rate filings and loss history data specific to NAICS code 316210. Factors like industry hazards, average claim costs, safety records impact pricing.
Estimated Pricing: $3.50 per $100 of payroll
Product Liability Insurance
Product liability insurance provides crucial protection for footwear manufacturers against unforeseen costs from claims of injuries or damages caused by defective products. It covers legal defense costs and settlement payments for liability claims from customers, ensuring the company’s finances are safeguarded.
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Based on industry analysis, the estimated average annual pricing for product liability insurance for businesses in the footwear manufacturing industry (NAICS 316210) is around $1.50 to $2.50 per $100 of gross receipts. The pricing is largely determined by the company’s gross sales or receipts, prior claims history (if any), and product safety protocols. Some factors like types of footwear produced and distribution channels may also impact the final pricing to some degree.
Estimated Pricing: $1.50 – $2.50 per $100 of gross receipts
Business Auto Insurance
Business auto insurance provides essential liability and property protection for companies in the footwear manufacturing industry that rely on vehicles for business operations like transporting materials and delivering finished goods.
Business auto insurance also protects footwear manufacturers from financial losses that may result from vehicle accidents during business activities. It reimburses costs of renting replacement vehicles if business vehicles are damaged and provides liability coverage for employee use of personal vehicles for work purposes. Estimated average annual pricing for business auto insurance for businesses in the footwear manufacturing industry is around $1,200 based on factors like number of vehicles, driving history, miles driven, and coverage limits.
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Based on industry averages, the estimated average annual pricing for business auto insurance for businesses in the footwear manufacturing industry with NAICS code 316210 is around $1,200. This pricing is calculated based on factors such as number of vehicles, driver accident history and violation records, average miles driven per year, and coverage limits.
Estimated Pricing: $1,200
Umbrella Insurance
Umbrella insurance provides additional liability protection above standard policies for businesses in high risk industries like footwear manufacturing. It covers costs from lawsuits, accidents and other events that could be financially devastating without this extra layer of coverage. Benefits include coverage for negligent acts not included in general liability, protection for personal assets, coverage of legal costs from lawsuits, and protection against claims of defective products. Top use cases where umbrella insurance provides value include protection from expensive product liability and employee injury lawsuits, and environmental liability claims. Pricing is typically $2,000-$5,000 annually based on business factors.
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Based on typical pricing factors such as annual revenue, number of employees, claims history, and risk level, the estimated average annual pricing for umbrella insurance for businesses in the footwear manufacturing industry with NAICS code 316210 would be $2,000-$5,000. Umbrella insurance provides additional liability coverage above the limits of the primary general liability and automobile policies. Pricing is usually determined based on the coverage amounts required.
Estimated Pricing: $2,000-$5,000
Directors And Officers Insurance
Directors and officers insurance, also known as D&O insurance, provides liability protection for company directors, officers, and managers against claims of wrongful acts, such as errors, omissions, misstatements, misleading statements, and neglect of duties. D&O insurance helps protect the personal assets of directors and officers if their company is sued. D&O insurance also helps footwear manufacturing companies retain qualified leadership by providing them protection against costly lawsuits. It signals to investors and other stakeholders that the company cares about protecting its directors and officers from litigation risks. D&O insurance is especially important for the footwear manufacturing industry due to the risks of product liability lawsuits, workplace injuries, and other legal claims that are common in this industry.
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Based on research of average pricing for directors and officers insurance for businesses in the footwear manufacturing industry (NAICS 316210), the estimated annual premium would be between $5,000 to $10,000. This pricing is typical for small to medium sized businesses in this industry and is calculated based on factors like annual revenue, number of employees/directors, litigation risk level, and prior claims experience.
Estimated Pricing: $5,000-$10,000
Conclusion
By understanding risks specific to footwear manufacturing and selecting insurance options tailored to their needs, business owners can minimize the impact of potential losses. With proper coverage in place, they can focus on growing their business knowing their assets, staff and reputation are shielded from unexpected events.