Key Takeaways
- General liability insurance protects against lawsuits from injuries on premises or defects in products
- Property insurance covers damage or destruction of buildings, equipment and inventory from disasters
- Product liability insurance protects against lawsuits if manufactured products cause injuries
- Workers compensation insurance covers medical expenses and lost wages from job injuries
- Business interruption insurance covers lost income if operations are disrupted
- Automobile insurance covers vehicles used for transporting materials and employees
- Directors and officers liability insurance protects executives from lawsuits over business decisions
- Cyber liability insurance is important given sensitive health data these companies may store
Introduction
The ophthalmic goods manufacturing industry involves precision equipment and processes for creating eye care products. It also often handles sensitive patient information. As a precision manufacturing industry, disruptions to equipment or supplies could significantly impact operations, making certain insurance policies like business interruption critical. As a result, these businesses face risks that require certain types of insurance protection. The top policies they should consider include general liability, property, product liability, workers compensation, and business interruption coverage.
General Liability Insurance
General liability insurance is an important type of coverage for businesses in the ophthalmic goods manufacturing industry. It provides protection from costly legal claims and settlements that could arise from injuries related to defective medical products or accidents on business premises. This type of insurance is especially critical for companies manufacturing eye-related medical devices and equipment, as defects could potentially cause serious injuries. With the average annual cost being $2,000-$3,000 depending on risk level, it is well worth the investment to protect the business from potentially devastating financial losses and ensure the risks don’t bankrupt the company.
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Based on industry research, the average annual cost for general liability insurance for businesses in the ophthalmic goods manufacturing industry with NAICS code 339115 is around $2,000-3,000. This pricing is derived based on the industry risk level and average claims data. Businesses in this industry that manufacture medical devices generally have higher risks and are priced closer to $3,000 while businesses focused more on manufacturing non-medical products like glasses lenses are priced closer to $2,000.
Estimated Pricing: $2,000-$3,000
Property Insurance
Property insurance is an important risk management tool for businesses in industries like ophthalmic goods manufacturing. It can provide protection for property, equipment, inventory and business income from losses due to accidents, disasters and other unexpected events. The top benefits of property insurance for ophthalmic goods manufacturers include protection of critical assets, reimbursement for losses up to policy limits, coverage for additional expenses like temporary relocation costs, and ability to replace damaged equipment and resume operations quickly. Common use cases where property insurance provides coverage include damage to buildings, valuable manufacturing equipment, raw materials, and loss of business income if operations are disrupted. On average, property insurance for this industry costs around $3.50 per $100 of insured value based on its moderate risk level and typical deductibles and coverage options.
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Based on industry data and typical pricing models, the estimated average annual cost of property insurance for businesses in the Ophthalmic Goods Manufacturing industry with NAICS code 339115 would be around $3.50 per $100 of insured value. This price was calculated based on the industry’s risk level, which is moderate, as well as typical policy deductibles and coverage options. Manufacturing businesses often insure both buildings and equipment for replacement value coverage.
Estimated Pricing: $3.50 per $100 of insured value
Product Liability Insurance
Product liability insurance provides critical protection for businesses in the ophthalmic goods manufacturing industry. This type of insurance covers costs and legal fees associated with product defects or injuries that may occur from manufactured medical devices and equipment. It helps address financial risks if sued, protects assets, demonstrates responsibility, and helps meet standards. Common claims involve injuries from defects in eyewear, lenses, or other ophthalmic devices.
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Based on industry data, the average product liability insurance pricing for businesses in the ophthalmic goods manufacturing industry with NAICS code 339115 is around $2.50 per $1000 of gross sales. This pricing was derived from analyzing insurance quotes and policies of similar businesses manufacturing medical devices and equipment that can be implanted or have potential risks of injury. The higher risks associated with implants or medical equipment lead to this average estimated price.
Estimated Pricing: $2.50/1000 of gross sales
Workers Compensation Insurance
Workers compensation insurance provides important protections for businesses in the ophthalmic goods manufacturing industry. As an industry that involves the use of equipment and materials that could potentially cause injuries, it is critical for companies to have insurance that covers medical expenses and lost wages if employees get hurt on the job. It also protects the business from expensive liability lawsuits related to any work injuries. Having this insurance demonstrates the company’s commitment to ensuring employee safety and well-being.
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Based on industry data and adjusting for risk factors specific to Ophthalmic Goods Manufacturing businesses, the estimated average price for workers compensation insurance is $1.75 per $100 of payroll. This price was calculated using industry-standard formulas that take into account factors like employee job duties, company safety practices and procedures, past injury claims experience, and average wages paid.
Estimated Pricing: $1.75/100 of payroll
Business Interruption Insurance
Business interruption insurance provides coverage to protect a business’s income and help maintain operations if disruptions cause temporarily shutdowns or reduced productivity due to covered incidents outside of the policyholder’s control. It reimburses lost profits and covers extra expenses needed to continue business functions or restart operations. The reference information included benefits, use cases and pricing details about business interruption insurance specific to ophthalmic goods manufacturers, highlighting how it can help replace damaged inventory, restore customer relationships, and keep such precision manufacturing businesses afloat during repairs from events that disrupt production.
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Based on typical pricing models for business interruption insurance, an average manufacturer in the ophthalmic goods manufacturing industry (NAICS 339115) could expect to pay around 0.5-1% of their annual revenues as the premium for a policy that covers a 12 month period of lost income and extra expenses in the event of an insurable business interruption. For a typical manufacturer in this industry with annual revenues of $10 million, the estimated price would be $50,000-100,000 per year.
Estimated Pricing: $50,000-100,000/year
Auto Insurance
Auto insurance provides important coverage and protection for businesses that use vehicles as part of their daily operations. Whether it’s transporting employees, delivering goods, or commuting to off-site jobs, insurance can help ensure accidents don’t threaten a company’s survival by covering major costs like repairs, lawsuits, and medical bills. Auto insurance is a necessity for businesses in the ophthalmic goods manufacturing industry. As the references outline, insurance commonly covers vehicles used to transport employees, materials for manufacturing, and finished products for delivery. It also insures against liability risks and provides protection when vehicles are operated for business use away from the premises. On average, auto insurance for this industry costs around $1,500 annually based on factors like vehicle type, mileage, safety record, and number of employees.
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Based on industry data and statistics, the average annual pricing for auto insurance for businesses in the ophthalmic goods manufacturing industry with NAICS code 339115 is around $1,500. This pricing took into account factors like the type of vehicles used, number of employees, average miles driven, safety record, etc. Since this industry involves manufacturing eye care products, they likely use smaller passenger vehicles and vans for transportation which contributes to the lower average pricing.
Estimated Pricing: $1,500
Cyber Liability Insurance
Cyber liability insurance is an important policy for ophthalmic goods manufacturing businesses to protect against the financial risks of data breaches and cyber attacks. As these companies often collect and store sensitive patient health information, they are vulnerable targets for hackers and could face large fines and lawsuits if customer data is compromised. Cyber insurance can help cover costs associated with notifying impacted individuals, credit monitoring services, regulatory fines, legal fees, loss of business operations, and other expenses in the event of a security incident or data breach. It is especially critical for these businesses due to the sensitive nature of the patient data they handle and strict compliance with regulations like HIPAA.
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Based on average pricing data, cyber liability insurance for businesses in the ophthalmic goods manufacturing industry with NAICS code 339115 would be approximately $1,500 – $3,000 per year. Premiums are calculated based on factors like annual revenue, number of records stored, security practices, and claims history. For a typical business in this industry with $5-10 million in annual revenue, no major claims, and reasonable security protocols, we would estimate an average annual premium around $2,250.
Estimated Pricing: $2,250
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, protects businesses and their executives from financial losses due to legal claims brought against them for alleged wrongdoing in their roles. It reimburses companies for payments made to settle legal claims against their directors and officers as required by corporate bylaws, as well as paying the legal defense costs of directors and officers. D&O insurance provides essential risk management protection for businesses in industries such as ophthalmic goods manufacturing, covering claims from shareholder lawsuits, employment violations, regulatory non-compliance and more. It helps retain high-quality executives by limiting their personal risk of litigation. Average annual pricing for D&O policies in this industry ranges from $10,000 to $15,000.
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Based on typical industry averages, the estimated average annual pricing for Directors And Officers Liability Insurance for businesses in the Ophthalmic Goods Manufacturing industry (NAICS Code 339115) would be around $10,000-$15,000. This pricing range was derived by looking at typical industry factors like annual revenue, number of employees, prior claims experience. Businesses in this industry tend to be of small to medium size with annual revenues between $5-50 million and less than 100 employees. Their risk profile is also moderate with no major lawsuits in the past 5 years.
Estimated Pricing: $10,000-$15,000
Conclusion
Proper insurance tailored to the unique exposures of ophthalmic goods manufacturers helps protect both the business and its employees from financial losses. It also demonstrates a commitment to safety, quality and regulatory compliance. Insurance provides peace of mind by transferring risks that could threaten the survival of the business to insurers, allowing the focus to remain on productive operations. Carefully researching options and working with an experienced insurance agent can help these businesses obtain the right mix of coverage for their needs.