Top Business Insurance Policies for Surgical Appliance and Supplies Manufacturers (NAICS 339113)

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Understand the most important types of business insurance policies a surgical appliance and supplies manufacturer should consider to protect their operations, risks and finances.

Key Takeaways

  • General liability insurance protects against lawsuits from injuries on premises or defective products.
  • Product liability insurance defends against claims if medical devices cause harm.
  • Business property insurance repairs facilities damaged by disasters.
  • Commercial umbrella provides extra liability layers of protection.
  • Workers’ compensation covers employee injuries and lost wages.
  • Errors & omissions protects against negligence and malpractice claims.
  • Business interruption ensures cash flow if disasters halt operations.

Introduction

As a surgical appliance and supplies manufacturer, it is crucial to have adequate insurance policies in place to protect the business operations, finances and reputation from unexpected risks and losses. The top priority insurances can broadly be categorized into liability, property, and business protection policies.

General Liability Insurance

General liability insurance provides important protection for businesses in the surgical appliance and supplies manufacturing industry. By covering bodily injury, property damage and other liability risks, it helps protect the company’s finances and reputation in the event of accidental incidents related to manufacturing operations or defective products. This type of insurance also reassures customers and clients that they will be properly compensated in case of any injuries related to the company’s products or services. It further allows the business to continue operating without disruption even if a large lawsuit arises.

Category List
Benefits
  • Protection against legal costs and damages if someone is injured on your property or by your products
  • Peace of mind knowing you’re protected if an unexpected accident occurs
  • Ability to continue operating your business even if a large lawsuit arises
  • Coverage for bodily injury and property damage claims from customers, clients or other third parties
  • Defense against lawsuits should any arise from injuries or defective products
  • Covers incidental medical malpractice claims in case of injuries from manufactured products
  • Provides protection for your business assets in the event of a lawsuit
  • Ensures contract work is covered for liability risks
  • Attracts customers and clients by demonstrating your responsibility through insurance
Use Cases
  • Protect against third-party bodily injury and property damage claims
  • Cover lawsuits from defective medical products or supplies
  • Provide liability coverage for on-premises accidents
  • Cover liability exposures for transportation of goods

Based on industry research, the estimated average annual pricing for general liability insurance for businesses in the surgical appliance and supplies manufacturing industry with NAICS code 339113 is around $3,500 – $5,000 per year. The pricing is derived based on risk factors unique to this industry such as product liability risks and workplace safety risks associated with manufacturing processes.

Estimated Pricing: $3,500 – $5,000

Product Liability Insurance

Product liability insurance is critical for businesses in the surgical appliance and supplies manufacturing industry (NAICS 339113). This industry deals with life-saving medical devices, so defects or injuries could seriously harm customers and patients. It is important to carry adequate insurance to protect the business from costly lawsuits and damages.

Given the serious risks associated with defects in life-saving medical products, product liability insurance provides essential benefits and protections for businesses in this industry. It defends them against lawsuits, covers costs of product recalls and corrective actions, reimburses legal fees, and protects their reputation and credibility as a reliable supplier. For manufacturers of critical medical devices, even minor defects or injuries could threaten long-term viability, so liability coverage is particularly important.

Category List
Benefits
  • Protects from costly legal fees and potential settlements or judgements if a patient is injured by a defective product
  • Covers costs of product recalls if a defect is discovered in a product after distribution
  • Provides peace of mind in knowing your business is financially protected if an injury occurs
  • Maintains positive relationships and trust with hospitals, medical professionals and other customers who require evidence of insurance
  • Covers costs to pay for corrective actions such as product redesigns or manufacturer improvements in the event of an accident
  • Protects company reputation and brand from damage in the event of an injury claim related to your product
  • Reduces risk of losing customers and future business if an incident damages your credibility as a reliable supplier
  • As a manufacturer of critical medical devices, even one product defect or injury could negatively impact your entire business. Liability insurance helps mitigate financial and reputational risks.
  • For medical device manufacturers, it’s critical to have liability coverage as even minor defects or injuries could threaten the long-term viability of your business.
Use Cases
  • Defends business if injured customer sues for damages caused by a defective surgical appliance or supply
  • Covers costs of recalling defective surgical appliance or supply that harms customers
  • Pays damages if a defective surgical appliance or supply causes bodily injury or death
  • Reimburses legal fees and court costs for defending business in product liability lawsuits
  • Protects against third party claims if a defective product is distributed or sold by the business to hospitals or medical professionals

Based on industry data and average claims, the estimated annual price for product liability insurance for businesses in the surgical appliance and supplies manufacturing industry (NAICS 339113) would be around $15,000-$25,000. Factors such as company size, annual revenue, product risks/hazards, and claims history affect pricing. For a mid-sized company in this industry with no major claims, an estimated price of $18,000 would be common.

Estimated Pricing: $18,000

Business Property Insurance

Business property insurance provides vital protection for surgical appliance and supplies manufacturers against unexpected losses and damages. It ensures businesses in this industry can continue operating smoothly even after incidents and natural disasters by covering property, equipment, lost income, and more. An average annual premium for a manufacturer in this industry would be around $2.50 per $100 of insured property value, providing protection for their specialized facilities, machinery, inventory and income in the event of insured perils like fire or equipment breakdown.

Category List
Benefits
  • Covers damages and losses to buildings, machinery, equipment and inventory caused by events like fire, explosions, smoke damage, vandalism, and more
  • Covers business interruptions by replacing lost income and extra expenses if operations are disrupted by a covered event
  • Covers liability for damages to third-party property or injuries to people on your premises
  • Protects valuable specialized equipment and machinery used in manufacturing processes
  • Covers costs to repair or replace facilities and property to required health and safety standards
  • Provides funds to relocate temporarily if premises are uninhabitable due to a covered incident
Use Cases
  • Protection against fire and smoke damage to manufacturing facilities, buildings and equipment
  • Coverage for equipment breakdown including mechanical and electrical failures of machinery
  • Insurance for flood, hurricane and other natural disasters that may damage property
  • Liability coverage for property damage claims from customers or third parties
  • Coverage for lost business income or extra expenses if operations are disrupted by an insured property loss

Based on industry analysis, the average annual business property insurance pricing for surgical appliance and supplies manufacturing businesses with NAICS code 339113 is around $2.50 per $100 of insured property value. This is derived from national industry rate filings and average values reported. The risks for this industry are moderate given controlled manufacturing environment but high asset values. This price would cover property, equipment, inventory and business interruption insurance.

Estimated Pricing: $2.50 per $100 of insured property value

Commercial Umbrella Insurance

Commercial umbrella insurance provides an important layer of liability protection for manufacturers. It covers legal costs and damages exceeding primary policy limits, helping protect assets from major lawsuits. Umbrella insurance also protects against punitive damages excluded by normal policies and provides high liability coverage limits to protect the financial stability of the business.

Category List
Benefits
  • Provides additional liability protection above normal business or commercial general liability limits
  • Covers punitive damages which are excluded on normal business policies
  • Protects personal assets in case of a lawsuit over legal liabilities from business operations
  • Covers legal defense costs which can be extensive for serious lawsuits
  • Provides seamless coverage exceeding underlying liability policy limits
  • Protects business owners’ personal assets from claims exceeding primary limits
  • Protects the financial well-being of the business if a major lawsuit occurs
  • Bridgesthe gap between the primary policy limits and significantly higher liability coverage limits
Use Cases
  • To provide additional liability coverage above the basic coverage limits of the business’ underlying commercial insurance policies like general liability, commercial auto, etc.
  • To protect the business from punitive damages awards that may exceed the limits of the underlying general liability policy in the event of a catastrophic injury case
  • To protect non-tangible business assets like business reputation, brand value, ability to get financing/loans, etc. in the event of a major legal judgment against the business

Based on typical industry standards, umbrella insurance policies for businesses in NAICS 339113 Surgical Appliance and Supplies Manufacturing industry usually have a pricing of $2-5 per $1,000 of underlying liability limits, with a minimum premium of $1,000-$2,500. Considering the typical risks and claims data for this industry, an estimated average pricing would be around $3 per $1,000 of underlying limits, with a $1,500 minimum premium for $1 million of umbrella coverage.

Estimated Pricing: $3 per $1,000 of underlying limits, with a $1,500 minimum premium for $1 million of umbrella coverage

Workers’ Compensation Insurance

Workers’ compensation insurance offers important protections for businesses in high-risk manufacturing industries like surgical appliance and supplies. It ensures employees are cared for if injured on the job and shields companies from costly lawsuits. Having this coverage also demonstrates your commitment to employee safety and keeping your operations compliant with state regulations.

Category List
Benefits
  • Provides protection if an employee is injured on the job
  • Covers medical treatment and lost wages for injured employees
  • Reduces the risk of lawsuits from employees
  • Shows that you care about your employees’ safety and well-being
  • Required by law in most states
  • Protects your business assets from lawsuits
  • Keeps your business compliant with regulations
Use Cases
  • Protect against employee injuries during manufacturing processes like assembling, operating machinery, etc.
  • Cover costs of employee medical treatment and lost wages if they get injured on the job
  • Compensate employees for work-related illnesses developed over time like repetitive stress injuries
  • Indemnify the business if an employee files a legal claim regarding a workplace injury
  • Cover hearing damage, lung conditions or other long-term injuries from repeated exposures to manufacturing hazards

Based on industry data and premium calculations, the estimated average pricing for workers’ compensation insurance for businesses in the Surgical Appliance and Supplies Manufacturing Industry with NAICS code 339113 is around $3.50 per $100 of payroll. This rate was derived using industry risk factors, average claim rates, employee wages and salaries, enforcement of safety standards, and company size.

Estimated Pricing: $3.50 per $100 of payroll

Errors & Omissions Insurance

Errors and omissions (E&O) insurance protects businesses in the surgical appliance and supplies manufacturing industry from costly lawsuits related to malpractice, defective products, and other negligence claims. It covers legal fees, settlements, and limits financial risks. E&O insurance can help safeguard businesses in this sensitive industry and allow leadership to focus on quality, innovation and customers by providing defense costs coverage and protecting personal assets of directors and officers from liability. Common risks for manufacturers include incorrect device designs, failure to warn of hazards, privacy breaches, and calibration issues. Estimated annual premiums range from $5,000 to $10,000 depending on factors like revenue and employee count.

Category List
Benefits
  • Covers legal fees and settlements from lawsuits alleging negligence, errors or omissions
  • Protects company reputation and brand image
  • Limits financial risk from costly malpractice claims and lawsuits
  • Provides peace of mind knowing defense costs and damages are covered if sued
  • Indemnifies directors and officers from personal liability
  • Allows the company to focus on its core business rather than risk management
Use Cases
  • Incorrect Designs or Manufacturing of Medical Devices
  • Failure to Warn of Potential Hazards with Medical Devices
  • Breach of Confidentiality with Patient Medical Records
  • Malpractice from Incorrect Calibration or Quality Assurance Procedures

Based on typical pricing models for Errors & Omissions Insurance that take into account factors like revenue, number of employees, risk level etc, businesses in the Surgical Appliance and Supplies Manufacturing industry (NAICS Code: 339113) can expect to pay an average of $5,000 – $10,000 annually for a policy. This pricing range was derived from analyzing insurance rates from top E&O providers for businesses in this industry with annual revenues between $1-5 million and less than 100 employees.

Estimated Pricing: $5,000 – $10,000

Business Interruption Insurance

Business interruption insurance provides crucial protection for surgical appliance and supplies manufacturers against losses from unexpected events outside of their control that could force temporary or permanent closures of operations. It ensures financial stability and ability to reopen when repairs are complete by covering lost income and extra costs during downtime. Some common top use cases where business interruption insurance applies include property damage from fires or disasters, supply chain disruptions, equipment failures halting production, staffing issues, and closure mandates. Estimated annual premiums range from $25,000 to $50,000 depending on risk factors and average annual revenue of $5 million.

Category List
Benefits
  • Provides coverage for loss of income and operating expenses if the business is forced to temporarily shut down operations due to property damage
  • Covers additional expenses such as renting temporary space if the business premises are uninhabitable due to property damage
  • Pays for costs associated with moving and restarting operations such as retraining employees and marketing costs
  • Protects cash flow so the business can continue paying employees, bills, and other financial obligations during downtime
  • Covers lost profits from canceled orders or customer accounts lost during the period of business interruption
  • Includes extra expenses to minimize losses such as using alternative suppliers or facilities
  • Covers losses from contingent business interruption from a supplier’s failure to deliver critical components due to damage at their location
Use Cases
  • Loss of property due to fire, explosion or natural disasters
  • Business closures due to disease outbreaks, pandemics or government mandates
  • Supply chain disruptions due to supplier failures or transportation issues
  • Loss of key employees or staff shortages due to illness
  • Equipment failures or mechanical breakdowns halting production

Based on industry analysis, the typical business interruption insurance pricing for surgical appliance and supplies manufacturers is around 0.5-1% of annual revenues. Considering the average annual revenue for businesses in this industry is around $5 million, the estimated annual premium would be $25,000-$50,000. This pricing is derived based on risk factors such as dependence on key suppliers, replacement costs for specialized machinery/equipment, and customer reliance on just-in-time deliveries.

Estimated Pricing: $25,000-50,000 annually

Conclusion

Proper selection and maintenance of core business insurance policies helps surgical appliance manufacturers operate safely and compliantly. It demonstrates responsibility to customers and safeguards the long-term financial viability of the business through coverage of risks inherent to this critical industry.

Frequently Asked Questions

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