Key Takeaways
- General liability insurance protects businesses if a customer is injured or their property is damaged.
- Workers’ compensation insurance provides medical care and pays lost wages if an employee gets hurt on the job.
- Commercial property insurance covers damage or theft of buildings, equipment and inventory from disasters.
- Business auto insurance protects companies if vehicles used for work get into an accident.
- Commercial umbrella insurance provides extra liability coverage above primary policies’ limits.
- Equipment breakdown insurance covers repairs if machinery breaks down unexpectedly.
- Commercial inland marine insurance protects equipment, tools and vehicles during local transport.
- Commercial cyber liability insurance covers costs of a data breach or privacy violation.
Introduction
As a sign manufacturing business, it’s crucial to protect your operations and assets with the right types of commercial insurance. This article outlines the key insurance policies sign makers need to consider, including their benefits and pricing estimates based on industry research.
General Liability Insurance
General liability insurance is an important coverage for sign manufacturing businesses. It protects businesses financially from costs associated with injuries, damages and lawsuits that may arise from their operations or products.
Additional coverages provided by general liability insurance for sign manufacturers include protection for legal defense costs if sued, coverage for incidents off-premises, and protection if an employee is injured on the job.
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- 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
- Provides coverage for incidents that occur on or off your business premises
- Covers your business if an employee is injured on the job
- Protects against liability claims from defective products or faulty workmanship
- Covers liability claims arising from sign installation or transportation of signs
- Protects you in the event someone is injured by a product malfunction and decides to take legal action
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- Protect against bodily injury or property damage claims from customers
- Cover lawsuits from accidents that occur on your business premises
- Protect from lawsuits if a customer is injured by a sign you manufactured or installed
- Cover lawsuits if your signs cause damage during installation or use
- Protect against claims of faulty workmanship if a sign fails prematurely
- Cover lawsuits from vehicles or people injured by signs falling or collapsing
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Based on industry data, the average annual premium for general liability insurance for sign manufacturing businesses is around $1,500 per $1 million of coverage. This pricing is calculated based on risk factors unique to the sign manufacturing process such as the use of materials, machinery and large equipment. The average coverage amount purchased by sign manufacturers is around $2 million which would result in an annual premium of approximately $3,000.
Estimated Pricing: $3,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides important protections for businesses in the sign manufacturing industry. Sign manufacturing involves risks from operating machinery, working with raw materials, and finishing processes that can lead to employee injuries. It ensures employees receive medical care and compensation for work-related injuries while protecting employers from costly lawsuits.
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- Covers medical expenses and lost wages for employees injured on the job
- Protects the business from lawsuits if an employee is injured
- Required by law in most states
- Reduces turnover by providing protection for employees
- Offers discounted rates for businesses with good safety records
- Demonstrates a commitment to employee welfare
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- Cover medical expenses and lost wages for employees injured on the job
- Protect the business from lawsuits filed by injured employees
- Comply with state workers’ compensation laws
- Cover risks involved with operating machinery like CNC routers, laser cutters, etc.
- Cover risks from working with raw materials like wood, plastics, metals that can cause injuries
- Cover risks from finishing processes like welding, painting, sanding that can lead to burns, inhalation issues
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Based on national averages, the estimated average pricing for workers’ compensation insurance for businesses in the sign manufacturing industry with NAICS code 339950 is around $2.50 per $100 of payroll. This rate is derived from industry risk factors such as machinery injuries and material handling that influence average claim costs for this type of manufacturing work. The rate may vary depending on a specific company’s claims history, safety protocols and other underwriting factors considered by insurance carriers.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Property Insurance
Commercial property insurance is an important investment for sign manufacturing businesses to protect against financial loss from unexpected property damage or theft. It can help ensure business continuity after a covered loss and enable facilities and equipment to be repaired or replaced.
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- Protection against property damages and losses due to fire, smoke, lightning, explosions, hurricane/windstorms and more
- Replacement cost for damaged or destroyed equipment, machinery, buildings and other property
- Business interruption coverage to compensate for lost income if the business must shut down temporarily for repairs after a covered loss
- Coverage for property in transit or temporarily off-site for permissible reasons like installation or repair
- Covers losses related to equipment breakdown/mechanical failures or electrical issues
- Deductibles and coverage limits tailored to the size and needs of the sign manufacturing business
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- Protection against damage or loss to buildings and equipment from fire, wind, hail or other disasters
- Coverage for equipment breakdown or mechanical failure of machines
- Replacement cost coverage to fully repair or replace damaged property
- Business interruption insurance to cover loss of income if the business must close temporarily for repairs after a covered loss
- Coverage for valuable inventory including raw materials, work in progress and finished signs
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Based on industry data and trends, the estimated average annual premium for commercial property insurance for businesses in the sign manufacturing industry with NAICS code 339950 would be around $1,500. This pricing factors in the typical coverage amounts needed for property, equipment, and inventory for businesses in this industry segment. It also considers factors like frequency of property claims and loss histories specific to the sign manufacturing industry.
Estimated Pricing: $1,500
Business Auto Insurance
Business auto insurance provides essential protection for sign manufacturing businesses by covering vehicles used for business purposes like transporting materials and finished signs. It protects the company from financial liability and replacement costs if an accident occurs while the vehicle is used for work-related duties. Some key uses of business auto insurance for sign manufacturers include covering delivery vehicles, vehicles transporting supplies between locations, and company vehicles employees use for client visits or trade shows. The estimated average annual cost for basic business auto coverage is around $2,000 per vehicle used by sign businesses.
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- Liability protection in case of accidents
- Coverage for business-use vehicles
- Replacement costs if vehicles are damaged or stolen
- Medical payments for injured passengers
- Uninsured/underinsured motorist bodily injury coverage
- Lost wages coverage for injured drivers
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- Covering vehicles used for delivering finished signs to customers
- Protecting vehicles used for transporting raw materials and supplies between locations
- Insuring vehicles used by employees for work purposes like visiting clients
- Covering company vehicles used off-premises for trade shows and conferences
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Based on national average pricing data for businesses in the sign manufacturing industry, the estimated average annual cost for basic business auto insurance is around $2,000 per vehicle. This pricing takes into account factors like the types of vehicles used, average miles driven, safety record, and risk factors associated with the industry. The vehicles used are generally cargo vans or light trucks to transport sign materials. Multiple vehicles would increase the total annual premium accordingly.
Estimated Pricing: $2,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides an additional layer of protection above and beyond a company’s standard business insurance policies. It protects sign manufacturing businesses from large liability claims that exceed primary coverage limits.
Umbrella insurance is particularly important for sign manufacturers due to the risks inherent in their manufacturing and installation operations. It helps safeguard businesses financially against potential lawsuits involving products, premises, or completed work.
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- Increased liability protection beyond the limits of underlying commercial policies like general liability, auto and employer’s liability
- Covers punitive damages awards which are typically excluded under commercial liability policies
- Protects personal assets of business owners and shareholders from costly lawsuits and damages awards
- Provides an additional layer of protection over higher-risk operations like manufacturing, contracting or installation services
- Covers legal defense costs on top of the policy limits, protecting cash flow and financial resources
- Protects against gaps or deficiencies in primary insurance policy coverage or limits
- Provides continuous coverage even if the underlying primary policies change or expire
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- Protecting against high liability claims from injuries occurring on business premises
- Providing additional liability coverage for business vehicles like trucks and vans used to transport signs
- Covering legal costs and damages from lawsuits involving intellectual property infringements like unauthorized use of logos and designs
- Insuring against costly product liability claims if a faulty or defective sign causes property damage or injuries
- Protecting against lawsuits from accidents during sign installation or maintenance work
- Extending general liability coverage for special events, marketing campaigns and trade shows involving demonstrations of signs
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Based on industry data and risk factors, the average estimated pricing for a commercial umbrella insurance policy for a sign manufacturing business with NAICS code 339950 is $1,500-$2,500 per year. This pricing is derived from considering factors like the business size, number of employees, annual revenue, claims history, and other liability exposures related to the manufacturing process.
Estimated Pricing: $1,500-$2,500
Commercial Inland Marine Insurance
Commercial inland marine insurance provides risk management coverage for businesses that transport and deliver equipment and products. It protects valuable assets used in daily operations from losses during local transportation between locations.
Sign manufacturing companies rely on specialized machinery, vehicles, and large fabricated structures to produce and install signs. Commercial inland marine insurance is well-suited to protect this expensive equipment from damage during the manufacturing, delivery, and installation processes. It also replaces or repairs damaged property so operations can continue smoothly after a loss event.
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- Covers equipment, machinery, tools, vehicles, and other property used in daily operations if lost, damaged or destroyed
- Protects valuable business property even when not located on your premises
- Covers losses caused by a broad range of perils like fire, theft, wind/hail damage and more
- Replaces or repairs damaged property so you can continue operations quickly after a loss
- Offers personalized coverage tailored specifically for your unique business needs
- Provides replacement cost value coverage so you receive funds to replace damaged property without deductions for depreciation
- Covers property during local transportation like moving tools and equipment between job sites
- Guards against financial loss from employee dishonesty or theft of business property
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- Covering manufactured signs and other products during transport to customer locations
- Insuring signs, equipment and machinery at the manufacturing facility and during installation at off-site locations
- Protecting fabricated steel or aluminum structures, electrical wiring and LED displays from damage or theft
- Reimbursing the costs to repair or replace specialty vehicles used to deliver and install large signage
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Based on typical industry factors such as average payroll, number of employees, property values, and past claim experience, the estimated annual pricing for commercial inland marine insurance for sign manufacturing businesses with NAICS code 339950 would be around $2,500. This price was calculated based on industry research showing average payrolls of $500,000 and 10 employees for sign shops of this type. Property values including expensive printing and fabrication equipment were estimated at $250,000. The pricing also factors in moderate risk of property damage or losses during transportation based on past industry claims data.
Estimated Pricing: $2,500
Equipment Breakdown Insurance
Equipment breakdown insurance provides coverage for repair or replacement costs if important machinery, vehicles or electronics break down or fail in a sign manufacturing business. It protects a sign shop’s bottom line and ability to operate if faced with potential losses due to equipment issues. Additionally, it covers other costs like property damage, lost income, hiring temporary equipment or consultants if needed. On average, sign manufacturing businesses can expect to pay around $3,500 annually for this valuable coverage.
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- Covers repairs due to mechanical or electrical breakdown
- Provides replacement or repair costs if equipment is damaged
- Covers property damage and bodily injury if an accident occurs
- Covers losses from utility supply interruptions like power surges or outages
- Pays for losses from hazardous substance contamination due to equipment problems
- Covers extra expenses like loss of income or renting temporary equipment during repairs
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- Covers repair or replacement costs if equipment like printing presses, fabrication machinery, vehicles or electronic devices breakdown or fail
- Protects from losses incurred if an electrical surge or power outage damages equipment
- Covers equipment damaged in fires, explosions or natural disasters like floods or storms
- Pays for costs to rent temporary replacement equipment if your primary equipment is out of commission for repairs
- Provides liability coverage if a breakdown causes property damage or bodily injury
- Covers additional expenses like hire of engineers or consultants to diagnose issues and get equipment running again
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Based on industry research and analysis of typical equipment used in sign manufacturing businesses with NAICS code 339950, the estimated average annual premium for equipment breakdown insurance would be around $3,500. This takes into account factors like total insured property value, types of machinery used (CNC machines, cameras, lasers, etc.), age of equipment, and loss history. Premiums may vary slightly depending on deductibles selected and any additional coverage options chosen. But in general sign shops in this industry can expect to pay approximately $3,500/year for equipment breakdown coverage.
Estimated Pricing: $3,500/year
Commercial Cyber Liability Insurance
Sign manufacturers increasingly rely on technology to conduct business and engage with customers. However, the digitalization also exposes them to new risks like data breaches and cyber attacks that can harm their operations and reputation. Commercial cyber liability insurance helps protect sign businesses financially and operationally from the costs of privacy violations and security incidents in the digital world. It ensures they have resources to avoid long-term damage from cyber risks.
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- Covers legal fees and costs to defend against lawsuits alleging negligence that led to a data breach or privacy violation
- Covers costs of notifying customers of a breach and providing credit monitoring services
- Covers costs to investigate and contain a cyber attack like malware infection
- Covers business interruption expenses if systems are offline due to an attack or breach
- Covers theft or loss of money from employee fraud, like fraudulent wire transfer
- Covers costs of a public relations firm or consultants in event of a crisis from a breach
- Covers fines and penalties from a regulatory investigation or enforcement for privacy violations
- Covers reputational damage from negative media coverage about a breach
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- Data breach liability for exposing customer and employee private information like credit cards, social security numbers, addresses, etc.
- Network security liability if hackers access networks and steal intellectual property, plans and designs
- Cyber extortion and ransomware coverage if hackers encrypt systems and demand ransom payments
- Regulatory fines and penalties from state/federal agencies for violating data privacy laws like HIPAA and GDPR
- Public relations and crisis management costs after a breach like notifying affected individuals, legal advice, credit monitoring, call center support
- Business interruption costs from downtime, system repair/forensics, lost revenues/profits if cyber attacks disrupt operations
- Legal defense cost coverage to hire attorneys/experts to respond to security incidents and privacy claims
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Based on industry averages, businesses in the sign manufacturing industry (NAICS 339950) can expect to pay around $2,000 – $3,000 annually for a basic commercial cyber liability insurance policy. Rates are determined based on factors like annual revenue, number of employees, security protocols in place, and claim history. For a mid-sized sign manufacturer with $5M in annual revenue, 50 employees, and no prior data breaches, an estimated annual premium would be $2,500.
Estimated Pricing: $2,500
Conclusion
By understanding insurance requirements specific to your industry, sign manufacturers can make informed decisions to manage risks. The policies discussed provide essential financial protection and peace of mind so owners can focus on running their businesses. Maintaining adequate coverage also demonstrates professionalism to clients.
Frequently Asked Questions
general liability insurance protects your business from claims of bodily injury or property damage filed by customers or third parties. it covers legal costs if you are sued related to incidents on or off your business premises. as a sign manufacturer, general liability insurance is important to protect against risks of claims or lawsuits from injuries occurring during the sign making or installation processes.
workers compensation insurance covers the costs of job-related injuries, including medical expenses and lost wages for employees who get hurt on the job. it protects sign manufacturing businesses from expensive lawsuits by injured employees by providing them compensation for injuries without having to prove fault. workers compensation insurance is required by law in most states for businesses with employees.
yes, commercial property insurance provides coverage for losses from perils like fire, wind damage, theft and more. it would cover the replacement costs to repair or replace buildings, machinery, equipment and sign inventory if damaged or destroyed on your business premises.
business auto insurance provides liability protection if vehicles used for work purposes like delivering signs or transporting materials are involved in an accident. it also covers costs to repair or replace business vehicles if they are damaged or stolen. business auto insurance protects your company financially and ensures your vehicles can continue serving your operations after incidents.
commercial umbrella insurance provides added liability protection above your primary policies limits. it protects sign manufacturers from high-value claims that exceed standard coverage. umbrella insurance is particularly important for risks inherent to sign making operations like product defects, accidents during installation work, or liability arising from completed signage.
