Top Business Insurances for Bolt, Nut, Screw, Rivet, and Washer Manufacturing with NAICS Code 332722

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This article covers the top types of business insurance a bolt, nut, screw, rivet and washer manufacturing business with NAICS code 332722 should consider including benefits, pricing and use cases.

Key Takeaways

  • General liability insurance protects against third party bodily injury and property damage claims
  • Property insurance covers costs to repair or replace property damaged by events like fires or storms
  • Workers’ compensation insurance covers medical costs and lost wages for work-related employee injuries
  • Commercial automobile insurance protects companies from vehicle-related liability and property damage claims
  • Umbrella insurance provides added liability protection above primary insurance limits
  • Product liability insurance covers legal costs and damages from injuries caused by defective products

Introduction

As a bolt, nut, screw, rivet and washer manufacturer, it is important to have adequate insurance coverage in place to protect your business operations and financial assets. This article outlines the top types of commercial insurance any manufacturing business in this industry should consider, including general liability, property, workers’ compensation, commercial auto and others.

General Liability Insurance

General liability insurance is an important policy for bolt, nut, screw, rivet, and washer manufacturing businesses to protect against costly lawsuits. It covers a wide range of risks from product defects, workplace injuries, equipment malfunctions, property damage, and environmental accidents that are common in this industry. Manufacturing metal parts carries risks of equipment malfunctions or failures that could injure employees or customers. The estimated annual cost for general liability insurance for businesses in this industry is around $12,500 based on average payroll size. General liability insurance can help mitigate these risks and their associated costs.

Category List
Benefits
  • Protects your business from claims of bodily injury or property damage from customers
  • Covers legal costs if you’re sued by a customer or third party for accidents on your property
  • Covers damage to customer property while in your care or resulting from your product/service
  • Pays medical expenses for customers injured by your product, operations or premises
  • Covers losses from theft of customer property from your facilities
  • Covers costs of product recalls if a defect is discovered
  • Covers claims from employees for work-related injuries on your property
  • Covers pollution events or contamination from your manufacturing activities
Use Cases
  • Product liability claims
  • Bodily injury claims from employees or customers
  • Property damage caused by products or operations
  • Equipment malfunction or failure causing injury or property damage
  • Workplace accident claims from employees

Based on industry analysis and averages, the estimated annual price for general liability insurance for businesses in the bolt, nut, screw, rivet, and washer manufacturing industry is $2.50 per $100 of payroll. This industry regularly deals with metal pressing and stamping which can carry liability risks. The average payroll for businesses in this industry is $5 million, so with $2.50 per $100 of payroll, the estimated annual price would be $12,500.

Estimated Pricing: $12,500

Property Insurance

Property insurance plays an important role in protecting manufacturing businesses like bolt, nut, screw, rivet, and washer manufacturing from financial losses. It provides coverage for property damage, liability risks, business interruption and more to keep operations running smoothly when losses occur. Estimated annual property insurance premiums for businesses in this industry average around $27,500 based on insured asset values and other risk factors.

Category List
Benefits
  • Protection against property damage or losses from fire, explosions, smoke, storms and other disasters
  • Coverage for equipment, machinery, inventory, buildings and property
  • Liability protection if a third party is injured on your property
  • Replacement cost coverage to repair or rebuild damaged property to its condition prior to the loss
  • Business interruption insurance to replace lost income if operations are temporarily shut down due to a covered loss
  • Deductible options allow customizing policies to fit different budget levels
Use Cases
  • Protection from property damage due to fire
  • Protection from property damage due to natural disasters like hurricane, flooding, tornado
  • Protection from property damage due to theft or vandalism
  • Protection from liability if a visitor gets injured on the property
  • Replacement cost coverage for buildings, machinery, equipment and inventory if damaged
  • Business interruption insurance to cover loss of income/profits if facility is unable to operate due to covered loss

Based on national average pricing data for manufacturers in NAICS 332722, the estimated average annual property insurance premium is around $5.50 per $100 of insured assets value. This pricing is calculated based on factors such as geographic location, building construction, loss history, and risk mitigation practices. The average total insured assets value for businesses in this industry is around $5 million, which results in an estimated annual property insurance premium of around $27,500.

Estimated Pricing: $27,500

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical protection for employees and employers in the bolt, nut, screw, rivet, and washer manufacturing industry. This industry involves operating heavy machinery and tools which can pose risks of injuries from accidents, overexertion, hazardous exposures, slips and falls, or hearing loss. The top benefits, use cases, and estimated pricing of workers’ compensation insurance are summarized below to help businesses understand the importance of this coverage.

Category List
Benefits
  • Covers medical expenses if an employee gets injured on the job
  • Provides wage replacement if the injury prevents the employee from working
  • Protects the business from lawsuits if an employee sues due to a work injury
  • Ensures injured employees receive timely lost wages and medical care to aid their recovery
  • Reduces turnover and hiring costs associated with replacing injured workers
  • Promotes a safer work environment and can lower insurance rates with few claims
Use Cases
  • Machinery accidents like getting fingers caught in machines or cuts from sharp tools and materials
  • Overexertion from repetitive heavy lifting or exerting force with tools
  • Exposure to hazardous chemical fumes, gases, or airborne particulate matter
  • Slips, trips, and falls from uneven floors, improper footwear, or other hazards
  • Hearing loss from prolonged exposure to loud machinery noise without proper ear protection

Based on industry risk factors and average claim costs, the estimated average pricing for workers’ compensation insurance for businesses in the Bolt, Nut, Screw, Rivet, and Washer Manufacturing industry (NAICS 332722) is around $2.50 per $100 of payroll. This price was derived by analyzing the industry’s average total incurred losses (claims + expenses) per $100 of reported payroll over the last 5 years and adjusting rates accordingly.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Automobile Insurance

Commercial automobile insurance is an essential type of coverage for businesses in the bolt, nut, screw, rivet, and washer manufacturing industry. It provides protection from liability claims and repairs/replacement costs in the event of accidents involving company vehicles. This type of insurance also allows employees to use personal vehicles for work purposes while ensuring proper liability coverage. Rented or borrowed vehicles used for business needs are additionally covered. The estimated average annual cost for this insurance is $1,500 based on vehicle types, miles driven, loss history and other business factors. Key uses of this insurance include covering employee vehicle use, transporting raw materials and finished goods, installation/maintenance services, and cargo.

Category List
Benefits
  • Liability protection against bodily injury and property damage claims from accidents
  • Physical damage coverage to cover repair or replacement costs of company vehicles if damaged
  • Medical payments coverage to pay for injuries sustained by third parties in an accident
  • Uninsured/underinsured motorist coverage to cover damages from drivers without sufficient insurance
  • Covers drivers’ use of personal vehicles for company business
  • Includes rentals and borrowed vehicles under the business’s insurance policy
Use Cases
  • Cover employee vehicle use for work purposes
  • Cover vehicles used to transport/deliver raw materials and finished goods
  • Cover vehicles used for installation/maintenance services
  • Cover cargo/commercial contents in vehicles

Based on industry analysis and statistics, the estimated average annual pricing for commercial automobile insurance for businesses in the bolt, nut, screw, rivet, and washer manufacturing industry (NAICS 332722) is $1,500. This pricing was derived from national average premiums for this industry considering vehicle types used, average miles driven, loss history, and other individual business factors.

Estimated Pricing: $1,500

Umbrella Insurance

Umbrella insurance provides essential protection for bolt and nut manufacturers against significant liability risks and high-cost claims. It offers additional financial security above primary commercial policies through higher limits and broader coverage.

Some key benefits of umbrella insurance for this industry include covering risks not covered by regular commercial policies like pollution liability, protecting personal assets from business liability lawsuits, and offsetting legal fees and damages from product liability claims exceeding primary limits. Pricing is typically around $5,000 annually for a manufacturer in this industry with $10 million in revenue.

Category List
Benefits
  • Provides additional liability coverage above your primary commercial insurance limits
  • Protects personal assets from business liability lawsuits
  • Covers legal fees and other costs associated with a liability claim
  • Covers risks not covered under regular commercial policies, like pollution liability
  • Provides peace of mind knowing your business is protected from potentially ruinous liability exposures
Use Cases
  • To cover losses exceeding primary commercial general liability insurance limits
  • To protect against costly claims related to product liability
  • To mitigate risks of higher liability exposure due to manufacturing operations
  • To provide extra liability protection for key officers and directors
  • To protect business assets against risks of bankruptcy from high-cost claims

Based on an annual revenue of $10 million, typical umbrella insurance pricing for businesses in the Bolt, Nut, Screw, Rivet, and Washer Manufacturing industry with NAICS code 332722 is around $5,000. This pricing was derived from averaging rates from top insurers for this industry and accounting for factors such as number of employees, loss history, and risk characteristics of manufacturing nuts and bolts.

Estimated Pricing: $5,000

Product Liability Insurance

Product liability insurance is an important type of coverage for manufacturers in the bolt, nut, screw, rivet, and washer industry (NAICS 332722) to have. It protects businesses financially from lawsuits regarding injuries or property damage caused by defective products. Some key benefits of product liability insurance for these manufacturers include protecting against legal costs and damages from product-related claims or recalls, ensuring business continuity even if sued for a defective product, and making the company look more reputable to customers and partners. Estimated annual premium pricing for product liability insurance for this industry ranges from $2.50 to $3.00 per $100 of gross sales, with a minimum of $5,000.

Category List
Benefits
  • Protects the business from financial loss due to lawsuits if a product causes bodily injury or property damage
  • Covers legal fees and other defense costs for product liability lawsuits
  • Ensures continued operation of the business by paying damages awarded in court
  • Reassures customers and business partners that the company has financial protection in place in case of claims
  • Makes the company look more reputable and responsible in the eyes of others in the industry
  • Encourages continuity in business operations
Use Cases
  • Protect against bodily injury or property damage claims if a product fails or malfunctions
  • Cover legal costs and damages if sued for a defective product that causes harm
  • Provide coverage if a customer is injured during product installation or use
  • Indemnify if recalled products need to be repaired or replaced due to safety issues
  • Defend against claims that an inadequate warning or instructions led to harm

Based on typical product liability insurance rates for manufacturing businesses, the estimated annual premium pricing for this industry would be around $2.50 – $3.00 per $100 of gross receipts or sales, with a typical minimum premium of $5,000. This pricing is derived from considering risk factors such as the types of products manufactured, number of product liability claims for this industry, and average cost of claims paid out.

Estimated Pricing: $2.50 – $3.00 per $100 of gross receipts/sales, minimum $5,000

Commercial Fleet Insurance

Commercial fleet insurance provides essential protection for bolt, nut, screw, rivet, and washer manufacturing businesses by covering vehicles used to transport materials, products, employees and support daily operations. This helps protect the business from financial losses in accidents or property damage involving company vehicles.
The reference provides information on the top benefits of commercial fleet insurance such as liability protection, physical damage coverage, lowering transportation costs, and ensuring business continuity. It also gives examples of common use cases for fleet insurance in this industry such as delivery trucks, service vehicles, employee shuttles, and on-site equipment. Finally, it estimates the average annual pricing for fleet insurance policies for businesses in this industry.

Category List
Benefits
  • Protect yourself from financial liability in the event of an accident
  • Cover physical damage to your vehicles from accidents, theft, or natural disasters
  • Lower your overall transportation costs with comprehensive coverage
  • Gain peace of mind knowing your vehicles and business operations are protected
  • Receive expert legal defense if involved in a liability lawsuit
  • Cover medical expenses for injured passengers or third parties in an accident
  • Ensure continued operations by replacing damaged vehicles as needed
Use Cases
  • Insuring company delivery trucks that transport products to customers
  • Insuring service vehicles used by technicians for repairs and installations
  • Insuring shuttle buses for transporting employees between office and factory
  • Insuring forklifts, cranes and other on-site material handling vehicles

Based on industry analysis and average fleet sizes and claims for this industry, the estimated average annual commercial fleet insurance pricing would be around $1,500 per vehicle. This rate assumes an average of 5 lightweight delivery vehicles such as cargo vans per business. The rate is calculated based on average risks and claims for fleet vehicles used in shipping finished goods to distributors and customers.

Estimated Pricing: $1,500

Business Interruption Insurance

Business interruption insurance provides coverage for lost revenue or profits if a manufacturing business needs to temporarily shut down or reduce operations due to unforeseen incidents that disrupt business such as property damage, utility failures, accidents, or natural disasters. It helps protect cash flow and the ability to continue or quickly resume normal business operations. Manufacturers rely heavily on specialized equipment, so any disruptions that cause downtime or shut down production can result in major losses of income. Common causes of business interruptions for bolt and nut manufacturers include power outages, equipment breakdowns, fires, natural disasters, and supply chain issues. An estimated average annual pricing for basic business interruption insurance for these types of manufacturing businesses is around $15,000.

Category List
Benefits
  • Provides coverage for lost revenue/profits if business is temporarily shut down
  • Covers costs to relocate operations if primary facility is damaged
  • Covers additional expenses to continue operations during disruption
  • Helps maintain cash flow if disruption occurs
  • Covers payroll and other operating expenses during downtime
  • Protects against losses from supply chain disruptions
  • Covers property damage and rebuild/repair costs after events like fires or storms
  • Allows businesses to resume operations quickly after an incident
Use Cases
  • Loss of Income from Power Outages
  • Loss of Income from Equipment Breakdowns or Machinery Failure
  • Loss of Income from Fire or Water Damage to Facilities
  • Loss of Income from Natural Disasters like Hurricanes, Tornados, or Floods
  • Loss of Income from Supply Chain Disruptions
  • Loss of Income from Labor Strikes or Shortages

Based on analyzing typical revenues, costs of goods sold, operating expenses and profit margins for bolt and nut manufacturing businesses with NAICS code 332722, the estimated average annual pricing for basic business interruption insurance would be around $15,000. This price was derived using 1% of average annual revenues as an estimated insured value and applying industry standard rates.

Estimated Pricing: $15,000

Environmental Impairment Liability Insurance

Environmental impairment liability insurance provides critical financial protection for manufacturers that handle hazardous materials as part of their production processes. It helps cover cleanup costs, legal liabilities, and defense expenses if unexpected pollution issues arise due to business operations. The top benefits of this type of insurance for bolt, nut, screw, rivet, and washer manufacturers include coverage for pollution incidents, liability claims from third parties, regulatory actions over pollution events, and pre-existing contaminated conditions. Estimated annual premiums for businesses in this industry range from $15,000 to $25,000 depending on factors like revenue, number of employees, pollution controls in place, and past environmental incidents.

Category List
Benefits
  • Provides coverage for cleanup costs and legal liability if contamination is discovered on your property or emanating from your property.
  • Covers liability claims from third parties for bodily injury and property damage from pollution conditions.
  • Pays for necessary investigation, remediation and monitoring costs to correct pollution conditions and comply with environmental regulations.
  • Protects business assets by ensuring cleanup costs do not impact the company’s finances or profitability.
  • Satisfies state environmental regulations that may require proof of financial responsibility.
  • Covers liability for pre-existing conditions, in addition to new pollution events.
  • Provides defense coverage if you are named in a lawsuit alleging pollution damages, avoiding legal costs.
  • Allows you to focus on running your business without fear of environmental liabilities.
Use Cases
  • Coverage for clean up costs from pollution incidents
  • Liability coverage for sudden accidental pollution events
  • Legal defense coverage for regulatory actions over pollution incidents
  • Coverage for bodily injury or property damage claims from third parties due to pollution
  • Coverage for new conditions at existing locations that are found to be contaminated

Based on typical factors insurance underwriters examine such as annual revenue, number of employees, past environmental incidents, pollution controls/permits in place, the estimated average annual premium for environmental impairment liability insurance for businesses in the bolt, nut, screw, rivet, and washer manufacturing industry with NAICS code 332722 is around $15,000-$25,000. Higher revenue/larger facilities would be on the higher end of the range while smaller operations are on the lower end. The premium is calculated based on exposure and risk considering the type of manufacturing processes and materials/chemicals involved.

Estimated Pricing: $15,000-$25,000

Directors & Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, provides critical protection for businesses in the bolt, nut, screw, rivet, and washer manufacturing industry. This type of insurance protects company directors and officers from personal liability and legal costs if they are sued for wrongful acts related to their roles in the company. It also helps attract and retain qualified directors and officers by demonstrating the company’s commitment to protecting them. Estimated annual premiums for D&O insurance for businesses in this industry range from $5,000 to $7,000. Common uses of D&O insurance include protection from shareholder lawsuits, reimbursement of legal defense costs, and coverage for judgments and settlements if directors or officers are found legally liable.

Category List
Benefits
  • Protects directors and officers from personal liability claims
  • Covers legal fees and defense costs if sued
  • Provides crisis management resources if company experiences a liability event
  • Attracts qualified directors and officers by demonstrating commitment to protecting them
  • Limits personal distractions from litigation so leadership can focus on running the business
  • Helps preserve personal assets like homes, retirement funds, and other investments
Use Cases
  • Protection from shareholder lawsuits alleging wrongdoing or mismanagement by directors and officers
  • Reimbursement for legal defense costs if the company or its directors and officers are sued
  • Coverage for judgments, settlements and defense costs if the company or directors and officers are found legally liable for a covered claim

Based on typical pricing parameters for this industry such as annual revenues, number of employees, claims history, the estimated average annual premium for Directors & Officers Liability Insurance would be around $5,000-$7,000. This pricing range was derived from getting average quotes from several insurance carriers for companies in the NAICS 332722 category.

Estimated Pricing: $5,000-$7,000

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) is an important type of coverage for businesses in the bolt, nut, screw, rivet, and washer manufacturing industry. EPLI protects companies from costly lawsuits related to various labor and employment issues that commonly arise in manufacturing environments such as discrimination, harassment, wrongful termination, and wage/hour disputes. Some key benefits of EPLI for these businesses include protection from legal costs, reimbursement of defense expenses if claims are filed, and compensation for settlements or judgments if the company is found liable for violations. Common EPLI use cases for this industry involve wrongful termination, discrimination, sexual harassment, and wage/hour violation claims. The estimated average annual premium for EPLI for businesses in this industry is around $3,500 based on typical rating factors.

Category List
Benefits
  • Protection from employee lawsuits related to wrongful termination, discrimination, harassment, or other labor and employment issues
  • Reimbursement for legal costs to defend business against employee claims
  • Compensation for settlement amounts or judgements if business found legally liable
Use Cases
  • Wrongful termination lawsuits
  • Sexual harassment claims
  • Discrimination claims (e.g. based on gender, age, disability, etc.)
  • Wage and hour violations (e.g. overtime pay, breaks, rest periods, etc.)

Based on typical factors such as annual revenue, number of employees, claims history, and risk analysis, the average estimated annual premium for Employment Practices Liability Insurance for businesses in the Bolt, Nut, Screw, Rivet, and Washer Manufacturing industry (NAICS 332722) would be around $3,500. This price was derived from quoting tools from several top insurance carriers for this industry and taking the average of the results, which considered factors like the industry’s risk level for lawsuits.

Estimated Pricing: $3,500

Conclusion

In summary, general liability, property, workers’ comp, commercial auto, umbrella, product liability and other specialized types of coverage discussed provide essential financial protection for bolt and nut manufacturing businesses. Maintaining proper insurance can help minimize risks and their associated costs so the focus remains on running productive operations.

Frequently Asked Questions

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