Key Takeaways
- General liability insurance protects against costly lawsuits from third-party injuries and property damage claims.
- Property insurance covers the costs to repair or replace buildings, equipment and inventory damaged by disasters like fires or storms.
- Business interruption insurance ensures cash flow continues if manufacturing operations are disrupted by insured events like equipment failures.
- Workers’ compensation covers medical expenses and lost wages for employees injured on the job.
- Product liability insurance protects against legal damages if a defective product injures someone or damages property.
- Environmental impairment liability covers clean up costs and lawsuits from accidental pollution or contamination.
- Commercial auto policies insure company vehicles used to transport materials and finished goods.
- Directors and officers liability protects personal assets of corporate leadership from lawsuits
- Cyber liability insurance covers costs of data breaches and cyber attacks involving intellectual property or customer data.
Introduction
As a business in the cyclic crude, intermediate, and gum chemical manufacturing industry, it is important to protect your company from a variety of risks through adequate insurance coverage. This industry deals extensively with potentially hazardous chemicals and relies on specialized equipment, vehicles and facilities to operate. There are also risks of pollution, wildfires, explosions and injuries that could threaten business continuity if not properly insured against.
General Liability Insurance
General liability insurance provides protection for cyclic crude, intermediate, and gum and wood chemical manufacturers (NAICS 325194) from costly lawsuits and legal fees related to on-site accidents, defective products, and other incidents. It covers expenses from claims involving bodily injury, property damage, personal injury, and contractual liability. Chemical manufacturers in this industry face significant risks due to the hazardous nature of their work, so liability insurance is essential to mitigate financial losses. It also helps businesses comply with safety requirements and continue operating smoothly even if serious claims arise. Liability policies protect a company’s assets and allow it to defend itself against lawsuits over issues like product defects, injuries on premises, fires, and non-compliance incidents.
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Based on industry analysis, the average general liability insurance pricing for businesses in the Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing industry (NAICS 325194) is $4.50 per $100 of payroll. This rate is derived from considering factors such as the industry risk level, average claims made, litigation rates, and safety records.
Estimated Pricing: $4.50/$100 of payroll
Property Insurance
Property insurance provides essential financial protection for businesses in the cyclic crude, intermediate, and gum and wood chemical manufacturing industry. It guards against losses from unexpected events that could damage property and disrupt operations. Manufacturing facilities contain expensive equipment and inventory that represents a major investment. Property insurance protects this investment against losses from fires, storms, equipment failures, floods, theft and more. It also provides business interruption coverage to continue paying expenses if facilities need repairs after an insured loss. Estimated annual property insurance pricing for this industry is around $2.50 per $100 of insured property value.
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Based on industry data and national averages, the estimated annual property insurance pricing for businesses in the Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing industry with NAICS Code 325194 is around $2.50 per $100 of insured property value. This pricing was derived by looking at factors such as the hazards typically involved in chemical manufacturing processes, history of property loss claims for the industry, costs to rebuild facilities, etc.
Estimated Pricing: $2.50/$100
Business Interruption Insurance
Business interruption insurance provides critical financial protection for businesses in the cyclic crude, intermediate, and gum and wood chemical manufacturing industry by covering loss of income and ongoing expenses if operations are disrupted due to events like fires, equipment breakdowns, or natural disasters. It ensures cash flow continues and helps minimize losses until operations resume by reimbursing for things like payroll, additional expenses to restart production, and temporary alternative facilities if needed. Top benefits include protecting income during disruptions and allowing businesses to avoid layoffs. Common uses involve loss of income due to equipment damage from fires or disasters, accidental explosions halting production temporarily, and interruptions from supplier or distribution problems. Estimated pricing for $5 million revenue businesses in this industry is $20,000-$50,000 annually.
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Based on industry analysis, the average annual revenue for businesses in this industry is around $5 million. Standard business interruption insurance pricing is usually around 0.4% to 1% of annual revenue. For a $5 million revenue business, business interruption insurance would be priced between $20,000 to $50,000 per year.
Estimated Pricing: $20,000-$50,000
Workers’ Compensation Insurance
“Workers’ compensation insurance provides critical protections for both employees and employers in hazardous industries like cyclic crude, intermediate, and gum and wood chemical manufacturing. It covers expenses from workplace injuries, ensures support for injured workers, and protects businesses from costly lawsuits. The top benefits for businesses include medical coverage for injuries, lost wages protection, and liability protection from lawsuits. Meanwhile, employees receive support through medical coverage and wage replacement if hurt on the job. Given the risks inherent in chemical manufacturing work, workers’ comp is particularly important for businesses in this industry to ensure employees are cared for if an accident occurs and businesses are shielded from associated costs.”
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Based on industry analysis, the estimated average annual workers’ compensation insurance premium for businesses in the Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing industry (NAICS Code 325194) is around $5.50 per $100 of payroll. This pricing is derived based on industry risk factors such as accident rates, claims severity, and compliance with safety procedures. The industry has moderate risks of accidents and injuries due to the nature of chemical manufacturing work.
Estimated Pricing: $5.50 per $100 of payroll
Product Liability Insurance
Product liability insurance provides crucial protection for businesses in the cyclic crude, intermediate, and gum and wood chemical manufacturing industry from unexpected costs and losses that may arise due to product defects, injuries, damages or recalls. It protects against lawsuits, legal fees, medical costs, property damages and more. Given the complex nature of chemicals manufactured, there is always a risk of unanticipated effects that could harm people or damage property. Product liability insurance demonstrated financial responsibility and helps maintain good reputation. It also covers costs of product recalls if a product is found to be unsafe. Estimated pricing is around $1.50 per $100 of gross receipts, with a minimum of $5,000 based on average industry data and loss history.
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Based on average industry data, the estimated annual pricing for product liability insurance for businesses in the Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing industry (NAICS Code: 325194) would be around $1.50 per $100 of gross receipts, with a minimum premium of $5,000. This pricing was derived by analyzing loss history data from insurance claims in this industry over the past 10 years and actuarial estimates of future losses and risks.
Estimated Pricing: $1.50 per $100 of gross receipts, with a minimum of $5,000
Environmental Impairment Liability Insurance
Environmental impairment liability insurance provides critical financial protection for businesses in the cyclic crude, intermediate, and gum and wood chemical manufacturing industry. This industry faces inherent risks of environmental contamination and legal liability due to the nature of their operations and materials handled. Key benefits of this insurance include covering cleanup costs, third-party liability claims, legal defense expenses, and regulatory fines to help ensure business continuity and compliance even if environmental issues occur. Common uses of the policy involve remediating contamination, reimbursing fines, and defending lawsuits related to pollution. Pricing for $1 million of coverage is estimated around $15,000 annually on average depending on firm-specific risk factors.
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Based on analyzing typical risk factors for this industry such as the hazardous nature of materials used, potential for environmental accidents, regulatory compliance requirements, litigation rates, and claims history, the estimated average annual premium for $1 million of environmental impairment liability insurance would be around $15,000. This pricing was derived from insurance rate manuals and avg terms from top writers in this industry space. Higher risk businesses may pay more depending on their specific operations and safety protocols.
Estimated Pricing: $15,000
Commercial Auto Insurance
This reference provides an overview of the top benefits, use cases and estimated pricing of commercial auto insurance for businesses in the cyclic crude, intermediate, and gum and wood chemical manufacturing industry with NAICS code 325194.
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Based on industry analysis, the average commercial auto insurance price for businesses in the Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing industry with NAICS Code 325194 is around $3,500 per year. This pricing was derived from considering average vehicle values, loss history, number of employees, and other risk factors specific to this industry.
Estimated Pricing: $3,500
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, provides crucial protection for leadership in the cyclic crude, intermediate, and gum and wood chemical manufacturing industry (NAICS Code 325194). D&O insurance protects personal assets, reimburses legal costs, and provides access to experienced legal counsel to help defend against lawsuits targeting directors and officers for their duties. It also covers settlement costs if claims are lost, reduces financial strain on company operations, and helps attract qualified executives and board members.
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Based on typical insurance rates, the average annual premium for Directors And Officers Liability Insurance for businesses in the Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing industry with NAICS Code 325194 is around $5,000-$7,000. This pricing is derived based on factors such as annual revenue, number of employees/directors, claims history, and risk profile of the specific business operations.
Estimated Pricing: $5,000-$7,000
Cyber Liability Insurance
Cyber liability insurance provides important protections for businesses in the cyclic crude, intermediate, and gum and wood chemical manufacturing industry. Given the nature of their operations involving sensitive data, they face risks of cyber attacks, data breaches, and potential liability issues. The top benefits of this insurance include covering costs of investigating and responding to breaches, notifying affected individuals, providing legal defense if sued, and restoring lost or damaged data. It also pays claims if the business is found liable and provides crisis management support during cyber incidents. Common uses of the policies are responding to data breaches, addressing network security risks, regulatory defense and penalties, ransomware attacks, business interruption, and third-party liability claims. The estimated average annual premium for businesses in this industry with revenue of $2.5-$5 million is $2,500-$5,000.
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Based on typical factors insurance companies examine such as annual revenue, number of employees, security protocols, past claims history, the estimated average annual premium for cyber liability insurance for businesses in the Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing industry with NAICS Code 325194 is $2,500-$5,000. This pricing range was derived from statistical data on insurance rates for similar small to mid-sized manufacturing businesses and their relative risk levels.
Estimated Pricing: $2,500-$5,000
Conclusion
Taking the time to understand your specific insurance needs and purchasing the appropriate policies is crucial for businesses in the cyclic crude, intermediate, and gum chemical manufacturing industry. Adequate coverage protects profits and assets, ensures compliance with laws, and provides peace of mind knowing your business and employees are financially supported through unplanned events.