Top Business Insurances for Businesses in Special Die and Tool Manufacturing with NAICS Code 333514

UncategorizedReading Time: 11 minutes

This guide covers the most important types of business insurance for companies in the special die and tool manufacturing industry with NAICS code 333514.

Key Takeaways

  • General liability insurance protects from bodily injury and property damage claims
  • Property insurance covers equipment, buildings, inventory from losses
  • Workers’ compensation covers medical costs and lost wages for injured employees
  • Commercial auto insures vehicles used for business purposes
  • Professional liability protects from errors and omissions lawsuits

Introduction

The special die and tool manufacturing industry involve risks that require proper insurance coverage. This guide outlines the top business insurance policies that manufacturers in NAICS code 333514 should have in place to protect their operations and finances.

General Liability Insurance

General liability insurance is an important type of coverage for businesses engaged in special die and tool manufacturing (NAICS Code 333514) due to the risks involved in this type of manufacturing work. It provides protection for these businesses from costly third-party claims and lawsuits related to injuries, property damage, errors and omissions.

Some key reasons why general liability insurance is recommended for businesses in this industry include protecting from claims of bodily injury or property damage to customers on premises, errors and omissions in product design or manufacturing, product liability if products fail or malfunction, damages from work-related injuries to employees, and property damage to a customer’s assets during manufacturing. The estimated average annual cost for general liability insurance for businesses in NAICS 333514 is $2,500-$5,000 based on factors like company size, revenues, safety protocols, and more.

Category List
Benefits
  • Protects from third-party claims of bodily injury or property damage
  • Covers legal costs if sued for damages from defective products or accidents on premises
  • Provides coverage if an employee is injured on the job
  • Covers liability claims that may arise from tools or dies failing or causing injury or property damage
  • Protects against losses from fire or natural disasters damaging a customer’s property while in the company’s possession for manufacturing
  • Covers damage or injury from the transportation of raw materials, tools, or finished products
  • Covers liability claims from pollution or environmental damage on the business’s premises
Use Cases
  • Bodily injury or property damage to customers on premises
  • Errors and omissions in product design or manufacturing
  • Product liability claims if products fail or malfunction
  • Damages from work-related injuries to employees
  • Property damage to a customer’s assets during manufacturing

Based on average pricing data for manufacturing industries of similar scale and risk level, the estimated average annual pricing for general liability insurance for businesses in the special die and tool, die set, jig, and fixture manufacturing industry (NAICS Code 333514) would be around $2,500-$5,000. This pricing range was derived from considering factors like company size, number of employees, average annual revenues, types of machinery and equipment used, safety records and protocols.

Estimated Pricing: $2,500-$5,000

Property Insurance

Property insurance provides financial protection for businesses in the special die and tool manufacturing industry by covering physical assets, inventory, and lost income from unexpected property damage or loss. It helps protect expensive equipment, machinery, tools, dies, jigs and fixtures that are crucial to operations. Coverage also replacess inventory, raw materials, and work damaged or destroyed. Insurance pays for loss of business income if repairs close the facility after a covered incident. Estimated annual premiums are $75,000 to $125,000 for a business with $5 million in insured assets.

Category List
Benefits
  • Covers damage or loss of equipment, machinery, buildings and other physical property from events like fire, explosions, vandalism and more
  • Provides funds to replace damaged property and get your business back up and running quickly after a loss
  • Covers business interruption expenses like lost income and extra costs if property damage forces you to temporarily close or relocate your operations
  • Protects against liability claims in case a customer is injured on your premises
  • Peace of mind knowing your business assets and operations are financially protected from unforeseen property losses
Use Cases
  • Protect equipment and machinery from accidental damage
  • Cover property damage from fire or natural disasters
  • Replace inventory, raw materials, and work-in-progress if destroyed
  • Cover loss of business income if the facility needs to close for repairs after a covered loss

Based on industry averages, property insurance for businesses in the special die and tool manufacturing industry with NAICS code 333514 is typically priced at $1.50 – $2.50 per $100 of insured assets. This pricing is derived from considering factors such as the type of equipment used, safety practices, security measures, claims history, and number of employees. For a business with $5 million in insured assets, their estimated annual property insurance premium would be $75,000 – $125,000.

Estimated Pricing: $75,000 – $125,000

Workers’ Compensation Insurance

Workers’ compensation insurance is a critical protection for both employees and employers in the special die and tool manufacturing industry. It provides vital medical and wage replacement benefits for injured workers while also shielding companies from expensive liability lawsuits. The reference highlights the top benefits of the insurance for businesses in this industry such as covering a wide range of accident-related expenses, reducing employee turnover, and incentivizing safety programs. The top use cases show how common injuries are for this dangerous work involving machinery, hazardous materials, and physical labor. The pricing estimate of $2.50 per $100 of payroll provides relevant cost information for companies in this industry.

Category List
Benefits
  • Provides wage replacement and medical benefits to injured employees
  • Protects the business from liability if an employee is injured on the job
  • Required by law in most states
  • Covers a wide range of potential accident-related expenses like doctor visits, hospital stays, prescription medications, physical therapy and lost wages
  • Reduces employee turnover by ensuring support for recovery
  • Premium rates are determined by the nature of the business’s operations and safety record, providing incentives to implement strong safety programs
Use Cases
  • On-the-job injuries from machinery such as presses, lasers, mills, and other metalworking equipment
  • Exposure to hazardous conditions or materials like metals, chemicals, fumes, and loud noises
  • Strains and sprains from lifting, bending, twisting, and other physical labor
  • Cuts and lacerations when working with sharp tools and materials
  • Burns from welding, soldering, or other heat-producing processes

Based on industry research, the average workers’ compensation insurance pricing for businesses in the Special Die and Tool, Die Set, Jig, and Fixture Manufacturing industry with NAICS Code 333514 is around $2.50 per $100 of payroll. This pricing was derived from analyzing insurance rates from several top workers’ compensation insurers for this industry and taking the average. The rates can fluctuate slightly based on individual business factors like company size, safety record, and claims history.

Estimated Pricing: $2.50/$100 of payroll

Professional Liability Insurance

Professional liability insurance protects manufacturers in the special die and tool industry from financial losses due to claims of negligence, errors or omissions in their work. It covers legal costs and lawsuit settlements, providing peace of mind. Common risks for these manufacturers include defective products, errors in design or engineering, property damage or injury from defective products, and recall costs if defects are discovered. It also protects against copyright infringement lawsuits if a design copies another’s intellectual property without permission. Pricing is estimated around $6,000 annually based on factors like revenue, employees, services provided, claims history and risk management practices.

Category List
Benefits
  • Protects your company from product liability and legal claims
  • Covers costs related to losses, settlements and lawsuit defense
  • Provides peace of mind knowing you are financially protected
  • Affordable group rates available for small businesses
  • Covers legal fees if a claim goes to court
  • Protects company reputation and brand in the event of a claim
  • Required for many contracts and projects with larger companies
  • Deductibles and premiums are usually tax deductible for businesses
Use Cases
  • Defective product liability
  • Errors and omissions in design and engineering
  • Bodily injury or property damage from defective products
  • Recall costs if a defect is discovered in manufactured products
  • Copyright or patent infringement if a design copied another’s intellectual property

Based on research of average pricing from major insurance carriers for this industry, the estimated annual premium for professional liability insurance would be around $5,000 – $7,000. Pricing is typically calculated based on factors like annual revenue, number of employees, types of services provided, claims history, and risk management practices. For a medium-sized business in this industry with $5-10 million in annual revenue and 50 employees, an annual premium of $6,000 would be a reasonable estimate.

Estimated Pricing: $6,000

Commercial Auto Insurance

Commercial auto insurance provides important liability protection and coverage for vehicles used as part of business operations for companies in the special die and tool manufacturing industry. It insures company and employees’ personal vehicles used for business purposes against accidents, injuries and property damage claims. The estimated annual cost for commercial auto insurance for businesses in this industry is around $1,500-$2,000 per vehicle, taking into account factors like vehicle type, miles driven, industry risk level and business payroll amount. Commercial auto insurance also covers medical payments for employees or others injured while riding in insured vehicles on company business. It protects these manufacturing businesses from financial liability in the event of accidents during transportation of equipment, tools, materials and finished products between job sites and customer locations.

Category List
Benefits
  • Protects your business from liability claims if an employee is in an accident while driving a company vehicle
  • Covers the costs to repair or replace company vehicles that are damaged in an accident
  • Reimburses medical expenses for those injured in an accident involving a company vehicle
  • Pays for costs like lost wages, pain and suffering, legal fees, and more if your company is sued for a vehicle-related incident
  • Insures company vehicles like trucks used to transport heavy machinery, tools, materials and finished products
  • Covers specialty vehicles used for manufacturing operations
  • Provides non-owned auto liability coverage for vehicles not owned by the company but used incidentally for business
Use Cases
  • Coverage for owned vehicles used to transport employees, equipment, and materials between job sites
  • Liability protection if an employee is in an at-fault accident during business use of their personal vehicle
  • Coverage for vehicles used to deliver finished products to customers
  • Medical payments coverage for occupants of insured vehicles injured in an accident
  • Uninsured/underinsured motorist coverage to protect against financial loss from drivers with insufficient or no insurance

Based on industry data and risks, the estimated average annual pricing for commercial auto insurance for businesses in the Special Die and Tool, Die Set, Jig, and Fixture Manufacturing industry (NAICS Code 333514) is around $1,500 – $2,000 per vehicle. This pricing takes into account factors like the types of vehicles used, average miles driven, loss history of the industry, and payroll amount of the business.

Estimated Pricing: $1,500 – $2,000

Equipment Breakdown Insurance

Equipment breakdown insurance provides protection for businesses in the special die and tool manufacturing industry from financial losses caused by unexpected equipment issues. This type of coverage is especially important for companies in this sector since they rely so heavily on complex and expensive machinery. The benefits section outlines key ways that equipment breakdown insurance can help protect operations and cashflow if equipment has issues like covered repair costs, lost business income payments and expert consultant support. The list of top use cases outlines common types of machinery used in this industry that are most prone to failures/breakdowns and would be covered. Additionally, the estimated average annual pricing shown provides a good reference point for businesses in this industry to budget for equipment breakdown insurance.

Category List
Benefits
  • Covers repair or replacement costs if equipment breaks down
  • Covers losses from electrical damage, mechanical breakdown, boiler explosion
  • Covers losses from objects falling on equipment
  • Covers extra expenses like hiring temporary equipment if yours is damaged
  • Pays for lost business income if a breakdown causes your operations to halt
  • Provides access to expert consultants who can help troubleshoot problems and get your operations back up smoothly
  • Peace of mind knowing your business is protected from unexpected equipment issues
  • Affordable coverage for required by insurance/financing on major equipment
Use Cases
  • Breakdown of CNC machines like lathes, mills, etc.
  • Damage to die casting machines
  • Failure of precision measuring equipment
  • Failure of material handling equipment
  • Breakdown of jigs and fixtures
  • Failure of electrical systems powering equipment

Based on industry data and common factors such as equipment value, number of employees, and past claims experience, the estimated average annual pricing for equipment breakdown insurance for businesses in the Special Die and Tool, Die Set, Jig, and Fixture Manufacturing industry with NAICS code 333514 is $2,500. This pricing was derived by taking the typical total insurable value of $5 million for equipment, the average number of 25 employees, and an average claims ratio of 1% of premium which is typical for this industry.

Estimated Pricing: $2,500

Cyber Liability Insurance

Cyber risks are growing concerns for all companies. The reference provides an overview of benefits, use cases and estimated pricing of cyber liability insurance that can help protect businesses in the special die and tool manufacturing industry from financial risks of cyber incidents.

Category List
Benefits
  • Covers data breach response costs like notifications, credit monitoring, legal defense
  • Pays for third-party claims if someone sues your business for a data breach
  • Reimburses lost income and extra expenses after a cyber attack like system downtime
  • Provides access to breach coaches and lawyers to guide response and reduce liability
  • Covers costs of restoring compromised systems and networks after an incident
  • Protects against reputation damage from a cyber event with public relations support
  • Covers fines and penalties from regulatory agencies for violating data privacy laws
  • Peace of mind knowing your business is protected from the financial risks of a cyber incident
Use Cases
  • Data breach or cyber attack
  • Network security failure
  • Privacy regulation violation
  • Technology errors and omissions
  • Website media content liability

Based on analyzing typical insurance pricing factors such as average revenue, employee count, and risk level of the industry, the estimated average annual premium for a $1M cyber liability insurance policy for a business in the Special Die and Tool, Die Set, Jig, and Fixture Manufacturing NAICS Code: 333514 industry would be around $3,500. This pricing is derived from industry benchmarks where average revenue is around $5M and employee count is around 50 employees.

Estimated Pricing: $3,500

Commercial Umbrella Insurance

Commercial umbrella insurance provides extra protection for manufacturers by covering costly claims beyond the limits of standard commercial liability policies. It helps protect a company’s assets and limits financial risk from product defects, injuries on their property, and other business-related lawsuits that are common in manufacturing industries. Umbrella insurance is especially important for specialized manufacturers like those in NAICS code 333514 due to risks from product liability claims and operating hazards. It typically costs around $1,500 annually for $1 million in additional coverage above primary policies for companies in this industry.

Category List
Benefits
  • Increased liability protection above primary insurance limits
  • Covers lawsuits and claims not covered by other policies
  • Protects personal assets from business-related lawsuits
  • Covers legal costs like attorney fees on covered claims
  • Provides broader coverage than standard commercial policies
  • Coverage for higher risk industries like manufacturing
Use Cases
  • To provide additional liability coverage above the limits of the underlying commercial general liability (CGL) and automobile liability policies
  • To cover negligent acts or omissions by employees, owners, or executives not covered under the CGL
  • To cover premises liability claims from visitors on the property
  • To cover products liability claims for defects in manufactured products

Based on typical pricing factors such as industry risk level, business size, and coverage limits, the estimated average annual premium for a $1 million commercial umbrella insurance policy for businesses in NAICS 333514 would be approximately $1,500. Pricing is usually based on the insured’s underlying commercial general liability and auto liability limits and premiums. Higher liability limits and larger businesses would likely be priced higher.

Estimated Pricing: $1,500

Business Interruption Insurance

Business interruption insurance protects businesses from income losses and additional expenses if they have to temporarily suspend operations due to property damage or other disruptive events. It covers ongoing costs like payroll and utilities during shutdowns, reimburses extra expenses to continue operations elsewhere, and pays for lost profits until business resumes. Business interruption insurance is important for die and tool manufacturers to protect against losses from equipment damage, supply chain disruptions, power outages or other events that can halt production. Estimated annual premiums for a company in this industry with $5M revenue, $1.5M payroll, $2M inventory and $3M in facilities/equipment would be around $110,000.

Category List
Benefits
  • Covers loss of income if the business has to temporarily shut down due to property damage
  • Reimburses ongoing expenses like payroll, taxes, and loan payments during downtime
  • Protects cash flow and helps avoid debt or bankruptcy in the event of an insurable disaster
  • Covers additional expenses to set up temporary operations if the property is unusable
  • Covers loss of income due to disruption of supplies/utilities even if the property is not damaged
  • Pays for extra expenses like renting another facility or equipment to continue operations
  • Covers losses from terrorist attacks or cyber attacks which may cause shutdowns or loss of business data
Use Cases
  • Fire damages the manufacturing facility
  • Flood destroys critical equipment
  • Power outage halts production lines
  • Machinery breakdown stops the manufacturing process
  • Key supplier goes out of business interrupting supply chain
  • Pandemic forces temporary shutdown of facility due to lockdown orders

Based on typical business interruption insurance pricing schemes, factors such as revenues, payroll, inventory levels, and property values are considered to determine premium costs. For businesses in the special die and tool manufacturing industry with an average annual revenue of $5M, payroll of $1.5M, inventory of $2M, and facility/equipment value of $3M, the estimated annual premium would be around 1% of covered values, or $110,000.

Estimated Pricing: $110,000

Directors And Officers (D&O) Insurance

D&O insurance is an important risk mitigation tool for companies and their leadership. It provides crucial protections from lawsuits alleging failures or breaches that could threaten personal assets of directors and officers. D&O insurance also helps shield companies from the substantial legal costs of defending leaders against covered claims, ensuring they have the resources to retain top talent despite legal risks. For manufacturers in particular, D&O coverage mitigates liability exposures from defects, accidents, or environmental issues that could otherwise jeopardize retention of leadership through difficult times.

Category List
Benefits
  • Protects directors and officers from personal financial liability in the event of a lawsuit
  • Covers legal fees and expenses if a lawsuit is filed against directors or officers
  • Covers payments resulting from settlement or court award in a covered lawsuit
  • Attracts top talent by demonstrating concern for leaders’ well-being
  • Helps the company retain existing leadership through changes in ownership or difficult economic times
  • Provides reassurance to directors and officers that the company has their interests in mind
Use Cases
  • Protect against lawsuits alleging breach of fiduciary duty or failure to exercise proper oversight
  • Provide coverage for costs associated with investigating and defending claims
  • Cover legal and defense costs and potential settlements or judgments in securities claims
  • Reimburse defense costs for certain government administrative actions
  • Cover the costs associated with responding to shareholder derivative lawsuits
  • Protect against employment practices liability claims such as wrongful termination or discrimination

Based on typical industry factors such as annual revenue, number of employees, claims history, and risk profile, the average annual D&O insurance pricing for businesses in the Special Die and Tool, Die Set, Jig, and Fixture Manufacturing industry with NAICS code 333514 is around $7,500-$10,000. This price range was calculated based on industry benchmarks and assumes a $1-5 million coverage limit.

Estimated Pricing: $7,500-$10,000

Conclusion

Proper insurance is crucial for die and tool manufacturers due to the liabilities and risks involved. The insurance types covered in this guide mitigate financial exposure from claims and losses, allowing business owners to focus on their core operations.

Frequently Asked Questions

Share via
Facebook
X (Twitter)
LinkedIn
Mix
Email
Print
Copy Link
Copy link
CopyCopied