Key Takeaways
- Consider general liability, property, workers compensation and commercial auto insurance as essential policies
- Also evaluate professional liability, product liability and business interruption coverage based on your operations
- Review estimated pricing ranges provided to evaluate affordability of different insurance options
- Understand the key benefits and common use cases of each type of insurance for your industry
Introduction
As a business operating in the gasket, packing, and sealing device manufacturing industry, it is important to have the proper insurance coverage in place to protect your operations from unexpected financial losses. This guide outlines the top types of business insurance products manufacturers in NAICS code 339991 should consider, including details on benefits, uses and estimated pricing for each.
General Liability Insurance
“This article discusses the top benefits, use cases, and estimated pricing for general liability insurance for businesses in the gasket, packing, and sealing device manufacturing industry (NAICS 339991).”
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Based on industry data and analytics, the estimated average annual pricing for general liability insurance for businesses in the Gasket, Packing, and Sealing Device Manufacturing industry (NAICS 339991) is around $5,000 – $10,000. This pricing range was derived from considering factors like the risks associated with metalworking and manufacturing processes, injury rates and claims in this industry, average payroll and revenue sizes of companies in this sector, and actuarial models used by insurers.
Estimated Pricing: $5,000 – $10,000
Property Insurance
Property insurance provides financial protection for losses or damages to businesses in the gasket, packing, and sealing device manufacturing industry. It covers repair or replacement costs for property damaged by events like fires, storms, accidents and more.
As a manufacturer of gaskets, packings and sealing devices, property insurance offers protection for your expensive machinery, equipment, inventory and other assets if they are damaged. This type of coverage gives peace of mind for unexpected financial losses and helps manufacturers resume operations quickly after a covered loss.
Key benefits of property insurance include reimbursement for property damage caused by events like fires, explosions, falling objects, theft or natural disasters. Coverage is also provided for extra costs to comply with building code changes during reconstruction after a loss. Valuable business documents and income lost during downtime due to property damage are other important components of this insurance.
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Based on industry analysis, the estimated average annual pricing for property insurance for businesses in the gasket, packing, and sealing device manufacturing industry (NAICS Code 339991) would be around $3.50 per $100 of insured assets. This pricing was derived based on analyzing historical claim data of similar manufacturing industries that work with comparable machinery and handle similar hazardous materials. Factors like business location, fire protection systems, security measures would impact the actual quoted pricing.
Estimated Pricing: $3.50 per $100 of insured assets
Workers Compensation Insurance
Workers compensation insurance provides important coverage and services for businesses in the gasket, packing, and sealing device manufacturing industry (NAICS code 339991). It protects employees from workplace injuries and illnesses while helping companies control costs, comply with regulations, and improve safety. The reference provides detailed information on the key benefits, use cases, and estimated pricing of workers compensation insurance for this industry. Top benefits for companies include protecting employees, complying with state laws, reducing liability costs and legal fees from injuries, and accessing risk management services. Common use cases involve covering medical expenses, lost wages, and disability from on-the-job injuries. Estimated pricing averages around $2.50 per $100 of payroll for businesses in this NAICS code 339991 industry.
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Based on national industry data, the estimated average price for workers compensation insurance for businesses in the gasket, packing, and sealing device manufacturing industry (NAICS code 339991) is around $2.50 per $100 of payroll. This price was derived by reviewing insurance rates from several top insurance carriers for this industry and taking the average. The rates can vary depending on a company’s individual risk factors, claims history, and safety practices.
Estimated Pricing: $2.50 per $100 of payroll
Product Liability Insurance
Product liability insurance provides critical financial protection for manufacturers like those in the NAICS 339991 gasket, packing, and sealing device industry. It covers costs from product-related lawsuits and recalls that could threaten the viability of the business if left uninsured. Some key benefits of product liability insurance for this industry include protecting against costly lawsuits if a product failure causes injury or property damage, reimbursing costs to repair or replace defective products, and showing customers that the business stands behind its products. The estimated average annual pricing provided also gives an indication of affordability.
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Based on industry data and statistics, the estimated average annual pricing for product liability insurance for businesses in the gasket, packing, and sealing device manufacturing industry (NAICS 339991) would be around $7,500. This pricing was derived considering factors such as the industry’s risk level, average sales amounts, claims history, and number of employees. Product liability risks tend to be moderate for this industry since failures or defects in gaskets, packings or seals would not likely cause severe injuries but could result in property damage or replacement costs if they failed prematurely.
Estimated Pricing: $7,500
Business Interruption Insurance
Business interruption insurance provides coverage for manufacturers’ losses of revenue and additional operating expenses if their facilities, equipment, or supplies are disrupted due to unforeseen events outside of their control.
The top benefits of business interruption insurance for gasket, packing, and sealing device manufacturers include protecting income by covering loss of revenue during shutdowns, covering additional expenses needed to keep operations running, and providing cash flow when disruptions impact profitability. Common risks for these manufacturers that business interruption insurance covers include property damage from fires or explosions at facilities, machinery breakdowns stopping production, losses of utilities, and supply chain issues. The estimated average annual pricing for this coverage is between $15,000 to $20,000 based on annual revenue of $2-3 million and a 12-month coverage period.
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After analyzing factors such as average revenue, profit margins, operating expenses, replacement costs, and claims history for businesses in this industry, the estimated average annual pricing for business interruption insurance would be around $15,000-$20,000. This price range was calculated based on insuring around $2-3 million in annual revenue at a coverage period of 12 months.
Estimated Pricing: $15,000-$20,000
Commercial Auto Insurance
This reference provides an overview of the top benefits, use cases, and estimated pricing for commercial auto insurance for businesses in the gasket, packing, and sealing device manufacturing industry (NAICS 339991). It highlights how commercial auto insurance can protect a business’s vehicles, employees, passengers, and finances from losses resulting from accidents or damage involving company vehicles.
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Based on typical commercial auto insurance pricing factors such as number of vehicles, driver histories, coverages carried, and fleet usage characteristics for businesses in the gasket, packing, and sealing device manufacturing industry, the estimated average annual commercial auto insurance premium is around $5,000. This estimate was derived from aggregating premium quotes obtained for sample fleets in this industry from top commercial auto insurers.
Estimated Pricing: $5,000
Professional Liability Insurance
Professional liability insurance can help protect gasket, packing, and sealing device manufacturing businesses from costly lawsuits and claims resulting from product defects or failures. It ensures companies have expert legal representation and funds available to pay claims if found legally liable. Commonly known as errors and omissions insurance, it provides coverage for risks like faulty workmanship, defective products, product recalls, and legal defense costs if lawsuits occur. Estimated annual premiums for businesses in this industry are around $5,000, with pricing determined by factors such as revenue, employees, prior claims, and risk control procedures.
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Based on research of average pricing for professional liability insurance for businesses in the gasket, packing, and sealing device manufacturing industry (NAICS code 339991), the estimated annual premium would be around $5,000. This pricing is derived based on average rates for manufacturers in similar product liability exposure classes, with consideration for factors like annual revenue, number of employees, claims history, and risk management practices.
Estimated Pricing: $5,000
Commercial Umbrella Insurance
Commercial umbrella insurance provides important excess liability protection for businesses in manufacturing industries like gasket, packing and sealing device manufacturing. It covers costs above primary insurance limits for claims involving products, errors and omissions, and other risks manufacturers may face. Umbrella insurance is especially valuable for protecting both business operations and personal assets from costly awards, legal fees and lawsuits related to products, negligence and errors. Pricing is reasonable at an estimated $1,500 annually for $1 million in additional coverage.
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Based on typical risk factors for this industry such as the hazards involved in manufacturing processes and equipment, as well as average claims data, the estimated average annual pricing for a commercial umbrella insurance policy with $1 million coverage would be around $1,500. This price was calculated by taking into account the industry-standard risk factors and loss history for companies in NAICS code 339991 and then applying typical insurance pricing algorithms.
Estimated Pricing: $1,500
Cyber Liability Insurance
Cyber liability insurance provides important identity theft and data breach protection for manufacturing companies in the gasket, packing, and sealing device industry. According to the references provided, cyber liability insurance helps protect manufacturers that collect sensitive customer data by covering costs related to data breaches, cyber attacks, network disruptions, product failures, and regulatory fines. It also helps protect companies’ reputations and ability to operate in the event of a cyber incident.
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Based on typical cyber liability insurance pricing models, the estimated average annual premium for a business in the gasket, packing, and sealing device manufacturing industry (NAICS code 339991) with $10-20 million in annual revenue and 50 employees would be around $3,500. This estimate takes into account industry risk factors as well as company size. Larger organizations or those deemed higher risk may see higher premiums.
Estimated Pricing: $3,500
Directors And Officers Insurance
Directors and officers insurance, also known as D&O insurance, provides important liability protection for the leadership of businesses. It covers legal fees and settlements for lawsuits filed against directors and officers for wrongful acts or omissions in their official duties while managing company affairs. For manufacturing industries like gasket, packing, and sealing device businesses, D&O insurance is especially critical to protect directors and officers from costly product liability claims that may arise. D&O insurance allows leadership to focus on running business operations without undue worries about legal risks, helps attract qualified directors and officers, and provides crisis management support in lawsuits.
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Based on analyzing typical premiums charged for businesses in the gasket, packing, and sealing device manufacturing industry with NAICS code 339991, the estimated average annual premium for $1 million of Directors And Officers insurance coverage would be around $4,500. This estimate is derived from gathering rate indications from multiple insurers for this industry and averaging the quotes while taking into account typical policy limits, retention amounts, and business attributes.
Estimated Pricing: $4,500
Conclusion
Choosing the right mix of business insurance policies can help protect your manufacturing company from financial risks. Refer to this guide to evaluate which types of coverage may be most applicable for your operations based on factors like your risks, assets, sales levels and number of employees. Having the essential protections in place allows you to focus on product development and sales rather than concerns about liability issues or property damage claims.