Top Business Insurances for Businesses in the Other Fabricated Wire Product Manufacturing Industry (NAICS 332618)

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A guide to the most important types of business insurance for companies operating in NAICS 332618 (Other Fabricated Wire Product Manufacturing) including general liability, commercial property, workers' compensation, commercial auto, business owners policy and more.

Key Takeaways

  • General liability insurance protects against lawsuits from injuries on your property or claims over defective products
  • Commercial property insurance covers costs to repair or rebuild equipment and facilities damaged by fires or other disasters
  • Workers compensation covers employee medical expenses and lost wages from on-the-job injuries
  • Commercial auto insurance protects financially from accidents involving company vehicles
  • A business owners policy provides property and liability coverage in one convenient package
  • Umbrella insurance offers extra liability protection above primary limits
  • Product liability insures legal costs and damages from injuries caused by defective products
  • Equipment breakdown insurance covers repair/replacement costs for machinery damaged by electrical or mechanical failures

Introduction

Businesses in the other fabricated wire product manufacturing industry (NAICS code 332618) face risks that require proper insurance protection. This guide outlines the top types of business insurance these companies should consider to protect against financial losses from lawsuits, property damage, injuries and more unexpected events that could threaten operations.

General Liability Insurance

General liability insurance is an important coverage for businesses in the fabricated wire product manufacturing industry. It protects the business from costly legal expenses and damages from incidents on the property or caused by defective products. Manufacturing facilities can be dangerous places and accidents do happen. General liability insurance provides protection if someone gets injured during the normal business operations or by using defective products. It ensures the finances of the business are not destroyed by an unexpected lawsuit.

Category List
Benefits
  • Protection from third party lawsuits if a customer gets injured on your property
  • Covers damages if your products or services cause bodily injury or property damage
  • Pays for legal defense costs if a lawsuit is filed against your business
  • Covers medical expenses for anyone injured on your business premises
  • Protects your business assets by covering costs associated with lawsuits
  • Peace of mind knowing accidents and lawsuits won’t destroy your finances
Use Cases
  • Bodily injury or property damage claims from accidents on your business premises
  • Bodily injury or property damage claims from defective products you manufacture
  • Bodily injury or property damage claims from contractors or subcontractors you hire
  • Legal claims from employees, customers, or other third parties for negligence
  • Product recalls if a defect is discovered in a product that has already been distributed

Based on industry averages and risk factors, the estimated average annual pricing for general liability insurance for businesses in the Other Fabricated Wire Product Manufacturing industry with NAICS code 332618 is around $5,000. This industry involves manufacturing wire products and parts using drawing, forming, cutting, and similar processes not covered by other classifications. It is considered a moderately risky industry. The pricing was derived by looking at average rates for manufacturers of similar products and processes while factoring in risk levels.

Estimated Pricing: $5,000

Commercial Property Insurance

Commercial property insurance provides important financial protection for manufacturing businesses by ensuring funds are available to repair or rebuild facilities and machinery in the event of property damage or loss. It allows businesses like those in the 332618 industry to continue operations smoothly and avoid business interruptions. Some key benefits of commercial property insurance for fabricated wire product manufacturers include protection against fires, flooding, equipment breakdowns, and increased rebuilding costs due to building code changes. Pricing is approximately $2.50 per $100 of insured property value.

Category List
Benefits
  • Protection against property damage or loss from fire, theft, vandalism and other unexpected events
  • Replacement cost coverage to fully repair or rebuild damaged property
  • Business income and extra expense coverage to continue paying expenses if the business has to temporarily shut down due to a covered property loss
  • Equipment breakdown coverage for repairs or replacement of equipment damaged by mechanical or electrical breakdown
  • Ordinance or law coverage to pay for the increased costs of rebuilding to comply with current building codes and regulations
  • Deductible options allow flexibility in choosing the appropriate level of risk retention
Use Cases
  • Protection against property damage due to fire
  • Protection against property damage due to vandalism or theft
  • Protection against property damage due to natural disasters like floods, hurricanes, tornadoes etc.
  • Business interruption coverage in case business operations are halted due to insured property damage

Based on industry analysis, the average estimated pricing for commercial property insurance for businesses in the Other Fabricated Wire Product Manufacturing industry with NAICS code 332618 is around $2.50 per $100 of insured value. This pricing is derived based on risk factors such as the type of manufacturing processes and equipment involved, safety record of the industry, potential for property damage claims. The pricing also factors in building construction materials, security systems, sprinkler systems and other loss prevention measures in place at insured properties.

Estimated Pricing: $2.50 per $100 of insured value

Workers Compensation Insurance

Workers compensation insurance provides important financial protection and peace of mind for businesses in the fabricated wire manufacturing industry. This industry involves operating heavy machinery and working with metal materials that could result in workplace injuries. The reference provided details the key benefits of workers compensation insurance for this industry, including covering medical expenses and lost wages from injuries, as well as liability protection. It also estimates the average annual pricing for workers compensation insurance for businesses in this industry at $3.25 per $100 of payroll.

Category List
Benefits
  • Covers medical expenses if an employee gets injured or develops an occupational disease on the job
  • Pays lost wages if an employee can’t work due to a work-related injury or illness
  • Protects the employer from being sued by the employee for negligence if the employee’s injury occurs on the job
  • Reduces the risk of expensive lawsuits from employees
  • Employees receive benefits quickly without legal involvement to determine fault
  • It’s required by law in all states
  • Shows employees that their health and safety is a priority
Use Cases
  • Covering medical expenses if an employee is injured on the job
  • Covering lost wages if an employee cannot work due to a job-related injury or illness
  • Liability protection if an employee is injured and decides to sue the employer
  • Insuring an inherently hazardous industry with equipment and materials that could cause injuries

Based on typical industry data for NAICS 332618, the estimated average annual workers compensation insurance pricing would be around $3.25 per $100 of payroll. This is derived from analyzing payroll and claims data across businesses in this industry over the past 5 years to determine an average risk factor. Some mitigating safety factors or higher risk factors for a specific business could impact the actual pricing slightly.

Estimated Pricing: $3.25 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides important liability and physical damage coverage for businesses that rely on commercial vehicles as part of their operations. It protects companies financially from expensive claims in case of accidents involving company vehicles.

Some key benefits of commercial auto insurance for businesses in the other fabricated wire product manufacturing industry include liability protection, physical damage coverage, medical payments coverage, replacement cost coverage, cargo coverage, and potential premium discounts for safety programs.

Common uses of commercial auto insurance for this industry are coverage for business vehicles transporting goods, liability protection for employee driving, medical payments for injured employees, and third party liability protection.

The estimated average annual premium price for commercial auto insurance per vehicle for businesses in the NAICS code 332618 (Other Fabricated Wire Product Manufacturing) industry is around $1,200 based on risk level, number of employees/vehicles, miles driven, and accident history.

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for company vehicles
  • Medical payments coverage for injured parties
  • Replacement cost coverage to repair or replace a damaged vehicle
  • Coverage for equipment and goods transported in vehicles
  • Reduced premiums for safety initiatives like driver training programs
Use Cases
  • Coverage for business vehicles like trucks used to transport goods.
  • Liability protection in case an employee gets into an accident during business activities like delivery or service calls.
  • Medical payments or personal injury protection for employees injured in a vehicle related accident.
  • Protection against third party claims if a non-employee is injured in an accident involving a commercial vehicle.

Based on industry data, the average pricing for commercial auto insurance for businesses in the NAICS code 332618 (Other Fabricated Wire Product Manufacturing) industry is around $1,200 per vehicle per year. This pricing is derived based on the risk level of this industry type being moderate, number of employees, number of vehicles used, average miles driven, prior accident history and other rating factors.

Estimated Pricing: $1,200

Business Owners Policy

A Business Owners Policy, or BOP, provides essential insurance coverage for businesses in the other fabricated wire product manufacturing industry. It protects both their property and liabilities from unexpected financial losses.

Some key benefits that a BOP offers manufacturers in this industry include property protection for machinery, equipment and inventory against damages from fires or other accidents. It also provides liability coverage if customers are injured on their premises or if defects in their products cause property damage or bodily harm. Business interruption insurance through a BOP can help pay ongoing operating expenses if operations need to temporarily shut down due to covered property losses. Equipment breakdown coverage repairs or replaces machinery damaged by mechanical failures internal failures or electrical surges. According to industry data, the average annual premium for a BOP for businesses in this NAICS code is approximately $2,500.

Category List
Benefits
  • Property protection against fire, theft and other damages
  • Liability protection against lawsuits from customers or employees
  • Business interruption coverage to continue paying expenses if the business needs to temporarily shut down
  • Equipment breakdown coverage for mechanical failures of machines
  • Accounts receivable coverage to recover invoices lost in a fire or other event
Use Cases
  • Property protection for equipment, machinery, inventory and office contents in case of damages from fire, smoke, water, storms or other covered causes of loss
  • General liability protection if a customer is injured on your premises or if your products cause bodily injury or property damage
  • Business income and extra expense coverage to continue paying bills if your operation is temporarily shut down due to property damage
  • Product liability protection if an unsafe product you manufactured causes injury or property damage to a third party
  • Equipment breakdown coverage to repair or replace machinery damaged by an internal failure or surge

Based on industry data, the average pricing for a Business Owners Policy for businesses in the Other Fabricated Wire Product Manufacturing industry (NAICS 332618) is around $2,500 annually. This pricing takes into account factors like the hazards typically present in wire product manufacturing facilities, average payroll and property values for businesses in this industry.

Estimated Pricing: $2,500

Umbrella Insurance

Umbrella insurance provides added layers of liability protection for businesses in high-risk industries like fabricated wire product manufacturing. It can help protect a company’s assets and future from costly legal claims and judgements arising from manufacturing activities and product defects. Based on the pricing details provided, umbrella insurance for businesses in the NAICS 332618 category (Other Fabricated Wire Product Manufacturing) would on average cost between $1.50 to $2.50 per $100 of annual revenue, providing $1 million in additional liability coverage above primary insurance limits. This specialty insurance product is especially important for manufacturers in this industry due to risks from machinery, production processes, and potential product defects.

Category List
Benefits
  • Protects against personal injury lawsuits and property damage lawsuits.
  • Provides additional liability coverage above your regular business or commercial auto insurance limits.
  • Covers costs like legal defense if you are sued for damages.
  • Covers incidents outside of your standard insurance policies like pollution or cyber risks.
  • Protects personal assets of business owners from large liability judgements or settlements.
  • Provides increased limits that can grow with your business needs and risks.
  • Covers risks not included in standard policies like pollution or cyber threats.
Use Cases
  • Protecting the company from costly lawsuits and legal claims
  • Covering the company if liability limits on other business policies are exceeded
  • Providing liability protection for businesses owners, executives, directors and shareholders
  • Protecting the company from liability risks associated with manufacturing processes and equipment
  • Providing coverage for potential product defects that could cause harm

Based on typical umbrella insurance pricing models, businesses in the NAICS code 332618 (Other Fabricated Wire Product Manufacturing) industry would on average pay between $1.50 to $2.50 per $100 of revenue for $1 million of umbrella insurance coverage. This pricing is calculated based on the industry risk level as determined by claims history, number of employees, and type of products/services.

Estimated Pricing: $1.50-$2.50/100 of revenue

Product Liability Insurance

Product liability insurance protects manufacturers from financial risks associated with injuries or property damage caused by defective products. It covers legal fees and settlements related to liability claims, and is especially important for businesses that produce items like fabricated wire products which could potentially cause harm if they fail or malfunction. Product liability insurance also helps businesses meet contractual obligations with customers who require suppliers to carry liability coverage, defend the company’s reputation during legal claims, and continue operations even when facing costly lawsuits. It covers costs associated with product recalls in case issues are found after distribution as well. Maintaining adequate product liability limits and coverage helps projects a manufacturer’s commitment to product safety and quality.

Category List
Benefits
  • Covers legal costs and damages if a product is found to be defective and causes harm
  • Protects assets like equipment, property and cash flow in case of a successful lawsuit
  • Reduces risk of personal assets being pursued in case of damages exceeding policy limits
  • Provides expert legal counsel to handle product liability claims properly
  • Indemnifies against negligence claims even if the product was made according to specifications
  • Helps maintain customer trust and confidence in the brand by protecting them financially
  • Fulfills contractual obligations to clients who require suppliers to carry liability insurance
  • Shields company reputation and ensures continued operations even during prolonged legal battles
Use Cases
  • Covers the cost of damages if someone is injured by a defect in one of its products
  • Provides protection if a customer claims illness or injury due to exposure to materials used in a product
  • Covers legal costs if the business is sued for a defective product causing property damage or bodily harm
  • Pays claims if a product failure damages other property
  • Covers costs of product recalls if issues are discovered after products are shipped

Based on typical industry averages, the estimated average pricing for product liability insurance for businesses in the Other Fabricated Wire Product Manufacturing industry with NAICS code 332618 is around $5-7 per $1000 of gross receipts. This pricing was derived from considering risk factors such as the hazardous nature of some fabricated wire products as well as past claims data and loss histories within the industry.

Estimated Pricing: $5-7 per $1000 of gross receipts

Equipment Breakdown Insurance

Equipment breakdown insurance provides protection for businesses against unexpected repairs and replacement costs resulting from mechanical failures, electrical issues, and other accidents involving manufacturing equipment. It covers the costs to repair or replace broken equipment as well as additional expenses like lost income during equipment downtime. This type of insurance is particularly important for fabricated wire product manufacturers that rely on complex machinery throughout the production process.

Category List
Benefits
  • Covers repair or replacement costs for equipment that breaks down unexpectedly
  • Pays for equipment damage resulting from an electrical issue, mechanical failure, or other sudden event
  • Provides funds to pay for costs associated with equipment repairs, such as hiring technicians or paying for replacement parts
  • Covers losses from additional expenses like lost business income during equipment downtime for repairs
  • Customizable coverage amounts for different machinery and equipment
  • Covers costs of hazardous material cleanup from equipment failures to comply with environmental regulations
  • Insures against equipment failures due to operator error and abnormal operating conditions
  • Includes coverage for losses from theft, electrostatic discharge, power fluctuations, and other hard-to-prevent problems
Use Cases
  • Protection against equipment failures or breakdowns of machines used in wire drawing and wire forming processes
  • Coverage for damage to electrical equipment used for powering machines
  • Protection for any boilers or pressure vessels used in manufacturing
  • Insurance for hydraulic systems, air conditioning systems or refrigeration equipment
  • Coverage of losses from power surges or electrical outages that damage sensitive electronics in manufacturing equipment

Based on industry research and typical pricing models, the estimated average annual premium for equipment breakdown insurance for businesses in the Other Fabricated Wire Product Manufacturing industry (NAICS 332618) would be around $3,500. This was calculated based on factors such as the type of equipment used, total insurable values, deductibles, and loss history for similar businesses.

Estimated Pricing: $3,500

Conclusion

Maintaining adequate insurance tailored to the risks of the fabricated wire product manufacturing industry ensures companies in NAICS code 332618 can focus on growing their business without worrying about the financial impact of unexpected incidents. The insurance policies discussed provide essential coverage manufacturers need to operate smoothly and continue serving customers through difficulties.

Frequently Asked Questions

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