Top Business Insurances for Companies in the Major Household Appliance Manufacturing Industry with NAICS Code 335220

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An overview of the most important types of business insurance for companies in the major household appliance manufacturing industry including general liability, property, workers compensation, commercial auto, product liability, umbrella and more.

Key Takeaways

  • General liability insurance protects against risks like injuries on premises, product defects, pollution issues
  • Property insurance covers damage to buildings, equipment from incidents like fire or natural disasters
  • Workers compensation covers medical costs and lost wages if employees are injured on the job
  • Commercial auto covers fleet vehicles used to transport finished goods and other business vehicles
  • Product liability covers costs of injuries, recalls or legal claims from defective appliances
  • Umbrella insurance provides additional liability protection above standard policy limits
  • Other important coverages include commercial crime, directors & officers insurance

Introduction

Businesses in the major household appliance manufacturing industry with NAICS code 335220 face unique risks that require comprehensive insurance protection. This article explores the top business insurance policies necessary to protect operations, assets and finances from unforeseen incidents and lawsuits.

General Liability Insurance

General liability insurance is an important form of coverage for businesses in the major household appliance manufacturing industry. It protects them from a variety of risks and legal liabilities that could otherwise severely impact their operations and finances. This includes risks related to accidents, injuries, defective products, pollution and more as outlined in the reference material provided. General liability insurance can help defend manufacturers against costly lawsuits from incidents involving equipment, products, pollution or other issues that are outlined as key benefits, use cases and potential pricing considerations for this important insurance.

Category List
Benefits
  • Protects your business from claims of bodily injury or property damage from customers and third parties
  • Covers liability claims even if the cause was unintentional or accidental
  • Provides protection for on-premises and off-premises exposures
  • Covers legal costs if you are sued
  • Satisfies contractual obligations that require you to carry liability insurance as a condition of doing business
  • Protects against product liability claims in case a manufactured product causes injury or damage
  • Provides coverage for pollution and asbestos related claims
  • Covers risks associated with manufacturing and testing equipment
  • Protects against legal defense costs and damages from lawsuits
Use Cases
  • Protects the insured from accidental bodily injury or property damage claims from third parties (customers, suppliers, etc.)
  • Covers legal expenses if a third party sues for premises liability, products liability, or completed operations
  • Provides coverage if a defective product causes bodily injury or property damage after it leaves the manufacturing facility
  • Protects from lawsuits if someone is injured on your business property
  • Covers liability claims and lawsuits related to the disposal and handling of hazardous materials during the manufacturing process

Based on industry data, the average general liability insurance pricing for businesses in the major household appliance manufacturing industry (NAICS 335220) is around $5.50 per $100 of payroll. This pricing is derived considering factors such as the business’s payroll, number of employees, types of appliances manufactured, safety practices and claims history.

Estimated Pricing: $5.50/$100 of payroll

Property Insurance

Property insurance provides essential protection for businesses in the major household appliance manufacturing industry. It can help compensate manufacturers for unexpected losses and damage tobuildings, equipment, and inventory to keep operations running smoothly. Additionally, it protects manufacturers against liability claims and provides coverage for business interruptions to continue paying employees and fixed costs until operations are restored. Property insurance gives manufacturers peace of mind in the event that property is damaged or destroyed, enabling companies to remain viable after such incidents.

Category List
Benefits
  • Protection against property damage or losses due to various perils like fire, explosion, earthquake, etc.
  • Compensation for property damage even in the event of negligence by employees
  • Reimbursement for losses due to business interruption
  • Covers property during transportation and shipping
  • Replacement cost or repair cost of buildings, machinery, equipment and other property items are covered
  • Covers extra expenses incurred to work from a temporary location if the property is damaged
  • Protects businesses from financial strain in case a major loss occurs
  • Covers extra expenses incurred to work from a temporary location if the property is damaged
Use Cases
  • Protection against damage or destruction of owned buildings, machinery, equipment and inventory from fire, explosions, storm damage, etc.
  • Coverage for losses due to business interruption from property damage events to continue paying employees and fixed costs until operations are restored
  • Replacement or repair costs for property damaged by covered causes of loss to get manufacturing facilities back up and running
  • Protection for electronic equipment, computers and machinery against damage from power surges or outages
  • Coverage for newly acquired locations or equipment for a period of time before needing to update the policy

Based on industry data, the average property insurance pricing for businesses in the major household appliance manufacturing industry (NAICS Code 335220) is around $1.50 per $100 of insured value. This pricing is calculated based on factors like the type of equipment and machinery used, safety measures and procedures in place, claims history, and location. Since major appliance manufacturing involves large production equipment and facilities, pricing tends to be on the higher end compared to other manufacturing industries.

Estimated Pricing: $1.50 per $100 of insured value

Workers Compensation Insurance

Workers compensation insurance provides critical protections for both employees and employers in high-risk industries like major household appliance manufacturing. It ensures employees receive support for injuries through covering medical expenses, lost wages, rehabilitation, and lawsuits, while protecting businesses from financial liability and lawsuits by complying with state laws and lowering costs from reduced claims, turnover, and risk of other insurance.

Category List
Benefits
  • Covers medical expenses and lost wages if an employee gets injured on the job
  • Provides replacement of lost income while an employee heals
  • Protects your assets from costly lawsuits if an employee sues due to a work injury
  • Reduces absenteeism and turnover from job-related injuries
  • Ensures compliance with state workers compensation laws
  • Lowers other insurance costs by reducing the risk of claims
  • Available 24/7 regardless of fault for quick aid
Use Cases
  • Cover medical expenses and lost wages for employees who are injured on the job
  • Protect the business from financial loss and lawsuits if an employee is hurt while working
  • Cover rehabilitation expenses if an injury prevents an employee from returning to their regular job duties
  • Cover injuries resulting from repetitive motions or ergonomic issues related to manufacturing tasks

Based on national averages, the estimated average pricing for workers compensation insurance for businesses in the major household appliance manufacturing industry (NAICS Code: 335220) is around $4.50 per $100 of payroll. This price was derived based on risk factors such as types of machinery/equipment used, number of workplace injuries reported in the past, etc. for this industry according to insurance rate filings and industry analysis.

Estimated Pricing: $4.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance plays a vital role in protecting businesses in the major household appliance manufacturing industry. It provides liability coverage and physical damage coverage for fleet vehicles like delivery trucks that transport finished products from plants to warehouses. It also covers company vehicles used by employees for customer visits, jobsites, and meetings. In addition, it insures courtesy vehicles provided to customers during appliance repairs as well as rented or borrowed vehicles used periodically for business needs. Commercial auto insurance helps shield these businesses from financial responsibility in the event of an accident and ensures employees are covered while driving for work.

Category List
Benefits
  • Liability protection in case of an accident
  • Coverage for physical damage to company vehicles
  • Medical payments for injured parties even if not at fault
  • Uninsured/underinsured motorist bodily injury coverage
  • Replacement rental vehicle coverage if a company car needs repairs
  • Coverage for goods and merchandise being delivered or transported
  • Coverage for hired and non-owned vehicles
  • Replacement rental vehicle coverage if a company car needs repairs
Use Cases
  • Covering fleet vehicles like delivery trucks used to transport finished goods
  • Protecting company vehicles used by employees for jobsites, customer visits, and meetings
  • Insuring courtesy vehicles provided for customer use during repairs
  • Covering rented or borrowed vehicles used for business needs

Based on industry data and averages, the estimated annual commercial auto insurance pricing for businesses in the major household appliance manufacturing industry with NAICS code 335220 is around $1,500-$2,000 per vehicle. This range was calculated based on factors like the type of vehicles used, average miles driven, safety record of the industry, and average claims. The vehicles are generally larger work trucks and vans used to transport appliances and materials.

Estimated Pricing: $1,500-$2,000

Product Liability Insurance

Product liability insurance provides critical protection for appliance manufacturers against expensive costs from injuries, recalls, or legal claims resulting from defective products. It covers expenses like medical bills, lost wages, legal fees and damages if customers are harmed by issues caused by appliances. This type of coverage promotes business stability, gives customers peace of mind in a manufacturer’s commitment to safety, and protects against moderate product liability risks for this industry with an estimated average pricing of around $1.50 per $100 of gross receipts.

Category List
Benefits
  • Protects your business from costly legal fees and damages if a customer is injured by one of your products
  • Covers medical expenses, lost wages, pain and suffering if someone is harmed by a defective product you made
  • Pays for the costs of product recalls if a safety issue is discovered with one of your appliances
  • Provides coverage if your products are misused in a way not intended or if improper installation or maintenance of the product leads to injury
  • Gives customers confidence in your brand and products by demonstrating you stand behind the safety and quality of what you sell
  • Promotes peace of mind knowing you are adequately protected from unexpected costs of accidents and legal claims
  • Allows your business to focus on product innovation and customer service rather than potential lawsuit risks
Use Cases
  • Covers legal costs and damages if a refrigerator, dishwasher, washing machine, etc. manufactured by the company malfunctions and causes property damage or bodily harm
  • Protects against claims if a component part provided by a supplier is defective and causes an injury or accident
  • Covers costs of product recalls if a safety issue is discovered with an appliance model after it has been released to consumers

Based on industry analysis, the average pricing for product liability insurance for businesses in the major household appliance manufacturing industry with NAICS code 335220 is around $1.50 per $100 of gross receipts. This pricing is derived from typical premium rates that are calculated as a percentage of gross receipts/sales. Product liability risks tend to be moderate for this industry compared to other manufacturing industries given the nature of products. However, pricing could vary significantly depending on individual company’s claim history, safety procedures/standards, and product risks.

Estimated Pricing: $1.50 per $100 of gross receipts

Umbrella Insurance

Umbrella insurance provides additional liability protection above standard business insurance limits for companies in high-risk industries like major household appliance manufacturing. It helps protect against costly claims from product defects, workplace accidents, and other litigation while ensuring adequate financial coverage and peace of mind. Umbrella policies are particularly beneficial for manufacturers to bridge gaps between primary auto, property and liability policies and ensure continuous protection from major liability risks. As a capital-intensive industry with risks of injuries, defective products and lawsuits, umbrella insurance is a critical component of a comprehensive risk management strategy for household appliance makers.

Category List
Benefits
  • Provides additional liability protection above standard business insurance limits
  • Covers legal costs and settlements from various types of liability claims
  • Protects personal assets of business owners from large liability settlements or awards
  • Covers accidents or incidents on or off business property
  • Covers negligent hiring and supervision claims against the business
  • Provides excess coverage in cases where underlying policies have been depleted
  • Broad coverage that bridges multiple policies like auto, property and liability
  • Coverage for discontinued or defective products distributed years prior
Use Cases
  • Protects from costly claims exceeding primary insurance limits in the event of property damage or bodily injury claims by employees or customers
  • Provides additional liability coverage for ongoing and completed operations, personal and advertising injury claims, and other risks not covered under standard commercial policies
  • Covers legal costs above and beyond primary policy limits in the event of lawsuits related to operations
  • Protects against risks not fully covered under general liability, auto, or workers’ compensation policies

Based on typical umbrella insurance pricing models and risk factors for the major household appliance manufacturing industry, the estimated average annual pricing for $1 million in umbrella liability coverage would be around $1,200. Pricing is usually determined based on factors like the company’s annual revenues, number of employees, loss history, and types of products manufactured. As a moderate to medium risk manufacturing industry, household appliance makers usually fall within the average umbrella insurance pricing range.

Estimated Pricing: $1,200

Commercial Crime Insurance

Commercial crime insurance provides important protection for businesses in the major household appliance manufacturing industry. It covers losses from risks like employee theft, robbery, computer fraud, and other common risks these businesses may face. Some key benefits include protecting against losses from employee theft or dishonesty, theft of money or inventory belonging to the business, and covering legal defense costs if accused of a crime. This type of insurance can help safeguard assets and reputation when unexpected crimes occur.

Category List
Benefits
  • Protects against employee theft
  • Covers theft of money, securities or inventory
  • Reimburses you for funds lost due to employee dishonesty
  • Pays for forensic investigation costs after a crime
  • Covers legal defense costs if accused of a crime
  • Covers costs to notify clients of a data breach
  • Insures company property while off-premises
  • Provides kidnap and ransom coverage
  • Covers loss from employee computer fraud
  • Protects ongoing business income if disrupted by a crime
  • Covers costs to notify clients of a data breach
  • Insures company property while off-premises
Use Cases
  • Employee theft or dishonesty
  • Theft of money or property belonging to the business
  • Forgery
  • Computer fraud
  • Identity theft
  • Robbery
  • Burglary
  • Vandalism or sabotage of equipment/machinery

Based on industry data, the average pricing for commercial crime insurance for businesses in the Major Household Appliance Manufacturing industry (NAICS Code: 335220) is around $1.50 per $100 of payroll. This rate is calculated based on the industry risk level and average claims made. Larger businesses with over 500 employees and over $50M in annual revenue may be eligible for slightly lower rates between $1.25-$1.35 per $100 of payroll.

Estimated Pricing: $1.50 per $100 of payroll

Directors And Officers Insurance

Directors and officers insurance, commonly referred to as D&O insurance, protects companies and individuals from litigation expenses and damages claims regarding the operations and oversight of the business. D&O covers key legal costs like defense expenses, damages and settlements in the event a lawsuit is filed against a company’s directors or officers for wrongful acts, errors, omissions and breaches of duty while performing their roles within the organization. It is especially important for major household appliance manufacturers given the regulatory complexity, consumer safety risks, and potential for product liability lawsuits within the industry. D&O insurance provides crucial protection for appliance companies and helps attract qualified directors by shielding them from personal liability should issues arise from good-faith business decisions or unintentional oversight failures.

Category List
Benefits
  • Protects directors and officers from costly legal fees and damages arising from lawsuits
  • Covers defense costs for lawsuits alleging errors, omissions, or wrongful acts
  • Allows companies to attract and retain qualified directors and officers
  • Indemnifies directors for decisions made while conducting business in good faith
  • Covers costs related to regulatory investigations and proceedings
  • Pays settlements and judgments if a lawsuit is lost
  • Protects the company’s reputation by supporting directors and officers through legal issues
Use Cases
  • Defense costs for regulatory actions, investigations or lawsuits
  • Coverage for wrongful acts like errors, omissions, misleading statements, neglect or breach of duty
  • Reimbursement for losses from business decisions that cause financial harm
  • Protection against shareholder derivative suits that allege mismanagement
  • Indemnification of legal fees if directors/officers are sued for their actions and decisions while working for the company

Based on typical pricing models and average values for companies in the NAICS 335220 (Major Household Appliance Manufacturing) industry, directors and officers insurance would likely be priced between $15,000 to $30,000 annually. The pricing is usually determined based on factors like the company’s annual revenue, number of employees, market share and underwriting risks.

Estimated Pricing: $15,000-$30,000

Conclusion

With the complex operational and liability risks involved in manufacturing appliances, proper insurance planning is key for companies in this capital-intensive industry. The various policies discussed help shield businesses financially and legally while promoting stability, compliance and customer confidence essential for success long-term.

Frequently Asked Questions

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