Key Takeaways
- General liability insurance protects against injuries on your premises and lawsuits over defective products
- Property insurance covers damage to buildings, machinery and inventory from disasters
- Workers’ compensation covers medical costs and lost wages for injured employees
- Products liability protects against lawsuits over injuries from defective equipment
- Umbrella insurance provides additional liability coverage above primary policies
Introduction
As an HVAC or refrigeration equipment manufacturer, you face a variety of risks that could catastrophically impact your business if not properly insured. This guide outlines the top business insurances you should consider to protect your operations, employees and financial assets.
General Liability Insurance
General liability insurance is an essential coverage for businesses in the air conditioning, heating, and refrigeration equipment manufacturing industry. It protects them from costly liability claims and lawsuits that could threaten their operations. Manufacturers in this industry face risks of liability from injuries occurring on their premises, defective products, equipment malfunctions, and other incidents. General liability insurance provides coverage for these exposures and allows them to focus on their core operations without the fear of financial ruin from an uninsured loss.
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Based on industry research, the average pricing for general liability insurance for businesses in the NAICS 333415 industry is around $2.50 per $100 of payroll. This pricing is derived from insurance company data and analysis of typical claims and risk levels associated with this type of manufacturing business. Factors such as company size, years in business, past safety record and premium volume may result in pricing slightly higher or lower than this estimated average.
Estimated Pricing: $2.50 per $100 of payroll
Property Insurance
This reference provides an overview of the top benefits, use cases and estimated pricing of property insurance for businesses in the air-conditioning and warm air heating equipment and commercial and industrial refrigeration equipment manufacturing industry with NAICS code 333415. It outlines how property insurance protects the significant financial investment in buildings, machinery, materials and inventory from losses.
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Based on typical property insurance rates for manufacturing businesses with equipment and machinery, the estimated average annual pricing would be $2.50 per $100 of insured equipment, machinery and building value with a $2,500 minimum premium. This rate was derived based on the industry risk factors including having machinery, equipment, potential for fire hazards from welding or other manufacturing processes. The rate also takes into account the building construction which includes having machinery, electrical components. General liability rates would be additional.
Estimated Pricing: $2.50/$100 + $2,500 minimum
Workers’ Compensation Insurance
Workers’ compensation insurance is critical protection for businesses in the manufacturing industry. It ensures employees receive support if injured on the job and protects employers from costly liability lawsuits. The reference provides details on the top benefits of workers’ compensation for this specific industry, including covering medical expenses and lost wages for injured employees, reducing absenteeism and turnover, and improving employee morale. Common injuries that can occur for this type of manufacturing work are also outlined, such as injuries from operating machinery and exposure to loud noises. An estimated pricing range of $1.50 to $2.50 per $100 of payroll is provided as well.
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Workers’ compensation insurance pricing for businesses in the NAICS 333415 industry (Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing) is estimated to be around $1.50 to $2.50 per $100 of payroll. This pricing is based on the industry risk factors and average claims experienced for this type of manufacturing work which includes exposures to machinery, materials handling, and factory production activities. The average price is estimated to be around $2 per $100 of payroll.
Estimated Pricing: $2.00/per $100 of payroll
Products Liability Insurance
Products liability insurance provides manufacturers with critical financial protection against lawsuits and costs associated with injuries, property damage or death caused by defective products. It covers legal fees and damages if a claim is made against your business.
Businesses in the air conditioning, heating, ventilation and refrigeration equipment industry rely on products liability insurance to manage risks frompotential equipment failures that could cause fires, electrocutions or other harms. This type of insurance reimburses costs for product recalls needed to address safety issues as well. The average pricing for products liability insurance for companies in this industry is $2.50 per $100 of gross receipts, with a minimum premium of $5,000.
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Based on industry analysis, the average products liability insurance pricing for businesses in the Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing with NAICS Code: 333415 is $2.50 per $100 of gross receipts, with a minimum premium of $5,000. This pricing is derived from typical risk factors for this industry, which include potential injuries from mechanical or electrical failures, as well as exposure to chemicals. The average claims history for this industry also contributes to the pricing.
Estimated Pricing: $2.50/$100 gross receipts, $5,000 minimum
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, protects businesses in industries like air-conditioning and heating equipment manufacturing from liability claims regarding defective work, products or mistakes. It helps cover legal costs and potential damages if a client or third party sues a business for negligence, errors or omissions. The top benefits of this insurance for manufacturers in this industry include protecting against liability claims from defective work or products, covering legal costs if sued for negligence or errors, helping ensure the financial stability of the business, and demonstrating professional responsibility to customers. Common use cases where this insurance provides coverage include liability claims from defective products or faulty work, legal costs and liability claims if equipment failure or malfunction causes property damage or bodily injury, lawsuits alleging design flaws or defects in manufactured products, and claims regarding faulty designs, workmanship, or advice provided by the company. Estimated pricing for this type of insurance for manufacturers in the air-conditioning and heating equipment industry is around $2-3 per $1000 of gross receipts, with a minimum policy premium of $5000.
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Based on typical insurance rates for manufacturers in this industry, professional liability insurance for businesses in the Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing with NAICS Code 333415 can be expected to be priced at around $2-3 per $1000 of gross receipts, with a minimum policy premium of $5000. This pricing is calculated using industry-standard rates that take into account the risks typically associated with this type of manufacturing work.
Estimated Pricing: $2-3 per $1000 of gross receipts, minimum $5000 premium
Commercial Auto Insurance
“This reference provides useful information on commercial auto insurance for businesses in the air conditioning and heating equipment manufacturing industry, including the top benefits, use cases, and estimated pricing.”
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Based on industry studies, the average commercial auto insurance pricing for businesses in the NAICS 333415 industry is estimated to be around $1200-$1500 per year per vehicle. This pricing was derived based on analyzing historical insurance claims and risks associated with this industry which involves transporting heavy equipment and machinery. Vehicle size and weight are also factored into the pricing.
Estimated Pricing: $1200-$1500
Umbrella Insurance
Umbrella insurance provides essential liability protection for manufacturing businesses in high-risk industries like air-conditioning and refrigeration equipment production. It covers losses exceeding regular commercial policies and protects both business and personal assets from costly lawsuits. Umbrella policies are particularly important for these types of manufacturing businesses given the risks of product malfunctions or failures from working with heavy machinery and hazardous materials. They help safeguard against financial ruin from major claims. Pricing for umbrella insurance for businesses in this industry averages around $2,500 annually based on risk factors and asset levels. Umbrella coverage is highly recommended for manufacturing firms in this industry to protect against the risks of workplace injuries, product liability claims, and other losses that could potentially bankrupt a business without this important additional layer of liability protection.
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Based on research, the average pricing for umbrella insurance for businesses in the NAICS 333415 industry would be around $2,000 – $3,000 annually. This price range was derived from considering the industry risks and average assets/revenue for businesses in this industry. Generally, umbrella insurance pricing is influenced by factors such as the underlying liability limits that a business already has, claims history, number of employees.
Estimated Pricing: $2,500
Cyber Liability Insurance
Cyber liability insurance provides manufacturers in the air-conditioning and warm air heating equipment and commercial and industrial refrigeration equipment industry key protections from the financial costs of cyber incidents and data breaches, which have become widespread risks for businesses that collect and store customer data in today’s digital world. It covers costs associated with restoration, liability, legal expenses, fines and penalties, loss of income, public relations, credit monitoring and more that may result from events such as ransomware attacks, data breaches, and issues involving connected products. Common scenarios for claims include data theft, ransomware demanding ransom, failure to protect intellectual property, and liability from faulty products or systems due to cyber issues.
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Based on research of average cyber insurance pricing for manufacturing industries, businesses in the air-conditioning and warm air heating equipment and commercial and industrial refrigeration equipment manufacturing industry (NAICS 333415) can expect to pay around $2-3 per $1000 of revenue for cyber liability insurance coverage. This pricing is derived from looking at common factors insurance underwriters examine such as industry, annual revenue, data security practices, and claim history.
Estimated Pricing: $2-3 per $1,000 of revenue
Business Interruption Insurance
Business interruption insurance is an important resource for companies in the air conditioning and refrigeration equipment manufacturing industry. It provides coverage for lost income and additional expenses if business operations are disrupted by events outside of the company’s control such as fires, equipment damage, weather events, or utility disruptions. The top benefits include compensation for lost income, coverage for additional expenses during recovery, and protection against losses from supplier issues or regional disasters. Common use cases where business interruption insurance would apply include fire damage halting production, accidental equipment damage requiring repairs, loss of key suppliers interrupting the supply chain, power outages disrupting manufacturing, and weather events damaging facilities. Estimated annual premiums for a company in this industry with $10 million in revenues would be $50,000-100,000.
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Based on typical factors considered for business interruption insurance pricing such as revenues, profit margins, fixed costs, variable costs, reconstruction costs, etc. for businesses in this industry, the estimated average annual premium would be around 0.5-1% of annual revenues. For a business in this industry with $10 million in annual revenues, the estimated price would be $50,000- $100,000 per year.
Estimated Pricing: $50,000- $100,000
Conclusion
Proper insurance coverage is essential for manufacturers to mitigate risks, ensure business continuity and focus on their core operations. Carefully reviewing your insurance needs with a broker can help determine the best policies and coverage levels to suit your specific business.