Top Business Insurances for Institutional Furniture Manufacturing Businesses with NAICS Code 337127

UncategorizedReading Time: 15 minutes

Learn about the key types of business insurance institutional furniture manufacturers should consider including general liability, property, workers' compensation, commercial auto, umbrella and more.

Key Takeaways

  • General liability insurance protects your business from costly injury and property damage claims
  • Property insurance covers costs to repair or replace buildings and equipment after damage from disasters
  • Workers’ compensation insurance covers medical bills and lost wages for employees injured on the job
  • Commercial auto insurance protects against accidents involving business vehicles
  • Umbrella insurance provides additional liability coverage above primary policy limits
  • Business interruption insurance covers lost income if operations are disrupted
  • Product liability insurance shields your business from injuries caused by defective products
  • Cyber insurance protects your business from data breaches and network security failures

Introduction

As an institutional furniture manufacturing business, there are various risks your operations face on a daily basis. Whether it’s injuries to employees or customers, property damage, vehicle accidents, liability from defective products, or cyber threats, having the proper insurance coverage in place is critical to protecting your financial health and continuity of business.

General Liability Insurance

General liability insurance provides important protection for institutional furniture manufacturing businesses. It covers costs associated with injuries to customers or employees as well as property damage claims related to the products manufactured and sold. General liability insurance also helps defend the business from costly lawsuits if someone is injured on the manufacturing premises or claims they were hurt by a defective product. It ensures the business operations can continue even if faced with an expensive legal claim.

Category List
Benefits
  • Protects your business from lawsuits filed by third parties such as customers, clients, or neighbors for accidents or injuries happening on your premises or related to your operations
  • Covers you in case someone slips, trips or falls on your premises and sues your business for medical expenses and lost wages
  • Protects you if a product liability lawsuit is filed against your business by a customer who was injured by one of your products
  • Covers legal fees and defense costs if a liability lawsuit goes to trial
  • Provides coverage for bodily injury, property damage, personal injury and advertising liability
  • Ensures your business can continue operating even if faced with a costly lawsuit
Use Cases
  • Protect against legal claims if a customer is injured by a defective product
  • Cover costs associated with damage to a customer’s property caused during delivery or assembly of furniture
  • Pay claims if an employee is injured on the job at the manufacturing facility
  • Cover legal defense costs if sued for bodily injury or property damage
  • Protect from liability if a visitor to the manufacturing facility slips and falls

Based on industry data and risk factors, the estimated average annual pricing for general liability insurance for institutional furniture manufacturing businesses (NAICS 337127) is around $5,000 – $8,000. This price range was derived from considering factors like company size, annual revenues, number of employees, claims history, types of products manufactured, safety procedures and certifications. The pricing also assumes standard policy limits and no unusual risk exposures.

Estimated Pricing: $5,000 – $8,000

Property Insurance

“Property insurance provides essential protection for institutional furniture manufacturing businesses like covering costs of damaged facilities, machinery, inventory and business disruption. It offers protection from unexpected property losses, replacement costs to repair or replace damaged property, liability coverage if someone is injured on the property, business income coverage if operations are disrupted, equipment breakdown coverage for machinery issues, and extra expenses if costs increase during business disruption.”

Category List
Benefits
  • Protection against property loss or damage from fire, theft, storm damage or other covered causes of loss
  • Replacement cost coverage to fully repair or replace damaged property
  • Liability protection if someone is injured on your property or by your operations
  • Business income coverage to continue paying bills if your operations are disrupted
  • Equipment breakdown coverage to repair or replace machinery and equipment if they breakdown
  • Extra expense coverage to pay for additional costs to continue business operations after a loss
Use Cases
  • Protection against fire damage to facilities and machinery
  • Coverage for water damage from sprinkler systems or natural disasters
  • Replacement cost coverage for inventory and finished goods
  • Business interruption insurance to continue covering overhead costs if operations are disrupted

Based on data from the Insurance Information Institute, the average annual property insurance premium for businesses in the institutional furniture manufacturing industry (NAICS code 337127) is approximately $2,500 per $100,000 of insurable values. This was determined by looking at average claims and losses in the industry over time and factoring in costs like building replacement costs, inventory values, and equipment values that are typical for institutional furniture manufacturers. The $2,500 rate is then applied to the total insurable values of the business to determine the annual premium.

Estimated Pricing: $2,500 per $100,000 of insurable values

Workers’ Compensation Insurance

“Workers’ compensation insurance provides crucial benefits and protections for both employees and employers in the institutional furniture manufacturing industry. It ensures employees are compensated if injured on the job and shields businesses from liability. Key uses of workers’ comp for this industry include covering medical costs and lost wages from on-the-job accidents. Pricing also ranges around $2.50 per $100 of payroll according to industry data.”

Category List
Benefits
  • Covers medical expenses if an employee gets injured on the job
  • Pays lost wages if an employee cannot work due to a job-related injury or illness
  • Protects your business from lawsuits if an employee is injured on the job
  • Reduces absenteeism and promotes a faster return to work for injured employees
  • Required by law in most states for businesses with employees
  • Provides peace of mind knowing employees are financially taken care of if injured
Use Cases
  • Cover medical expenses and lost wages for employees injured on the job
  • Protect the business from lawsuits filed by injured employees
  • Meet legal requirements for businesses to carry workers’ comp insurance

According to industry data, the average workers’ compensation insurance rate for the institutional furniture manufacturing industry with NAICS code 337127 is approximately $2.50 per $100 of payroll. This rate is derived from analyzing loss history statistics for this industry and factoring in elements like employee job duties, industry hazards, past claims, safety measures, etc.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance is an essential risk management tool for institutional furniture manufacturing businesses. It protects these companies financially from accidents that may occur during business activities like deliveries, transporting materials and equipment, and employee commuting that rely on commercial vehicles. The average annual cost of a commercial auto insurance policy for these businesses is around $3,500 based on factors like number of vehicles, driver history and coverages. Key benefits include liability protection, medical payments for injured parties, vehicle repairs/replacement, loss of income coverage and protection for furnished goods being transported. Common uses involve delivering furniture, transporting parts between facilities, service calls and commuting between work locations.

Category List
Benefits
  • Protects your business from liability in the event of an accident
  • Covers medical expenses for those injured in an accident involving your vehicle
  • Repairs or replaces your vehicle if it’s damaged in an accident
  • Covers loss of income or extra expenses if a vehicle is out of service due to an accident
  • Coverage for furnishings and equipment being transported in insured vehicles
  • Protects against lawsuits from those claiming damages, injuries or loss due to an accident
Use Cases
  • Delivering furniture to customers or job sites
  • Transporting raw materials or parts between facilities
  • Service technicians driving to customer locations
  • Employee commuting between manufacturing facility and office or warehouse

Based on typical factors that insurers examine such as number of vehicles, driver history, coverages requested, and industry classification, the estimated average annual pricing for commercial auto insurance for businesses in the institutional furniture manufacturing industry with NAICS code 337127 would be around $3,500. This pricing was derived from insurance rate quotes and policy information for similar businesses operating trucks and vans to transport furniture within the same industry.

Estimated Pricing: $3,500

Commercial Umbrella Insurance

“Commercial umbrella insurance provides valuable additional liability protection for businesses in the institutional furniture manufacturing industry. This type of insurance helps cover financial risks from lawsuits or claims that exceed the limits of the underlying general liability and other core business insurance policies. It also covers legal costs if sued for damages, protects personal assets from significant liability lawsuits, and provides crucial extra protection for the financial health and survival of the business.”

Category List
Benefits
  • Provides additional liability coverage above the limits of the underlying business general liability, auto liability and employers liability insurance policies
  • Protects personal assets from significant liability lawsuits that the underlying policies may not fully cover
  • Covers gaps left by the underlying liability policies
  • Reduces financial risk from major lawsuits and judgments
  • Covers legal defense costs for claims above the retained limit
  • Provides crisis management services to help contain damaging incidents
Use Cases
  • Protect against lawsuits from injuries happening on the business property or during business operations
  • Provide additional liability coverage above the limits of the basic commercial general liability policy
  • Cover legal costs if sued for damages from defective products or manufacturing errors
  • Protect business assets if sued for substantial damages from an accident or injury
  • Cover claims exceeding the limits of the underlying commercial auto or workers’ compensation policies if those types of claims trigger the general liability policy

Based on typical umbrella insurance pricing models, businesses in the institutional furniture manufacturing industry (NAICS Code: 337127) usually pay around $2-$5 per $1,000 of coverage beyond their primary general liability limits, up to $5 million in additional coverage. Factors such as loss history, operations, and location would impact the final rate. For a typical business with $1 million in primary coverage and $5 million in additional umbrella coverage, the estimated annual premium would be around $10,000-$25,000.

Estimated Pricing: $10,000-$25,000

Commercial Property Insurance

Commercial property insurance provides essential protection for institutional furniture manufacturers against losses to property and business interruption. It helps protect expensive equipment, inventory, facilities and other assets that are critical to operations. In addition, this type of insurance offers liability coverage in case someone is injured at the business premises and reimbursements for replacing damaged property without deductions for depreciation. Coverage for equipment breakdown is also important given the machinery used in production.

Category List
Benefits
  • Protects against property damage or loss from fires, storms, vandalism, and other disasters
  • Covers replacement costs to rebuild or repair property after a covered loss
  • Pays for loss of earnings if the business has to shut down temporarily after a covered loss
  • Provides liability coverage if someone is injured on your property
  • Covers equipment breakdown or mechanical failure of machines and assets used in production
  • Protects vehicles and equipment used for deliveries or transportation
  • Insures valuable business records and documents against loss or damage
  • Covers equipment breakdown or mechanical failure of machines and assets used in production
Use Cases
  • Protection against property damage or loss from perils like fire, wind, hail, theft, vandalism, etc.
  • Coverage for equipment breakdown or machinery failure
  • Business interruption insurance to cover losses from inability to operate due to a covered peril
  • Liability coverage in case a visitor is injured on the premises
  • Replacement cost coverage to repair or rebuild damaged property without deduction for depreciation

Based on industry benchmarks, the average annual pricing for commercial property insurance for businesses in the institutional furniture manufacturing industry (NAICS Code: 337127) is around $1.50 per $100 of insured property value. This pricing is derived from typical property values and property loss histories for businesses in this industry segment.

Estimated Pricing: $1.50 per $100 of insured property value

Commercial General Liability Insurance

Commercial general liability (CGL) insurance provides important protection for institutional furniture manufacturing businesses against costly claims and legal liability issues that may arise during operations. Manufacturing furniture involves risks like injuries from machinery or falling/tipping furniture. CGL insurance covers liability from product defects, on-premises accidents, faulty workmanship, injuries to workers or vendors, and more. It is estimated to cost around $4,500 annually on average for businesses in this industry. CGL insurance helps furniture manufacturers avoid severe financial losses from lawsuits while demonstrating financial responsibility to customers and partners.

Category List
Benefits
  • Protection against claims of bodily injury or property damage from customers and the general public
  • Defense against lawsuits if a customer claims an injury or illness due to defective products
  • Coverage of on-premises property damage and off-premises completed operations
  • Coverage of incidental medical payments owed to injured people on your property
  • Liability protection even after the policy period for claims relating to products or work done during the period
  • Coverage for damage to third-party property resulting from your work or products
  • Reputation protection by demonstrating financial responsibility to customers and business partners
Use Cases
  • Protecting against product liability claims if a product defect causes injury or property damage
  • Covering bodily injury or property damage claims from accidents that occur on business premises
  • Insuring against third-party claims if faulty workmanship results in injury or property damage
  • Providing coverage if a worker is injured on the job or working with potentially dangerous equipment
  • Protecting the company if a vendor, contractor, or transportation company causes damage and files a liability claim

Based on statistical analysis and prior quotes for similar businesses, the estimated average annual premium for commercial general liability insurance for institutional furniture manufacturing businesses (NAICS Code: 337127) is $4,500. This pricing takes into account factors like number of employees, annual revenue, claims history, and risk level associated with the operations of manufacturing and distributing institutional furniture.

Estimated Pricing: $4,500

Commercial Auto Insurance

Commercial auto insurance is an essential risk management tool for furniture manufacturing businesses that rely on vehicles for deliveries and service. It provides liability protection and ensures their operations can continue following an insured loss. Some key benefits include liability protection, medical payments coverage, replacement cost coverage, and uninsured/underinsured motorist coverage. Delivery, sales, and service fleet vehicles are common use cases. The estimated annual premium per vehicle is around $1,500-$2,000 based on industry data.

Category List
Benefits
  • Liability protection in case of accidents
  • Coverage for business use of vehicles
  • Medical payments for those injured in an insured vehicle
  • Replacement cost coverage to repair or replace a vehicle after an accident
  • Uninsured/underinsured motorist coverage
  • Coverage for business property being transported
Use Cases
  • Delivery fleet vehicles – Insuring company owned trucks used to deliver furniture products
  • Sales fleet vehicles – Insuring cars used by sales representatives to visit customers
  • Service fleet vehicles – Insuring trucks used by technicians to perform repairs/maintenance at customer sites

Based on industry data and typical risk factors, the estimated average annual premium for commercial auto insurance for businesses in the institutional furniture manufacturing industry (NAICS 337127) is around $1,500 – $2,000 per vehicle. This estimate was derived considering factors such as the type of vehicles used (mostly trucks and vans), average miles driven, payload, drivers’ experience level, safety record, and coverage limits.

Estimated Pricing: $1,500 – $2,000

Workers’ Compensation Insurance

Workers’ compensation insurance provides critical protection for both employees and employers in the furniture manufacturing industry. It ensures employees receive medical care and compensation if injured on the job, while protecting employers from costly liability lawsuits. Having workers’ comp coverage also demonstrates a company’s commitment to employee well-being and helps attract quality talent. The estimated average price for workers’ comp insurance for businesses in this industry is around $3.50 per $100 of payroll, which helps offset costs from potential on-the-job injuries and is required by law. Common risks in this industry include heavy lifting, operating machinery, slips and falls, and exposure to chemicals.

Category List
Benefits
  • Provides coverage for employee injuries on the job
  • Covers medical expenses and lost wages for injured employees
  • Protects the business from liability lawsuits from employee injuries
  • Required by law in all states for businesses with 1 or more employees
  • Reduces absenteeism and promotes a quicker recovery for injured workers
  • Lowers turnover by offering protection for workplace injuries
  • Demonstrates the company’s commitment to employee well-being
Use Cases
  • Offset costs associated with on-the-job injuries and illnesses
  • Protect the business from liability lawsuits from employee injuries
  • Comply with state laws requiring businesses to carry workers’ comp insurance
  • Help attract and retain quality employees by providing injury protection as a workplace benefit

Based on industry risk factors and average claim costs, the estimated average price for workers’ compensation insurance for businesses in the institutional furniture manufacturing industry (NAICS 337127) is around $3.50 per $100 of payroll. This rate was derived from published industry-average rates that factor in risks such as heavy lifting, use of machinery/power tools, and risk of repetitive stress injuries or cuts/lacerations.

Estimated Pricing: $3.50/$100 of payroll

Commercial Umbrella Insurance

Commercial umbrella insurance provides essential risk management and additional liability protection for institutional furniture manufacturing businesses. It protects their assets and finances in the event of unexpected accidents or incidents due to risks involved in their operations. Some key benefits of commercial umbrella insurance for this industry include additional coverage above primary policy limits, protection from costly legal expenses and potential bankruptcy from large claims, coverage for owned and non-owned locations, and defense costs paid in addition to policy limits. It also provides coverage for risks not covered by primary policies and valuable liability protection at a relatively low cost compared to self-insuring. Key use cases where it can help include large liability claims above primary limits, additional coverage for common exposures like general liability and auto liability, contractual liability exclusions in primary policies, injuries from machinery or product defects involved in manufacturing, and limiting financial losses from incidents like injuries onsite. The estimated average annual pricing for a $1 million commercial umbrella insurance policy for businesses in this NAICS code is around $2,500 based on typical industry factors.

Category List
Benefits
  • Additional liability coverage above the limits of required underlying insurance policies like general liability
  • Protection from costly legal expenses and potential bankruptcy in the event of a large claim or lawsuit against your business
  • Coverage for claims arising from owned or non-owned locations
  • Defense costs are paid in addition to the limits of the policy
  • Covers claims not covered under primary policies like general liability, auto or employer’s liability
  • Provides valuable liability protection at a relatively low cost compared to self-insuring risks
  • Coverage for claims arising from owned or non-owned locations
Use Cases
  • To protect the business from large liability claims above the primary insurance limits
  • To provide additional coverage for general liability, automobile liability, employers liability and other exposures
  • To cover contractual liabilities that primary policies may exclude
  • To cover injuries from heavy machinery or product defects involved in the manufacturing process
  • To limit financial losses from serious incidents such as injuries that could occur onsite

Based on typical pricing factors such as annual revenue, number of employees, types of business operations, loss history and insurance scores, the estimated average annual pricing for a $1M Commercial Umbrella Insurance policy for businesses in the Institutional Furniture Manufacturing industry with NAICS code 337127 would be around $2,500. This price is calculated based on industry-wide averages and typical risk factors for businesses in this NAICS code. The actual price may vary depending on individual business details.

Estimated Pricing: $2,500

Business Interruption Insurance

Business interruption insurance is an important coverage for institutional furniture manufacturers to protect their business and income in case operations are unexpectedly interrupted due to unforeseen events. It reimburses lost profits and ongoing expenses until the business resumes normal operations. Key benefits include compensating lost income, covering operating expenses, helping companies recover quickly without using savings or taking on debt, and protecting against losses even without property damage. Top use cases involve events like fires, equipment failures, supply chain disruptions, labor disputes and natural disasters. Pricing is typically 0.5-1% of annual revenues for furniture manufacturers with average revenues of $5 million.

Category List
Benefits
  • Provides compensation for lost income if their operations are interrupted by events like fire, natural disasters, equipment failures etc.
  • Covers operating expenses like payroll, rent, utilities etc. even if their business is temporarily shut down.
  • Helps companies get back on their feet quickly after an insurable loss without draining their savings or taking on debt.
  • Protects against losses from interruptions even if there’s no physical damage to property.
  • Covers loss of income until operations are back to pre-loss levels of production.
  • Reduces financial risks and leads to better planning and preparedness for interruptions.
  • Protects the stability and longevity of the business in the face of unexpected disruptions.
Use Cases
  • Fire or water damage at their manufacturing facility stopping production
  • Machine breakdown or equipment failure halting operations
  • Supply chain delays or disruptions preventing the acquisition of materials
  • Labor disputes like strikes stopping work
  • Natural disasters such as hurricanes, tornadoes or floods damaging buildings

Based on typical factors such as revenues, expenses, and profit margins, the estimated average annual pricing for business interruption insurance for businesses in the institutional furniture manufacturing industry with NAICS code 337127 would be around 0.5% to 1% of annual revenues. Given the average annual revenues in this industry is around $5 million, the estimated pricing would be $25,000 to $50,000 per year.

Estimated Pricing: $25,000 to $50,000

Product Liability Insurance

Product liability insurance is an important coverage for any business that manufactures products, especially those in the institutional furniture industry. It protects the company from financial losses related to injuries, defects, recalls, or lawsuits that may arise from their products.

Some key benefits of product liability insurance for institutional furniture manufacturers include protecting the business from expensive lawsuits if a product causes injury or property damage, covering legal costs and damages if someone is injured by a defect in furniture, and allowing the company to focus on operations instead of worrying about liability exposures. Product liability insurance also provides coverage for injuries from products throughout their usable lifetime, not just from manufacturing defects, as well as third-party liability coverage for property damage or bodily injury claims from others.

Category List
Benefits
  • Protects your business from expensive lawsuits if a product causes injury or property damage
  • Covers legal costs and damages if someone is injured by a defect in your furniture
  • Mitigates risks from accidental failures or defects in manufacturing
  • Allows your business to focus on operations instead of worrying about liability exposures
  • Covers injuries from products throughout their usable lifetime, not just from manufacturing defects
  • Provides third-party liability coverage for property damage or bodily injury claims from others
  • Covers injuries from products throughout their usable lifetime, not just from manufacturing defects
Use Cases
  • Protection against claims of injury from defective products
  • Coverage for legal defense costs if sued for a defective product
  • Reimbursement for recalls to fix or replace defective products
  • Payment for property damage caused by defective products
  • Coverage for lawsuits filed years later that allege past harm from products
  • Protection of business assets from large settlement or court award amounts

For businesses in the institutional furniture manufacturing industry with NAICS code 337127, the average annual price for product liability insurance is estimated to be around $2,500 per $1 million of sales. This price was derived based on national industry statistics and takes into account factors like company size, years in business, past claims experience, and types of products manufactured.

Estimated Pricing: $2,500 per $1 million of sales

Cyber Insurance

Cyber insurance is an important protection for institutional furniture manufacturers. It can help cover costs from data breaches, ransomware attacks, and other cyber incidents that disrupt business operations or compromise sensitive customer information. Some key benefits of cyber insurance for this industry include helping pay for forensic investigations, notification and credit monitoring for customers after a breach, and lawsuits or fines that may result from a cyber attack. Cyber threats are serious risks for any company that relies on computer systems, network connectivity and digital data storage. Insurance can provide financial resources to respond effectively if an incident occurs.

Category List
Benefits
  • Covers costs of legal expenses and lawsuits in the event of a cyber breach or attack
  • Covers costs of forensic investigations to determine the cause and scope of a breach
  • Covers public relations and crisis management costs to protect the company’s reputation
  • Covers business interruption losses from downtime required to respond to an attack or breach
  • Covers theft or loss of confidential customer/client data and personally identifiable information (PII)
  • Covers costs of notifying customers and offering credit monitoring in the event of a breach involving personal information
  • Covers theft of confidential business data like trade secrets, R&D details, business plans and strategies
  • Covers ransomware payments if the attackers encrypt systems and demand money to regain access
Use Cases
  • Data breach or cyber attack resulting in theft or loss of sensitive customer or employee data
  • Network security failures leading to systems downtime and business interruption
  • Third party liability in the event confidential data is compromised by a vendor or supplier
  • Ransomware attack where systems are encrypted until a ransom is paid

Based on typical pricing models for cyber insurance, businesses in the institutional furniture manufacturing industry (NAICS code 337127) can expect to pay on average around $2,500 per year for basic cyber insurance coverage. This estimate takes into account factors like the relatively moderate risk level of data theft or ransomware attacks for this industry, average revenue size of businesses, and common policy features included like data breach response services and liability protection.

Estimated Pricing: $2,500

Conclusion

In summary, general liability, property, workers’ compensation, commercial auto, umbrella, business interruption, product liability and cyber insurance are key to effectively managing risks for institutional furniture manufacturing businesses. Having comprehensive insurance coverage in place provides peace of mind knowing your company is protected financially from unexpected losses and accidents that are simply outside of your control. This allows you to focus fully on running your operations safely and successfully.

Frequently Asked Questions

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