Top Business Insurances for Manufacturers in the Other Electrical Equipment and Component Industry (NAICS 3359)

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Key insurances manufacturers in the other electrical equipment and component industry should consider including general liability, property, product liability, workers' compensation, commercial auto and more.

Key Takeaways

  • General liability protects against third party claims for injuries on your premises or from defective products
  • Property insurance covers equipment, machinery and buildings from losses like fire and storms
  • Product liability defends your business if a product defect causes injuries or property damage
  • Workers’ compensation covers medical costs and lost wages for employee injuries on the job
  • Commercial auto protects if an employee is in an accident while driving a company vehicle
  • Business interruption pays operating expenses if your facility is closed due to property damage
  • Commercial umbrella insurance provides additional liability protection above primary policies’ limits

Introduction

As a manufacturer in the other electrical equipment and component industry, various types of insurances are crucial to protect your business operations and finances. This industry also faces risks of equipment failures, product defects and vehicle accidents that can lead to costly lawsuits. Umbrella insurance provides an extra layer of protection above primary liability limits. This article explores the top commercial insurance policies manufacturers in NAICS 3359 industry should consider including general liability, property, product liability, workers’ compensation, commercial auto and more.

General Liability Insurance

General liability insurance provides protection for businesses in the other electrical equipment and component manufacturing industry. It helps cover costs associated with injuries, property damage, or other liability claims that could otherwise significantly impact the financial health and stability of the business.
As an electrical component manufacturer, there are risks of equipment malfunctions, product defects, or workplace accidents that could result in injuries or liability claims against the business. General liability insurance helps protect the financial assets of the business from these types of risks.

Category List
Benefits
  • Protects your business from third-party lawsuits if a customer gets injured on your premises
  • Covers legal fees and costs if you’re sued by a customer or third party
  • Protects your assets if you’re held legally responsible for property damage or bodily injury
  • Covers product liability claims if a defect in one of your products causes injury or property damage after it’s been sold
  • Provides coverage for incidents that occur off your business premises, such as a product malfunction at a customer’s facility
  • Covers bodily injury or property damage claims from employees or others working on your premises
  • Pays for liability during the delivery or installation of your products
Use Cases
  • Protect against bodily injury or property damage claims from customers
  • Cover legal costs if sued for negligence by employees or customers
  • Provide coverage if a product is defective and causes harm
  • Indemnify if business is held liable for faulty workmanship
  • Cover claims for damages to third party property that occurs during business operations or as a result of product failure or defects

Based on industry data and average pricing models, the estimated annual cost for general liability insurance for businesses in the other electrical equipment and component manufacturing industry (NAICS 3359) is around $4-6 per $1000 of payroll. Given the industry average payroll of around $3 million, the estimated annual price would be $12,000-18,000.

Estimated Pricing: $12,000-18,000

Property Insurance

Property insurance is an important coverage for businesses in the other electrical equipment and component manufacturing industry. It provides protection for equipment, machinery, buildings and other property assets against losses from covered risks like fire, storms and more.

The estimated annual pricing for property insurance is around $4.50 per $100 of insured property value based on typical policy specifications and risk factors for businesses in this NAICS code 3359 sector.

Category List
Benefits
  • Protection against financial loss from physical damage to property like buildings and equipment
  • Coverage for equipment breakdown or mechanical failure of machinery
  • Replacement cost coverage to repair or rebuild property without deductions for depreciation
  • Business interruption insurance to cover loss of income or extra expenses if operations are suspended
  • Inflation protection as property and equipment values rise over time
  • All risk policy provides broad coverage for unexpected perils
  • Deductibles are typically lower than self-insuring potential losses
  • Customized insurance plans can be tailored to a manufacturer’s unique property exposures and needs
Use Cases
  • Protection against fire damage
  • Coverage for equipment breakdown or mechanical failure
  • Protection from losses due to water damage like burst pipes or flooding
  • Coverage for theft and vandalism losses
  • Replacement cost coverage to repair or rebuild damaged property to its original condition
  • Business interruption coverage to recover lost income and operating expenses if business operations are suspended

Based on industry data and averages, the estimated annual pricing for property insurance for businesses classified under NAICS code 3359 (Other Electrical Equipment and Component Manufacturing) would be around $4.50 per $100 of insured property value. This pricing is derived from considering factors such as the types of equipment and assets commonly found at these businesses, potential hazards involved, claims history for the industry, and typical policy specifications sought by companies in this sector.

Estimated Pricing: $4.50 per $100 of insured property value

Product Liability Insurance

Product liability insurance provides important coverage for businesses in the other electrical equipment and component manufacturing industry (NAICS 3359) to protect them financially and reputationally from costly lawsuits and claims resulting from defects in their products that cause injuries, property damage, or other losses. It shields companies from expenses associated with medical treatments, repairs, lost wages, legal defense, and courtroom settlements through reimbursements and defense coverage if they are named in a liability lawsuit concerning one of their electrical products. Product liability insurance for these businesses typically costs between $1.50 to $2.50 per $100 of revenue.

Category List
Benefits
  • Protects your assets from costly lawsuits if a customer is injured by your product
  • Covers legal fees and settlements if someone sues your company over a defective product
  • Protects your company’s reputation by showing customers you stand behind the safety of your products
  • Helps maintain positive cash flow by covering claims and legal costs, rather than diverting funds from business operations
  • Provides peace of mind knowing your business is protected from unforeseen product liability claims
  • Allows your business to continue operating normally if a product issue arises by covering related costs
  • Demonstrates your commitment to quality and safety standards to customers and business partners
  • Covers bodily injury, property damage and advertising injury claims related to your products
  • Includes incidental medical payments if someone needs immediate care due to your product
  • Insures your entire supply chain, including manufacturers and distributors that could also be sued
Use Cases
  • Defends and protects the business from costs associated with injuries or property damage caused by defective products
  • Reimburses costs such as medical expenses, repair/replacement of damaged property, lost wages, pain and suffering for those harmed by products
  • Covers legal defense costs if the business is named in a product liability lawsuit
  • Protects against incidents such as short-circuiting or overheating of electrical components causing fires or injuries

Based on industry research, the average pricing for product liability insurance for businesses in the other electrical equipment and component manufacturing industry (NAICS Code 3359) is around $1.50 – $2.50 per $100 of revenue. This pricing is derived considering risk factors such as product risks, claim history, quality control processes, etc. of similar businesses in this industry.

Estimated Pricing: $1.50 – $2.50 per $100 of revenue

Workers’ Compensation Insurance

Workers’ compensation insurance provides coverage for medical expenses and lost wages for employees injured on the job. It protects both employers and employees in the manufacturing industry by ensuring work injuries are properly covered and helping improve retention and morale. Providing this coverage also shields businesses from expensive liability lawsuits if an injury occurred at work. The estimated average pricing provided gives an idea of potential costs for this important workplace insurance. Workers’ compensation is especially important for manufacturing due to risks from machinery, lifts and production lines, ensuring injuries are covered.

Category List
Benefits
  • Provides coverage for employee injuries or illnesses sustained during work
  • Protects employers from lawsuits related to on-the-job accidents and injuries
  • Covers medical expenses and lost wages for injured employees
  • Improves employee retention and company reputation
Use Cases
  • Providing coverage for on-the-job injuries
  • Covering medical expenses for work-related injuries or illnesses
  • Paying lost wages if an employee cannot work due to a work injury or illness
  • Protecting the company from liability lawsuits if an employee is injured on the job

Based on national averages, the estimated average pricing for workers’ compensation insurance for businesses in the Other Electrical Equipment and Component Manufacturing (NAICS 3359) industry is around $1.72 per $100 of payroll. This rate was derived using industry-specific loss costs and expense factors published by the National Council on Compensation Insurance (NCCI). Factors like a company’s safety record, job roles, and past claims can impact the actual rate by +/-25%.

Estimated Pricing: $1.72/$100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides important liability protection and coverage for vehicles used in business operations. It shields companies from lawsuits and repairs fleet vehicles after incidents. This helps ensure continued operations without disruption.

Commercial auto policies offer customized solutions for industries like other electrical equipment manufacturing that rely on vehicles. Coverage options address risks from transporting staff and goods or authorizing nonemployee drivers. Medical payments and uninsured motorist protection support workers injured on the job.

Category List
Benefits
  • Protection against third party liability claims if an employee is in an accident while driving a company vehicle
  • Coverage for physical damage to company vehicles like fleet vehicles in case of an accident, vandalism, or natural disaster
  • Medical payments coverage and uninsured/underinsured motorist coverage to protect employees injured in an accident while driving for work
  • Rental reimbursement to keep business operations moving if a vehicle is in the shop for repairs after an accident
  • Access to commercial auto insurance market specialists who understand business’ needs
Use Cases
  • Coverage for business vehicles used to transport employees or materials between work sites
  • Liability protection if an employee is in an at-fault accident during work hours
  • Reimbursement for medical expenses, lost wages, and vehicle repairs if an employee is injured in a work-related vehicle accident
  • Coverage for rental vehicles or short-term vehicle leases when business vehicles undergo repairs or maintenance
  • Liability coverage for nonemployee drivers authorized to use business vehicles

Based on industry analysis, the average pricing for commercial auto insurance for businesses in the other electrical equipment and component manufacturing industry (NAICS 3359) is estimated to be around $1,500 per year. This pricing is derived based on typical risk factors for this industry such as type of vehicles used, average number of vehicles, miles driven, loss history, years in business, and other underwriting criteria considered by insurers.

Estimated Pricing: $1,500

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection for businesses in high-risk industries like other electrical equipment manufacturing. It protects both business and personal assets from costly lawsuits by providing coverage above the limits of primary general liability, auto, and other insurance policies. Umbrella insurance is particularly important for manufacturers to protect against product liability risks and lawsuits related to defects, recalls, or errors. It also covers commercial vehicle accidents and premises liability risks. Estimated pricing is $1,500-$2,000 annually based on industry risk levels and claims history.

Category List
Benefits
  • Provides additional liability coverage above the primary general liability or auto insurance limits
  • Covers negligence claims not covered under the primary policies
  • Protects personal assets from lawsuits and judgements
  • Covers legal costs and fees related to defending a claim
  • Provides broader coverage than the standard primary policies
  • Covers higher liability settlements that exceed the limits of the primary policies
  • Provides coverage for some claims such as pollution that are typically excluded under standard business insurance policies
  • Covers occurrences happens away from the insured’s premises like customer visits or deliveries
Use Cases
  • To provide additional liability protection above the primary general liability, employers liability and auto liability limits if they are exceeded
  • To protect from lawsuits involving defective products, product recalls, manufacturing defects or errors
  • To protect from lawsuits involving premises liability, slip and falls or other accidents on the business property
  • To protect from lawsuits involving commercial vehicle accidents while operating business vehicles
  • To protect from lawsuits involving intellectual property infringement like patent or trademark disputes involving business products or services

Based on industry data, the average pricing for commercial umbrella insurance for businesses in the Other Electrical Equipment and Component Manufacturing industry with NAICS code 3359 is $1,500-$2,000 per year. This pricing is derived based on the industry’s risk level and average claims compared to similar manufacturing industries. Factors such as company size, number of employees, revenue, liability limits, and loss history can impact the final pricing.

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

Business Interruption Insurance

Business interruption insurance provides crucial financial support and protection for manufacturers if operations have to temporarily cease due to covered disruptions like property damage, equipment failures or natural disasters. It aims to keep businesses running even when facilities are impacted.

Category List
Benefits
  • Provides income if your business has to temporarily shut down due to property damage
  • Covers operating expenses like payroll, taxes, utilities if your facility is closed
  • Helps maintain cash flow to restart your business after an insured loss
  • Reimburses extra expenses needed to run your operations from a temporary location
  • Covers loss of income until operations are back to normal following a disruption
  • Protects the value of your business and helps avoid bankruptcy or permanent closure in the event of an extended disruption
Use Cases
  • Cover lost income due to equipment failure or breakdown
  • Cover lost income due to natural disasters like floods, hurricanes or earthquakes
  • Cover lost income due to utility outages like power failures, water supply issues, etc.
  • Cover lost income due to cyber attacks, ransomware or IT outages affecting business operations
  • Cover lost income due to governmental orders to shut down operations during emergencies like pandemics

Based on typical insurance industry rates and risk factors for the NAICS 3359 ‘Other Electrical Equipment and Component Manufacturing’ industry, the estimated average annual pricing for basic Business Interruption Insurance would be around $5,000. This was calculated based on factors such as average revenue size of businesses in this industry, likelihood of interruptions or disasters, typical coverage amounts and deductibles.

Estimated Pricing: $5,000

Conclusion

Choosing the right business insurance portfolio is important for manufacturers to minimize risks and maximize protection. Consulting with an experienced insurance agent can help you determine the best options tailored to your industry and business needs. Proper coverage ensures manufacturers can withstand losses and continue operating smoothly through disruptions.

Frequently Asked Questions

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