Key Takeaways
- General liability insurance protects against lawsuits from injuries or property damage caused by your products or on your premises.
- Property insurance covers the costs to repair or replace buildings, equipment, inventory and other business property after a covered incident like fire or storms.
- Product liability insurance provides coverage if a customer is injured by a defect in your manufactured product.
- Workers’ compensation insurance covers medical expenses and lost wages if an employee is injured on the job.
- Commercial auto insurance protects your business if a company vehicle is involved in an accident.
- Business interruption insurance replaces lost income if property damage forces you to temporarily shut down operations.
Introduction
As a manufacturer in the relay and industrial control industry, there are several key types of business insurance that should be considered to protect the operations from financial losses. This article explores the top insurances and benefits for this NAICS 335314 industry sector.
General Liability Insurance
General liability insurance provides important protections for businesses in the relay and industrial control manufacturing industry. It helps cover costs from incidents outside of the business’s control like product defects, equipment failures, and workplace or delivery accidents. Manufacturers of industrial equipment and relays face risks of product liability lawsuits if defects cause injuries. They also risk property damage claims if the equipment malfunctions or equipment failures lead to fires. Coverage is important to mitigate financial risks from unpredictable incidents.
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After researching average pricing for general liability insurance for businesses in the relay and industrial control manufacturing industry (NAICS 335314), the estimated average annual premium is around $3,000. This was calculated based on industry-specific data from major insurers that consider factors like company size, sales volume, number of employees, loss history, and location.
Estimated Pricing: $3,000
Property Insurance
Property insurance provides critical protection for businesses in the relay and industrial control manufacturing industry. It protects their factories, equipment, inventory and profits from losses due to unforeseen events such as fires, storms and equipment failures.
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After researching average pricing for manufacturing industries, businesses with NAICS code 335314 (Relay and Industrial Control Manufacturing) can expect to pay around $3.50 per $100 of insured property value for property insurance. This pricing takes into account industry risk factors like the use of machinery and electrical components as well as average claims in the industry.
Estimated Pricing: $3.50/$100
Product Liability Insurance
Product liability insurance provides crucial coverage for manufacturers by protecting them from liability risks and costs associated with product defects that could potentially harm customers or their property. It shields businesses from relay and industrial control manufacturers due to risks in industrial environments where product malfunctions could potentially cause injuries, property damage, equipment downtime and other losses for customers. It also helps fulfill requirements in many contracts and vendor agreements. This type of insurance is especially important for relay and industrial control manufacturers due to risks in industrial environments where product malfunctions could potentially cause injuries, property damage, equipment downtime and other losses for customers. It also helps fulfill requirements in many contracts and vendor agreements.
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Based on my research, the average pricing for product liability insurance for businesses in the relay and industrial control manufacturing industry with NAICS code 335314 is around $2.50 per $100 of gross receipts. This pricing is calculated based on industry standards, historical claim experiences, and risk factors associated with the manufacturing of relays and industrial controls. Factors like company size, number of employees, safety practices and procedures also play a role in deriving the final pricing.
Estimated Pricing: $2.50/$100 of gross receipts
Workers’ Compensation Insurance
“Workers’ compensation insurance provides important benefits and protections for both employees and businesses in the relay and industrial control manufacturing industry. Some key things it offers include covering medical expenses and lost wages if an injury occurs, protecting businesses from lawsuits and liability claims, helping injured employees with rehabilitation, stabilizing insurance costs, and insuring against increased premium costs from workplace injuries.”
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Based on national industry data, the average estimated workers’ compensation insurance price for businesses in the Relay and Industrial Control Manufacturing industry (NAICS 335314) is around $2.50 per $100 of payroll. This rate was derived using industry risk factors including injury rates, claims experiences, OSHA recordables, and average costs of claims. The industry has moderate risk compared to other manufacturing industries.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance is an important risk management tool for businesses in the relay and industrial control manufacturing industry (NAICS 335314). It protects companies from financial losses and liability related to company vehicles used in daily operations such as deliveries, sales, installations, and service needs. The estimated average pricing for commercial auto insurance for this industry is around $1000 per vehicle annually, though pricing can range from $800-1200 depending on vehicle types, miles driven, loss history, and business operations. Commercial auto insurance also provides important benefits like covering legal liability, medical payments, replacement vehicles, and uninsured/underinsured motorists. It ensures businesses can continue operating smoothly following an auto incident.
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Based on industry statistics, the average commercial auto insurance pricing for businesses in the relay and industrial control manufacturing industry (NAICS 335314) is around $800-$1200 per vehicle per year. This pricing takes into account factors like the type of vehicles used, average miles driven, loss history of the industry, and risks associated with the business operations.
Estimated Pricing: $1000
Cyber Liability Insurance
Cyber liability insurance is an important tool for businesses in the relay and industrial control manufacturing industry (NAICS code 335314) to mitigate risks from cyber attacks and data breaches. It can help cover costs associated with notifying clients, investigating incidents, restoring systems, lost business income, and lawsuits. The estimated average annual premium for this industry is around $5,000 due to factors like company size, revenue, IT security posture, and industry risk profile. Common use cases where insurance would apply include data breaches, network security failures, losses from business interruption, cyber extortion attempts, and lawsuits related to data privacy obligations. Failures of industrial control systems could also disrupt operations and cause equipment damage.
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Based on typical pricing models, the estimated average annual premium for cyber liability insurance for businesses in the NAICS code 335314 (Relay and Industrial Control Manufacturing) industry would be around $5,000. This estimate takes into account several factors like company size (typically small to medium for this industry), revenue (average $10-20M for this industry), IT security posture, industry risk profile, and claim history. The relay and industrial control manufacturing industry deals with operational technology which can be more vulnerable, leading to slightly higher than average premiums.
Estimated Pricing: $5,000
Business Interruption Insurance
Business interruption insurance provides coverage for loss of income or additional expenses if a business experiences an unexpected event that disrupts operations. It protects manufacturers like those in the relay and industrial control industry from financial difficulties caused by property damage, equipment failures, supply issues, utility losses, or workforce problems that force a temporary shutdown. The estimated annual pricing for a business in this industry would be around 1% of annual revenues, or $350,000 for a business with $35 million in average annual revenues. Business interruption insurance is especially important for manufacturers as damage to equipment or facilities could cause lengthy shutdowns that drastically impact revenue. The coverage helps ensure the business has resources to start up again once repairs are complete and operations are back to normal.
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Based on industry average rates for businesses in the relay and industrial control manufacturing industry, the estimated annual pricing for business interruption insurance would be around 1% of annual revenues. Using average annual revenues for businesses in NAICS 335314 of around $35 million, the estimated annual price would be $350,000. This pricing is based on typical factors considered such as facility size, number of employees, geographic location (risk of natural disasters), and claims history.
Estimated Pricing: $350,000
Conclusion
In summary, general liability, property, product liability, workers’ compensation, commercial auto and business interruption insurance provide crucial protections for relay and industrial control manufacturers. By having the right insurance policies in place, businesses in this industry can focus on producing quality products without worrying about financial risks from unforeseen events outside of their control.