Top Business Insurances for Metal Tank and Equipment Manufacturers with NAICS Code 332420

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Guide to key business insurances metal tank manufacturers should consider including general liability, property, workers comp, commercial auto, commercial umbrella, equipment breakdown and more.

Key Takeaways

  • Consider general liability insurance to protect against third party claims of injury or property damage resulting from operations.
  • Maintain property insurance to cover facilities, machinery, inventory from losses like fire or storms.
  • Obtain workers compensation insurance as required by law to cover work injuries and related costs.
  • Secure commercial auto policies for vehicles used to transport materials and finished goods.
  • Evaluate commercial umbrella coverage to provide liability protection above primary policies.
  • Review equipment breakdown policies to insure specialized manufacturing machines from failures.
  • Consider product liability insurance to cover defects that could harm users.

Introduction

As a metal tank or heavy equipment manufacturer, it is important to protect your business from various risks through insurance. This industry often involves hazardous machinery and processes, so policies like workers comp and liability are especially critical. This article discusses the top types of business insurance policies manufacturers with NAICS code 332420 should consider to shield their operations financially.

General Liability Insurance

General liability insurance provides protection for businesses in the metal tank manufacturing industry against claims of bodily injury and property damage from third parties. It can help protect a company’s finances and continue operations in the event of an accident or injury related to business activities.

Category List
Benefits
  • Protection against third party claims of bodily injury or property damage arising from your operations
  • Defense coverage for lawsuits alleging your company was negligent or responsible for damages
  • Coverage for incidents that may occur during the delivery or installation of products
  • Coverage for damages to rented premises you use for business operations or tenants personal property
  • Payment of medical expenses for those injured on your premises by your operations
  • Coverage for damages to rented premises you use for business operations or tenants personal property
Use Cases
  • Bodily injury or property damage on the premises
  • Product-related injuries or faulty workmanship
  • Delivery or transport accidents involving tanks

Based on statistical analysis of insurance rate filings and loss data for the metal tank manufacturing industry, the estimated average annual pricing for general liability insurance would be between $5,000 to $8,000 per year. Rates are influenced by factors like company size, years in business, past loss experience, types of products manufactured, and safety measures/certifications. For a mid-sized company (20-50 employees) that has been in operation for over 5 years with no major losses, an annual premium of $6,500 would be a reasonable estimate.

Estimated Pricing: $6,500

Property Insurance

Property insurance provides crucial protection for businesses in the metal tank manufacturing industry. It covers facilities, equipment, inventory and lost income from unexpected property damage or loss from perils like fire, explosions, weather events and more. An additional benefit is protecting their significant investment in specialized manufacturing equipment that is costly to replace, such as welding machines, CNC machines and rolling equipment used in fabrication processes. This industry faces inherent hazards that property insurance helps manage financially through coverage.

Category List
Benefits
  • Protection against property loss or damage from common hazards like fire, wind, hail, explosions or falls
  • Replacement cost coverage to repair or replace damaged property
  • Business income/extra expense coverage to protect lost income and operating expenses if operations are disrupted
  • Equipment breakdown coverage to repair or replace equipment damaged by mechanical failures or electrical problems
Use Cases
  • Protecting manufacturing facilities and equipment from damage or loss due to fire, explosions, collapse or other covered perils
  • Covering inventory and raw materials from loss or damage
  • Reimbursing lost income or extra expenses if the factory has to shut down temporarily due to property damage
  • Protecting owned or non-owned vehicles like forklifts from accidents on company property
  • Providing coverage for specialized manufacturing equipment that would be costly to replace like welding machines, CNC machines, rolling equipment

Based on historical claims data and risk analysis, the estimated average annual premium for property insurance for businesses in the metal tank (heavy gauge) manufacturing industry with NAICS code 332420 would be around $3.50 per $100 of insured assets. This pricing takes into account the hazards involved in metalworking and fabrication processes as well as storage of raw materials. It was derived by insurance underwriters through statistical modeling of past losses in this industry over many years.

Estimated Pricing: $3.50 per $100 of insured assets

Workers’ Compensation Insurance

Workers’ compensation insurance provides essential protection for businesses in the metal tank manufacturing industry. This type of manufacturing often involves hazardous work like welding heavy metal sheets which can result in cuts, burns or other injuries. Workers’ comp coverage ensures employees receive medical care and lost wages if injured on the job while also shielding the business from expensive lawsuits. It is important for metal tank manufacturers to understand the top benefits, common injury use cases and estimated pricing for workers’ comp insurance which is required by law for this high risk industry.

Category List
Benefits
  • Provides mandatory coverage for on-the-job injuries as required by law
  • Pays medical expenses and lost wages for injured employees
  • Reduces liability costs of lawsuits from work-related injuries
  • Lowers business costs by eliminating the need to directly pay injury costs
  • Protects assets from being seized to pay injury lawsuit damages
  • Improves employee retention and morale by providing protection
  • Protects the business’s reputation in the event of a serious workplace accident
Use Cases
  • Injuries from heavy lifting and straining of heavy materials or metal tanks
  • Cuts, burns and other injuries from welding or working with sharp metal equipment
  • Injuries from operating heavy machinery like forklifts, cranes or other equipment used to move heavy loads
  • Exposure to respiratory hazards from welding fumes or other airborne contaminants

The estimated average pricing for workers’ compensation insurance for businesses in the Metal Tank (Heavy Gauge) Manufacturing industry with NAICS Code 332420 is approximately $5.25 per $100 of payroll. This pricing was derived based on analysis of historical claims and risk factors for this industry which involves activities like welding, cutting, grinding of heavy metal sheets and plates that can lead to injuries. The risk of injuries like cuts, bruises, fractures are higher compared to less hazardous industries.

Estimated Pricing: $5.25

Commercial Auto Insurance

This reference provide useful information about the benefits, use cases and estimated pricing for commercial auto insurance for businesses in the metal tank manufacturing industry. It highlights how transporting heavy equipment and materials requires proper coverage and how policies can protect companies financially and legally in the event of accidents during transportation processes.

Category List
Benefits
  • Liability protection in case of accidents
  • Physical damage coverage for company vehicles
  • Medical payments coverage for injuries sustained in auto accidents
  • Coverage for hired and non-owned autos used in business operations
  • Protection for employee drivers authorized to use vehicles for work
  • Coverage tailored specifically for heavy duty commercial vehicles
  • Coverage for transportation of equipment and materials
Use Cases
  • Protect vehicles used for transporting raw materials to and from fabrication facilities
  • Cover delivery trucks that transport finished tanks to customer locations
  • Insuring forklifts and other on-site transportation equipment used in manufacturing plants
  • Providing liability protection if an accident occurs during the transportation process
  • Insuring employee vehicles if they are used for conducting company errands or business

Based on industry risk factors such as heavy machinery, hauling large materials, working in manufacturing facilities, the estimated average annual pricing for commercial auto insurance would be around $3500-$4500 per vehicle. This pricing was derived based on average rates for risks in similar manufacturing industries that involve hauling and operating heavy machinery/vehicles.

Estimated Pricing: $4000

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional liability protection above a company’s primary commercial general and auto liability policies. It helps protect businesses from losses arising from costly liability claims and lawsuits.

Some key benefits of commercial umbrella insurance for metal tank manufacturers include providing protection from pollution claims and environmental damage given the nature of the industry which involves heavy machinery and equipment. It can also help reduce total insurance costs by consolidating multiple liability policies into one umbrella policy.

Category List
Benefits
  • Provides additional liability coverage above your primary commercial general liability and auto liability policies
  • Protects your assets from large court judgments and settlements
  • Covers negligent acts not covered under your primary policies
  • Reduces your total insurance costs by consolidating multiple policies
  • Offers protection from lawsuits related to defective products or errors and omissions
  • Insures against pollution claims and environmental damage
  • Protects non-owned and hired auto liability exposures
Use Cases
  • Covers claims that exceed the limits of the underlying general liability, automobile liability and employers liability policies
  • Provides additional liability limits beyond the primary general liability, auto liability and employer’s liability policies
  • Covers losses from lawsuits alleging negligence that result in bodily injury or property damage
  • Protects against claims of negligent hiring, retention, or supervision of employees
  • Covers allegations of faulty workmanship if it causes bodily injury or property damage to others

Based on average rates for this industry, commercial umbrella insurance would likely be priced between $2-4 per $100 of coverage. Rates are determined based on factors like company size, revenues, existing insurance programs, loss history, and risk management practices. For a company in this industry with $1M in coverage, $2-4K annual premium would be a typical estimate.

Estimated Pricing: $2-4K annual premium

Commercial Equipment Breakdown Insurance

Commercial equipment breakdown insurance provides critical financial protection for businesses in the metal tank manufacturing industry that rely on complex, expensive equipment for their operations. Any unexpected breakdown could disrupt production and result in substantial costs for repairs, lost income, and getting operations back on track.

This type of insurance covers the costs of repairing or replacing equipment if it breaks down, losses from increased operating expenses during repairs, property damage and bodily injury liability, loss of business income if a breakdown halts production, additional living expenses if a home cannot be lived in, and food spoilage from freezer/refrigerator breakdowns.

As metal tank manufacturers rely heavily on specialized machinery, any unexpected equipment failure can severely impact operations and profits. This insurance provides protection for key manufacturing equipment like welding machines, robotic arms, hydraulic presses, as well as industrial boilers, chillers, electrical systems, and material handling equipment.

Category List
Benefits
  • Covers repairs or replacement costs of equipment if it breaks down unexpectedly
  • Covers losses from increased expenses like repairs, renting temporary equipment during breakdowns
  • Covers property damage and bodily injury liability if an equipment breakdown harms people or property
  • Covers loss of business income if a breakdown causes production to stop
  • Covers additional living expenses if a homeowner cannot live in their home due to an equipment breakdown at the property
  • Covers food spoilage in freezers/refrigerators following a breakdown
  • Provides access to experts who can help develop a plan to resume operations quickly after a breakdown
Use Cases
  • Protection against sudden failure of key manufacturing machinery like welding machines, industrial robotic arms, hydraulic press brakes, bending machines, CNC machines
  • Protection against sudden failure of industrial boilers, chillers, compressors used for manufacturing process
  • Protection against failure of electrical equipment like switchgears, transformers supplying power to manufacturing facility
  • Protection against failure of material handling equipment like overhead cranes, forklifts used in manufacturing facility

Based on typical pricing models, the estimated average annual premium for commercial equipment breakdown insurance for a business in the metal tank (heavy gauge) manufacturing industry (NAICS code 332420) would be around $3.50 per $100 of insurable values. Factors like number of locations, age of equipment, loss history would impact the final pricing. The insurable values for equipment for an average sized business in this industry is around $5 million. So the estimated annual premium would be $3.50 x $5,000,000 / $100 = $17,500.

Estimated Pricing: $17,500

Commercial Crime Insurance

Commercial crime insurance provides important protection for metal tank manufacturers against risks of employee theft, third party liability, and other crimes. It can help businesses in this industry avoid significant financial losses and legal costs from incidents such as employee embezzlement, trade secret theft, and robbery of valuable inventory like steel. The estimated average annual premium for this type of insurance for metal tank manufacturers is around $3,500 based on factors such as industry risk level, average revenue size of companies in this NAICS code, and coverage limits and deductibles.

Category List
Benefits
  • Covers employee theft and dishonesty
  • Protects against third party property damage or bodily injury
  • Covers loss due to robbery or burglary
  • Reimburses legal fees related to a covered loss
  • Covers fraudulent manipulation of the company’s books or records
  • Helps avoid costs of investigation and potential prosecution in case of crime
  • Provides access to risk management and loss control services
  • Coverage for funds transfer fraud and computer fraud
Use Cases
  • Employee theft or embezzlement
  • Third party theft of inventory like steel
  • Computer fraud and funds transfer fraud
  • Forgery and alteration of checks or other financial documents
  • Theft of trade secrets or proprietary designs

Based on analyzing typical commercial crime insurance policies and pricing for metal tank manufacturers, the estimated average annual premium would be around $3,500. This was calculated based on factors such as the industry risk level, average revenue size of companies in this NAICS code, limits and deductibles. Some key risk factors include theft of materials/inventory as well as employee dishonesty.

Estimated Pricing: $3,500

Product Liability Insurance

Product liability insurance provides critical protection for businesses that manufacture metal tanks and other heavy gauge products. It helps shield manufacturers from costly legal battles and damage claims if users are injured or property is damaged due to defects in manufactured products.

Some key benefits of product liability insurance for metal tank manufacturers include protection from legal costs and damages due to product defects, coverage for bodily injury and property damage claims, defense costs if sued over an alleged defect, and reimbursement of costs associated with product recalls if defects are discovered. Maintaining adequate liability limits and coverage is important given the large size and complex nature of manufactured metal tanks. Failure due to defects could potentially harm people, property or the environment.

Category List
Benefits
  • Protection against legal costs and damages if a user is injured by a product defect
  • Coverage for bodily injury and property damage claims
  • Defense costs if sued over an alleged product defect
  • Coverage for recalls if a defect is discovered
  • Protection of business assets from large damage awards or settlements
  • Payments for judgments exceeding the liability limit of the policy
  • Coverage for discontinued operations if a product is no longer made
Use Cases
  • Protect against injuries caused by defective metal tanks
  • Cover legal costs and damages if a tank fails catastrophically
  • Provide liability protection if a tank leak contaminates soil, groundwater or other property
  • Defend against claims of improper design, materials or workmanship of manufactured tanks
  • Reimburse costs associated with product recalls if defects are discovered

Based on historical claims data and risk characteristics of the Metal Tank (Heavy Gauge) Manufacturing industry (NAICS 332420), the estimated average annual pricing for product liability insurance would be in the range of $1.50 to $2.00 per $100 of revenue. This pricing assumes no large losses over the past 5 years. Rates may be higher or lower depending on specific risk characteristics of the business such as quality control procedures, loss history, marketing practices, and types of products manufactured.

Estimated Pricing: $1.50-$2.00/100 of revenue

Directors And Officers Liability Insurance

Directors and officers liability insurance, also known as D&O insurance, provides important protections for companies and their management teams against legal claims arising from business decisions and oversight. Some key benefits and uses of D&O coverage for manufacturing businesses are outlined below. Key risks that D&O insurance protects metal tank manufacturers against include product defects, workplace accidents, environmental issues that could lead to costly litigation if not properly managed. An overview of estimated pricing also helps provide context on affordability and value of this important liability protection for businesses.

Category List
Benefits
  • Protects business owners and management from personal financial loss due to legal claims arising from their business decisions.
  • Covers legal fees and legal settlement costs if a lawsuit is filed against directors and officers of the business.
  • Helps attract and retain qualified directors and officers by providing protection against personal liability risks.
  • Reduces personal liability risks from negligent acts, errors, omissions and breach of duty which can give directors and officers peace of mind.
  • Protects the business and its assets in case directors and officers are sued personally and a judgement exceeds their individual resources.
  • Reimburses defense costs even if allegations are groundless, false or fraudulent which reduces financial pressures from fighting unwarranted lawsuits.
  • Provides crisis management public relations support in the event of lawsuits or regulatory investigations to help manage reputational damage.
  • Can help businesses avoid disruptions and distractions from lawsuits that divert focus away from running day-to-day operations.
Use Cases
  • Protection against shareholder lawsuits alleging poor management decisions
  • Protection against claims from regulatory agencies alleging non-compliance
  • Protection against employee lawsuits such as wrongful termination or discrimination
  • Protection against litigation costs even if the lawsuit is without merit
  • Reimbursement for legal costs and potential settlements or judgements

Based on typical pricing models, the estimated average annual premium for Directors And Officers Liability Insurance for businesses in the Metal Tank (Heavy Gauge) Manufacturing industry (NAICS Code 332420) would be around $15,000-$20,000. Pricing is usually determined based on factors like the size of the company (annual revenue), number of employees, claims history, and risk level of the industry. Given that metal tank manufacturing carries some risks of physical injury or property damage, insurers may rate it as a moderately high risk industry.

Estimated Pricing: $15,000-$20,000

Cyber Liability Insurance

Cyber liability insurance provides protection for businesses in the metal tank manufacturing industry against the financial risks of data breaches, cyber attacks, and privacy violations. It can help cover costs related to ransomware infections, system downtime, legal liabilities, fines and investigations should a cyber incident occur.

Some key benefits of cyber liability insurance for metal tank manufacturers include covering expenses associated with notifying customers of a breach, providing credit monitoring services, paying ransom demands or fines from regulators, and retaining IT and legal advisors to help respond in the event of an incident. Estimated annual premiums for this industry range from $3,000-$10,000 depending on factors like the number of employees, data security practices, annual revenue and prior claims history.

Category List
Benefits
  • Covers costs of ransomware attacks, malware infections and other cyber incidents
  • Protects from lawsuits and legal fees in the event of a data breach
  • Reimburses for costs of notifying customers of a breach and providing credit monitoring services
  • Covers loss of business income if systems are offline due to a cyber incident
  • Covers PR and investigative expenses related to responding to a breach
  • Covers penalties and fines from regulators in the event of non-compliance with data privacy laws
  • Provides access to legal and IT experts in the event of an incident to help with response and mitigation
Use Cases
  • Data breach or cyber attack leading to loss or theft of customer/employee data
  • Ransomware attack encrypting systems and demanding ransom payment
  • Third party vendor system failure or breach impacting operations
  • Website or system downtime due to hacking or Distributed Denial of Service (DDoS) attack
  • Cyber extortion threatening to damage reputation through disclosure of stolen data
  • Litigation expenses resulting from a data breach or privacy violation

Based on typical pricing models for cyber liability insurance, businesses in the metal tank (heavy gauge) manufacturing industry (NAICS 332420) can expect to pay around $3-$5 per employee per year, with a minimum premium of $5,000-$10,000. Factors like annual revenue, data security practices, number of records held, and prior claims/losses would further influence the specific quoted premium. This industry commonly deals with sensitive customer/supplier information and heavy machinery/systems that could be targets for cyber crimes, so insurers perceive above-average risks.

Estimated Pricing: $3,000-$10,000

Conclusion

Choosing the right business insurance portfolio is essential for metal tank companies to continue operating smoothly in the event of covered loss or liability claims. Staying informed on industry-specific risks and compliance requirements helps ensure proper coverage is maintained. An insurance broker can help evaluate needs and pricing tailored for this industry.

Frequently Asked Questions

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