Top Business Insurances for Paperboard Container Manufacturers with NAICS Code 322219

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A guide to essential business insurances paperboard container manufacturers should consider including general liability, property, workers' compensation, commercial auto, business interruption and product liability insurance.

Key Takeaways

  • General liability insurance protects against bodily injury and property damage claims from third parties.
  • Property insurance covers costs to repair or replace damaged property and assets.
  • Workers’ compensation covers medical expenses and lost wages for job-related employee injuries.
  • Commercial auto insurance protects against risks from company vehicle accidents.
  • Business interruption insurance covers lost income during temporary shutdowns from property damage.
  • Product liability insurance protects against risks and lawsuits from defective products.

Introduction

As a paperboard container manufacturer, it is important to protect your business from unplanned expenses through proper insurance coverage. Several types of insurance should be considered based on the risks involved in your manufacturing operations and transportation of products.

General Liability Insurance

General liability insurance is an essential type of coverage for businesses in the paperboard container manufacturing industry. As the reference details, this industry carries risks of bodily injury, property damage, and liability from defective products due to the nature of production activities involving heavy machinery. Some key benefits of general liability insurance for these types of businesses include protection from costly legal expenses and third party claims, as well as coverage for on-premises and off-premises operations. Common use cases where the insurance provides protection involve injuries sustained on the business premises, legal defense costs if sued by a third party, and claims of injuries caused by defective products. The reference also provides an estimated annual cost of $8,000 for general liability insurance for businesses in this industry.

Category List
Benefits
  • Protection against third party bodily injury and property damage claims
  • Defense against lawsuits for accidents or injuries that happen on your property or because of your operations
  • Coverage for premises liability, product liability, and completed operations
  • Protection for on-premises and off-premises operations
  • Coverage extended to contractors and subcontractors working for the business
  • Advertising injury and personal injury protection
  • Medical payment coverage for those injured on your business property
Use Cases
  • Protects the business from claims of bodily injury or property damage sustained on the business premises
  • Covers legal defense costs if the business is sued by a third party for an incident at the manufacturing facility
  • Provides coverage if a customer claims they were injured by a defective product manufactured by the business
  • Covers claims if an employee is injured while on the job at the manufacturing facility

Based on historical pricing data, the average annual cost for general liability insurance for businesses in the NAICS 322219 (Other Paperboard Container Manufacturing) industry is around $8,000. This pricing is determined based on factors like business size, number of employees, revenue, risk exposure, safety records, and claims history. The manufacturing process in this industry does carry risk of bodily injury and property damage, so insurers typically price policies on the higher end for manufacturing businesses.

Estimated Pricing: $8,000

Property Insurance

Property insurance provides financial protection for businesses in the other paperboard container manufacturing industry and helps ensure business continuity and revenue stability after losses. It covers costs to repair or replace damaged property and provides income replacement if business operations are disrupted. The estimated average annual property insurance pricing for businesses in NAICS 322219 is around $15,000, calculated based on average property values and losses reported for the industry. Property insurance is especially important for this industry as manufacturing facilities involve heavy machinery and combustible materials, making them susceptible to fire and related risks.

Category List
Benefits
  • Protection against property damage or loss
  • Coverage for equipment, inventory, and supplies
  • Protection for property during transportation
  • Coverage for property on business premises
  • Replacement cost coverage to repair or rebuild damaged property
  • Income protection if business must temporarily close for repairs
Use Cases
  • Protection against fire and associated perils such as smoke, water, and explosion
  • Coverage for losses due to theft and vandalism
  • Replacement or repair cost coverage for buildings, machinery, and equipment
  • Business interruption or loss of income coverage in case business operations are disrupted
  • Coverage for damage to raw materials, work-in-progress, and finished goods inventories

Based on average property values and losses for businesses in the other paperboard container manufacturing industry (NAICS 322219), the estimated average annual property insurance pricing would be around $15,000. This was calculated based on industry reports of average equipment and facility values of around $5 million, with an average annual loss ratio of around 0.3% of total insured values.

Estimated Pricing: $15,000

Workers’ Compensation Insurance

Workers’ compensation insurance provides essential protections for businesses in industries like other paperboard container manufacturing that involve inherent workplace risks. It covers costs related to on-the-job injuries and illnesses, helping businesses avoid financial burdens and retain compliance. An additional benefit is attracting quality job applicants by providing protection for on-the-job injuries. This type of insurance also lowers payroll-related costs over time by covering injury-related wages and medical bills.

Category List
Benefits
  • Protects your business from liability claims
  • Covers medical expenses for work-related injuries
  • Replaces lost wages for employees who are injured
  • Keeps your business compliant with state laws
  • Reduces absenteeism related to on-the-job injuries
  • Attracts quality job applicants by providing protection for on-the-job injuries
  • Lowers payroll-related costs over time by covering injury-related wages and medical bills
Use Cases
  • Cover medical expenses if an employee is injured on the job
  • Pay lost wages if an employee cannot work due to a job-related injury or illness
  • Cover legal defense costs if an employee files a workers’ compensation claim against the business
  • Cover costs of modified or alternative duty if an employee is injured and can perform limited work
  • Pay benefits to family if an employee dies from a job-related injury or illness

Based on national average rates for the other paperboard container manufacturing industry (NAICS 322219), the estimated average pricing for workers’ compensation insurance would be around $2.50 per $100 of payroll. This rate is derived from analyzing workers’ compensation loss data and payroll amounts reported over several years for businesses in this industry. Factors like company size, safety record, and workplace risks are also considered in determining individualized rates.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides valuable protection for businesses in the other paperboard container manufacturing industry. It covers liability risks from vehicle accidents, repairs costs for company vehicles, medical expenses for injured employees, and replacement cost coverage for new vehicles – critical coverage for companies reliant on vehicular transportation. The estimated annual pricing is around $1,500-2,000 per vehicle based on typical fleet sizes and risk levels in this industry. Additional benefits include rental reimbursements when vehicles are in repairs. Overall, commercial auto insurance helps protect financial losses and ensure business operations continuity for companies in this industry.

Category List
Benefits
  • Liability protection in case of an accident
  • Physical damage coverage for company vehicles
  • Medical payments coverage for employees injured in a work accident
  • Coverage for hire and non-ownership liability
  • Replacement cost coverage for new vehicles
  • Rental reimbursement if a vehicle is in the shop for repairs
  • Coverage for additional insured such as customers or vendors
Use Cases
  • Liability coverage in case an employee is in an accident while driving a company vehicle
  • Physical damage coverage to repair or replace company vehicles if they are damaged in an accident
  • Hired and non-owned auto liability coverage if employees use their personal vehicles for company business
  • Medical payments coverage to pay for injuries to employees or others in an accident involving a company vehicle

Based on industry data and averages, the estimated annual pricing for commercial auto insurance for businesses in the Other Paperboard Container Manufacturing industry with NAICS code 322219 would be around $1,500-2,000 per vehicle. This pricing was derived based on the typical vehicle fleet size of 3-5 vehicles most businesses in this industry operate, as well as the moderate risk level associated with this industry.

Estimated Pricing: $1,500-2,000

Business Interruption Insurance

Business interruption insurance provides coverage for lost income or revenue if a company needs to temporarily cease operations due to property damage, equipment failure, natural disasters or other unforeseen events. It is an important policy for manufacturers like those in the paperboard container industry since disruptions could severely impact their cash flow and business stability. Business interruption insurance also helps cover extra expenses during recovery periods and lost customers from prolonged shutdowns. Estimated annual premiums are around 0.5-1% of revenue for companies in this industry.

Category List
Benefits
  • Provides funds to continue paying operating expenses like payroll, taxes, utilities if property is damaged
  • Covers lost income if your business needs to temporarily shut down operations due to property damage
  • Helps maintain cash flow so your business can survive interruptions and get back to normal operations
  • Protects against risks outside your control like natural disasters, equipment failures, utility outages
  • Reimburses extra expenses to move to temporary locations or rental space if your facility needs repairs
  • Covers loss of income if key suppliers experience interruptions that prevent you from fulfilling orders
  • Protects the value of your company if property damage means prolonged closures or rebuilding
  • Provides funds for marketing/advertising to regain customers and market share after an covered interruption
Use Cases
  • Loss of income or revenue due to property damage from natural disasters like floods, hurricanes, earthquakes etc.
  • Loss of income or revenue due to property damage from fires or explosions in manufacturing facilities
  • Loss of income or revenue due to equipment/machinery breakdown or failure
  • Loss of income or revenue due to utility service interruption like power outage
  • Loss of income or revenue due to supply chain disruption or supplier issues

Based on average insurance rates for manufacturing industries and factors such as potential revenue loss, property value, and liability, the estimated pricing for business interruption insurance for a business in the Other Paperboard Container Manufacturing industry with NAICS code 322219 would be around 0.5-1% of annual revenue. For a business with $10 million in annual revenue, this would translate to $50,000-$100,000 per year.

Estimated Pricing: $50,000-$100,000

Product Liability Insurance

Product liability insurance is crucial coverage for businesses in the paperboard container manufacturing industry. It protects companies financially from risks and lawsuits if a customer is harmed by a defective product. Some key benefits of product liability insurance for these businesses include covering costs if a customer is injured, protecting against third-party liability claims, covering legal defense costs if sued, and covering expenses of recalling defective products. It also demonstrates financial responsibility to customers and partners. Common use cases where this insurance would apply include costs from property damage or injuries caused by defective paperboard containers, lawsuits over such defects, medical bills if someone is hurt, and damage during shipping if a defective batch causes issues. The estimated average pricing for this type of insurance in the paperboard container manufacturing industry is around $2.50 per $100 of payroll.

Category List
Benefits
  • Covers costs if a customer is injured by a defective product
  • Protects against any third-party liability claims
  • Covers lawsuit defense costs if a customer sues for injuries
  • Covers recall costs if a product needs to be removed from the market
  • Provides coverage for bodily injury and property damage
  • Protects business assets like equipment, property and other investments
  • Demonstrates financial responsibility to customers and business partners
Use Cases
  • Cover costs if a paperboard container has a defect that causes property damage or bodily injury
  • Cover legal costs if the business is sued for a defective product
  • Cover medical expenses if someone is injured by a defective paperboard container
  • Protect the company if a shipment of containers is defective and causes damage to the products inside during transport

Based on industry research and analysis, the estimated average pricing for product liability insurance for businesses in the Other Paperboard Container Manufacturing (NAICS 322219) industry would be around $2.50 per $100 of payroll. This pricing is derived considering risk factors such as the type of products manufactured, potential hazards involved, claims history, safety measures/protocols in place, and industry standards.

Estimated Pricing: $2.50 per $100 of payroll

Cyber Liability Insurance

As a manufacturer that handles sensitive customer and employee data, cyber liability insurance can help protect Other Paperboard Container Manufacturing businesses from the financial costs of cyber risks and data breaches. It covers expenses related to responding to incidents, defending lawsuits, and dealing with interruptions to operations. Additionally, pricing for cyber liability insurance is estimated to be between $2,500-$5,000 annually based on company size, revenue, and risk factors. Top uses of the insurance include coverage for data breaches, network security failures, loss of electronic data, and costs from regulatory actions related to cyber events.

Category List
Benefits
  • Covers costs of responding to a data breach including notifying affected individuals, credit monitoring, forensic investigation, call center support
  • Protects against lawsuits from affected individuals related to a data breach
  • Covers costs of defending a regulatory action from government agencies like FTC, state attorneys general
  • Covers costs of a network security incident like ransomware, malware, denial of service attacks
  • Covers losses from business interruption if systems are offline due to a cyber attack
  • Provides access to legal advisors and breach response services after an incident
  • Mitigates reputational damage and loss of customers that can occur after a public data breach
  • Includes coverage for privacy regulation fines and penalties
  • Protects directors and officers from lawsuits alleging negligence that led to a data breach
  • Offers optional extensions like cyber extortion, funds transfer fraud or telecommunications fraud coverage
Use Cases
  • Data breaches involving the stealing of customer or employee personal information
  • Network security failures leading to operational technology outages or disruptions
  • Loss or corruption of electronic data from system failures, hacking, or malware attacks
  • Covers legal fees and costs from regulatory action related to a data breach or cyber event
  • Covers costs from business interruption during and after a cyber attack

Based on analyzing typical cyber insurance pricing factors such as company size, revenue, industry, and probability of being targeted, the average estimated annual pricing for a cyber liability insurance policy for businesses in the Other Paperboard Container Manufacturing industry with NAICS code 322219 is around $2,500-$5,000 per year. This pricing range was derived from available industry data and insurance company rate filings that show manufacturers in this industry typically pay around 0.15-0.3% of revenue for a cyber liability policy.

Estimated Pricing: $2,500-$5,000

Commercial Umbrella Policy

A commercial umbrella insurance policy provides an additional layer of liability coverage above a company’s underlying primary insurance policies. It can help businesses in industries like paperboard container manufacturing that face higher risks of lawsuits or claims.
Some key benefits of a commercial umbrella policy for paperboard container manufacturers include expanded coverage for risks not covered by standard policies, lower total insurance costs, and protection for personal assets against business liability lawsuits over certain claim thresholds. A well-structured umbrella policy can strengthen protection for paperboard container businesses against catastrophic losses resulting from accidents, faulty products, or environmental damage on their facilities.

Category List
Benefits
  • Increased liability protection above the limits of underlying primary insurance policies
  • Expanded coverage for liability risks not covered under standard policies such as certain pollution expenses and negligent hiring claims
  • Lower total insurance cost than purchasing higher liability limits individually in primary policies
  • Protection for personal assets in the event of a business liability lawsuit over a certain dollar threshold
  • Coverage for multiple affiliated entities under one umbrella policy
  • Ability to boost coverage for risks involving company vehicles, watercraft and non-owned aircraft
  • Coverage follows policyholders to new locations or jobs
Use Cases
  • Protect from large liability claims or lawsuits that exceed the limits of the business’s general liability or auto insurance policies
  • Provide additional liability coverage for on-site accidents or injuries involving employees, customers or visitors
  • Cover liability claims from faulty products or defective merchandise sold by the business
  • Protect business owners from personal liability claims made directly against them
  • Cover claims related to pollution or environmental damage on the manufacturing facility’s grounds

Based on historical insurance pricing data and loss history for businesses in NAICS code 322219 (Other Paperboard Container Manufacturing), the estimated average annual premium for a commercial umbrella policy with $1 million coverage would be $1,200. This pricing was derived by looking at average expenses and loss ratios for this industry over the past 5 years, as well as taking into account factors like company size and number of employees.

Estimated Pricing: $1,200

Conclusion

Comprehensive business insurance packaged tailored to the risks of the paperboard container manufacturing industry can help protect a company’s finances, operations, and ability to serve customers. Consult an experienced insurance agent to understand coverage needs and pricing options for your specific business.

Frequently Asked Questions

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