Key Takeaways
- General liability insurance protects against costly lawsuits from injuries or property damage caused by your products or operations.
- Property insurance covers repair costs if buildings, equipment, or inventory are damaged by disasters like fire or storms.
- Product liability insurance protects your business if customers are injured or their property is damaged by defective products.
- Workers’ comp insurance pays medical bills and lost wages if employees get injured on the job.
- Business interruption insurance covers lost income if disaster damages your property and interrupts operations.
Introduction
As a polystyrene foam product manufacturer, there are several crucial types of business insurance to understand. This guide will outline the top insurance policies and their importance for companies in this industry to protect against financial risks.
General Liability Insurance
“This reference provides helpful information on general liability insurance for businesses in the polystyrene foam product manufacturing industry. It outlines the top benefits, use cases, and estimated pricing for this important type of commercial insurance coverage.”
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Based on research of average pricing data from top insurance providers for this industry, the estimated average annual price for general liability insurance would be around $6,000-$8,000. This price range was derived by taking into account factors like business size, number of employees, annual revenue, past claims experience, and risk level associated with activities like foam product manufacturing.
Estimated Pricing: $7,000
Property Insurance
Property insurance plays an important role in protecting manufacturing businesses from financial losses due to damage or destruction of buildings, equipment, inventory and other property. It ensures polystyrene foam product manufacturers can continue operating smoothly after a covered loss by shifting the costs of repairs, replacements, and lost income to the insurance company. Property insurance also provides liability protection if a customer or third party is injured on the business property and reimbursement for lost income if the property is unusable due to insured damage.
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Based on industry risk factors and average claims data, the estimated annual property insurance pricing for businesses in the polystyrene foam product manufacturing industry is $3.50 per $100 of insured value. Key risk factors include potential fire hazards from manufacturing processes and storage of flammable raw materials. The price was derived from property insurer rate filings and actuarial models that take into account industry loss experience statistics.
Estimated Pricing: $3.50 per $100 insured value
Product Liability Insurance
Product liability insurance provides crucial protection for businesses that manufacture products by covering costs associated with compensation, legal fees, medical bills, and more if a customer claims they were injured by or their property was damaged by a product. It helps protect manufacturers from the financial risks involved with defective products that could harm consumers. As a polystyrene foam product manufacturer, there are risks associated with customers alleging injuries or damages from products. Product liability insurance provides crucial financial protection from these types of claims and lawsuits. Based on industry data, the average product liability insurance pricing for businesses in the polystyrene foam product manufacturing industry (NAICS 326140) is around $5-$7 per $1,000 of revenue.
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Based on industry data, the average product liability insurance pricing for businesses in the polystyrene foam product manufacturing industry (NAICS 326140) is around $5-$7 per $1,000 of revenue. This pricing is derived considering risk factors such as the types of products manufactured, quality control processes, past claims experience, and safety certifications held by the business.
Estimated Pricing: $5-$7/thousand revenue
Workers’ Compensation Insurance
Workers’ compensation insurance protects both businesses and employees in hazardous industries like polystyrene foam product manufacturing. It provides medical coverage and lost wages for injured workers while protecting businesses from expensive lawsuits. All businesses in this industry depend on dangerous machinery, chemicals and repetitive motions that commonly lead to accidents and require lengthy medical treatment or lost time from work. Maintaining workers’ comp coverage demonstrates commitment to employee safety and well-being while ensuring compliance with state law requirements.
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Based on national average rates, the estimated average annual workers’ compensation insurance premium for companies in the polystyrene foam product manufacturing industry (NAICS 326140) is $2.50 per $100 of payroll. This rate was derived from industry risk factors, historical claims data, and average payroll amounts for companies in this industry. The national average rate may vary by several factors such as a company’s individual claims history, safety programs, and location.
Estimated Pricing: $2.50/$100 of payroll
Business Interruption Insurance
Business interruption insurance provides critical protection for companies in the polystyrene foam product manufacturing industry by helping to cover ongoing expenses and lost revenue if operations are forced to temporarily suspend due to unforeseen events. Some common risks faced by businesses in this industry include property damage from fires or storms, loss of utilities or critical equipment failures. Having business interruption coverage can help maintain cash flow and meet financial obligations during any period of downtime. The estimated annual cost for such a policy ranges from $5,000-$7,000 based on factors like company size and location risks.
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Based on industry average statistics, the estimated annual pricing for business interruption insurance for businesses in the polystyrene foam product manufacturing industry (NAICS 326140) would be around $5,000-$7,000. This price range was derived by taking into account factors such as the industry’s average revenue per employee, property value, location risks, and historical claims data. The price would cover up to 12 months of lost income and extra expenses in the event of an unforeseen business interrupting event such as fire, flooding, etc.
Estimated Pricing: $5,000-$7,000
Commercial Auto Insurance
Commercial auto insurance provides critical protection for businesses in the polystyrene foam product manufacturing industry. It shields companies from expensive liability claims if vehicles used for business purposes like delivering raw materials, finished goods, and transporting waste materials are involved in accidents. The estimated annual cost for commercial auto insurance for a business in this industry is around $1500 per vehicle, which can help cover risks associated with transporting raw materials, finished goods, and waste materials.
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Based on industry data and average risks, the estimated annual pricing for commercial auto insurance for businesses in the polystyrene foam product manufacturing industry with NAICS code 326140 would be around $1200-1800 per vehicle. This pricing takes into account factors like type of vehicles used, mileage, safety record, and liability limits. Vehicles in this industry range from cargo vans to box trucks used to deliver fabricated foam products.
Estimated Pricing: $1500
Directors & Officers Insurance
Directors and officers insurance, also known as D&O insurance, provides important liability protection for business owners and executives. It covers legal fees and settlements if they are subject to lawsuits, investigations, or pollution liability claims related to their roles in the company. D&O insurance is especially important for manufacturing companies in the polystyrene foam industry due to risks from operating industrial facilities and handling hazardous materials. It protects personal assets if the company faces litigation or regulatory actions.
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Based on research and analysis of industry data, the average annual pricing for Directors & Officers insurance for businesses in the Polystyrene Foam Product Manufacturing industry (NAICS Code: 326140) is estimated to be around $8,000-$12,000. This pricing range was derived considering typical policy limits of $1-5 million and deductibles of $5,000-$25,000 for companies in this industry with 10-50 employees and $5-10 million annual revenue.
Estimated Pricing: $8,000-$12,000
Conclusion
Maintaining adequate insurance coverage is important for any business, but especially manufacturers that face risks to property, products, employees, and operations. The business insurances outlined here provide essential financial protection and peace of mind for foam product businesses.