Key Takeaways
- General liability insurance protects against third-party claims and lawsuits
- Property insurance covers costs to repair equipment and facilities after damage
- Workers’ compensation ensures medical care and lost wages for injured employees
- Product liability protects assets if a manufactured product causes harm
- Business interruption replaces lost income during disruptions to operations
Introduction
Businesses in the resin, synthetic rubber, and artificial fiber manufacturing industry face unique risks due to the nature of their operations and materials handled. To mitigate these risks and ensure financial protection, certain types of business insurance are especially important. This guide covers the top business insurances resin, synthetic rubber, and fiber manufacturers should consider.
General Liability Insurance
General liability insurance provides essential protections for businesses in the resin, synthetic rubber, and artificial and synthetic fibers and filaments manufacturing industry. General liability policies cover a variety risks these types of manufacturing businesses often face, from product defects and failures to accidents and injuries occurring at facilities or during transportation of materials. General liability insurance also helps protect a company’s assets and profits by covering costs associated with legal claims and lawsuits. Estimated annual premiums for general liability policies in this industry range from $10,000 to $15,000. Furthermore, general liability policies defend manufacturing businesses against liability lawsuits involving property damage, personal injury, and pollution/environmental contamination claims that are common risks for businesses handling chemicals and synthetic materials.
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Based on previous pricing data and risk profiles for businesses in the resin, synthetic rubber, and artificial and synthetic fibers and filaments manufacturing industry (NAICS Code 3252), the estimated average annual premium for general liability insurance would be around $10,000 – $15,000 per year. This pricing was derived considering factors like company size, annual revenues, number of employees, types of products/materials handled, safety procedures/certifications, past claims/losses, and location.
Estimated Pricing: $10,000 – $15,000
Property Insurance
Property insurance provides important protection for manufacturing businesses against a variety of risks. It covers repairs and replacement costs for property damage or loss, protects against business interruptions, and offers liability protection for injuries to others or property damage claims. Proper insurance can help keep operations running smoothly after covered losses. Property insurance is especially crucial for resin, synthetic rubber and artificial fibers manufacturers due to their use of large and expensive equipment, machinery, inventory and shipments that face risks. It protects physical assets and the ability to continue operations if losses occur.
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Based on research of average property insurance rates for manufacturing facilities in NAICS 3252 industry, the estimated annual pricing would be around $3.50 per $100 of insured value. This rate is calculated based on factors such as risk level, location, past claims, security measures, and types of equipment/machinery used in production. Facilities that handle hazardous chemicals or operate 24/7 would generally pay higher rates.
Estimated Pricing: $3.50 per $100 of insured value
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical protections for both employees and employers in hazardous manufacturing industries like resin, synthetic rubber, and fibers production. It ensures employees receive benefits if injured on the job while protecting businesses from costly liability claims. While manufacturing processes in this industry may involve chemicals, heavy machinery, and other risks, maintaining workers’ comp coverage provides mandatory medical and lost wage support for injured workers. It also helps limit liability expenses through pre-set compensation rather than potential lawsuits. Workers’ comp is especially important given the potential hazards within this industry.
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Based on national average pricing data, the estimated average workers’ compensation insurance pricing for businesses in the Resin, Synthetic Rubber, and Artificial and Synthetic Fibers and Filaments Manufacturing industry with NAICS Code 3252 is calculated based on payroll and risk factors unique to this industry. Given the industry involves manufacturing processes that may involve hazardous chemicals, heavy machinery, and factory conditions, the risk is moderate to high. The estimated average price per $100 of payroll is $1.25.
Estimated Pricing: $1.25/ $100 of payroll
Product Liability Insurance
Product liability insurance protects businesses from financial losses due to lawsuits or legal claims resulting from defective or hazardous products. It is especially important for manufacturers in the resin, synthetic rubber, and artificial and synthetic fibers and filaments industry due to the complex nature of materials used and potential for toxic chemical exposure. Given the risks, estimated pricing for product liability insurance for businesses in this industry is around $2.50 per $100 of gross receipts. The top benefits of product liability insurance for these manufacturers include protecting assets from losses due to lawsuits, covering legal fees and settlements, and providing required liability coverage from vendors. It also helps mitigate risks of customer injury from manufacturing defects, failures of product components, and toxic chemical exposure from defects.
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Based on average industry data, the estimated pricing for product liability insurance for businesses in the resin, synthetic rubber, and artificial and synthetic fibers and filaments manufacturing industry with NAICS code 3252 would be around $2.50 per $100 of gross receipts. This pricing is derived from analyzing historical claims data specific to this industry and factoring in elements like product types manufactured, potential hazards involved, safety practices and procedures, and company size.
Estimated Pricing: $2.50 per $100 of gross receipts
Business Interruption Insurance
Business interruption insurance provides coverage for costs and loss of income if a manufacturing business experiences an unplanned disruption to operations. It can help protect resin, synthetic rubber, and artificial fiber companies from financial risks.
Business interruption coverage is especially important for manufacturers in this industry as disruptions from equipment failures, power outages or natural disasters can halt production for lengthy periods of time. Covering loss of income provides a financial safety net so the business can survive an interruption and resume normal operations. It also helps cover any extra costs needed to get back up and running.
Common causes of business interruptions for these manufacturers include loss of revenue and income if the manufacturing plant is non-operational due to fire, natural disasters, machinery breakdown etc. It can also cover ongoing operating expenses like payroll, utilities, rent, loan payments etc. for the period the business is shut down. Additional expenses to prevent further damage, make temporary repairs, move premises temporarily etc. are also covered.
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Business interruption insurance for businesses in the resin, synthetic rubber, and artificial and synthetic fibers and filaments manufacturing industry with NAICS code 3252 typically costs between 0.5-1.5% of annual revenue. Pricing is dependent on factors like location, risk management practices, claims history, and coverage details. For a typical business in this industry with $20M annual revenue, business interruption insurance would cost between $100,000-300,000 per year.
Estimated Pricing: $100,000-300,000
Product Recall Insurance
Product recall insurance provides crucial coverage for manufacturers in industries such as resin, synthetic rubber, and artificial fibers that face quality and safety risks. It reimburses various costs associated with withdrawing defective products from distribution. Contamination during production processes, defective raw materials, mistakes in labeling or packaging, and errors in distribution could potentially lead to costly product recalls for these manufacturers. Coverage usually reimburses legal fees, communication costs, and lost profits from business interruptions during recalls while protecting brand reputation and limiting liability risks if harm occurs. Estimated annual costs for this type of insurance averaging $15,000-$25,000 based on sales volumes, employee counts, product hazards, and potential recall costs.
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Based on typical pricing factors such as annual sales, number of employees, types of products manufactured, potential risks of hazards, likelihood of recalls, and costs of potential recalls, the estimated average pricing for product recall insurance for businesses in the resin, synthetic rubber, and artificial and synthetic fibers and filaments manufacturing (NAICS Code 3252) industry would be around $15,000-$25,000 annually. This pricing range was derived from analyzing industry-specific data and typical insurance rates for businesses engaged in manufacturing synthetic/chemical materials and products that may pose risks if defects are present.
Estimated Pricing: $15,000-$25,000 annually
Environmental Impairment Liability Insurance
Environmental impairment liability insurance, also known as pollution legal liability insurance, provides key coverage to protect businesses in the resin, synthetic rubber, and artificial fibers manufacturing industry from unforeseen pollution cleanup costs and liability claims. Top benefits of this type of insurance for NAICS Code 3252 businesses include protecting against unexpected cleanup costs from pollution incidents, covering third-party injury and property damage claims, and providing defense costs if sued for pollution damages. Common use cases where the insurance applies include pollution from waste disposal or accidental spills, third-party claims from transportation accidents, and regulatory fines or penalties. The estimated average annual premium ranges from $15,000 to $30,000 depending on factors like annual revenue, waste generation amounts, and compliance history.
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Based on typical factors considered such as annual revenue, number of employees, waste generation amounts, hazardous material storage quantities, compliance history, the estimated average annual premium for environmental impairment liability insurance for businesses in the NAICS Code 3252 industry ranges from $15,000 to $30,000. Larger facilities generating higher volumes of waste or storing larger quantities of hazardous materials will generally see premiums on the higher end of the range.
Estimated Pricing: $15,000 – $30,000
Commercial Auto Insurance
Commercial auto insurance provides important liability and physical damage protections for businesses in the resin, synthetic rubber, and artificial and synthetic fibers industry that often rely on fleets of delivery trucks and other commercial vehicles to transport raw materials and products. It also helps protect businesses from financial losses by covering vehicle repair and replacement costs in the event of an accident. Additionally, commercial auto insurance ensures businesses have coverage for their delivery fleets as well as employees’ personal vehicles used for work purposes. On average, businesses in this industry can expect to pay between $2500-3500 annually per commercial vehicle for adequate auto insurance coverage.
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Based on typical pricing formulas for commercial auto insurance that considers factors like number of vehicles, types of vehicles, driver qualifications, mileage, safety record, and other underwriting considerations, the estimated average annual premium for businesses in the resin, synthetic rubber, and artificial and synthetic fibers and filaments manufacturing industry with NAICS code 3252 is around $2500-3500 per vehicle.
Estimated Pricing: $2500-3500
Conclusion
Maintaining the right insurance coverage helps resin, synthetic rubber, and fiber manufacturing businesses operate with confidence knowing they are protected from unforeseen events. General liability, property, workers’ comp, product liability and business interruption insurance provide vital protections tailored to the risks faced in this specialized industry.