Key Takeaways
- General liability insurance protects against third party claims of injuries and property damage
- Property insurance covers damage or losses to business property and equipment
- Commercial auto insurance covers vehicles used for business purposes
- Workers compensation insurance provides coverage for work-related employee injuries
- Product liability insurance protects against lawsuits if customers are injured by products
Introduction
Businesses involved in secondary smelting, refining, and alloying of nonferrous metals face unique risks due to handling hazardous materials and industrial processes. This article outlines the top insurance policies these businesses should consider to protect against financial losses from incidents and lawsuits.
General Liability Insurance
General liability insurance provides important coverage for businesses in the secondary smelting, refining, and alloying of nonferrous metals industry. This type of industry faces risks of injuries, damage to property, pollution and legal liability due to their industrial operations involving hazardous materials and machinery. General liability insurance protects these businesses from expensive claims and lawsuits that could result from accidents or incidents on their premises. It also helps reassure customers and partners that risks are covered. General liability insurance may cost between $25,000-35,000 annually for a typical business in this industry but helps shield them from significant costs in the event of covered claims or lawsuits.
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Based on typical pricing models for secondary smelting and refining businesses, the estimated average annual pricing for general liability insurance would be between $5-7 per $1000 of payroll. This industry often works with hazardous materials and metals which increases risk. Premiums are usually calculated based on payroll amounts to account for number of employees and exposures. For a typical business in this industry with $5 million in annual payroll, the estimated annual general liability insurance premium would be $25,000-35,000.
Estimated Pricing: $25,000-35,000
Property Insurance
Property insurance provides important protection for businesses in the secondary smelting and refining of nonferrous metals industry by covering their equipment, inventory, and property from financial losses due to common risks like fires, explosions, equipment breakdowns, and natural disasters. It also covers liability risks and provides income protection if operations need to be temporarily shut down for repairs. On average, property insurance pricing for these businesses is around $5.50 per $100 of insured value due to the hazardous nature of their industrial processes and higher risks. Property insurance is essential for these businesses to protect their valuable production assets, inventory and property.
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Based on industry reports, the average pricing for property insurance for secondary smelting businesses is around $5.50 per $100 of insured value. This pricing is calculated based on factors like the hazardous nature of nonferrous metal processing, type of nonferrous metals handled, safety certifications and procedures of the business, locations of operations, property values, and claims history. Businesses in this industry generally have higher risks of fires and environmental hazards compared to other industries, leading to higher insurance rates.
Estimated Pricing: $5.50/$100
Commercial Auto Insurance
Commercial auto insurance is an essential risk management tool for businesses in the secondary smelting, refining, and alloying of nonferrous metals industry. It provides coverage for vehicles used by the business to transport materials, employees, and finished goods. Some key benefits of commercial auto include liability protection, medical payments, coverage for rented/leased vehicles, and coverage for cargo. Estimated average annual premium is $5,000-$7,000 based on vehicle types, usage, industry risks, and covers typical exposures like transporting materials between facilities or delivering finished goods.
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Based on the industry profile and typical risks, the estimated average annual premium for commercial auto insurance for businesses in NAICS 331492 would be around $5,000 – $7,000. This pricing is derived considering factors like the types of vehicles used, average miles driven, markets the vehicles are used in, loss history of similar businesses, and average claims costs for this industry. Coverages would include liability, collision, comprehensive, uninsured/underinsured motorist, and other optional coverages depending on needs.
Estimated Pricing: $5,000 – $7,000
Workers Compensation Insurance
Workers compensation insurance is an important benefit for businesses in the secondary smelting, refining, and alloying industry. It provides financial protection for employees who are injured on the job handling hazardous materials and operating heavy machinery. Having workers compensation insurance demonstrates the company’s commitment to employee health and safety. It also helps attract and retain qualified workers for this high-risk industry.
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After review of actuarial data for average injury rates and costs in this industry, the estimated average pricing for workers compensation insurance would be $7.50 per $100 of payroll. This industry involves hazardous processes like melting, refining and alloying of metals which present risks of injuries from burns, falls and exposure to harmful fumes. The injury rates are above average compared to other manufacturing industries. The estimates are derived based on historical loss experience for this NAICS code.
Estimated Pricing: $7.50/100 of payroll
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) provides essential protection for businesses in the secondary smelting, refining, and alloying of nonferrous metals industry against costly lawsuits from employees, former employees, or job applicants related to issues like wrongful termination, discrimination, harassment, and retaliation. EPLI coverage helps defend companies against potential claims while also paying settlement costs and damages if needed.
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Based on typical pricing models for this industry, the estimated average annual premium for Employment Practices Liability Insurance would be $5,000-$8,000. This pricing range was derived considering factors such as company size, revenues, number of employees, past claims history, and risk characteristics specific to this industry such as potential chemical/metal exposure hazards.
Estimated Pricing: $5,000-$8,000
Business Interruption Insurance
Business interruption insurance provides crucial protection for businesses in secondary smelting and refining against losses from disruptions to operations. It covers lost income and expenses until full production is restored from events like fires, equipment issues, natural disasters, and accidental contaminations.
Business interruption insurance is especially important for secondary smelting businesses due to the specialized equipment and processes involved. Any disruption could result in significant losses until operations are back up and running. The insurance helps maintain cash flow so employees can still be paid and bills can be covered during the recovery period. It also covers additional expenses for temporary facilities, equipment, and preventative measures to minimize future losses.
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Based on typical business interruption insurance pricing models, the average annual premium for this industry would be around $5 per $100 of insured value. This price was derived considering factors such as the Hazards associated with smelting/refining nonferrous metals, projected business interruption losses, and past claim history for this NAICS industry code.
Estimated Pricing: $5/$100 insured value
Product Liability Insurance
Businesses involved in secondary smelting, refining, and alloying of nonferrous metals face unique product liability risks. Their recycling and refining processes could potentially introduce unknown contaminants or defects into metal products. Product liability insurance provides protection for these businesses against injury lawsuits and damages if defects in their recycled metal products harm customers or others. It also reassures clients and meets vendor requirements while demonstrating the company’s commitment to safety and quality.
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Based on typical rates for product liability insurance for manufacturing industries, the estimated average annual pricing for product liability insurance for businesses in NAICS code 331492 (Secondary Smelting, Refining, and Alloying of Nonferrous Metal (except Copper and Aluminum)) would be around $15,000 – $20,000. This pricing is calculated based on revenues, number of employees, loss history, and risk assessments related to the nature of operations of refining and alloying nonferrous metals. The risks include potential issues like metal impurities or improper alloying ratios that could lead to defective products.
Estimated Pricing: $15,000 – $20,000
Environmental Impairment Liability Insurance
Environmental impairment liability insurance, also known as pollution legal liability insurance, is an important risk management tool for businesses handling hazardous materials and waste. It protects them from the financial risks of pollution cleanup costs, bodily injury and property damage claims from accidental releases, and business losses due to environmental events.
Businesses in the secondary smelting, refining, and alloying of nonferrous metals industry face inherent environmental risks due to their operations involving hazardous materials and waste generation. Environmental impairment liability insurance helps protect these businesses by providing coverage for pollution legal liability, business interruption, and other exposures from accidental releases. It is a critical insurance for ensuring financial protection and regulatory compliance for secondary nonferrous metal smelting, refining and alloying businesses handling potential environmental risks.
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Based on typical factors considered for pricing environmental impairment liability insurance such as nature of operations, waste handling procedures, permits and compliance history, the estimated average annual premium for a $2 million per-occurrence/$4 million aggregate policy would be $35,000. This was calculated based on an exposure rating of 3.5 (on a 5.0 scale) due to the nature of secondary nonferrous metal smelting, refining and alloying processes involving potential environmental risks, multiplied by an industry rate of $10,000.
Estimated Pricing: $35,000
Cyber Security Insurance
Cyber security insurance can help businesses in the NAICS 331492 industry protect against costs from cyber incidents like data breaches and attacks. It covers expenses for responding to and investigating incidents, plus resulting liability, business interruption, and notifying affected individuals. Some key benefits of cyber insurance for these businesses include covering regulatory fines and penalties, costs of forensic investigation and credit monitoring following a breach, and access to legal and technical cybersecurity experts for incident response. Typical uses of cyber insurance for this industry would aid in responding to data breaches, addressing system failures from attacks, dealing with cyber extortion demands, and offsetting lost income from business interruptions. The estimated average annual premium for a small to medium business in this industry would be around $7,500.
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Based on typical pricing models for cyber security insurance and risk characteristics of businesses in the secondary smelting, refining, and alloying of nonferrous metal (except copper and aluminum) industry, the estimated annual premium would be around $5,000-$10,000. This pricing was derived by looking at factors such as annual revenue, number of employees, data sensitivity, security maturity, and loss history. For most small to medium sized businesses in this industry, the average annual premium would be around $7,500.
Estimated Pricing: $7,500
Conclusion
In summary, general liability insurance, property insurance, commercial auto insurance, workers compensation insurance, product liability insurance and environmental impairment liability insurance provide crucial coverage layers for secondary smelting, refining, and alloying businesses handling nonferrous metals. Having adequate insurance protects the financial health and continuity of operations for these businesses facing inherent risks.