Key Takeaways
- General liability insurance protects from lawsuits over injuries or property damage
- Property insurance covers costs to repair or replace buildings, equipment and inventory after losses like fire or theft
- Workers’ compensation provides medical expenses and lost wages coverage for on-the-job injuries
- Commercial auto insures company vehicles used for deliveries and transportation
- Cyber liability protects costs from data breaches or hacks
- Commercial umbrella supplements liability coverage for large claims exceeding limits
- D&O protects personal assets of owners and executives if sued over business decisions
- Business interruption offsets lost income during temporary closures from disruptions
Introduction
As a manufacturer of showcases, partitions, and lockers, there are various types of insurance that are important to protect the business operations and finances. Key policies to consider include general liability, property, workers’ compensation, commercial auto and others based on individual business needs and risk exposures.
General Liability Insurance
General liability insurance is important for businesses in the showcase, partition, shelving and locker manufacturing industry to protect them from lawsuits, claims and legal costs that may arise due to defects, injuries on premises or from usage of products. It covers a wide range of risks and scenarios that the business could potentially face such as product defects leading to injuries, accidents occurring on premises, workmanship issues causing property damage, and third party liability from errors made in the manufacturing or assembly processes. Pricing for general liability insurance for this industry is estimated to be between $2,500 to $3,500 annually.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on the industry risk factors and average claims data, the estimated average annual pricing for general liability insurance for this industry would be around $2,500 – $3,500 per year. This was calculated based on factors like the materials and processes used, potential risks of injuries from machinery or falling/tipping shelves or lockers, risk of property damage claims from improper installation, average insurance rates for manufacturing industries, and loss history data for this NAICS code.
Estimated Pricing: $2,500 – $3,500
Property Insurance
“Property insurance is an essential risk management tool for businesses in the showcase, partition, shelving, and locker manufacturing industry. It protects businesses from financial losses due to property damage or theft by covering the replacement or repair costs of buildings, equipment, inventory and more.”
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry research and analysis, the estimated average annual pricing for property insurance for businesses in the Showcase, Partition, Shelving, and Locker Manufacturing industry with NAICS Code 337215 is $1.50 – $2.50 per $100 of insured value. This pricing is derived based on the industry risk level and common claim rates. On average, properties in this industry have machinery, equipment, inventory, and facilities that need insurance coverage. The price provided is calculated at a rate of 1.5% to 2.5% of total insurable value which is common for manufacturing businesses.
Estimated Pricing: $1.50 – $2.50 per $100 of insured value
Workers’ Compensation Insurance
Workers’ compensation insurance is an integral part of doing business for companies in the showcase, partition, shelving, and locker manufacturing industry due to the risks of injuries from operating machinery, lifting heavy materials, and other workplace hazards. It provides coverage for medical expenses and lost wages if employees are injured on the job, protecting businesses from costly lawsuits while improving employee retention and morale through guaranteed benefits. Premium rates are estimated around $2.50 per $100 of payroll based on industry data and historical claims for this NAICS code. Common injury types addressed by the insurance include cuts, burns, lacerations, lifting injuries, repetitive stress injuries, and incidents involving powered industrial vehicles.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry data and historical claims, the estimated average annual workers’ compensation insurance pricing for businesses in the Showcase, Partition, Shelving, and Locker Manufacturing industry (NAICS Code: 337215) is around $2.50 per $100 of payroll. This rate was derived using an experience modifier of 1.2 based on the average injury risk for this industry compared to others, along with consideration of the industry’s average payroll and historical claims experience.
Estimated Pricing: $2.50 per $100 of payroll
Commercial Auto Insurance
Commercial auto insurance provides essential liability and physical damage coverage for businesses in the showcase, partition, shelving, and locker manufacturing industry (NAICS 337215) that utilize vehicles as part of their regular operations, such as delivery of products and transportation between facilities. It protects the business from financial losses in the event of an accident, with estimated average annual pricing of $1,500-$2,000 per vehicle depending on fleet size and safety practices. Coverage is important for risks associated with transporting finished goods, materials, and commuting employees between meetings and job sites.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical auto insurance rates for businesses in the manufacturing industry, the estimated average annual pricing for commercial auto insurance would be around $1,500-$2,000 per vehicle. Rates are often dependent on number of vehicles, driving records, safety practices. For this industry, vehicles used would primarily be trucks or vans for transporting materials and finished goods. No additional information was provided about number/type of vehicles so an average estimate is provided.
Estimated Pricing: $1,500-$2,000
Cyber Liability Insurance
As a manufacturer that creates and stores showcase partitions, shelving units, and lockers, cyber liability insurance provides important protection from the financial risks of a data breach or cyber attack. Manufacturers in this industry face risks of network security failures, ransomware attacks, and theft of intellectual property like designs and plans that could harm business operations and reputation. Cyber liability insurance covers costs associated with privacy breaches, network downtime, ransom payments, fines and notifications to regain customer trust after an incident. It helps protect the bottom line and allows a quick return to business as usual following a cyber incident.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry benchmarks, the average pricing for cyber liability insurance for businesses in the Showcase, Partition, Shelving, and Locker Manufacturing industry with NAICS code 337215 is around $2,500 per year. This pricing is derived based on the typical revenue size and employee headcount of businesses in this industry, as well as their expected cyber risk exposure related to data privacy, network security, and IT systems. The pricing also factors in industry-specific risk factors such as potential intellectual property and design data theft risks.
Estimated Pricing: $2,500
Commercial Umbrella Insurance
Commercial umbrella insurance provides crucial protection for businesses in the showcase, partition, shelving, and locker manufacturing industry against costly product liability and injury lawsuits. It supplements their commercial general liability insurance to cover claims above primary policy limits, protecting assets and business operations. Additional coverages like contingent liability, punitive damages, and class action protection help defend businesses in this industry from common hazards and litigation risks involving their manufactured products or work sites. Estimated pricing is around $2.50-$3.00 per $100 of underlying limits.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on industry averages, businesses in the Showcase, Partition, Shelving, and Locker Manufacturing industry (NAICS Code 337215) can expect to pay around $2.50-$3.00 per $100 of underlying liability limits for commercial umbrella insurance coverage. This pricing is derived from taking into account factors such as the industry’s typical risk level (some hazards from machinery but overall moderate risk), average sales volume and payroll. Policies are usually written with $1 million of umbrella limits.
Estimated Pricing: $2.50-$3.00 per $100 of underlying liability limits
Directors And Officers Liability Insurance
Directors and officers liability insurance, also known as D&O insurance, protects the personal assets of business executives and managers from lawsuits related to wrongful acts or negligence while conducting business operations. It is especially important for manufacturing businesses who may face allegations over product defects, workplace injuries, environmental issues, and other liabilities. D&O insurance helps defend against shareholder lawsuits, cover legal costs of employment claims, and protects directors from fines or penalties from regulators. Average annual premiums for businesses in the showcase, partition, shelving, and locker manufacturing industry (NAICS Code 337215) usually range from $5,000 to $10,000.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical pricing patterns, the average annual premium for Directors And Officers Liability Insurance for businesses in the Showcase, Partition, Shelving, and Locker Manufacturing industry with NAICS Code 337215 is around $5,000 – $10,000. Premiums are usually calculated based on factors like the company’s annual revenue, number of employees/directors, any prior claims against the D&O policies, and risk profile of the industry.
Estimated Pricing: $5,000 – $10,000
Business Interruption Insurance
Business interruption insurance provides coverage to help businesses sustain operations and revenue during unexpected disruptions. It can help offset losses from property damage, power outages, or other events that force temporary closure or reduced capacity until full recovery. Manufacturing businesses in particular rely on consistent operations, so this type of insurance is important to protect cash flow and the long-term viability of the business if disruptions occur. Events covered may include fires, floods, equipment failures, utility issues, supply chain problems impacting vendors, and workers compensation if employees cannot work due to a covered peril.
| Category | List |
|---|---|
| Benefits |
|
| Use Cases |
|
Based on typical industry factors like revenue, payroll, property values, and likelihood of claims, the estimated average annual premium for business interruption insurance would be around $3,500. This was calculated based on 1% of annual revenue being insured for loss of income following a disruption to business activities.
Estimated Pricing: $3,500
Conclusion
Proper insurance planning is crucial for manufacturing businesses in this industry to mitigate risks and stay in operation even after unexpected incidents. Comprehensive insurance coverage through policies discussed here helps shield profits and long-term viability against many risks outside of business control.