Top Business Insurances for Small Arms, Ordnance, and Ordnance Accessories Manufacturing with NAICS Code 332994

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This article covers the top business insurances a small arms, ordnance, and ordnance accessories manufacturing business should consider with NAICS Code 332994 including general liability, product liability, commercial property, workers' compensation, commercial auto and more.

Key Takeaways

  • General liability insurance protects against lawsuits over injuries or property damage from operations.
  • Product liability insurance covers costs and settlements if defective products cause harm.
  • Commercial property insurance reimburses for damage to buildings, equipment and inventory.
  • Workers’ compensation covers medical bills and lost wages if employees are injured on the job.
  • Commercial auto insurance provides protection if vehicles are involved in accidents.
  • Business interruption insurance pays fixed costs if property damage halts operations temporarily.
  • Cyber liability insurance reimburses costs of data breaches and network disruptions.

Introduction

As a manufacturer in the small arms, ordnance and ordnance accessories industry, it is important to understand the various types of business insurance coverage needed to protect your operations financially and legally. This article covers the top insurances this specialized manufacturing industry should consider.

General Liability Insurance

General liability insurance provides important protection for businesses in the small arms, ordnance, and ordnance accessories manufacturing industry. This type of insurance helps protect these businesses from costly lawsuits if injuries or damage occur from company operations or defective products. It also covers legal defense costs if the business is sued, helps meet contractual requirements, and provides peace of mind given the inherent risks of the industry. Key uses of this insurance include protecting against bodily injury, property damage, and product liability claims as well as lawsuits related to dangerous goods packaging and shipping. Estimated annual premiums typically range from $15,000 to $25,000 depending on business size and risk factors.

Category List
Benefits
  • Protection against third party claims of bodily injury or property damage
  • Defense against lawsuits from injuries or damage caused by the company’s products or operations
  • Covers legal costs and judgments if found liable for a claim
  • Protection of business assets from large lawsuit payouts
  • Ability to continue operating if sued by covering legal defense costs
  • Meets requirements for contracts and agreements with clients/suppliers
  • Provides peace of mind in operating an inherently risky business
Use Cases
  • Protect against bodily injury and property damage claims from employees or customers
  • Cover legal expenses if sued for a product defect or malfunction
  • Provide coverage if a customer is injured by a product after purchase
  • Protect from lawsuits if someone is injured on your business property
  • Indemnify the business if they are sued for faulty design or manufacturing of weapons/ammunition
  • Cover liability claims or lawsuits resulting from improper packaging, storing or shipping of dangerous goods

Based on industry data for general liability insurance pricing for businesses in the small arms, ordnance, and ordnance accessories manufacturing industry (NAICS 332994), the average estimated annual premium would be between $15,000 to $25,000. This pricing range was derived by looking at multiple insurance quotes for representative sample businesses in this industry, taking into account factors like business size, annual revenue, number of employees, prior claims experience, and risk level associated with the types of products manufactured.

Estimated Pricing: $15,000 – $25,000

Product Liability Insurance

Product liability insurance is critical for businesses that manufacture small arms, ordnance, and ordnance accessories due to the inherently hazardous nature of these products. It provides key financial protections and legal defenses if someone is injured by a product defect. Manufacturers in this industry face significant risks of costly lawsuits and damages if their products cause harm. Product liability coverage helps transfer these risks to insurers while also improving relationships and trust with partners through demonstrating financial responsibility. Estimated pricing for coverage averages $25-$35 per $1,000 of annual gross receipts.

Category List
Benefits
  • Protect against costs of lawsuits if a product design or manufacturing defect causes injury or property damage
  • Cover legal fees and settlement costs if sued over product issues
  • Reimburse medical expenses, lost wages, pain and suffering if you are found liable
  • Help maintain positive cash flow by not having to pay large settlement costs out of pocket
  • Provides access to specialized legal defenses for weapons-related lawsuits which have unique industry standards and regulations to consider
  • Lessen financial uncertainty by shifting risk to the insurer
  • Demonstrate financial responsibility to partners, suppliers and customers
  • Peace of mind knowing your business is protected from unexpected legal and financial risks
Use Cases
  • Protect against lawsuits from injuries caused by defects in manufactured products
  • Cover costs and damages if a customer is injured by improper assembly or faulty parts
  • Defend against claims of design defects that lead to harm
  • Compensate customers for injuries, medical bills, lost wages, and pain/suffering due to manufacturing errors
  • Cover liability claims and lawsuits from third parties injured by defective products

For businesses in the small arms, ordnance, and ordnance accessories manufacturing industry with NAICS code 332994, the estimated average annual pricing for product liability insurance would be between $25 to $35 per $1,000 of gross receipts. This pricing is derived based on the industry risk level being higher than average due to the hazardous nature of the products being manufactured and the potential liabilities if accidents occur from defective products.

Estimated Pricing: $25-35/1000 of gross receipts

Commercial Property Insurance

Commercial property insurance provides essential coverage for protecting small arms manufacturing businesses against losses and liabilities. It covers costs to repair or replace buildings, equipment, and other property if damaged while also helping to continue operations through income protection. Insurance can be customized for the unique risks of this industry. Benefits include protection for property damage and loss, replacement costs, business interruption, theft or loss of firearms/gun parts, and liability protection. Top use cases involve fire damage, natural disasters, equipment issues, accidental property damage, and theft of inventory/equipment. Average annual pricing is around $3.50 per $100 of insured value.

Category List
Benefits
  • Protection against property damage and loss
  • Replacement cost coverage for buildings and equipment
  • Business interruption coverage to continue operations if property is damaged
  • Coverage for theft or loss of valuable firearms and gun components
  • Liability protection in the event someone is hurt on your property
  • Customized coverage tailored specifically for small arms manufacturers
Use Cases
  • Protection against fire damage
  • Protection against damage from natural disasters like floods, hurricanes, earthquakes
  • Protection against equipment breakdown or mechanical failure
  • Protection against property damage from employee negligence or accident
  • Protection against theft of inventory, equipment or property

Based on industry data, the average annual pricing for commercial property insurance for businesses in the small arms, ordnance, and ordnance accessories manufacturing industry (NAICS 332994) is around $3.50 per $100 of insured value. This price was derived from insurance rate filings and loss histories for businesses in this industry category, which has higher inherent risks compared to other manufacturing due to the nature of the products and materials handled.

Estimated Pricing: $3.50 per $100 of insured value

Workers’ Compensation Insurance

Workers’ compensation insurance provides crucial benefits and protections for businesses in the small arms manufacturing industry. This type of manufacturing involves risks such as injuries from operating heavy machinery, exposure to hazardous materials, and noise-induced hearing loss. Having workers’ comp helps ensure employees receive proper medical care and lost wages if injuries occur, while also protecting the business from liability. Based on data about average claims and losses in this high-risk industry, the estimated cost for workers’ comp insurance is around $5.50 per $100 of payroll.

Category List
Benefits
  • Covers medical bills and lost wages for employees injured on the job
  • Protects the business from lawsuits if an employee is injured
  • Required by law in many states
  • Reduces turnover by providing benefits to injured employees
  • Saves money over paying for injuries out of pocket
  • Provides peace of mind knowing employees will be taken care of
Use Cases
  • Injury from operating heavy machinery and tools
  • Exposure to hazardous chemicals or materials
  • Lifting or carrying heavy loads
  • Cuts or lacerations from sharp objects
  • Repetitive stress injuries
  • Hearing loss from loud machinery

Based on industry risk factors, average claim costs, and loss histories, the estimated average annual pricing for workers’ compensation insurance for businesses in the NAICS 332994 Small Arms, Ordnance, and Ordnance Accessories Manufacturing industry would be around $5.50 per $100 of payroll. This industry is considered high-risk due to the hazardous nature of manufacturing weapons and ammunition, which can result in injuries. Insurers determine pricing by analyzing factors like industry accident rates, OSHA violations, and average claim payout amounts to calculate expected losses and price policies accordingly.

Estimated Pricing: $5.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance is an essential risk management tool for businesses in the small arms, ordnance, and ordnance accessories manufacturing industry. It provides liability protection and physical damage coverage critical to operations. The top benefits of commercial auto insurance for this industry include liability protection from lawsuits, physical damage coverage to repair or replace vehicles, medical payments coverage, uninsured/underinsured motorist coverage, rental reimbursement, and customized coverage levels. The top use cases include coverage for business vehicles used to transport raw materials and finished goods, liability protection for employee accidents during deliveries or transportation, and coverage for business vehicles used for client meetings and trips. Estimated average annual pricing for commercial auto insurance for this industry is around $2,500 per vehicle.

Category List
Benefits
  • Liability protection from lawsuits in the event of an at-fault accident
  • Physical damage coverage to repair or replace vehicles involved in a collision
  • Medical payments coverage to pay for injuries sustained by others in an accident regardless of fault
  • Uninsured/underinsured motorist coverage to pay for injuries to insured drivers caused by at-fault parties with no insurance or inadequate coverage
  • Rental reimbursement to cover costs of a rental vehicle while an insured auto is being repaired
  • Coverage for materials/equipment being transported in vehicles
  • Customized coverage levels to meet the unique needs of the business
Use Cases
  • Coverage for business vehicles used to transport raw materials and finished goods
  • Liability protection if an employee is in an accident during deliveries or transportation of goods
  • Coverage for business vehicles used for trips to visit clients and meetings

Based on industry data and analysis, the estimated average annual pricing for commercial auto insurance for businesses in the small arms, ordnance, and ordnance accessories manufacturing industry with NAICS code 332994 is around $2,500 per vehicle. This pricing takes into account the higher risks associated with this industry, including transporting of certain materials. The pricing was derived by looking at actual quotes for this industry from several top insurance carriers.

Estimated Pricing: $2,500

Business Interruption Insurance

Business interruption insurance provides crucial financial protection for small arms manufacturers by covering loss of income and additional expenses if their operations are temporarily disrupted due to property damage or other insured causes. It helps ensure they have funding to continue paying expenses until normal business activities can resume. Due to the risks involved in small arms production processes from fires, explosions, equipment failures, natural disasters, loss of personnel, and regulatory issues, business interruption insurance is especially important for these businesses to maintain cash flow and customer relationships during recovery periods. Typical pricing is around $2.50-$3.00 per $100 of gross revenue.

Category List
Benefits
  • Covers loss of income if your business closes temporarily due to property damage
  • Covers additional expenses to continue business operations during recovery
  • Protects cash flow so you can pay employees and bills until operations resume
  • Covers profit losses if an insured incident disrupts your supply chain or sales
  • Reimburses extra costs for operating from a temporary location during repairs
  • Covers losses from dependent business interruption if your suppliers suffer damage
  • Covers extra wages if you need to hire temporary help during reconstruction
  • Helps maintain customer relationships and loyalty during recovery
Use Cases
  • Fire or explosion damages company facilities
  • Equipment breakdown stops production
  • Supply chain interruptions delay orders
  • Natural disasters damage property
  • Loss of key employees due to injury or illness
  • Regulatory action or license suspension disrupts business

Based on industry analysis, the estimated average pricing for business interruption insurance for small arms manufacturing (NAICS 332994) would be around $2.50 – $3.00 per $100 of gross revenue. This pricing takes into account factors such as the relatively higher risk nature of the industry due to potential regulatory changes, social factors, and litigation risks.

Estimated Pricing: $2.50-$3.00/100 of revenue

Cyber Liability Insurance

As a manufacturer of small arms, ordnance and accessories, your operations involve sensitive data that could pose risks if compromised or misused. Cyber liability insurance provides critical protection for your business. It covers a wide range of expenses from data breaches, network disruptions, and lost income due to downtime after an attack. Pricing for coverage typically falls between $5,000-$10,000 annually based on your industry and data risks.

Category List
Benefits
  • Covers data breach costs such as credit monitoring, legal fees, investigation, lawsuits
  • Protects from lawsuits and potential fines if a cyber incident impacts customers or employees
  • Covers theft of money or intellectual property from hacking or malware attacks
  • Covers costs of restoring systems and data after a cyber attack or ransomware incident
  • Covers lost income and extra expenses if a systems outage causes business interruption
  • Covers costs of a public relations or crisis management firm if your brand is damaged by a cyber attack
  • Provides access to cyber security experts for loss prevention best practices and post-incident response
  • Insures against liability claims if a product defect leads to a cyber vulnerability in your systems or products
Use Cases
  • Data breach or cyber attack resulting in unauthorized access or theft of sensitive customer, employee or business data
  • Ransomware attack or other malware infection requiring network restoration and ransom payment
  • Loss of income or extra expenses due to a network outage or cyber attack
  • Lawsuits by customers, employees or business partners due to a data breach or privacy violation
  • Regulatory fines or penalties for violating data privacy and security laws like HIPAA or GDPR

Based on research on average cyber liability insurance pricing for manufacturing industries with sensitive data, the estimated average annual premium for a business in NAICS 332994 is $5,000-$10,000. This price range was calculated considering factors such as the sensitive nature of data involved in small arms manufacturing, potential risks of data breaches, litigation costs, and average insurance rates for comparable high-risk industries.

Estimated Pricing: $5,000-$10,000

Conclusion

In summary, general liability, product liability, commercial property, workers’ compensation, commercial auto, business interruption and cyber liability insurance provide layered financial protection for small arms manufacturing businesses against potential risks and uncertainties inherent in this industry. Maintaining proper coverage through an insurance broker is crucial for risk management and protecting the long term viability of operations.

Frequently Asked Questions

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