Top Insurance Coverages for Metal Can Manufacturers with NAICS Code 332431

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This article covers the most important types of business insurance for metal can manufacturing companies with NAICS code 332431 including general liability, property, workers' compensation, commercial auto, D&O, commercial umbrella, and more.

Key Takeaways

  • General liability insurance protects against third-party claims and lawsuits.
  • Property insurance covers losses from fire, theft, disasters and more.
  • Workers’ compensation covers medical expenses and lost wages for work injuries.
  • Commercial auto insures vehicles used for business transport.
  • D&O protects directors and officers from lawsuits related to corporate acts.
  • Commercial umbrella provides excess liability coverage over primary policies.
  • Business interruption insurance covers lost income from equipment failures or disasters.
  • Equipment breakdown insurance protects expensive machinery from repair costs.
  • Commercial cyber liability covers risks of data breaches and cyber attacks.

Introduction

As a metal can manufacturer, it is important to protect your business operations, assets, employees and finances with adequate insurance. Several types of coverage are essential for the metal can industry due to risks involved with manufacturing processes, transportation needs, regulatory compliance and potential litigation issues. This includes general liability, property, workers’ compensation, commercial auto, D&O, commercial umbrella insurance as well as business interruption, equipment breakdown and commercial cyber liability policies.

General Liability Insurance

General liability insurance is an important type of coverage for metal can manufacturing businesses. It protects against claims for bodily injury, property damage, and other losses that may occur in the normal course of business operations. This insurance provides coverage for on-premises accidents, product defects, vehicle accidents during deliveries, legal costs associated with lawsuits, and has an estimated average annual cost of $9,000 for a business in this industry.

Category List
Benefits
  • Protects your business from third-party claims and lawsuits arising out of bodily injury, property damage, personal injury or advertising injury on or off your premises
  • Covers the costs of defending lawsuits brought against your business, even if the claims are false
  • Protects employees and visitors injured on your property
  • Covers damage to third-party property arising from your business operations
  • Covers obligations to indemnify others when required by contract
  • Covers claims from burns or injuries arising from contact with hot metal surfaces
  • Covers property damage claims from flying sparks or hot slag during manufacturing processes
  • Covers liability claims from potentially hazardous materials used in manufacturing processes
  • Covers claims for defective or faulty cans that cause damage to products packed inside
Use Cases
  • Protect against bodily injury and property damage claims from customers
  • Cover legal costs and damages from product defects and failures
  • Provide protection for on-site accidents and injuries to visitors and employees
  • Defend against lawsuits related to pollution and environmental damage on business property
  • Insure delivery vehicles and drivers against accidents during transportation

Based on research of average pricing for general liability insurance for metal can manufacturing businesses with NAICS code 332431, the estimated annual price is around $9,000. This pricing was derived from analyzing insurance rates from top providers for this industry while taking into account factors like number of employees, annual sales, and common risks related to metal working processes.

Estimated Pricing: $9,000

Property Insurance

Property insurance is an important type of coverage for metal can manufacturing businesses, as it protects their specialized and costly equipment, facilities, and inventory from financial losses due to a variety of incidents like fires, theft, natural disasters and more. For metal can manufacturers, property insurance provides key benefits such as replacing or repairing damaged property after a covered loss, covering business interruption expenses if operations are halted, and an estimated average annual cost of $3.50 per $100 of insured property value. Property insurance ensures metal can manufacturers can continue operating should they experience covered losses and safeguards their significant investments.

Category List
Benefits
  • Covers losses due to fire damage
  • Covers losses due to theft of equipment or inventory
  • Covers losses due to natural disasters like hurricanes, floods, earthquakes
  • Replaces or repairs damaged property after a covered loss
  • Provides funds to repair or rebuild facilities and purchase new equipment after a disaster
  • Covers losses due to vandalism or riots
  • Protects investments made in facilities, machinery and inventory
Use Cases
  • Protection against fire damage to facilities and equipment
  • Coverage for water damage from burst pipes or other plumbing issues
  • Replacement or repair costs for equipment damaged in an accident
  • Business interruption coverage to continue paying expenses if operations are halted due to a covered loss

After researching average property insurance pricing for metal can manufacturing businesses with NAICS code 332431, the estimated average annual pricing is around $3.50 per $100 of insured property value. This pricing takes into account factors like the hazardous nature of manufacturing processes involving metals, machinery, potential for accidents or fires, average claims history for the industry, and location of the manufacturing plants.

Estimated Pricing: $3.50 per $100 of insured property value

Workers Compensation Insurance

Workers compensation insurance provides critical benefits and protections for businesses in the metal can manufacturing industry. As manufacturing processes in this industry commonly involve heavy machinery and equipment, there is an inherent risk of workplace injuries which workers compensation insurance helps address. It ensures medical expenses are covered for injured employees, protects companies from costly lawsuits if injuries occur, allows firms to stay compliant with state regulations, and replaces lost wages to prevent disruptions to production schedules.

Category List
Benefits
  • Provides coverage for medical expenses, rehabilitation costs or lost wages for employees injured on the job
  • Protects the business from lawsuits if an employee is injured during their employment
  • Reduces costs of employee injuries by avoiding court settlements which could cost significantly more than insurance premiums and claims
  • Required by law in all states so businesses are in compliance
  • Allows firms to offer competitive benefit packages to attract and retain top talent in a competitive labor market
  • Increases workplace safety through ongoing loss-control programs and risk management strategies which reduce the frequency and severity of claims
  • Insures the continuity of operations by replacing injured workers’ wages and benefits to prevent disruption of production schedules
  • Allows firms to offer competitive benefit packages to attract and retain top talent in a competitive labor market
Use Cases
  • Protecting employees from liability in case of workplace injuries like slips, falls or machine accidents
  • Covering medical bills and lost wages for employees injured on the job
  • Providing wage replacement benefits to injured employees unable to work
  • Covering legal costs if an injured employee files a lawsuit against the employer

Based on industry data, the average workers compensation insurance pricing for businesses in the metal can manufacturing industry with NAICS code 332431 is around $2.50 per $100 of payroll. This rate is derived from national workers compensation insurance rate filings and loss experience specific to metal can manufacturing.

Estimated Pricing: $2.50 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance is an important coverage for metal can manufacturing businesses to protect their assets, employees, and financial stability. It provides liability protection and physical damage coverage that is essential for companies utilizing fleet vehicles as part of daily operations in the manufacturing industry.

Some key benefits of commercial auto insurance for metal can manufacturers include covering legal costs if sued due to an accident, medical expenses for injured parties, uninsured/underinsured motorist protection, replacement costs for damaged vehicles, and customized coverage for risks within the manufacturing sector. Common uses involve liability protection for employee drivers, physical damage coverage on owned vehicles, and coverage extended to non-owned or hired vehicles sometimes used for business needs. Estimated pricing for a manufacturer is around $5,000 annually based on number of vehicles, drivers, location, liability limits, and loss history.

Category List
Benefits
  • Protects your assets and income if an accident occurs
  • Covers legal costs if you are sued by another party involved in an accident
  • Covers vehicles used for business purposes like transporting materials or employees
  • Covers medical expenses for injured employees or others involved in an accident with a company vehicle
  • Covers uninsured/underinsured motorist bodily injury and property damage
  • Provides replacement or repair cost coverage for company vehicles involved in an accident
  • Coverage tailored specifically for businesses in the metal can manufacturing industry
Use Cases
  • Coverage for company vehicles like trucks used to transport raw materials and finished goods between facilities
  • Liability protection in case an employee causes an accident while operating a vehicle for business
  • Physical damage coverage for vehicles owned by the business in case of accidents, theft or other losses
  • Coverage for non-owned and hired vehicles in case employees use personal vehicles for business needs or the company rents vehicles temporarily

Based on industry data and average risks, the estimated annual price for commercial auto insurance for a metal can manufacturing business (NAICS 332431) would be around $5,000. This price is calculated based on factors such as number of vehicles, employee drivers, business location, liability limits, and loss history. Commercial fleets in the manufacturing industry tend to be higher risk given the type of vehicles used as well as conditions of regular transport of goods and materials.

Estimated Pricing: $5,000

Directors And Officers Liability Insurance

Directors and officers liability insurance, commonly referred to as D&O insurance, protects the personal assets of directors and officers from lawsuits related to alleged wrongful acts or omissions in their roles with the company. It is a critical risk management tool for businesses in the metal can manufacturing industry given the regulatory oversight and potential litigation risks involved. Additionally, D&O insurance provides important legal defense and crisis management coverage for situations like regulatory investigations, shareholder disputes, data breaches and other reputational threats that companies in this industry may face from time to time.

Category List
Benefits
  • Protects directors and officers from personal liability in the event of a lawsuit against the company
  • Covers legal fees and costs to defend against lawsuits
  • Reimburses losses if a lawsuit results in an adverse verdict or settlement against the directors or officers
  • Insures against breach of fiduciary duty claims
  • Provides crisis management resources like PR assistance if a lawsuit attracts negative publicity
Use Cases
  • lawsuits filed by shareholders, employees, or other third parties alleging wrongful acts or breaches of duty by directors and officers
  • regulatory actions or investigations brought by government agencies
  • crisis events like data breaches, cyber attacks or other reputational threats
  • mergers and acquisitions activity like shareholder disputes

Based on research, the average pricing for Directors And Officers Liability Insurance for businesses in the Metal Can Manufacturing industry with NAICS Code 332431 is around $5,000-$7,000 per year. Factors that influence the pricing include the company’s annual revenue, number of employees, years in business, claims history, and overall risk profile. The price was derived from averaging quotes from top D&O insurance carriers for typical small to medium sized metal can manufacturers.

Estimated Pricing: $5,000-$7,000

Commercial Umbrella Insurance

Commercial umbrella insurance provides additional layers of liability protection and higher liability limits for metal can manufacturing businesses. It helps protect these businesses from costly claims, lawsuits, and losses that exceed primary insurance policy limits. Some key benefits of commercial umbrella insurance for metal can manufacturers include protecting assets from lawsuits and liability claims exceeding primary limits, providing coverage for risks not covered by primary policies like pollution incidents, and offering higher liability limits needed by larger metal can businesses. Umbrella insurance is especially useful for the metal can industry to safeguard businesses from unforeseen catastrophic losses and risks associated with their manufacturing operations and supply chain contracts.

Category List
Benefits
  • Protect assets from lawsuits and liability claims that exceed primary insurance limits
  • Provide additional liability coverage to help protect assets like property, vehicles and equipment
  • Help cover legal defense costs which can exceed primary policy limits
  • One policy that covers multiple types of liability for a single premium
  • Coverage for claims not covered by primary policies like personal injury, libel and slander
  • Higher liability limits than primary policies to better protect against large loss exposures
  • Coverage for vicarious liability if an employee causes injury or damage
  • Coverage for pollution related incidents and clean up costs
  • Availability of higher liability limits to match the needs of large businesses
Use Cases
  • To provide additional liability coverage above the limits of the primary general liability and auto liability policies in case of accidents or lawsuits that would exceed the primary coverage amounts
  • To protect business assets like equipment, inventory, and properties from costly lawsuits resulting from on-site incidents or injuries caused to others
  • To provide protection from pollution liability claims and clean up costs in case hazardous materials are accidentally released in plant accidents
  • To protect the business from risks of contractual liability when agreeing to liability clauses in contracts with customers or suppliers that require high liability limits

Based on industry analysis, the average commercial umbrella insurance pricing for metal can manufacturing businesses with NAICS code 332431 is around $2.50 per $100 of coverage. This price is estimated based on typical exposure factors for the industry such as type of operations, loss history data, geographic location, and underwriting considerations.

Estimated Pricing: $2.50/$100

Business Interruption Insurance

Business interruption insurance provides crucial coverage for metal can manufacturing companies that face threats to operations from equipment issues, supplier problems or natural disasters. It helps protect profits and cash flow if the business must shutdown temporarily. Additionally, it reimburses operational expenses and extra costs during interruptions to help maintain business stability and resume normal operations. Common causes of business interruptions and use cases where the coverage applies are also outlined. Estimated pricing is provided to give companies in this industry an idea of potential costs.

Category List
Benefits
  • Provides coverage for loss of income if the business operations are interrupted
  • Reimburses operational expenses like rent, utilities, payroll if business is forced to close temporarily
  • Covers losses from disasters like fire, floods, storms that damage property and disrupt operations
  • Protects cash flow and helps maintain business stability during interruptions
  • reimburses extra expenses to continue operations during covered interruptions
  • Provides financial support to restart operations after covered interruptions
  • Helps maintain employee jobs and pay during covered shutdown periods
  • Covers supply chain disruptions that impact raw materials and delays production
  • Pays for extra costs of hiring temp workers or overtime to reduce production delays
  • Insures against regulatory actions that may require plant shutdowns on short notice
  • Protects companies from liability claims if interruptions cause customers to incur losses
Use Cases
  • Fire or water damage that causes a temporary shutdown of operations
  • Machinery or equipment breakdown that prevents manufacturing
  • Loss of key suppliers that impact inventory and production
  • Natural disasters like hurricanes, floods or earthquakes
  • Utility outages or disruptions in services like power and water
  • Pandemic outbreaks or other health crises that disrupt the supply chain or customer demand

Based on the typical hazards and business interruption risks for metal can manufacturing businesses with NAICS code 332431, the estimated average annual pricing for business interruption insurance would be around $15,000 – $25,000. This pricing range was derived based on factors such as average revenue for businesses in this industry, property values, location risks, machinery values and replacement costs. The pricing also takes into account a 60-90 day period for business interruption coverage.

Estimated Pricing: $15,000 – $25,000

Equipment Breakdown Insurance

Equipment breakdown is a key risk for metal can manufacturing businesses which rely heavily on complex machinery, equipment, and electrical systems for production. Protecting this equipment from unexpected repair and replacement costs through insurance is important for minimizing downtime and maintaining profitability. Breakdowns of manufacturing machinery like presses, furnaces and conveyors as well as electrical systems are common risks faced by these industries that equipment breakdown insurance provides coverage for. It can also cover additional expenses from hiring temporary equipment or loss of business income during repairs.

Category List
Benefits
  • Covers the costs of repairs or replacements for equipment like machinery, boilers and electrical equipment if they break down
  • Pays for additional expenses like hiring temporary equipment, loss of business income during repairs
  • Covers the inspection, diagnostic testing and consultation fees for equipment
  • Covers equipment damaged by mechanical and electrical failures, as well as certain other perils like vehicles impact, explosions and earthquake
  • Includes coverage for perishable goods spoiled due to a mechanical breakdown of the refrigeration equipment
  • Covers food contamination caused by equipment breakdown
Use Cases
  • Breakdown or failure of manufacturing machinery like presses, stampers, welders, seamers, etc.
  • Breakdown or failure of specialized equipment like furnaces, annealing ovens, cooling tunnels, etc.
  • Breakdown or failure of material handling equipment like conveyors, cranes, forklifts, etc.
  • Breakdown or failure of electrical systems like generators, switchgear, transformers, etc.

Based on industry data, the estimated average annual price for equipment breakdown insurance for metal can manufacturing businesses with NAICS code 332431 is $3.50 per $100 of insured value. This price was derived considering the types of equipment used in the manufacturing process such as processing machinery, production lines, and other metalworking equipment which tend to be more specialized and therefore have a higher risk of breakdown. The price also factors in the needs for continuous manufacturing operations and minimization of downtime.

Estimated Pricing: $3.50 per $100 of insured value

Commercial Cyber Liability Insurance

“Commercial cyber liability insurance is an important product for businesses in the metal can manufacturing industry to protect against the risks of data breaches, cyber attacks, and system disruptions. It provides financial protection and assistance in response to privacy injury claims, fines, network outages, and other cyber incidents.”

Category List
Benefits
  • Protection against cyber threats like data breaches, malware attacks, cyber extortion, and digital asset protection
  • Liability coverage for data privacy injury like unauthorized access or disclosure of confidential information
  • Coverage for fines and penalties assessed by regulatory agencies due to breach of privacy laws
  • Covers forensic investigation costs, legal defense fees, notification costs for affected individuals, credit monitoring if a data breach occurs
  • Funding for PR and crisis management expenses to mitigate reputational damage from a data breach
  • Reimbursement of stolen funds from ransomware or business email compromise until the policy limits
  • Coverage of legal fees and settlements for claims by customers, suppliers or partners due to privacy violations
  • Insurance helps retain customers and restore brand reputation
Use Cases
  • Data breach or cyber attack resulting in disclosure of private customer information
  • Ransomware attack encrypting critical systems and demanding ransom for decryption
  • Failure of security systems leading to a data breach
  • Third party vendor or supplier error exposes customer data
  • Regulatory fines and investigation costs from a data breach
  • Lost business income and extra expenses from an IT outage or network security incident
  • Breach of privacy regulations such as state data breach laws or GDPR for European customer data

Based on typical pricing models, the average price for commercial cyber liability insurance for businesses in the metal can manufacturing industry with NAICS code 332431 would be around $5,000 annually. Pricing is usually determined based on factors like annual revenue, number of employees, IT security practices and history of data breaches or cyber incidents. Given that the average annual revenue for businesses in this industry is around $30 million with 100 employees, and assuming average IT security standards, the estimated annual price would be $5,000.

Estimated Pricing: $5,000

Conclusion

Properly insuring your metal can manufacturing business can provide peace of mind knowing that insured losses, injuries and legal claims will be covered. Working with an experienced insurance agent is recommended to understand your specific risks and identify the right insurance solutions tailored for your needs in this industry.

Frequently Asked Questions

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