Top Insurance Needs for Fabric Coating Mills with NAICS Code 313320

UncategorizedReading Time: 8 minutes

Learn about the key insurances fabric coating mills need to protect their business such as commercial general liability, property, workers' compensation, product liability and more.

Key Takeaways

  • Commercial general liability insurance protects against third party claims and lawsuits
  • Property insurance covers costs to repair or replace buildings and equipment after disasters
  • Workers’ compensation covers medical costs and lost wages for employees injured on the job
  • Product liability insurance protects against lawsuits if customers are injured by defective products
  • Commercial auto insurance covers vehicles used for business purposes
  • Business interruption insurance covers lost income during operations disruptions
  • Equipment breakdown insurance protects against equipment failures

Introduction

As a fabric coating mill operating under NAICS code 313320, there are several essential business insurance policies needed to protect the operation. Key policies include commercial general liability, property, workers’ compensation, product liability, commercial auto and business interruption insurance. These coverages protect the business from a variety of risks inherent to operating a fabric coating facility. Fabric coating mills also rely heavily on specialized industrial machinery for processes like coating and treating fabrics.

Commercial General Liability Insurance

Fabric coating mills face a variety of liability risks related to their manufacturing operations. Commercial general liability insurance provides essential protection against lawsuits and financial losses from accidents, product defects, pollution events, and other common risks to the industry such as injury to visitors or employees, product liability claims, failure to meet contractual obligations, and pollution from chemical accidents. It covers claims for bodily injury, property damage, errors and omissions as well as legal defense costs. Estimated commercial general liability insurance premiums for fabric coating mills range from $5,000 to $7,500 annually based on factors like payroll, employee count, loss history and moderate risk level associated with their processes involving chemicals and dyes.

Category List
Benefits
  • Protects against claims of bodily injury or property damage from customers or third parties
  • Covers legal costs if sued for negligence, errors or omissions
  • Provides coverage for on-site accidents and injuries to employees or visitors
  • Protects company assets from large settlement costs or loss of business
  • Covers liability claims related to the distribution or sale of products
  • Insures the business for recalls related to defects in coated fabrics
  • Protects against claims of loss of use of property or loss of income due to covered events
Use Cases
  • Bodily injury and property damage claims from accidents on business premises
  • Product liability claims from defective or dangerous products
  • Errors and omissions claims from failure to meet contractual obligations
  • Legal defense costs for liability claims even if claims are without merit
  • Pollution liability claims from accidental chemical releases during manufacturing

Based on average data, businesses in the Fabric Coating Mills industry (NAICS 313320) have an estimated annual Commercial General Liability insurance premium of $5,000-$7,500. This pricing is derived from consideration of factors like payroll, number of employees, past losses and claims experience. The average risk level for this industry is moderate given its manufacturing processes involve chemicals and dyes.

Estimated Pricing: $5,000-$7,500

Property Insurance

Property insurance offers an essential layer of protection for fabric coating mills to safeguard their physical assets, operations, and financial health. It covers rebuilding and replacement costs in the event of unexpected disasters to help ensure business continuity. Additional benefits of property insurance according to the REFERENCES include protecting liability claims if the insured property damages a third party’s property or causes bodily harm, as well as covering extra expenses like temporary relocation if the facility needs to close for repairs.

Category List
Benefits
  • Covers costs of repairs or rebuilding from fire, water damage, storms or other disasters
  • Covers liability claims if your property damages a third party’s property or causes bodily harm
  • Provides funds to restart operations if property is destroyed and machinery needs replacing
  • Protects financial investment in buildings, equipment and inventory
  • Covers theft or damage of business property and equipment
  • Covers loss of earnings if the property is unusable during repairs after a covered incident
  • Insures equipment off-premises during transit or service/repairs
  • Covers extra expenses like temporary relocation if the facility needs to close for repairs
Use Cases
  • Protection from fire damage
  • Coverage for theft or vandalism losses
  • Replacement costs for building and equipment if destroyed
  • Business interruption insurance if operations are disrupted

Based on industry analysis, the average property insurance pricing for fabric coating mills is approximately $3.50 per $100 of insured value. This pricing takes into account factors like the materials being used, safety procedures, location, claims history, and security measures. Using a sample insured property value of $5 million, the annual property insurance premium would be around $175,000.

Estimated Pricing: $3.50/$100

Workers Compensation Insurance

Workers compensation insurance provides essential protection for businesses in high-risk industries like fabric coating mills. It ensures employees will still receive medical care and lost wages if injured on the job, while also protecting the business from costly lawsuits and legal fees.

Category List
Benefits
  • Covers medical expenses if an employee is injured on the job
  • Covers lost wages if an employee cannot work due to a job-related injury or illness
  • Protects the business from lawsuits if an employee is hurt and tries to sue
  • Required by law in all states for businesses with 1 or more employees
  • Ensures injured employees receive prompt medical treatment for their injuries
  • Can reduce turnover by ensuring employees are still paid if injured
  • Provides reassurance to employees that they will be financially supported if injured
Use Cases
  • To cover costs of medical treatment and lost wages if an employee gets injured on the job
  • To protect the business from liability lawsuits if an employee is injured and decides to take legal action
  • To satisfy state laws that require businesses to carry workers compensation insurance
  • To reduce the risks and costs associated with workplace injuries common in this industry like burns, falls and lacerations that involve hazardous machinery, toxins and chemicals

Based on industry risk factors and average claim histories, the estimated average workers’ compensation insurance pricing for businesses in the Fabric Coating Mills industry with NAICS code 313320 is around $3.50 per $100 of payroll. This rate was derived using information from the National Council on Compensation Insurance (NCCI) and taking into account factors like the industry’s above average risk of accident and injury due to machinery, chemicals, and other hazards commonly involved in the coating and treating of fabrics.

Estimated Pricing: $3.50/$100 of payroll

Product Liability Insurance

Product liability insurance is an essential risk management tool for fabric coating mills. It protects businesses in the industry from costly lawsuits and financial losses if customers are injured by defects in the coated fabrics they produce. As a fabric coating mill, there is always a risk that defects in the materials you produce could potentially cause injuries to customers. Having product liability insurance shields your business from significant costs if a customer is harmed and decides to take legal action against your company. It also ensures you meet the insurance needs of large retail customers and protects cash flow by covering defense costs as they are incurred rather than waiting for a lawsuit to conclude.

Category List
Benefits
  • Protects your assets from lawsuits if a customer is injured by one of your products
  • Covers legal fees and other costs associated with defending against lawsuits
  • Limits your financial risk if you are found liable in a lawsuit
  • Helps protect your business reputation by showing customers you take responsibility for product safety
  • Provides peace of mind knowing you have financial protection in place if an injury occurs
  • Complies with requirements from retailers and other customers who mandate liability insurance for vendors
  • Allows your business to continue operating smoothly even during a lawsuit by covering defense costs upfront
Use Cases
  • Protects against bodily injury or property damage claims from defective products
  • Covers legal fees and lawsuit settlements if a customer sues for injuries from using coated fabrics
  • Pays for product recalls if issues are discovered with coated fabrics after distribution
  • Compensates for loss of income if coated fabrics need to be pulled from shelves during an investigation

Based on industry data, the estimated average annual pricing for product liability insurance for businesses in the fabric coating mills industry is around $12 per $1000 of gross receipts. This pricing is derived considering factors like the industry’s average claims history, risks of hazards and injuries, as well as compliance with manufacturing standards and regulations.

Estimated Pricing: $12 per $1000 of gross receipts

Commercial Auto Insurance

Commercial auto insurance provides essential liability and physical damage protection for businesses that utilize vehicles for their operations. It covers legal costs and vehicle repairs from accidents occurring while vehicles are used for commercial purposes.

Coverage for company-owned vehicles, employee’s personal vehicles used for work, and hired/non-owned vehicles helps protect the business from financial losses due to vehicle accidents. Commercial auto insurance is particularly important for fabric coating mills due to transporting raw materials and finished goods via truck.

Category List
Benefits
  • Liability protection in the event of an accident
  • Physical damage coverage for company vehicles
  • Medical payments coverage for those injured in an insured vehicle
  • Collision coverage to repair or replace a vehicle if damaged in an accident
  • Comprehensive coverage for other losses like fire, theft or damage from falling objects
  • Coverage for hired and non-owned vehicles
  • Emergency roadside assistance
  • Coverage for hauling or towing loads
Use Cases
  • Covering company-owned vehicles like trucks used to transport raw materials and finished goods between facilities
  • Providing coverage for employee’s personal vehicles if they are used for business purposes
  • Insuring hired and non-owned vehicles in case an employee uses their personal car for work

Based on industry data, the average commercial auto insurance pricing for businesses in the fabric coating mills industry (NAICS 313320) is around $1,250 per vehicle per year. This pricing was derived based on the risk factors associated with this industry such as vehicle usage on/off premises, cargo/goods transported, mileage, losses history, etc. Vehicles used for shipping/transportation purposes tend to be on the higher end while personal use vehicles for employees are on the lower end.

Estimated Pricing: $1,250

Business Interruption Insurance

Business interruption insurance provides vital coverage to help fabric coating mills recover financially from disasters and disruptions that impact operations. It replaces lost profits to keep the business running during rebuilding and recovery.

Business interruption insurance is especially important for fabric coating mills due to their specialized equipment and long supply chains, making them vulnerable to disruptions. It covers costs to pay employees and bills during the claims process so the business stays solvent.

Category List
Benefits
  • Covers lost income if the business has to close due to fire, storms, or other unforeseen events
  • Replaces lost profits if equipment failure disrupts operations
  • Provides funds to pay employees and cover ongoing expenses during recovery from covered losses
  • Covers loss of income from destroyed inventory or damaged facilities during recovery or rebuilding
  • Protects cash flow so the business can continue operating during the claim process
  • Allows the business to focus on recovery instead of finances in the aftermath of a disaster
Use Cases
  • Inability to produce products due to equipment/machine breakdown or failure
  • Loss of raw materials/supplies due to supplier issues
  • Fire or natural disaster damage to buildings and facilities
  • Loss of power/utilities to run operations
  • Outbreaks or disruptions that impact the ability to operate e.g. pandemic
  • Disruptions from strikes, protests or civil disturbances
  • Property damage or loss from floods, hurricanes, earthquakes etc.
  • Contamination or pollution incidents affecting business operations

Based on typical fabric coating mills having an average monthly revenue of $2-4 million, with coverage terms of 12 months indemnity period and 2-3 months’ claims preparation time, the estimated pricing would be approximately 0.5-1% of the total insured amount per year. This pricing was derived from commonly used industry loss ratios and profit factors for this type of manufacturing industry.

Estimated Pricing: $10,000 – $40,000 per year

Equipment Breakdown Insurance

Equipment breakdown insurance provides essential protection for fabric coating mills against unexpected equipment failures and mechanical breakdowns. It covers repair/replacement costs, business interruptions, and additional expenses that may result from specialized equipment repairs. This type of coverage helps protect the financial stability of fabric coating mills that rely on machinery for production. The average pricing for this insurance for fabric coating mills is around $1.50 per $100 of insured equipment values, which typically range from $5-10 million for these businesses. Fabric coating mills in NAICS code 313320 depend heavily on industrial machinery for specialized coating processes, so any breakdown can lead to costly repairs or downtime.

Category List
Benefits
  • Covers the costs of repairs or replacement of equipment after mechanical or electrical failures, accidents, or power outages
  • Protects against financial loss from property damage and business interruption resulting from equipment failures
  • Covers additional expenses such as hiring temporary equipment, extra utility usage from running backup generators, expediting expenses to get equipment repaired quickly
  • Covers costs of inspecting and testing equipment to diagnose problems as well as the fees of engineers and consultants hired for repairs
  • Provides access to experts who can help determine the cause of equipment damage and get operations back up and running quickly
  • Covers costs of inspecting and testing equipment to diagnose problems as well as the fees of engineers and consultants hired for repairs
Use Cases
  • Protection against equipment breakdowns and mechanical failures like boiler explosions, electrical damage to machinery, or broken pipes.
  • Coverage for losses from equipment failures or accidents like loss of income/business interruption.
  • Repair or replacement costs for damaged equipment from covered accidents.
  • Coverage for increased material and labor costs that may result from specialized repairs or replacements for industrial coating equipment.

Based on industry data, the average equipment breakdown insurance pricing for businesses in the fabric coating mills industry (NAICS 313320) is around $1.50 per $100 of insurable values. This pricing is derived considering factors such as the type of equipment used, replacement values, business operations, claims history, risk management practices, and more. Typical insurable values for fabric coating mills range between $5-10 million.

Estimated Pricing: $1.50/$100

Conclusion

Having the right insurance in place gives fabric coating mills peace of mind that they can focus on their operations without worrying about financial ruin from unexpected losses. It also demonstrates the business’s commitment to safety and risk management for employees, customers and the greater community. Equipment breakdown insurance in particular helps protect fabric coating mills given their reliance on machinery, as any failures or downtime of this equipment can disrupt production and lead to costly repairs.

Frequently Asked Questions

Share via
Facebook
X (Twitter)
LinkedIn
Mix
Email
Print
Copy Link
Copy link
CopyCopied