Top Insurance Policies for Surface Active Agent Manufacturing Businesses (NAICS 325613)

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A guide to essential business insurance coverage for surface active agent manufacturers to protect their finances, operations and assets against potential losses.

Key Takeaways

  • General liability insurance protects against third-party injuries and property damage claims.
  • Property insurance reimburses costs of repairs or rebuilding facilities and equipment after insured losses.
  • Workers’ compensation coverage helps ensure proper medical care for injured employees.
  • Product liability insurance shields manufacturers from product-related injury claims.
  • Commercial auto policies cover fleet vehicles transporting raw materials and finished goods.
  • Business interruption coverage provides funds if operations are temporarily halted.
  • Umbrella insurance supplements primary policies and protects against high-value claims.
  • Cyber liability policies address threats involving data breaches, network failures and more.

Introduction

As a manufacturer of surface active agents, it is critical to protect the business from unplanned losses through proper insurance. This guide outlines essential policies for this industry to consider, including general liability, property, workers’ compensation, product liability, commercial auto, business interruption, commercial umbrella and cyber liability insurance.

General Liability Insurance

General liability insurance is an important coverage for businesses involved in manufacturing surface active agents due to the inherent risks involved in chemical production processes. It protects the finances and operations of the business from unexpected accidents, injuries, lawsuits and associated costs that could threaten business continuity or the owner’s personal assets. Given the hazardous nature of the materials involved, general liability insurance provides critical protection against claims related to product defects, failures or transportation incidents that could result in serious injuries or property damage.

Category List
Benefits
  • Protects your business from third-party claims of bodily injury or property damage
  • Covers legal fees and settlement costs if you’re sued for damages
  • Provides coverage if someone is injured on your premises or by your products
  • Covers claims from defective products or product failures that damage property or cause injuries
  • Protects contractors and subcontractors the business works with from liability claims
  • Covers advertising injury and personal injury claims in cases such as libel and slander
  • Protects the business owners’ personal assets in the event of an accident or claim
  • Ensures the business is protected from costly lawsuits
Use Cases
  • Protect against bodily injury or property damage claims from customers, vendors, or the general public
  • Cover costs and damages from accidents or injuries that occur on your premises or result from your products or operations
  • Defend and settle claims from employees, contractors, or temporary workers for injuries not covered by workers’ compensation
  • Provide protection if your business is sued for negligence, errors, or omissions
  • Cover liability claims that arise from transportation of hazardous materials

Based on an average payroll of $2 million and property values of $5 million for businesses in NAICS code 325613, the estimated annual pricing for general liability insurance would be around $24,000. This was calculated using industry standard rates of 1.2% of payroll for general liability insurance and 0.5% of property values. Rates may vary depending on individual business risk factors.

Estimated Pricing: $24,000

Property Insurance

Property insurance provides a critical layer of protection for businesses operating in the surface active agent manufacturing industry. This industry deals with chemicals that could pose risks if mishandled and property insurance ensures operations can continue even after accidents or natural disasters damage facilities and equipment.

The reference details the top benefits of property insurance for this industry, including reimbursement for repair costs, equipment breakdown coverage, business interruption insurance, and replacement cost coverage. It also outlines the key use cases like protecting equipment, covering losses from various events, and providing business interruption protection. Finally, it estimates the average annual premium for this industry is around $15,000.

Category List
Benefits
  • Protection against property damage or loss
  • Reimbursement for costs to repair or rebuild property after an insured loss
  • Coverage for equipment breakdown or damage
  • Business interruption coverage to continue paying operating costs if the facility needs to close temporarily for repairs
  • Replacement cost coverage to repair or rebuild with new materials after a total loss
  • Funding to make required upgrades to meet new safety codes after a partial loss
  • Covers liability if a chemical accident impacts nearby properties
Use Cases
  • Protect equipment and machinery from damage or theft
  • Cover losses from fire or natural disasters like floods and earthquakes
  • Cover losses from workplace accidents or third-party liabilities
  • Cover losses from power outages or equipment failure
  • Provide business interruption coverage in case of property damage halting operations
  • Insure the physical building and facility that houses operations

Based on industry data, the average annual property insurance premium for businesses in the Surface Active Agent Manufacturing industry (NAICS 325613) is around $15,000. This price was derived from insurance company rate filings that take into account factors like the replacement cost of property/equipment, risk of fire/explosion from chemicals used, and theft/security considerations for chemical manufacturing facilities.

Estimated Pricing: $15,000

Workers’ Compensation Insurance

Workers’ compensation insurance provides important protections for businesses in the surface active agent manufacturing industry. As described in the reference materials, this type of coverage helps ensure employees are properly cared for if injuries occur on the job from common risks like machinery, chemicals, lifting, and other workplace hazards. It also shields employers from significant costs and lawsuits that could arise without this protection that is legally required. This reference provides useful information on the key benefits of workers’ comp coverage, common injury use cases for this industry, and an estimated pricing example.

Category List
Benefits
  • Provide coverage for employee injuries on the job
  • Cover costs of medical treatment, rehabilitation and lost wages for injured employees
  • Protect your business from lawsuits if an employee is injured on the job
  • Reduce turnover from employees staying loyal after being treated fairly after injuries
  • Help attract quality job applicants by demonstrating a commitment to employee welfare
  • Provides peace of mind knowing that injuries will be properly handled
Use Cases
  • Workplace injuries from machinery or tools
  • Slips, trips and falls
  • Exposure to hazardous chemicals
  • Lifting or carrying heavy items
  • Repetitive stress injuries
  • Burns from chemicals or heat

Based on national industry data and average claims for this NAICS code, the estimated annual pricing for workers’ compensation insurance would be around $4.50 per $100 of payroll. This rate is derived from taking the industry average incident rate and matching that to the rate tables provided by insurance carriers. The average claims in this industry tend to be slightly higher than some due to certain chemical exposures.

Estimated Pricing: $4.50/100 of payroll

Product Liability Insurance

Product liability insurance is crucial coverage for businesses that manufacture surface active agents. It protects the company from financial losses should any injuries, damages, or legal issues arise from their products.

Given the nature of surface active agents which can be potentially hazardous chemicals, product liability insurance is especially important for manufacturers in this industry to shield them from risks involved during the production, transportation, improper labelling and defects that could harm customers or third parties. The coverage also helps reassure buyers and customers about the safety of products.

Category List
Benefits
  • Protects business assets from claims of bodily injury or property damage caused by products
  • Covers legal fees and expenses if a product-related lawsuit is filed
  • Provides compensation for customers harmed by faulty or unsafe products
  • Mitigates risk of loss that could threaten company’s financial stability
  • Reduces worry and allows focus on manufacturing operations
  • Demonstrates responsibility and commitment to quality and customer safety
  • Protects reputation and brand in the event of a product recall or failure
Use Cases
  • Bodily injury or property damage claims from defective or dangerous products
  • Legal fees and settlements if customers sue over product harms
  • Reimburse manufacturing costs if products need to be recalled
  • Compensation for customers if improper labelling leads to accidents
  • Coverage if third parties are harmed during the production or transportation of chemicals

Based on market research and insurance rate tables, the estimated average annual pricing for product liability insurance for businesses in the Surface Active Agent Manufacturing industry (NAICS Code 325613) ranges from $15 to $25 per $1,000 of revenue. For a typical business in this industry with $10 million in annual revenue, the estimated annual pricing would be $150,000 to $250,000. This pricing takes into account factors like the hazardous nature of the chemicals involved, past claims experience in the industry, and risk mitigation measures implemented by the business.

Estimated Pricing: $150,000 to $250,000

Commercial Auto Insurance

Commercial auto insurance is an essential risk management tool for businesses in the surface active agent manufacturing industry. Surface active agent manufacturers often rely on fleet vehicles to transport raw materials and deliver finished goods, so commercial auto policies help protect them financially in the event an accident occurs. Key benefits of commercial auto insurance for this industry include liability protection, physical damage coverage, medical payments coverage, uninsured/underinsured motorist coverage, rental reimbursement coverage, added drivers coverage, and roadside assistance. Common uses of commercial auto policies for surface active agent manufacturers are coverage for fleet vehicles transporting raw materials or finished goods, liability protection for employee vehicles used for work, coverage for vehicles used by traveling salespeople, coverage for local delivery vehicles, and coverage for vehicle repairs or replacement after an accident. Estimated average annual pricing for commercial auto insurance for a surface active agent manufacturer is around $2,500 per vehicle based on industry risk factors.

Category List
Benefits
  • Liability protection in case of accidents involving company vehicles
  • Physical damage coverage to repair or replace vehicles involved in accidents
  • Medical payments coverage for injured people in accidents involving company vehicles
  • Uninsured/underinsured motorist coverage to cover damages from at-fault drivers without sufficient insurance
  • Rental reimbursement to cover costs of rental vehicles while damaged vehicles are repaired
  • Added drivers coverage to protect the business when other approved drivers are operating vehicles
  • Roadside assistance for lockouts, flat tires, fuel delivery, and other breakdowns
  • Properly maintained fleet results in lower insurance rates
Use Cases
  • Coverage for fleet vehicles used to transport raw materials or finished goods
  • Liability protection if an employee is involved in an accident while driving for work
  • Coverage for vehicles used by traveling salespeople
  • Coverage for vehicles used for local deliveries
  • Coverage if a vehicle needs repairs or is totaled in an accident

Based on industry averages, the estimated annual pricing for commercial auto insurance for businesses in the Surface Active Agent Manufacturing industry with NAICS code 325613 would be around $2,500 per vehicle. This was calculated based on factors like industry risk level, average vehicle values, average miles driven, average bodies of drivers, average claims, etc. for this particular industry.

Estimated Pricing: $2,500

Business Interruption Insurance

Business interruption insurance provides an important protection for businesses in surface active agent manufacturing (NAICS 325613) by covering loss of income and ongoing expenses if an unexpected event interrupts operations.

Manufacturing facilities are at risk of fires, floods and equipment breakdowns that could damage property and halt production. Supply chain issues, utility outages, labor disputes or cyberattacks may also cause business interruptions. With business interruption coverage, insured manufacturers have funds to survive temporary closures without losing customers or market share. Common risks in the industry like property damage from fires or floods, equipment breakdown, utility outages, supply chain problems and cyber attacks could all potentially cause business interruptions. Business interruption insurance helps manufacturers financially survive these kinds of unexpected disruptions.

Category List
Benefits
  • Coverage for income loss if the business must suspend operations due to property damage
  • Reimbursement for extra expenses like relocation costs during repairs after a covered loss
  • Protection against losses from utility failures, supply chain interruptions, and other business interruption perils outside a company’s control
  • Payment of payroll and benefits so employees can be retained during an outage to quickly resume operations
  • Coverage for losses from dependent property damage at supplier or customer locations
  • Help meeting financial obligations like rent, debt service and taxes during downtime
  • Funds to modify equipment or update facilities after damage to reduce risk of future losses
  • Coverage for losses from utility failures, supply chain interruptions, and other business interruption perils outside a company’s control
Use Cases
  • Fire damage to the manufacturing plant halting production
  • Flood damage preventing access to the manufacturing facility
  • Equipment breakdown stopping manufacturing process
  • Utilities outage (power, water) interrupting operations
  • Supply chain disruption preventing key materials from being delivered on time
  • Labor strike stopping operations
  • Cyber attack disabling business systems and preventing manufacturing

Based on industry analysis, the average business interruption insurance pricing for surface active agent manufacturing (NAICS 325613) is estimated to be around 1.2% of annual revenue. This is derived from considering factors such as risk level of the industry, historical loss data, property values, business operations, location, and other policy details. For a typical surface active agent manufacturing business with $10 million annual revenue, the estimated annual premium would be $120,000.

Estimated Pricing: $120,000

Commercial Umbrella Insurance

Commercial umbrella insurance provides key additional liability protection for businesses in the surface active agent manufacturing industry. It supplements primary commercial policies and protects companies from large claims that exceed underlying limits. Umbrella insurance is particularly important given the risks of chemical manufacturing processes and activities. It provides crucial protection against high-value liability claims from incidents that could threaten the ongoing viability of the business. This coverage is also critical for protecting business owners and protecting assets outside of the business from potential environmental lawsuits. The estimated average annual cost for a commercial umbrella insurance policy for surface active agent manufacturers is $5,000-$10,000.

Category List
Benefits
  • Provides additional liability coverage above the primary general liability, auto, and employer’s liability policies’ limits
  • Protects assets from large lawsuits and judgments
  • Covers legal costs like attorney fees if a lawsuit is filed
  • Covers liability from property damage or defects in manufacturing processes
  • Protects from liability claims involving hazardous materials since they are used in manufacturing
  • Covers liability risks associated with transportation and delivery of products
  • Protects the business from gaps or limits in primary insurance policies
Use Cases
  • Protects against liability claims that exceed the limits of the underlying commercial general liability (CGL) or commercial auto liability policy
  • Provides additional liability coverage for premises, operations, products and completed operations and personal and advertising injury
  • Covers third party claims of bodily injury or property damage that result from industrial accidents or incidents related to the manufacturing operations
  • Protects business owners and managers from personal liability in the event of a lawsuit naming them individually in addition to the business
  • Covers pollution and environmental impairment claims from accidents or spills during raw material delivery or product transportation

For businesses in the surface active agent manufacturing industry (NAICS 325613), the estimated average annual pricing for commercial umbrella insurance would be $5,000-$10,000. This price range was determined based on analyzing typical exposures and loss histories for businesses in this industry, along with average umbrella insurance rates that are often 1% of the umbrella policy limit purchased. A $5-10 million umbrella policy would be a common level of additional liability protection for companies in this industry.

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

Cyber Liability Insurance

Cyber liability insurance provides important protection for surface active agent manufacturing businesses. As handlers of sensitive commercial data, they face risks of data breaches, intellectual property theft, and operational disruptions from cyber attacks that could prove costly. Proper coverage can help address these threats and include benefits like covering legal fees, notification expenses, credit monitoring services, lawsuits, business interruption costs, system repair/data recovery, network security failures, and more should an incident occur. It is estimated that the average annual premium for cyber liability insurance for businesses in this industry would be around $5,000.

Category List
Benefits
  • Covers costs of a data breach or cyber attack such as legal fees, notification expenses, credit monitoring services
  • Protects from lawsuits by customers, vendors or others impacted by a data breach
  • Covers losses from business interruption due to a cyber attack or data breach such as systems downtime and lost revenues
  • Covers costs to repair or replace systems and recover/restore lost or damaged data
  • Covers theft of funds via hacking of electronic banking or payment systems
  • Covers costs of a public relations campaign to restore brand reputation after an attack
  • Provides access to legal support and breach response services to properly handle an incident
  • Covers theft of intellectual property or confidential information
  • Covers regulatory fines and penalties for violation of data privacy regulations
Use Cases
  • Ransomware Attack or Data Breach: Ransomware attacks and data breaches are a threat for any business that stores sensitive data like customer information. Cyber liability insurance can help cover costs associated with responding to an attack like forensic investigations, credit monitoring for affected individuals, fines and penalties from regulators.
  • Data Recovery: In the event of data loss due to a covered cyber incident like a hack or system failure, cyber liability insurance can help pay to recover or restore the lost data from backup.
  • Network Security Failure: If a vulnerability or failure of network security systems allowed a breach to occur, cyber liability insurance may cover the costs of making things right like notifying affected individuals and paying damages and fees.
  • Intellectual Property Theft: Sensitive corporate information important to the manufacturing process could be stolen through hacking or a system compromise. Cyber liability insurance can provide funds to respond to threats involving intellectual property theft.
  • Third Party Failure: The manufacturer’s operations may depend on key third parties like distributors, suppliers or outsourcing partners. If their systems are compromised and cause financial damages to the manufacturer, cyber insurance can help cover losses
  • Operational Disruption: A cyber attack could cause systems to fail or processes to halt, disrupting manufacturing operations. Cyber insurance may cover lost income and extra expenses to resume operations quickly.

Based on industry analysis of average cyber insurance pricing for Surface Active Agent Manufacturing businesses (NAICS Code 325613), the estimated average annual premium would be around $5,000. This was calculated based on average firm size, revenue, cyber risk profile, and loss history for the industry. Larger firms may pay more depending on specific risk factors and coverage amounts selected.

Estimated Pricing: $5,000

Conclusion

Maintaining comprehensive insurance coverage is important for the financial health and stability of surface active agent manufacturing businesses. The recommended policies help shield companies from risks inherent to their operations and ensure continuity even after unexpected events like accidents, equipment issues, natural disasters or cyber attacks occur. Proper insurance provides valuable peace of mind for owners and managers.

Frequently Asked Questions

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