How much does business insurance cost for manufacturers?

Manufacturers pay a median premium of less than $45 per month, or $530 per year, for general liability insurance. This policy provides protection for third-party bodily injuries and property damage, along with advertising injuries.

Insureon’s licensed agents typically recommend a business owner’s policy over a standalone general liability policy. A BOP combines general liability insurance with commercial property insurance to protect your lumber mill, metal fabrication shop, or other manufacturing facility. It often costs less than purchasing each policy separately.

Among manufacturing businesses that purchase general liability with Insureon, 35% pay less than $500 per year and 48% pay between $500 and $1,000 per year. The cost increases with your industry risk.

Policy limits determine how much your insurer will pay on covered claims. A per-occurrence limit is the maximum your insurer will pay for a single incident, while an aggregate limit is the maximum your insurer will pay on any claims during your policy period, typically one year. Higher limits cost more – and provide better coverage.

Most manufacturers (91%) choose general liability policies with a $1 million per-occurrence limit and a $2 million aggregate limit. As your small business grows, you may need to expand your policy limits.

Businesses with large premises, such as metal fabrication shops, typically pay more for general liability insurance than a small manufacturer, such as an apparel shop with only a handful of workers. Your industry risk, building maintenance, years in operation, and your location will also affect your premium.

The annual median cost for a metal manufacturer is $661, while the median for a clothing manufacturer is $444 – or $37 a month. As you can see, the cost can vary across industries.

Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's general liability insurance cost analysis page.

To meet your state’s requirements and avoid penalties, manufacturing businesses with employees typically must purchase workers’ compensation insurance. This policy helps cover medical bills and partial lost wages when an employee suffers a work-related injury or illness. With a median premium of $150 per month, or $1,800 per year for manufacturers, policy cost is determined by your number of employees and occupational risk, among other factors.

Among manufacturing businesses that purchase workers’ compensation insurance with Insureon, 44% pay less than $1,000 per year and 20% pay between $1,000 and $3,000 per year. The cost increases with the number of employees at a manufacturing plant.

Learn how workers' comp premiums are calculated and more on Insureon's workers' compensation insurance cost analysis page.

Manufacturing businesses pay a median premium of about $90 per month, or $1,090 per year, for a business owner’s policy. This policy combines general liability insurance with commercial property insurance, typically at a lower rate than if the policies were purchased separately.

A BOP protects against third-party injuries and property damage, along with damage to your own business property. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s licensed agents.

Among manufacturing businesses that purchase a business owner’s policy with Insureon, 26% pay less than $800 per year and 43% pay between $800 and $1,600 per year. The value of your manufacturing equipment and other business property determines the cost.

Most manufacturers choose a business owner’s policy with a $1 million per-occurrence limit and a $2 million aggregate limit.

Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's business owner's policy cost analysis page.

Manufacturers pay a median premium of about $75 per month, or $910 per year, for umbrella insurance. This policy provides extra liability coverage for the most expensive lawsuits. Once an underlying policy’s limit is reached, umbrella insurance boosts coverage on your company’s general liability or employer’s liability insurance.

Learn how to save money on your policy, which coverage limits to choose, and more on Insureon's umbrella insurance cost analysis page.