Adhesives Manufacturers Insurance Policy Information
Adhesives Manufacturers Insurance. An adhesive is, technically, any substance that can bind two surfaces together semi-permanently so that they are resistant to being separated - and professionally, adhesives can be referred to as cement, mucilage, and paste. The most common term is, of course, "glue".
Adhesives manufacturers produce caulks, epoxies, fillers, glues, pastes, rubber cements, sealants, and tapes. Adhesives can be produced to meet temporary or permanent adhesion needs. Some adhesives are non-toxic and used by children in crafts. Some are reactive and used for structural tasks like attaching wings to airplanes. Others are pressure-sensitive and used for medical dressings or safety warnings.
While some manufacturers' processes simply involve mixing and blending, other processes are more involved, such as refining raw materials into the basic compounds required. Materials may come from animals (horsehide or tallow), minerals (metals or salts), plants (alcohol, latex, resins, or waxes), or petrochemicals (oils or solvents).
Processes may include aerating, drying, filtering, heating or cooling, mixing, pressurizing, rolling, pulverizing, or washing.
Glue is still often manufactured from natural materials, which generally result in a weaker bond that is less resistant to moisture than modern synthetic solutions. In this case, both animal and plant sources can be used as raw materials, commonly bones and hooves, cellulose, and the long-chain carbohydrates derived from numerous different plants. These adhesives are ideal for application in cardboard and paper products.
Synthetic adhesives are, on the other hand, manufactured using components such as poly(vinyl acetate), epoxy, phenol-formaldehyde, and polyurethane. They tend to be far more durable, much stronger, tolerate larger temperature fluctuations, and can be applied for almost any purpose, including in electric and auto industries.
More ecologically-sustainable alternatives that do not emit toxic fumes are now entering the market, but it is safe to say that the production of adhesives is not only important - given the limitless and highly-needed applications - but also a sensitive and potentially hazardous process.
Any company that manufactures adhesives is, by nature, exposed to a range of serious risk. To protect a manufacturing facility alone, such companies require a comprehensive adhesives manufacturers insurance plan designed for their unique requirements.
Adhesives manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked adhesives manufacturing insurance questions:
- How Much Does Adhesives Manufacturers Insurance Cost?
- Why Do Adhesives Manufacturers Need Insurance?
- What Type Of Insurance Do Adhesives Manufacturers Need?
How Much Does Adhesives Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small adhesives manufacturing businesses ranges from $57 to $89 per month based on location, size, revenue, claims history and more.
Why Do Adhesives Manufacturers Need Insurance?
All businesses, regardless of their field, are subject to certain risks that could result in potentially fatal financial losses if they were not insured properly. Facilities can be damaged, or even destroyed, in acts of nature such as hurricanes and earthquakes. Employees can suffer work-related accidents and injuries, and that also holds true for third parties attending your premises, who may hold the company liable.
Any company may suffer loss due to theft, vandalism, or accidental damage. These unforeseen circumstances, which cannot be planned for but can be insured against, could threaten any company.
The manufacture of adhesives, however, also brings its own unique risks. Most adhesives are flammable, leaving you with an above-average risk of fire, for instance. Manufacture in general is also the field most vulnerable to workplace injuries, and employees face the risk of occupational illness should they inhale adhesives during the manufacturing process.
It is even possible that a consumer of an adhesive you produce could file a lawsuit should they become injured as a result of its use.
Adequate insurance can safeguard your company from a broad variety of risks, including these, and this is why it is essential to make sure that a adhesive manufacturing companies have the right adhesives manufacturers insurance coverage.
What Type Of Insurance Do Adhesives Manufacturers Need?
As a manufacturer of adhesives, you will be required to carry multiple different types of insurance. The exact coverage that best meets your needs will be determined by the types of substances you use in your manufacturing process, the size and number of your manufacturing facilities, your location, and how many employees you have, among other factors.
Having said that, some kinds of adhesives manufacturers insurance every manufacturer in this industry will require include:
- Commercial Property: This type of insurance exists to cover you in case your facility, and the assets inside it, are damaged or destroyed as a result of circumstances beyond your control. Several sub-categories exist, but in general, commercial property insurance protects against financial loss in case of natural disasters (floods are not always covered), theft, vandalism, and equipment breakdown, which would include repair or replacement and lost revenue.
- General Liability: No business can run without commercial liability insurance, and the adhesives industry is no exception. This type of coverage exists to protect you in case third parties become injured on your premises or their property is damaged as a result of your activities.
- Product Liability: Another kind of liability insurance, product liability insurance has you covered in case something goes wrong with one of your adhesive products. Products could become contaminated with foreign substances, rendering them either ineffective or dangerous, or they may be mislabeled. Product tampering and poor marketing decisions can also lead to revenue losses. Should this happen, product liability insurance is on your side.
- Workers Compensation: The possibility that an employee sustains work-related injuries or develops chronic health conditions after long-term occupational exposure is a real risk within the adhesives industry. Workers comp will cover their medical expenses and lost income, and protect the company against lawsuits.
In this industry, you will certainly need to carry these kinds of adhesives manufacturers insurance, however, your needs may not be limited to them. In working with a competent commercial insurance agent, you will be able to rest assured knowing that you are protected against every eventuality.
Adhesives Manufacturing's Risks & Exposures
Premises liability exposure is high because of the potential for contamination and the need for evacuation that may occur if there is a chemical release. Chemicals may be reactive (flammable, corrosive or explosive) or toxic - or both.
Fumes, spills or leaks may cause serious injuries, fire or other property damage. The fire department must be aware of the chemicals in use so that they can have appropriate gear on hand to control any fire or vapor release. If the manufacturer conducts tours, visitors may be injured by slips, trips, or falls.
Products liability exposures are dependent on the chemicals used in production and end use of the product, ranging from glues used on the back of a postage stamp to industrial adhesives for construction material and laminates to sealants for high-pressure piping in a boiler.
Bodily injuries or property damage may occur due to poor quality control, improper storage, transport, inappropriate packaging and labeling, guarantees or warranties.
Environmental impairment exposure is very high as sudden or cumulative discharges may contaminate air, surface or ground water, or soil. Processes may cause thermal or noise pollution. Disposal of wastes must adhere to all federal and state guidelines. Exposure is increased significantly if underground or outdoor tanks are used.
Workers compensation exposures may be high. Chemicals may be toxic or caustic, with a high potential for injury to eyes, lungs, or skin. Injuries from production machinery are common, as are burns from chemicals, slips, trips, falls, foreign objects in the eye, hearing impairment from noise, back injuries from lifting and other material handling, and repetitive motion injuries.
Workstations should be ergonomically designed. Employees must be fully informed as to the potential effects of any chemicals, including long-term occupational disease hazards so that they can take action as quickly as possible. Eyes must be protected and eye wash areas should be close to all vats.
Property exposure consists of an office, plant, and warehouse or yard for storage of raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, and buildup of static electricity and sparks, any of which could trigger a destructive chain reaction.
While some raw materials are water-based, others are reactive (flammable, corrosive or explosive). These materials require special handling if used to create new products due to the potential for a reaction and creation of energy in the form of heat.
Some chemicals may be spoiled by temperature change, humidity, dust or other Hazards increase without fire suppression devices or other controls designed for the particular chemical processes.
Equipment breakdown exposures include malfunctioning production equipment, ventilation electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in a severe loss, both direct and under time element.
Crime exposures are chiefly from employee theft. Background checks should be conducted on all employees. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements. The manufacturer should have security methods in place to prevent theft.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information. The main causes of loss are fire, theft, and loss by spill or contamination, especially during a collision.
Business auto exposure is very high if the manufacturer transports using its own tanker trucks due to the potential for overturn and spillage. Drivers should be trained in spill containment, have an appropriate license with a Hazardous Materials endorsement, and an acceptable MVR.
All vehicles, especially tankers, must be well maintained with documentation kept in a central location. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2891 Adhesives And Sealants
- NAICS CODE: 25520 Adhesive Manufacturing
- Suggested ISO General Liability Code(s): 50045, 50047
- Suggested Workers Compensation Code(s): 4653
Description for 2891: Adhesives And Sealants
Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 289: Miscellaneous Chemical Products
2891 Adhesives And Sealants: Establishments primarily engaged in manufacturing industrial and household adhesives, glues, caulking compounds, sealants, and linoleum, tile, and rubber cements from vegetable, animal, or synthetic plastics materials, purchased or produced in the same establishment. Establishments primarily engaged in manufacturing gelatin and sizes are classified in Industry 2899, and those manufacturing vegetable gelatin or agar-agar are classified in Industry 2833.
- Adhesives, plastics
- Caulking compounds
- Cement (cellulose nitrate base)
- Cement, linoleum
- Cement, mending
- Epoxy adhesives
- Glue, except dental: animal, vegetable, fish, casein, and synthetic resin
- Iron cement, household
- Joint compounds
- Laminating compounds
- Paste, adhesive
- Porcelain cement, household
- Rubber cement
- Sealing compounds for pipe threads and joints
- Sealing compounds, synthetic rubber and plastics
- Wax, sealing
Adhesives Manufacturers Insurance - The Bottom Line
All adhesives manufacturers insurance polices are not the designed in the same manner. There are different policies, exclusions and coverages available. To see if your company has the right insurance program, speak with an experienced commercial insurance broker.
Often they are able to save you on premiums and offer you better policy options than you currently have.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- Audio & Video Equipment
- Auto Parts
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fur Garment
- Garage Door
- Gypsum Products
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.
Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.
The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.
Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.
In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.
What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.
Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.
Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.
The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.