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:
- What Is Adhesives Manufacturers Insurance?
- How Much Does Adhesives Manufacturers Insurance Cost?
- Why Do Adhesives Manufacturers Need Insurance?
- What Type Of Insurance Do Adhesives Manufacturers Need?
- What Does Adhesives Manufacturers Insurance Cover & Pay For?
What Is Adhesives Manufacturers Insurance?
Adhesives manufacturers insurance is a type of insurance that provides coverage for businesses that manufacture and distribute adhesives and related products. This insurance is designed to protect manufacturers from financial losses due to accidents, property damage, and other risks that are specific to the adhesive manufacturing industry.
Coverage may include liability, property, and workers' compensation insurance, as well as specialized coverage options such as product liability and pollution liability. The insurance is intended to cover the cost of repairs or replacements to the adhesive manufacturing equipment and any related costs such as medical expenses, legal fees, and lost income.
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?
Adhesive manufacturers may need insurance to protect against potential losses or liabilities that may arise during the production and distribution of their products. Some potential risks that may require coverage include property damage or loss, injuries to employees or customers, and product liability claims.
Adhesives manufacturers insurance can also provide financial protection for the company in the event of a natural disaster, such as a fire or flood, which could damage or destroy the facility and equipment. Additionally, manufacturers may be required by law to carry certain types of insurance, such as workers' compensation insurance, to protect employees who are injured on the job.
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 coverage helps to protect against financial losses that may occur due to unexpected events such as natural disasters or equipment breakdowns. This can help keep your business running smoothly during difficult times. 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: This coverage protects against claims of injury or damage caused by the use of your products. Adhesives can be used in a variety of industries and applications, so it is important to have this coverage in place to protect against potential liability. 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.
Overall, small business insurance is an important consideration for adhesives manufacturers to protect their company and financial stability. It is important to do your research and find a policy that meets the specific needs of your business.
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.
What Does Adhesives Manufacturers Insurance Cover & Pay For?
Adhesive manufacturers, like many other businesses, may face various types of lawsuits. Here are some of the most common reasons and ways in which insurance can provide protection:
Product Liability: If a product made by an adhesive manufacturer causes harm or damage, such as an adhesive failing and causing a piece of furniture to fall apart and injure someone, the company could be sued for product liability.
Insurance Solution: Product liability insurance would cover the legal costs associated with defending against such a lawsuit, and any settlements or judgments if the company is found to be at fault. This type of insurance is designed to cover financial loss related to defective products that cause injury or harm.
Breach of Contract: An adhesive manufacturer might be sued if they fail to deliver products on time, or if the products don't meet the specifications outlined in a contract.
Insurance Solution: Commercial General Liability (CGL) insurance may cover some of these claims, depending on the specifics of the policy and the lawsuit. In some cases, a specialized form of insurance known as "contractual liability insurance" may be required. This coverage protects a business when it's held liable for damages due to a breach of contract.
Intellectual Property Infringement: If an adhesive manufacturer is accused of copying a competitor's product design or formula, they could face a lawsuit for patent, trademark, or copyright infringement.
Insurance Solution: Intellectual Property (IP) insurance covers legal costs to defend against claims of IP infringement. It can also cover damages awarded to the plaintiff if the business is found to be in violation.
Workplace Accidents: If an employee is injured in the course of their work, for instance, due to exposure to harmful chemicals used in adhesive production, the manufacturer could be sued.
Insurance Solution: Workers' Compensation insurance provides coverage for medical expenses and lost wages for employees injured on the job, regardless of who was at fault. Additionally, Employer's Liability insurance, often included in Workers' Compensation policies, can cover the legal costs if an employee decides to sue.
Environmental Damage: Adhesive manufacturing involves the use of various chemicals that could potentially harm the environment, leading to pollution claims.
Insurance Solution: Environmental or pollution liability insurance would cover the costs of cleaning up spills or leaks, as well as legal costs related to any environmental damage claims.
Directors and Officers Liability: If a director or officer of the adhesive manufacturing company makes a decision that leads to financial loss, they could be personally sued by shareholders, employees, or competitors.
Insurance Solution: Directors and Officers (D&O) insurance can cover the legal costs, settlements, and judgments associated with these types of lawsuits.
By having the right insurance coverages, an adhesive manufacturer can protect itself against many of the common causes of lawsuits in its industry. It's always important to work with an experienced insurance agent or broker who understands the specific risks associated with adhesive manufacturing to ensure the company is adequately protected.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2891 Adhesives And Sealants
- NAICS CODE: 325520 Adhesive Manufacturing
- Suggested Workers Compensation Code(s): 4653 Glue Manufacturing & Drivers
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.
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.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- 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
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Industrial Equipment
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Leather Goods
- 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
- Psychedelic Drugs
- 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
- Vegetable Juice
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
- Specialty Manufacturing
- Specialty Product Liability
The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
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.