Alarm Manufacturers Insurance Policy Information
Alarm Manufacturers Insurance. Alarms are products designed to make people aware of the existence of actual or potential danger. These systems can emit a sound or a visual signal, or can alert third-party security companies that the alarm was triggered.
Apart from the home, vehicle, commercial security systems that will be familiar to most and that are triggered upon unauthorized entry, alarms can also serve to alert users to the presence of smoke and fire, carbon monoxide, or weather events such as floods or hurricanes, among numerous other potential threats.
Alarm manufacturers produce fire and burglary alarms, motion detectors, temperature or humidity detectors, railroad and traffic signals, and emergency vehicle sirens. When triggered, the alarm provides some type of notification locally or to a remote facility, such as a police station.
An alarm system can be relatively simple, triggered by the breaking of an electrical circuit, or it can be far more complex, triggered by a change in humidity, temperature or some other controlled environmental factor.
Some smoke detectors contain minute amounts of radioactive material, gold, and copper. This narrative will not discuss the complex issues involved with underwriting radioactive exposures beyond drawing attention to this potential problem area.
Alarm systems can range from fairly simple to highly-complex mergers of mechanical and electronic parts. No matter what kind of alarms a company manufacturers, there is no doubt that this industry places a great deal of responsibility on the manufacturer's shoulders.
As a manufacturer of alarm systems, you are quite literally in the business of risk - but even as you strive to protect your consumers from harm, your company, too, faces numerous hazards. That is why it is essential to be aware what kind of alarm manufacturers insurance you require. If you need a guide to begin familiarizing yourself with your insurance needs, we have you covered.
Alarm manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked alarm manufacturing insurance questions:
- How Much Does Alarm Manufacturers Insurance Cost?
- Why Do Alarm Manufacturers Need Insurance?
- What Type Of Insurance Do Alarm Manufacturers Need?
How Much Does Alarm Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small alarm manufacturing businesses ranges from $77 to $119 per month based on location, size, revenue, claims history and more.
Why Do Alarm Manufacturers Need Insurance?
As a company that manufactures alarm systems, you know more about the types of unfortunate circumstances that can befall anyone than most. You will face the very same types of risks that your consumers will, as well as some that are unique to your own industry.
Burglary, theft, and vandalism can victimize any company, often with devastating financial consequences. A act of nature, such as an earthquake, wildfire, or serious flood, is another threat that even excellent management cannot eliminate.
Likewise, workplace accidents can befall any company. Then, there is the potential that a consumer attempts to hold your company liable for a malfunction of an alarm system.
The chemicals used in the manufacture of the electronic components many alarms now have could also lead to toxic waste, in the form of mercury of lead for example, that could see your company facing a lawsuit.
While alarm systems serve to alert their users to potential danger, insurance is there to catch you in the aftermath. With the right kind of alarm manufacturers insurance coverage, instead of being left with financial losses your company may not be able to survive, you will be protected.
What Type Of Insurance Do Alarm Manufacturers Need?
Your alarm manufacturers insurance needs are as unique as your company; the type of materials you work with, the location of your facilities, your number of employees, and the size of your operation will all help determine the exact kind of coverage you will require.
This is why it is essential to make sure you thoroughly explore your best options with a good commercial insurance agent, ideally one with a deep understanding of the alarm manufacturing industry. With that out of the way, the types of alarm manufacturers insurance needed include:
- Commercial Property: Commercial property insurance. This type of insurance exists to cover you in case your facility, and the assets inside it, from perils including theft, vandalism, and the acts of nature you could never plan for. Not only will it compensate you for damaged or lost assets, commercial property insurance may also cover revenue lost as a result of these events.
- General Liability: This type of insurance is all about protecting your business from potential lawsuits that could arise from third party bodily injury or property damage on your premises and caused as a result of your activities. Should the worst happen, it can cover legal costs and settlement fees.
- Product Liability: Another category of liability insurance, this type of insurance would protect you from the financial fallout of, for instance, alarm malfunction that leads to financial losses on the part of a consumer, for which you could be held liable.
- Workers Compensation : Workers can rest assured knowing that their medical expenses and lost income will be taken care of should they become injured at work, while your company is safe from lawsuits that might result, with this type of insurance.
These types of alarm manufacturers insurance are examples of the type of coverage a company that an alarm manufacturing firm would need to carry, but your insurance needs will not stop here. That is why it is crucial to consult an broker specialized in commercial insurance.
Alarm Manufacturing's Risks & Exposures
Premises liability exposure is normally low, as access by visitors is limited. If the manufacturer conducts tours, permits customers on premises for custom work, or has a showroom or retail outlet, visitors may be injured by slips, trips, or falls.
Fumes, dust, and noise from woodwork or metalwork could affect neighbors. If the manufacturer installs equipment on customers' premises, there may be a frequency of property damage claims. There may be significant off-premises exposures at promotional events.
Products liability exposures are very high as failure of an alarm to operate correctly could result in significant bodily injury or property damage. Fire and carbon monoxide alarms that fail to operate correctly could result in loss of life.
Failure of humidity or temperature control alarms to operate correctly could result in significant loss of product. Malfunction of wiring could present a fire or electrocution hazard.
Warranties and service and maintenance agreements are important and must be examined closely. Customized alarms manufactured to exact specifications may increase the exposure, depending on the nature of the contractual relationship between the two parties. Imported components increase the exposure.
Environmental impairment liability exposures may be very high due to possible contamination of ground, air, and water from chemicals and toxic lubricants, solvents and paints. For plastics, the raw materials may be toxic and are flammable, the catalysts may be caustic, and the final product is usually not biodegradable.
For wood and metal, contaminants may come from the chemicals, paints, and solvents used. Storage and disposal procedures must adhere to all EPA and other regulatory standards. If radioactive material is used, the environment impairment exposure is extremely high.
Workers compensation exposures can be very high. Injuries from production machinery are common, as are minor cuts, puncture wounds, burns, foreign objects in the eye, hearing impairment from noise, slips, trips, falls, back injuries from lifting, and repetitive motion injuries. Working with electronics can result in electrocution.
Workstations should be ergonomically designed. The high volume production requirements for certain types of alarms may induce workers to remove machine guards or to postpone periodic scheduled maintenance and repairs in order to increase production.
Chemicals used in manufacturing certain types of alarms could cause skin and eye irritations in addition to respiratory problems. Employees must be fully informed as to the potential effects of the chemicals, including long-term occupational disease hazards so that they can be aware of warning symptoms and obtain treatment as early as possible.
Production incentives can be disincentives to safety if the only consideration is the number of items produced in a given period of time. Radioactive material handling demands a unique loss prevention approach because the injury potential is so significant.
Property exposures consist of office, plant, and warehouse for storage of raw materials and finished goods. Ignition sources include heating and cooling equipment, production machinery and electrical panels, and the build-up of dust from the cutting and sanding that can cause fire and explosion. The risk increases in the absence of proper dust collection systems, ventilation, and adequate disposal procedures.
Paints, lubricants, degreasers, and solvents can be flammable and must be adequately separated and stored away from other operations. Plastic work may include molding or extrusion. Metal housing may require soldering, electroplating, or annealing. Welding and soldering must be done away from combustibles and flammable liquids. Wood and metal may be painted by spray or in dip tanks.
Spray painting operations can cause a fire unless carried out in spray booths with explosion-proof electrical components. More complex alarms have extensive computer circuitry that is susceptible to heat and water damage. Highly sensitive devices may have to be assembled in clean rooms with sterile conditions to avoid exposure to smoke or other contaminants.
A very small fire can cause total damage if there is not adequate separation of the storage from the possible ignition sources. Electronics may be targets for theft. Appropriate security controls should be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
There can be a significant business income and extra expense exposure, depending on the amount of time required to restore operations.
Equipment breakdown exposures include breakdown losses to the building services systems, malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. Breakdown and loss of use to the conveyor and other production machinery could result in a significant loss, both direct and under time element.
Crime exposure comes from employee dishonesty and theft of circuitry, precious metal plating in the fixtures, and high-end products. The exposure is particularly high if radioactive isotopes, gold, and copper are used in the manufacturing process. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock.
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), exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information.
Goods in transit are susceptible to damage from fire, breakage, water damage, collision or overturn, and especially theft. If the manufacturer installs alarm systems, an installation floater may be needed.
Commercial auto exposures may be high if the manufacturer picks up raw materials, transports components between different plants, or delivers finished goods to customers. Manufacturers generally have private passenger fleets used by sales representatives.
There should be written procedures regarding the private use of these vehicles by others. Drivers should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3669 Communications Equipment, Not Elsewhere Classified
- NAICS CODE: 334290 Other Communications Equipment Manufacturing
- Suggested ISO General Liability Code(s): 51205, 51206
- Suggested Workers Compensation Code(s): 3179
Description for 3669: Communications Equipment, Not Elsewhere Classified
Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 366: Communications Equipment
3669 Communications Equipment, Not Elsewhere Classified: Establishments primarily engaged in manufacturing communications and related equipment, not elsewhere classified. Important products of this industry are intercommunication equipment, traffic signaling equipment, and fire and burglar alarm apparatus.
- Burglar alarm apparatus, electric
- Fire alarm apparatus, electric
- Fire detection systems, electric
- Highway signals, electric
- Intercommunications equipment, electronic
- Marine horns, electric
- Pedestrian traffic control equipment
- Railroad signaling devices, electric
- Signaling apparatus, electric
- Signals: railway, highway, and traffic-electric
- Sirens, electric: vehicle, marine, industrial, and air raid
- Smoke detectors
- Traffic signals, electric
Alarm Manufacturers Insurance - The Bottom Line
Alarm manufacturers insurance polices can be very different in cost, coverage and exclusions. To discover if your business has the best insurance policies, 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.