Audio And Video Equipment Manufacturers Insurance Policy Information
Audio And Video Equipment Manufacturers Insurance. There is no doubt that audio and video equipment - also known as audio/visual equipment or simply “AV” - has come to play an increasingly important role in the daily functioning of society.
Audio and video equipment manufacturers produce a variety of items for home entertainment, motor vehicles, bars, hotels, restaurants, and public access systems. Products include home theaters, plasma or LCD screens, amplifiers, camcorders, stereos, jukeboxes, CD and DVD players, speakers, cathode ray tubes, electron tubes, and vacuum tubes.
The manufacture of these items involves a variety of operations. The equipment's housing or cabinet may be plastic, wood, or metal. The interior contains electrical wiring or electronic circuitry. The different phases of manufacture may be carried out in different locations or different countries.
Separate divisions or independent firms (subcontractors) may handle a single aspect of the process, such as producing circuit boards or making plasma screens. Some manufacturers may subcontract the separate operations and simply perform the final assembly.
Products that fall into this category range from analogue and digital recorders and players to cameras, microphones, electric projection screens, and fiber optic receivers and transmitters. This industry, which serves the home market as well as commerce and public service, has become more and more digitalized in recent decades.
Manufacturers in this industry may be responsible for the production of complete products or limit their scope to components that are subsequently incorporated into equipment.
Regardless of the extent and scale of a manufacturing company in the audio/visual industry, unexpected events that can simply not be planned for may always threaten a manufacturer's solvency and ability to continue doing business.
This is where insurance comes in. While insurance policies feel like a burden when you do not need them, they can be depended on when unforeseen circumstances jeopardize the business you have worked so hard to build.
What kind of audio and video equipment manufacturers insurance coverage do companies in this ondustry need, though? Why is it essential to assess your insurance needs so carefully? Find out more in this guide.
Audio and video equipment 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 audio and video equipment manufacturing insurance questions:
- How Much Does Audio And Video Equipment Manufacturers Insurance Cost?
- Why Do Audio And Video Equipment Manufacturers Need Insurance?
- What Type Of Insurance Do Audio And Video Equipment Manufacturers Need?
How Much Does Audio And Video Equipment Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small audio and video equipment manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Audio And Video Equipment Manufacturers Need Insurance?
Even the smallest company engaged in the manufacture of audio and video equipment will require insurance - because, like any other manufacturer, you, too, face the very realistic possibility that circumstances beyond your control result in serious financial losses.
These unforeseen circumstances can arrive in the shape intentional criminal act; a large-scale theft, or an act of vandalism like arson, can have a devastating impact. They can also take the form of an act of nature, also sometimes called an act of God; even the best management cannot prevent an earthquake, hurricane, tornado, or wildfire.
Accidents happen, too - a worker could sustain work-related injuries, in the course of the manufacturing process or as a result of improper heavy lifting, for example. Third parties may be injured on your property, or an audio/visual equipment manufacturer may accidentally damage third party properties while delivering an order.
In the event that one of your products or components malfunctions, production companies may attempt to hold you liable for the resulting loss of revenue and damage. A consumer may attempt to blame you for hearing loss after using headphones you produced. The possibilities are nearly endless.
Not everything that can happen will, but companies in the audio/visual industry should always be prepared for the worst-case scenario. That, of course, explains why it is vital to have the right audio and video equipment manufacturers insurance on your side.
What Type Of Insurance Do Audio And Video Equipment Manufacturers Need?
Manufacturing firms within the audio/visual industry are going to need multiple types of insurance to protect their business interests from disastrous financial losses. The types of insurance you need, as well as their cost, depends on multiple factors; the components you work with, the location of your manufacturing facility, the number of workers, and the risk involved in the manufacturing process all contribute.
To ensure that you have the quality audio and video equipment manufacturers insurance coverage you need to continue growing your AV manufacturing business, it is vital to partner with a seasoned commercial insurance broker.
There are, however, some types of audio and video equipment manufacturers insurance you can absolutely not do without:
- Commercial Property: This type of insurance guards your company from financial losses as a result of damage to your property and the contents within, which may result from such events as theft, vandalism, and (certain, but typically not all) acts of nature. Commercial property insurance serves the needs of any company that owns physical assets.
- Commercial General Liability: Another standard type of insurance that any commercial venture needs, commercial general liability insurance exists to safeguard you against third party bodily injury and property damage claims. It would cover accidents involving third parties on your premises, such as a prospective customer tripping and being injured at your facility, but also damage to third party properties your company could be liable for if, for instance, a console breaks a window as one of your employees delivers an order. In the event of a lawsuit, commercial general liability insurance covers legal and settlement expenses.
- Product Liability: This specialized type of liability insurance specifically covers companies in the event one of their products - or another manufacturer's product that contained a component made by your company - causes injury to someone. This can happen as a result of negligent manufacture or design, but even because the instructions that accompanied a product were not clear enough.
- Workers Compensation: Acute injuries or long-term occupational hazards can both require potentially costly medical care and render an employee unable to work as they recover. Workers' comp covers these expenses, and also prevents employees from filing potentially drawn-out and costly civil suits.
While these types of audio and video equipment manufacturers insurance will be essential for any manufacturer in this industry, you may also need other types of insurance. Auto insurance if you use any vehicles, and inland marine insurance if you ship any products by sea, are two more examples.
To make sure your needs are met, talk with a competent insurance agent specializing in the audio/visual industry.
Audio And Video Equipment Manufacturing's Risks & Exposures
Premises liability exposure is normally low as access by visitors is limited. If the manufacturer conducts tours 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 exposure varies depending on the type of equipment and end user. A malfunction in the wiring could present a fire or electrocution hazard, such as radios designed for use in kitchens and baths. Sharp edges could result in cuts and other injuries.
Small parts in electronics designed for children's use could present a choking hazard. Cumulative radiation from screens and monitors could result in claims as well. Clear warning labels and instructions for proper use are necessary.
Environmental impairment exposure 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.
Workers compensation exposure 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 required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair to increase production. Chemicals used in manufacturing could result in skin and eye irritations, as well as 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 a disincentive to safety if the only consideration is by piece production.
Property exposures consist of office, production plant, and warehouse for storage of raw materials and finished goods. Ignition sources include heating and cooling equipment, production machinery, 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.
Without a sterile environment, circuitry may be contaminated by dust or damaged by static electricity. Susceptibility to loss is extremely high because of the high damageability of the equipment.
Any fire that produces smoke has the potential to cause a total loss even though the actual fire might be very small. Audio and visual equipment 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.
Equipment breakdown exposures include breakdown losses to the building services systems, malfunctioning production equipment, dust 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. 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.
If the manufacturer installs equipment on customers' premises, there may be an installation floater exposure. Goods in transit are susceptible to damage from fire, breakage, water damage, collision or overturn, and especially theft.
Commercial auto exposure may be high if the manufacturer picks up raw materials or delivers finished goods to customers. Because the goods are high crime target items, vehicles transporting the product should be unmarked and have appropriate crime protective devices.
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: 3651 Household Audio And Video Equipment, 3671 Electron Tubes
- NAICS CODE: 334310 Audio and Video Equipment Manufacturing, 334419 Other Electronic Component Manufacturing
- Suggested ISO General Liability Code(s): 59701 Television Picture Tube Manufacturing, 51926 Communication or Recording Systems or Equipment Manufacturing - Industrial or Commercial, 51927 Communication or Recording Systems or Equipment Manufacturing - Other Than Industrial or Commercial
- Suggested Workers Compensation Code(s): 3681 Television, Radio, Telephone, or Telecommunication Device Manufacturing NOC
Description for 3651: Household Audio And Video Equipment
Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 365: Household Audio And Video Equipment, And Audio
3651 Household Audio And Video Equipment: Establishments primarily engaged in manufacturing electronic audio and video equipment for home entertainment (including automotive), such as television sets, radio broadcast receivers, tape players, phonographs, and video recorders and players. This industry also includes establishments primarily engaged in manufacturing public address systems and music distribution apparatus. Establishments primarily engaged in manufacturing phonograph records and prerecorded audio tapes are classified in Industry 3652; those manufacturing telephone answering machines are classified in Industry 3661; those manufacturing motion picture reproduction equipment are classified in Industry 3861; and those manufacturing phonograph needles and cartridges are classified in Industry 3679. Establishments primarily engaged in manufacturing separate cabinets for home electronic equipment are classified in Major Group 25.
- Amplifiers: radio, public address, or musical instrument
- Audio recorders and players: automotive and household
- Clock radio and telephone combinations
- Clock radios
- Coin-operated phonographs
- Disc players, compact
- Electronic kits for home assembly: radio and television receiving sets,
- Home tape recorders: cassette, cartridge, and reel
- Juke boxes
- Loudspeakers, electrodynamic and magnetic
- Music distribution apparatus, except records or tape
- Musical instrument amplifiers
- Phonograph and radio combinations
- Phonograph turntables
- Phonographs, including coin-operated
- Pickup heads, phonograph
- Pillows, stereo
- Public address systems
- Radio and phonograph combinations
- Radio receiving sets
- Recording machines, music and speech: except dictation and telephone
- Speaker systems
- Tape players, household
- Tape recorders, household
- Television receiving sets
- Turntables, for phonographs
- Video camera-audio recorders, household
- Video cassette recorders/players
- Video triggers (remote control television devices)
Description for 3671: Electron Tubes
Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 367: Electronic Components And Accessories
3671 Electron Tubes: Establishments primarily engaged in manufacturing electron tubes and tube parts. Establishments primarily engaged in manufacturing X-ray tubes and parts are classified in Industry 3844.
- Cathode ray tubes
- Electron beam (beta ray) generator tubes
- Electron tube parts, except glass blanks: bases, getters, and guns
- Electron tubes
- Gas and vapor tubes
- Geiger Mueller tubes
- Klystron tubes
- Light sensing and emitting tubes
- Magnetron tubes
- Photomultiplier tubes
- Picture tube reprocessing
- Planar triode tubes
- Receiving type electron tubes
- Television tubes
- Transmitting electron tubes
- Traveling wave tubes
- Tubes for operating above the X-ray spectrum (with shorter
- Vacuum tubes
Audio And Video Equipment Manufacturers Insurance - The Bottom Line
The available audio and video equipment manufacturers insurance polices available today vary widely in cost, coverage and exclusions. To see if your manufacturing company has the best fit insurance policies, speak with an experienced commercial insurance agent.
Often they are able to save you on cost 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.
- 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
- 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
- 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
- Vending Machines
- Vegetable Juice
- 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.