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 industry 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:
- What Is Audio And Video Equipment Manufacturers Insurance?
- 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?
- What Does Audio And Video Equipment Manufacturers Insurance Cover & Pay For?
What Is Audio And Video Equipment Manufacturers Insurance?
Audio and video equipment manufacturers insurance is a type of insurance coverage specifically designed for manufacturers of audio and video equipment. It provides protection against financial losses that may occur as a result of product defects, liability claims, and other risks associated with the production and distribution of audio and video equipment.
This insurance coverage can include protection for property damage, product liability, general liability, and other forms of financial protection. It is important for audio and video equipment manufacturers to have insurance coverage to safeguard their business against potential risks and losses.
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.
What Does Audio And Video Equipment Manufacturers Insurance Cover & Pay For?
Audio and video equipment manufacturers can be sued for various reasons, including product liability, intellectual property infringement, and breach of contract. Insurance policies can protect these manufacturers from potential financial losses associated with such lawsuits. Here are some examples:
Product Liability: If a manufacturer's audio or video equipment is found to be defective, causing injury or property damage, they may be sued for product liability. In such cases, product liability insurance can help cover the legal defense costs, as well as any settlements or judgments that may arise from the lawsuit. This insurance can help protect the company's financial stability and reputation.
Intellectual Property Infringement: Audio and video equipment manufacturers might be sued for patent, trademark, or copyright infringement if they are found to be using another party's intellectual property without permission. Intellectual property insurance can help cover the legal defense costs and potential settlements or judgments that arise from such a lawsuit. This insurance can help the manufacturer continue operations while dealing with the legal dispute.
Breach of Contract: Manufacturers may be sued for breach of contract if they fail to deliver on the agreed-upon terms with a client, partner, or supplier. This could include issues like late delivery, non-compliant products, or failure to meet performance standards. Commercial general liability insurance, which often includes coverage for contractual liability, can help cover the legal costs and potential settlements or judgments related to breach of contract lawsuits. This insurance helps protect the manufacturer's financial health and reputation.
Employment Practices Liability: Audio and video equipment manufacturers may face lawsuits related to employment practices, such as discrimination, harassment, or wrongful termination. Employment practices liability insurance can help cover the legal defense costs, settlements, or judgments that arise from such claims. This insurance can provide crucial financial protection for the company and its leadership in the face of employment-related lawsuits.
Directors and Officers Liability: Company directors and officers may be held personally liable for decisions made on behalf of the company that result in financial loss or other harm. Directors and officers liability insurance can help cover the legal defense costs, settlements, or judgments that may arise from such claims, protecting both the individuals and the company.
Each of these insurance policies can provide vital financial protection for audio and video equipment manufacturers faced with lawsuits. By covering legal fees, settlements, and judgments, insurance can help companies navigate legal challenges without derailing their operations or damaging their reputation.
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 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.
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.