Auto Parts Manufacturers Insurance

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Auto Parts Manufacturers Insurance Policy Information

Auto Parts Manufacturers Insurance

Auto Parts Manufacturers Insurance. The automobile parts industry is a highly dynamic field projected to grow as demand in emerging economies spikes. This industry is responsible for the manufacture of a broad range of truck and auto parts, ranging from batteries to filters, underbody components, cooling systems, and engine parts.

As new technologies enter the race to produce vehicles uniquely adapted to the 21st Century, parts that will enable autonomous driving join this growing market.

Automobile parts manufacturers produce a wide variety of components used to manufacture, maintain or repair automobiles, buses, motorcycles, trucks, or other vehicles. Goods can range from the production of various parts and components to finishing or assembling parts manufactured by others.

Operations may include metal casting, electroplating, heat-treating or deburring, sheet metal work (rolled metal stamping), molding and extrusion of plastics, welding, spray-painting, and fabric upholstering.

To secure their place in the market and keep growing in the future, manufacturers in the auto parts industry need more than innovation, however. Like everyone else, they need insurance, too.

Why does every auto parts manufacturing operation need commercial insurance? What kinds of auto parts manufacturers insurance are unique to the industry, and perhaps most importantly, why can it be so hard for auto parts manufacturers to obtain the right type of coverage? Read on to find out what you need to know.

Auto parts 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 auto parts manufacturing insurance questions:


How Much Does Auto Parts Manufacturers Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small auto parts manufacturing businesses ranges from $57 to $89 per month based on location, size, revenue, claims history and more.


Why Do Auto Parts Manufacturers Need Insurance?

Insurance For Manufacturers

Auto parts manufacturers insurance is your safeguard against catastrophic financial losses and unforeseen circumstances. Auto parts manufacturing businesses face a range of risks. Some of those risks are common to all commercial ventures, regardless of industry, while other risks are unique to the auto parts industry.

Your manufacturing plant could fall victim to damage caused by an act of nature or a fire. Theft and vandalism can strike any industry. Workers may be injured in the workplace as a result of human error or the malfunction of equipment used in the manufacture of auto parts.

Companies that supply auto parts can be held liable for defective parts that result in vehicle accidents, alongside auto makers.

Because of the nearly unlimited potential for liability, some insurers will simply be unwilling to take on the risk involved. This means that auto parts manufacturers have the responsibility of sourcing an insurer with a deep understanding of their industry.


What Type Of Insurance Do Auto Parts Manufacturers Need?

Auto parts manufacturers will need to carry a broad range of insurance policies to protect their ventures from disaster and liability. The exact types of insurance a manufacturer will need to invest in depend on many factors, from the precise nature of their manufacturing process to the size of their business and the location of their plant.

Because every company will have unique needs, it is always essential to consult an experienced insurance agent who specializes in auto parts manufacturers insurance policies. Some types of insurance, however, will be of key importance to every auto parts manufacturer. Some of them include:

  • Commercial Property: This type of insurance is a must for any commercial property. It will cover your auto parts company in case you are hit by an act of nature or a fire, but also theft or vandalism, and commercial property insurance serves to protect both the property and the contents within.
  • Commercial General Liability: This type of insurance is especially important for auto parts manufacturers, as it offers coverage for third-party property damage or personal injury caused by your products. Commercial general liability insurance covers legal expenses and settlement fees in the event of a lawsuit, resulting, for instance, from vehicle accidents in which a defective part manufactured by your company plays an alleged role.
  • Equipment Breakdown: Several categories of equipment breakdown insurance exist. For auto parts manufacturers, for instance, mechanical equipment breakdown insurance will partially cover the cost of repairing or replacing manufacturing equipment, as well as revenue lost to these breakdowns.
  • Workers Compensation: In case a worker sustains an injury in the workplace, which could include a fall due to a greasy work floor or a work-related injury that occurs during the manufacturing process itself, it is important for an auto parts manufacturer to have the correct workers' comp insurance. This kind of policy is used to cover workers' medical expenses as well as lost wages should the employee not be able to return to work.


These are just some of the types of auto parts manufacturers insurance coverage you should carry. You can carry individual policies, or opt for a commercial package policy that combines several different types of coverage under a single policy.

Auto Parts Manufacturing's Risks & Exposures

Manufacturing

Premises liability exposure is normally low due to limited access by visitors. If tours are given, visitors may be injured by slips, trips or falls. Fumes, dust, and noise from processing could affect neighbors, resulting in nuisance claims.

Products liability exposure can be light for interior or exterior trim or upholstery or a non-operative part such as air conditioning or sound systems. The exposure increases substantially if the manufacturer produces a critical operating part or system (such as parts for engine, transmission and power train, steering and suspension, axels, braking, fuel control) or a critical safety component such as passenger restraining devices.

Warning labels regarding dangers of personal injury are important, but provide only limited defense as courts commonly apply strict liability standards to inherently dangerous products. Malfunction in the wiring could present a fire or an electrocution hazard.

A defect in the fuel lines or gas tank could result in an explosion. Well-maintained vehicles may have a long life span and include older equipment made before improved safety features were introduced.

Environmental impairment exposure can range from moderate to high due to the potential for air, land and water pollution from dust and fuel storage tanks. Raw plastic materials may be toxic and are flammable, the catalysts may be caustic, and the final product is usually not biodegradable.

Metal contaminants may come from the chemicals, paints, and solvents used. Vapors, fumes and air pollutants as well as wastewater and disposal of by-products must be evaluated and controlled. Disposal of plastics, chemicals and flammable liquids must adhere to all EPA and other regulatory standards.

There may be fuel tanks on premises with the potential for spillage and contamination. If there are underground tanks, a UST policy may be required.

Workers compensation exposure is moderate to high. Injuries from production machinery are common, as are minor cuts, burns, slips, trips and falls, foreign objects in the eye, back injuries from lifting, hearing loss from noise, and repetitive motion losses. Workstations should be ergonomically designed.

Employees should be provided with safety training and protective equipment. Areas that generate dust require respiratory protection devices, as well as eye protection and eye wash stations. Metalworking can result in injury from cuts, amputations, and burns from welding and heated metal, exposure to dust, and respiratory problems from spray paint and solvents.

Plastics have similar exposures, plus a potential for burns from heated machinery and eye and skin irritants from chemicals and resins.

Property exposure consists of an office, production plant, and warehouse for storage of raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, welding and spray-painting. Wear and tear and overheating of machinery are potential fire hazards. There may be fuel tanks on premises.

Hazards may include woodworking, sheet metal work, casting, heat-treating, electroplating, and plastic, fiberglass work, and upholstery operations. In the absence of well maintained dust collection systems, cutting and buffing operations can generate dust which can catch on fire. Welding should be done in a separate area away from combustibles. Spray painting should be conducted in an area with explosion-proof wiring that meets all UL standards.

Poor housekeeping, such as failure to collect and dispose of trash on a regular basis, could contribute significantly to a loss. Unless disposed of properly, greasy, oily rags (such as those used to clean machinery) can cause a fire without a separate ignition source.

Property stored in the open may be subject to loss by wind or hail or a target for vandalism. Appropriate security controls must be taken including lighting and 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.

Bottlenecks in the assembly process may result in a high concentration of values of partially completed units, affecting both property valuation and business income. There may be a substantial exposure to loss of income resulting from damage to dependent properties such as key suppliers or customers.

Equipment breakdown exposures include malfunctioning production equipment, electrical control panels and other apparatus. These should be properly maintained and records kept in a central location. A lengthy breakdown to production machinery could result in severe loss, both direct and under time element.

Crime exposures are chiefly from employee dishonesty and theft as auto parts can have a high street value. 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. There should be 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. Backup copies of all records should be made and stored off premises.

There may be contractors' equipment such as forklifts, or an installation exposure if the manufacturer offers installation service. Stock in transit may be susceptible to damage from collision, overturn, fire and theft.

Commercial auto exposure is high if the manufacturer picks up raw materials or components or delivers finished goods to customers. Deadlines placed on drivers (such as "just in time" service to customers) increases the hazard.

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: 3714 Motor Vehicle Parts And Accessories, 3592 Carburetors, Pistons, Piston Rings, And Valves, 3647 Vehicular Lighting Equipment, 3694 Electrical Equipment For Internal Combustion Engines, 3465 Automotive Stampings, 3585 Air-Conditioning and Warm Air Heating Equipment and Commercial And Industrial Refrigeration Equipment
  • NAICS CODE: 336310 Motor Vehicle Gasoline Engine and Engine Parts Manufacturing, 336320 Motor Vehicle Electrical and Electronic Equipment Manufacturing, 336330 Motor Vehicle Steering and Suspension Components (except Spring) Manufacturing, 336340 Motor Vehicle Brake System Manufacturing, 336350 Motor Vehicle Transmission and Power Train Parts Manufacturing, 336360 Motor Vehicle Seating and Interior Trim Manufacturing, 336370 Motor Vehicle Metal Stamping, 336390 Other Motor Vehicle Parts Manufacturing
  • Suggested ISO General Liability Code(s): 51250, 51251, 51252, 51253, 51254, 51255
  • Suggested Workers Compensation Code(s): 2288, 2501, 3146, 3179, 3303, 3400, 3632, 3803, 3807, 3822, 3824, 3827, 4111

Description for 3714: Motor Vehicle Parts And Accessories

Division D: Manufacturing | Major Group 37: Transportation Equipment | Industry Group 371: Motor Vehicles And Motor Vehicle Equipment

3714 Motor Vehicle Parts And Accessories: Establishments primarily engaged in manufacturing motor vehicle parts and accessories, but not engaged in manufacturing complete motor vehicles or passenger car bodies. Establishments primarily engaged in manufacturing or assembling complete automobiles and trucks are classified in Industry 3711; those manufacturing tires and tubes are classified in Industry 3011; those manufacturing automobile glass are classified in Major Group 32; those manufacturing automobile stampings are classified in Industry 3465; those manufacturing vehicular lighting equipment are classified in Industry 3647; those manufacturing ignition systems are classified in Industry 3694; those manufacturing storage batteries are classified in Industry 3691; and those manufacturing carburetors, pistons, piston rings, and engine intake and exhaust valves are classified in Industry 3592.

  • Air brakes, motor vehicle
  • Automotive wiring harness sets, except ignition
  • Axle housings and shafts, motor vehicle
  • Axles, motor vehicle
  • Ball joints, motor vehicle
  • Bearings, motor vehicle: except ball and roller
  • Brake drums
  • Brakes and brake parts, motor vehicle
  • Bumpers and bumperettes, motor vehicle
  • Camshafts, motor vehicle gasoline engine
  • Cleaners, air: motor vehicle
  • Connecting rods, motor vehicle: gasoline engine
  • Control equipment, motor vehicle: acceleration mechanisms and
  • Crankshaft assemblies, motor vehicle: gasoline engine
  • Cylinder heads, motor vehicle: gasoline engines
  • Defrosters, motor vehicle
  • Differentials and parts, motor vehicle
  • Directional signals, motor vehicle
  • Drive shafts, motor vehicle
  • Dump truck lifting mechanisms
  • Engines and parts, except diesel: motor vehicle
  • Exhaust systems and parts, motor vehicle
  • Fifth wheels
  • Filters: oil, fuel, and air-motor vehicle
  • Frames, motor vehicle
  • Fuel pumps, motor vehicle
  • Fuel systems and parts, motor vehicle
  • Gas tanks, motor vehicle
  • Gears, motor vehicle
  • Governors, motor vehicle
  • Heaters, motor vehicle
  • Hoods, motor vehicle
  • Horns, motor vehicle
  • Hydraulic fluid power pumps for auto motive steering mechanisms
  • Instrument board assemblies, motor vehicle
  • Lubrication systems and parts, motor vehicle
  • Manifolds, motor vehicle: gasoline engine
  • Motor vehicle gasoline engine rebuilding on a factory basis
  • Motor vehicle parts and accessories, except motor vehicle stampings
  • Mufflers, exhaust: motor vehicle
  • Oil filters, motor vehicle
  • Pipes, fuel: motor vehicle
  • Power transmission equipment, motor vehicle
  • Pumps, motor vehicle: oil, water, fuel, and power steering
  • Radiators and radiator shells and cores, motor vehicle
  • Rear axle housings, motor vehicle
  • Rebuilding motor vehicle gasoline engines and transmissions on a
  • Rims, wheel: motor vehicle
  • Sanders, motor vehicle safety
  • Shock absorbers, motor vehicle
  • Steering mechanisms, motor vehicle
  • Thermostats, motor vehicle
  • Third axle attachments or six wheel units for motor vehicles
  • Tie rods, motor vehicle
  • Tire valve cores
  • Tops, motor vehicle: except stamped metal
  • Transmission housings and parts, motor vehicle
  • Transmissions, motor vehicle
  • Universal joints, motor vehicle
  • Vacuum brakes, motor vehicle
  • Wheels, motor vehicle
  • Windshield frames, motor vehicle
  • Windshield wiper systems, all types
  • Winterfronts, motor vehicle
  • Wiring harness sets motor vehicles, except ignition

Description for 3592: Carburetors, Pistons, Piston Rings, And Valves

Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 359: Miscellaneous Industrial And Commercial

3592 Carburetors, Pistons, Piston Rings, And Valves: Establishments primarily engaged in manufacturing carburetors, pistons, piston rings, and engine intake and exhaust valves. Establishments primarily engaged in manufacturing metallic packing are classified in Industry 3053, and those primarily engaged in manufacturing machine repair and equipment parts (except electric), on a job or order basis for others, are classified in Industry 3599.

  • Carburetors, all types
  • Pistons and piston rings
  • Valves, engine: intake and exhaust

Description for 3647: Vehicular Lighting Equipment

Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 364: Electric Lighting And Wiring Equipment

3647 Vehicular Lighting Equipment: Establishments primarily engaged in manufacturing vehicular lighting equipment. Establishments primarily engaged in manufacturing sealed-beam lamps are classified in Industry 3641.

  • Aircraft lighting fixtures
  • Automotive lighting fixtures
  • Bicycle lamps
  • Boat and ship lighting fixtures
  • Clearance lamps and reflectors, motor vehicle
  • Dome lights, motor vehicle
  • Flasher lights, automobile
  • Fog lights, motor vehicle
  • Headlights (fixtures), vehicular
  • Lamps, marker and clearance: motor vehicle
  • Lighting fixtures, vehicular
  • Locomotive and railroad car lights
  • Marker lamps, motor vehicle
  • Motorcycle lamps
  • Parking lights, automotive
  • Reflectors, clearance: vehicular
  • Spotlights, motor vehicle
  • Tail lights, motor vehicle

Description for 3694: Electrical Equipment For Internal Combustion Engines

Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 369: Miscellaneous Electrical Machinery, Equipment, and Supplies

3694 Electrical Equipment For Internal Combustion Engines: Establishments primarily engaged in manufacturing electrical equipment for internal combustion engines. Important products of this industry include armatures, starting motors, alternators, and generators for automobiles and aircraft; and ignition apparatus for internal combustion engines, including spark plugs, magnetos, coils, and distributors.

  • Alternators, motor vehicle
  • Armatures, motor vehicle
  • Battery cable wiring sets for internal combustion engines
  • Battery charging generators for internal combustion engines
  • Breaker point sets, internal combustion engine
  • Coils, ignition: internal combustion engines
  • Distributors, motor vehicle engine
  • Generators, aircraft and motor vehicle
  • Harness wiring sets for internal combustion engines
  • Ignition cable sets or wire assemblies for internal combustion engines
  • Ignition systems, high frequency
  • Motors, starting: motor vehicle and aircraft
  • Regulators, voltage: motor vehicle
  • Spark plugs for internal combustion engines
  • Voltage regulators, motor vehicle

Description for 3465: Automotive Stampings

Division D: Manufacturing | Major Group 34: Fabricated Metal Products, Except Machinery And Transportation Equipment | Industry Group 346: Metal Forgings And Stampings

3465 Automotive Stampings: Establishments primarily engaged in manufacturing automotive stampings, such as body parts, hubs, and trim.

  • Automotive stampings: e.g., fenders, tops, hub caps, body parts, trim
  • Body parts, automotive: stamped
  • Moldings and trim, automotive: stamped

Description for 3585: Air-Conditioning and Warm Air Heating Equipment and Commercial And Industrial Refrigeration Equipment

Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 358: Refrigeration And Service Industry Machinery

3585 Air-Conditioning and Warm Air Heating Equipment and Commercial And Industrial Refrigeration Equipment: Establishments primarily engaged in manufacturing refrigeration equipment and systems and similar equipment for commercial and industrial use; complete air-conditioning units for domestic, commercial, and industrial use; and warm air furnaces. Establishments primarily engaged in manufacturing soda fountains and beer dispensing equipment and humidifiers and dehumidifiers, except portable, are also classified in this industry. Establishments primarily engaged in manufacturing household refrigerators and home and farm freezers are classified in Industry 3632, and those manufacturing electric air-space heaters and portable humidifiers and dehumidifiers are classified in Industry 3634.

  • Air-conditioners, motor vehicle
  • Air-conditioning and heating combination units
  • Air-conditioning compressors
  • Air-conditioning condensers and condensing units
  • Air-conditioning units complete: domestic and industrial
  • Beer dispensing equipment
  • Cabinets, show and display: refrigerated
  • Cases, show and display: refrigerated
  • Cold drink dispensing equipment, except coin-operated
  • Compressors for refrigeration and air-conditioning
  • Condensers and condensing units: refrigeration and air-conditioning
  • Coolers, milk and water: electric
  • Counters and counter display cases, refrigerated
  • Dehumidifiers, except portable: electric
  • Electric warm air furnaces
  • Evaporative condensers (heat transfer equipment)
  • Fountains, drinking mechanically refrigerated
  • Furnaces: gravity air flow
  • Heat pumps, electric
  • Humidifying equipment, except portable
  • Ice boxes, industrial
  • Ice making machinery
  • Lockers, refrigerated
  • Refrigeration compressors
  • Refrigeration machinery and equipment, industrial
  • Room coolers, portable
  • Showcases, refrigerated
  • Siphons, soda water
  • Snow making machinery
  • Soda fountains, parts, and accessories
  • Tanks, soda water

Auto Parts Manufacturers Insurance - The Bottom Line

Not all auto parts manufacturers insurance polices have the same limits, exclusions and coverage. To determine that your auto parts company has all its insurance needs covered in a comprehensive plan, speak with a reputable commercial insurance agent.

In many cases they can save you premium dollars 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.

Small Business Information

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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 PoliciesWhat 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 InsuranceWhat 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 BondWhat 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
Small Business Commercial Insurance

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.


Manufacturing Insurance

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.


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