Brick Manufacturers Insurance Policy Information
Brick Manufacturers Insurance. Bricks have played an integral role in the construction of buildings for many thousands of years. While the first bricks were homemade using dried mud, clay and straw bricks soon joined the arsenal of construction materials, and the first fired bricks were made over 5000 years ago.
Brick manufacturers produce building materials made primarily of clay. The process involves mixing the clay with water, pigments and other materials to achieve the desired color, texture, and strength. This mixture may then be poured into molds, extruded, or pressed through a die and cut to size before passing into a kiln for firing.
The brick may be glazed before the firing, or glazed afterwards and refired. Some brick manufacturers operate quarries for their raw materials.
Today's bricks are manufactured very similarly, though the process has evolved with time and bricks have grown stronger and more durable.
Surface clay, shale, and fire clay can be used to make bricks. Water is added to these raw materials, and shaped into a mold. This is still done by hand sometimes, but most manufacturers now use machines. After a kiln is loaded up with a batch of bricks, bricks are fired for up to 40 hours.
After this high-heat process, the bricks need to be cooled, inspected, sorted, and packaged. This process, overseen by human workers, is now largely robot-guided.
The manufacture of bricks is a precise science, but even using modern computer-guided methods, a lot can go wrong during the manufacturing process. Just as many hazards face brick manufacturers beyond the production line, however, and without the right insurance coverage, companies that make bricks can easily encounter unforeseen circumstances that land them in serious financial peril.
What type of brick manufacturers insurance is needed, and why? For more information, read on.
Brick 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 brick manufacturing insurance questions:
- What Is Brick Manufacturers Insurance?
- How Much Does Brick Manufacturers Insurance Cost?
- Why Do Brick Manufacturers Need Insurance?
- What Type Of Insurance Do Brick Manufacturers Need?
- What Does Brick Manufacturers Insurance Cover & Pay For?
What Is Brick Manufacturers Insurance?
Brick manufacturers insurance is a type of insurance designed specifically for brick manufacturers and is designed to protect their business against potential risks and losses. This insurance can cover a variety of risks such as property damage, liability, loss of income, and natural disasters.
It is designed to protect the brick manufacturer from losses due to business interruption, damage to machinery and equipment, theft, or any other event that could potentially cause financial loss. This insurance is essential for brick manufacturers to have in order to protect their business from any unexpected financial losses and ensure their continued success.
How Much Does Brick Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small brick manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Brick Manufacturers Need Insurance?
Brick manufacturers need insurance, just like any other other manufacturing company, because even the most well-run business faces a set of serious threats that could cause severe financial set-backs.
Good brick manufacturers insurance coverage offers a safety net against risks that could otherwise render your company bankrupt. Some of those risks will be common to all companies, while some are specific to the manufacturing of bricks.
Acts of nature - natural disasters - come in so many different forms that they can strike your facility no matter where it is based.
Theft and acts of vandalism, which can interrupt your production line by damaging or destroying your valuable equipment, threaten any company. Brick manufacturers will further risk the breakdown of essential equipment, workplace injuries among their employees, and the possibility that a third party is injured within their facility or as a result of their activities.
Should disaster strike a building constructed partially using your bricks, there is even the risk that someone will attempt to hold you responsible and file a lawsuit.
Any of these perils can have devastating consequences - but with the right insurance coverage, brick manufacturers can avoid these financial blows.
What Type Of Insurance Do Brick Manufacturers Need?
Navigating the many different types of brick manufacturers insurance now on the market to protect your business can be intimidating as well as difficult. Every company, including your brick manufacturing business, has specific needs that are determined based on the size of your company, the location of your facilities, the kind of equipment you use, and the number of workers you employ, among other factors.
A commercial insurance agent is an invaluable guide in your process of becoming properly insured. In spite of the fact that your insurance needs will vary, brick manufacturers will certainly require:
- Commercial Property: This type of brick manufacturers insurance exists to protect both the physical building in which your company operates and the assets inside from financial losses caused by damage or destruction due to theft, vandalism, and acts of nature. It can cover outdoor assets on your property, as well. Different sub-categories are available to meet your company's needs, and as you almost certainly work with extremely valuable equipment, brick manufacturers will want to investigate product breakdown insurance as well.
- General Liability: This type of insurance protects in case of third party bodily injury and property damage that occur on your premises or as a result of your company's activities on third party property. It can cover expenses such as attorney fees, medical expenses, and settlement costs.
- Product Liability: Should your bricks need to be recalled, or a poor marketing decision or even misuse on the part of a buyer result in bodily injury or property damage, product liability insurance will have you covered.
- Workers' Compensation: Brick manufacturers work with both kilns and other heavy-duty equipment, as well as potentially hazardous vehicles such as fork-lift tricks. Should a worker sustain injuries in the workplace, whether directly during manufacture or even in a fall, workers comp insurance is invaluable. It will cover medical expenses as well as lost wages, and prevent lawsuits.
Because your insurance needs may not be completely met by these four different kinds, brick manufacturing firms should always speak with a commercial insurance broker to assess the kinds of brick manufacturers insurance, as well as exact plans, they should choose for optimal protection.
Brick Manufacturing's Risks & Exposures
Premises liability exposure is normally low due to limited access by visitors. If tours are given or if outsiders are allowed on premises, visitors may be injured by slips, trips, or falls. Hazards increase if the yard is not fenced, as piles of bricks present an attractive nuisance hazard to trespassers, particularly children. Fumes, dust, and noise from processing could pose a nuisance hazard to neighbors.
Products liability exposure can be high due to the use of bricks in residential and commercial structures. A product failure can result in collapse and costly losses. There should be good quality control procedures in place during processing and of finished goods, with checks conducted to detect cracks, blemishes or other defects. A particular product failure concern is refractory brick which is manufactured to sustain extremely high temperatures.
Environmental impairment exposure is moderate to high due to the potential for air, land and water pollution from dust and fuel storage tanks. Most brick manufacturers will have fuel tanks on premises and may require a UST policy. Vapors, fumes and air pollutants, wastewater and by-products disposal must be evaluated and controlled. Disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposure is serious even if there is no quarry. Injuries from production machinery are common, as are minor cuts, burns, slips, trips, falls, foreign objects in the eye, back injuries from lifting, hearing loss from machinery 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. Maintenance and fueling of machinery and kilns may require workers to enter confined spaces. Exposure to dust may cause skin and eye and respiratory irritations.
If refractory or firebricks are manufactured, there is potential exposure to silica, which can lead to occupational diseases such as Silicosis or Shaver's Lung.
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.
Property exposure consists of an office, production plant, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, kilns, and the storage of large amounts of fuel to run them.
The kilns burn continuously and must be monitored to prevent overheating. Wear and tear and overheating of machinery are potential fire hazards. Electrical equipment must be maintained in good repair and adequate for the heavy-duty requirements. In the absence of well maintained dust collection systems, cutting and buffing operations can generate dust which can catch on fire.
Operating the kilns without adequate ventilation systems can build up flammable vapors and heat that can result in fire or explosion. Fuels stored on premises should be separated from processing areas.
Equipment breakdown exposures include malfunctioning production equipment for both the kiln and the hydraulic press used to compact the clay, dust collection and ventilation systems, electrical control panels and other apparatus. These should be properly maintained. A lengthy breakdown to production machinery could result in severe loss, both direct and under time element.
Crime exposure comes from employee dishonesty. 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.
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. Goods in transit may be damaged by fire, wind, hail, theft, collision, and overturn. There will be a contractors' equipment exposure if there is a quarry.
Commercial auto exposure can be high if the manufacturer has a quarry, picks up raw materials or delivers finished goods to customers. The delivery of goods requires careful loading and tie-down to prevent bricks from coming loose and toppling over during transport.
Delivery to jobsites may involve travel on uneven terrain and temporary roads, increasing the risks of upset and overturn.
What Does Brick Manufacturers Insurance Cover & Pay For?
Brick manufacturers, like any other businesses, can face various legal challenges. Here are a few examples of situations where they might be sued, and how insurance can help cover the costs:
Product Liability: If a brick manufacturer produces faulty bricks that cause injury or property damage, they could be sued for product liability. A customer, construction company, or even a passer-by injured by falling bricks could initiate the lawsuit. In this case, product liability insurance would come into play. It is designed to protect businesses against claims related to the manufacture or sale of products, food, medicines, or other goods to the public. It covers the manufacturer's or seller's liability for losses or injuries to a buyer, user, or bystander caused by a defect or malfunction of the product.
Workers' Compensation Claims: Manufacturing bricks can be a dangerous job, and if an employee gets injured on the job, the company could face a workers' compensation lawsuit. Workers' compensation insurance can help cover the costs associated with this kind of lawsuit. It typically covers medical costs, rehabilitation expenses, and lost wages for the employee, and can protect the business from potentially damaging financial consequences.
Environmental Damage Claims: Brick manufacturing processes can potentially cause environmental harm, such as pollution from kilns. If a manufacturer is sued for environmental damage, pollution liability insurance could help cover the costs of the lawsuit. This type of insurance is designed to cover costs related to pollution-related damages, clean-up requests, and operations necessary to restore the environment.
Contract Disputes: A customer or vendor might sue a brick manufacturer for breach of contract if the manufacturer fails to deliver on agreed-upon terms. Commercial general liability insurance can help cover legal expenses in such situations. In some cases, a specific contractual liability insurance policy may also be applicable, designed to protect against liabilities that policyholders assume when entering into a contract.
Property Damage: If a fire, flood, or other disaster damages a brick manufacturer's facilities, they could face lawsuits from neighboring businesses or homeowners. Commercial property insurance could help cover the costs of these lawsuits. This type of insurance is designed to protect businesses against losses from damage to their physical assets, like buildings and equipment.
It's important for businesses to regularly review their insurance coverage with a knowledgeable broker or attorney to ensure they have the necessary protection in place. Insurance policies can differ significantly, and coverage may not extend to all potential risks a business could face.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3251 Brick And Structural Clay Tile, 3271 Concrete Block And Brick
- NAICS CODE: 327120 Clay Building Material and Refractories Manufacturing, 327331 Concrete Block and Brick Manufacturing
- Suggested Workers Compensation Code(s): 4021 Brick or Clay Products Manufacturing NOC & Drivers, 4024 Brick Manufacturing - Fire or Enameled & Drivers
Description for 3251: Brick And Structural Clay Tile
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 325: Structural Clay Products
3251 Brick And Structural Clay Tile: Establishments primarily engaged in manufacturing brick and structural clay tile. Establishments primarily engaged in manufacturing clay firebrick are classified in Industry 3255; those manufacturing nonclay firebrick are classified in Industry 3297; those manufacturing sand lime brick are classified in Industry 3299; and those manufacturing glass brick are classified in Industry 3229.
- Book tile, clay
- Brick: common, face, glazed, vitrified, and hollow-clay
- Building tile, clay
- Ceramic glazed brick, clay
- Chimney blocks, radial-clay
- Corncrib tile
- Facing tile, clay
- Fireproofing tile, clay
- Floor arch tile, clay
- Flooring brick, clay
- Furring tile, clay
- Partition tile clay
- Paving brick clay
- Silo tile
- Slumped brick
- Structural tile, clay
Description for 3271: Concrete Block And Brick
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 327: Concrete, Gypsum, And Plaster Products
3271 Concrete Block And Brick: Establishments primarily engaged in manufacturing concrete building block and brick from a combination of cement and aggregate. Contractors engaged in concrete construction work are classified in Division C, Construction, and establishments primarily engaged in mixing and delivering ready-mixed concrete are classified in Industry 3273.
- Architecture block concrete: e.g. fluted, screen, split, slump,
- Blocks, concrete and cinder
- Brick, concrete
- Paving block, concrete
- Plinth blocks, precast terrazzo
Brick Manufacturers Insurance - The Bottom Line
Brick manufacturers insurance policies vary widely in coverages, costs and exclusions. To find out if your brick manufacturing operation has the best fit insurance policies - talk to an experienced commercial insurance agent.
Often they are able to save you on premiums and offer you better policy options than you currently have.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Industrial Equipment
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Leather Goods
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Psychedelic Drugs
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vegetable Juice
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
- Specialty Manufacturing
- Specialty Product Liability
The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.