Button Manufacturers Insurance Policy Information
Button Manufacturers Insurance. Once exclusively made with natural materials such as ivory, mother of pearl, and wood, most buttons are manufactured using polyester today.
Button manufacturers produce buttons in a variety of natural and synthetic materials, including bone, horn, shell, wood, ceramic, fabric, glass, metal, nylon, plastic, or polyester. Buttons made from natural materials are cut out, holes drilled, polished, and finished with a layer of lacquer or wax.
Buttons made from synthetic materials may be mixed with catalysts and/or dyes, punched, cut out or extruded, heated or cooled for strengthening, buffed to remove sharp edges, washed, dried, and then polished.
The process is complex, requiring steps like mixing the polyester, adding the dyes that determine the color, pouring the materials into cylinders, cutting and punching the buttons, and polishing them. A large variety of machines is used for this modern industrial process.
Other manufacturers still create buttons with natural materials, however, and their process will differ significantly - small artisans even continue to create buttons largely by hand.
If your company manufactures buttons, there is no question that your product, though easily overlooked, is vital to everyday life. As you strive to deliver buttons that meet your buyers' needs, however, there is no denying that your company is also vulnerable to any number of threats that could, without the right insurance, quickly result in financial ruin.
What type of button manufacturers insurance should you have, and why does insurance play such an essential role in the success and growth of your company? Read on to discover more.
Button 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 button manufacturing insurance questions:
- What Is Button Manufacturers Insurance?
- How Much Does Button Manufacturers Insurance Cost?
- Why Do Button Manufacturers Need Insurance?
- What Type Of Insurance Do Button Manufacturers Need?
- What Does Button Manufacturers Insurance Cover & Pay For?
What Is Button Manufacturers Insurance?
Button manufacturers insurance is a type of liability insurance that covers a button manufacturer against claims of bodily injury or property damage caused by their products. This insurance protects the manufacturer from lawsuits and financial loss due to accidents or malfunctions of their buttons.
It can also include coverage for product liability, property damage, and general liability claims. The policy may also include coverage for recall and product withdrawal costs, as well as third-party liability claims made against the manufacturer.
How Much Does Button Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small button manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Button Manufacturers Need Insurance?
Responsible business owners won't simply hope that disaster passes their companies by - they will also take all possible steps to mitigate the many risks they will face. Some circumstances are, however, beyond your control. These unforeseen events, which are often very hard to plan for, can easily saddle any company with massive financial losses. That is why you need excellent insurance.
Some of the risks you can insure yourself against will be common to all businesses, while others are going to be more unique to the button manufacture industry or even your individual company. Any company can, for example, suffer losses as the result of criminal acts such as theft and vandalism.
Acts of nature are another universal risk; from earthquakes to wildfires, these disasters can ravage your company.
Risks more specific to the manufacture of synthetic buttons would include the possibility that one of the valuable machines essential to your production line breaks down suddenly, causing repair or replacement costs, lost revenue due to halted production, and missed orders.
Workers may also sustain injuries over the course of their duties, or face occupational health hazards because of exposure to chemicals used during manufacture. Third party law suits should also be on your radar - should a buyer or any other third party suffer bodily injury on your premises, they may claim negligence on your part and file a lawsuit.
The same holds true for damage your company's activities causes to third party properties.
Button manufacturers insurance may not always cover all costs associated with such potentially devastating events, but it will certainly help cushion the blow.
What Type Of Insurance Do Button Manufacturers Need?
As a manufacturer of buttons, you will need to carry several different types of insurance to meet all your needs. The exact coverage appropriate for your company depends on factors such as the location of your manufacturing facility, the size of your venture, your number of workers, and also the materials you work with.
Speak with a business insurance agent familiar with your industry to go over the details. Some examples of the types of button manufacturers insurance you must have include:
- Commercial Property: This type of insurance helps cover financial losses that result from damage to your physical assets, including real estate, if events like fire, theft, or vandalism occur. Not only can this kind of insurance, also sometimes called business property insurance, (partially) compensate for the damage, it can also cover revenue lost as a result of the unfortunate event.
- Commercial General Liability: Claims that your company is responsible for third party bodily injury or property damage can be devastating, even if you are not ultimately held legally liable. This type of button manufacturers insurance helps you cover your legal costs and settlement fees if, for instance, someone who does not work for you is injured within your manufacturing facilities and then sues you.
- Workers' Compensation: Should an employee suffer a workplace-related injury or illness, this type of insurance covers their medical bills and lost wages. Additionally, it greatly reduces the risk that a worker can file a civil suit against you.
Because your button manufacturers insurance needs may not end here, it is essential to partner with an agent specializing in commercial insurance.
They may also suggest product liability insurance, in case a batch of buttons needs to be recalled, auto insurance, essential for any business that uses vehicles, and inland marine insurance to cover goods in transit.
Button Manufacturing's Risks & Exposures
Premises liability exposure is normally low as access by visitors is limited. If the manufacturer has a showroom or offers tours, visitors may be injured by slips, trips, or falls. Chemicals used in processing may be corrosive and/or toxic. Fumes, dust, or noise may affect neighboring premises.
Products liability exposure is low unless there are special design specifications for closures.
Environmental impairment exposure may be significant due to possible contamination of ground, air, and water from the chemicals, paint, and solvents used. Disposal of wastes must adhere to all federal and state guidelines.
Workers compensation exposure is moderate to high, depending upon the process used. Injuries from production machinery are common, as are burns, cuts, slips, trips, 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. Flammable liquids and chemicals can cause eye, skin, and lung irritation and possible long-term occupational disease.
Property exposures consist of an office, production plant, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, and production machinery. Additional exposure depends on the materials used. There may be a kiln on premises for making ceramic buttons.
Plastic will produce the highest fire load while metal will have a lower fire load. The dust from the processing of wood, bone, shell, horn, or fabrics can cause fire or explosion unless there are well maintained dust collection systems with adequate ventilation. Flammables may include paints, dyes, lacquers, fuel, and solvents used to clean machinery
Poor housekeeping, such as failure to collect and dispose of trash on a regular basis, could contribute significantly to a loss. Degreasers, solvents, chemicals to clean or coat, and other flammables must be adequately controlled. Unless disposed of properly, greasy, oily rags (such as those used to clean machinery) can cause a fire without a separate ignition source.
Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in a severe loss, both direct and indirect, particularly 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), exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information. The primary perils are fire, theft, collision, overturn, and water damage.
Business exposure may be high if the manufacturer transports raw materials or finished products. 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 Button Manufacturers Insurance Cover & Pay For?
Button manufacturers, like any businesses, can face lawsuits for various reasons. Here are some potential reasons and how insurance might help:
Product Liability: If a button manufacturer produces faulty buttons that lead to harm or damage - for example, a button that easily detaches and causes a choking hazard for a child - they could be sued for product liability. An insurance policy called Product Liability Insurance would protect them in such a scenario. This insurance helps cover legal defense costs, settlements, and any damages awarded in court.
Breach of Contract: Suppose a button manufacturer fails to deliver the ordered quantity or misses a deadline, causing significant losses to the customer. The client may sue the manufacturer for breach of contract. Professional Liability Insurance, sometimes known as Errors & Omissions (E&O) Insurance, could help cover the legal fees and any damages resulting from such a lawsuit.
Workplace Injuries: If an employee gets injured while working - say, due to a malfunctioning button-press machine - the manufacturer could face a lawsuit for failing to maintain a safe working environment. Workers Compensation Insurance would help cover the medical expenses, rehabilitation costs, and any legal fees associated with such a claim.
Intellectual Property Infringement: If a button manufacturer unknowingly copies a design patented by another company, they could be sued for intellectual property infringement. Intellectual Property Insurance can help cover the legal defense costs, as well as any court-ordered compensation, in such cases.
Environmental Damage: If a button manufacturer's operations cause environmental harm - for example, pollution due to improper disposal of waste - they could face a lawsuit for environmental damage. An Environmental or Pollution Liability Insurance policy would cover the cleanup costs, as well as any legal fees and damages associated with such a lawsuit.
Discrimination or Wrongful Termination: If an employee or job applicant alleges they were discriminated against, or if an employee claims they were wrongfully terminated, the manufacturer could face a lawsuit. Employment Practices Liability Insurance (EPLI) helps cover the legal fees, settlement costs, and any damages awarded by a court in such cases.
The above examples illustrate the types of insurance that could help a button manufacturer in the event of a lawsuit. It's important for businesses to work with an insurance broker or agent to ensure they have the right types and amounts of coverage for their specific needs and risks.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3965 Fasteners, Buttons, Needles, And Pins
- NAICS CODE: 339993 Fastener, Button, Needle, and Pin Manufacturing
- Suggested Workers Compensation Code(s): 3131 Button or Fastener Manufacturing - Metal, 4484 Plastics Manufacturing - Laminated Molded Products NOC
Description for 3965: Fasteners, Buttons, Needles, And Pins
Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 396: Costume Jewelry, Costume Novelties, Buttons, And Miscellaneous Notions, Except Precious Metal
3965 Fasteners, Buttons, Needles, And Pins: Establishments primarily engaged in manufacturing notions, such as slide and snap fasteners and zippers, machine and hand needles, pins, hooks and eyes, buckles, buttons, button parts, and button blanks. Establishments primarily engaged in manufacturing these products from precious metals or from precious or semiprecious stones are classified in Industry 3911.
- Buckle blanks and molds
- Buckles and buckle parts, except shoe buckles
- Button backs and parts
- Button blanks and molds
- Button coloring for the trade
- Buttons, except precious metal and precious or semiprecious stones
- Collar buttons, except precious metal and precious or semi-precious
- Cuff buttons, except precious metal and precious or semiprecious
- Eyelets, metal: for clothing, fabrics, boots and shoes, and paper
- Fasteners: glove, slide, snap, and hook-and-eye
- Hair curlers, except equipment designed for beauty parlor use
- Hairpins, except rubber
- Hooks and eyes
- Hooks, crochet
- Needles, hand and machine
- Pins, except jewelry: toilet, safety, hat pins, and hairpins-steel or
- Shirt studs, except precious metal and precious or semiprecious stones
- Tape, hook-and eye and snap fastener
- Zippers (slide fasteners)
Button Manufacturers Insurance - The Bottom Line
Not all button manufacturers insurance policies are designed the same. In fact, cost and coverage varies widely. To find out if your button manufacturing frim has the best fit insurance policies - talk to an experienced commercial insurance broker.
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.
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- Plastic Goods
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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.