Can Manufacturers Insurance Policy Information
Can Manufacturers Insurance. Metal cans are seen worldwide. They are used in every country and manufactured in the vast majority. The market will only continue to grow with extra demand as the population grows, and the third world develops.
The metal can industry manufactures a wide range of cans for various uses, including soda cans, paint cans, canned food, etc. They serve practical purposes as a cheap, easy way to package goods that are easily transportable. Innovative new uses are likely to be developed in the coming decades.
Can manufacturers produce metal storage containers for various products such as beverages, foods, hairsprays, motor oils, and paints. Aerosol cans store contents under high pressure. Cans are made of various metal alloys, especially aluminum or steel coated with tin to prevent rust. The insides of cans are coated to prevent metal contamination to the product it will contain.
Seamless aluminum cans are formed by punching a circular piece from a thin metal sheet. The piece is shaped into a cylinder. Once filled, a lid is clamped onto the end. Steel cans may be cut into rectangles from a large sheet, rolled and welded to form cylinders with flanged ends. A lid is clamped onto the bottom. Once filled, another lid is clamped onto the top. Printing may be done before or after the can is filled.
Finding reliable insurance is a challenge for many manufacturing industries, and the metal can sector is no different. Identifying all of the risks that need to be covered as the sector develops (for example with higher automation, the need for extra machinery coverage will be apparent) and the aim will be to find flexible insurance companies who are always open to extra coverage.
Let's look in more depth at why every metal can manufacturer needs insurance, and what kinds of can manufacturers insurance are needed. As stated, finding the right type of insurance for metal can manufacturers can be a chore, so we will look at why that is so.
Keep reading to learn more about the details that you should know.
Can 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 can manufacturing insurance questions:
- What Is Can Manufacturers Insurance?
- How Much Does Can Manufacturers Insurance Cost?
- Why Do Can Manufacturers Need Insurance?
- What Type Of Insurance Do Can Manufacturers Need?
- What Does Can Manufacturers Insurance Cover & Pay For?
What Is Can Manufacturers Insurance?
Can Manufacturers Insurance is a type of insurance coverage specifically designed for companies that manufacture metal or plastic containers, including cans, bottles, and jars. This insurance provides protection against various risks associated with the manufacturing process, such as liability for product defects, property damage, and business interruption. It may also cover losses related to equipment breakdowns, theft, and fire.
The purpose of Can Manufacturers Insurance is to help can manufacturers safeguard their assets, protect their reputation, and minimize financial losses in the event of a covered claim.
How Much Does Can Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small can manufacturing businesses ranges from $57 to $89 per month based on location, size, revenue, claims history and more.
Why Do Can Manufacturers Need Insurance?
Unforeseen circumstances and potential financial losses are the main reason that insurance coverage is vital in the metal can sector. There are many risks that are shared with many other commercial enterprises, while there are some mostly machine or toxic material concerns particular to metal cans.
There are always risks at a manufacturing plant of acts of nature, vandalism, theft, and fire. Injuries in the workplace to staff or visitors is a constant concern. Machinery malfunction or human error is often the culprit.
Metal can companies can be held liable for any leakage or lost products and in extreme cases there is a risk of explosion (particularly with gas cans).
So, there are many risk factors that a metal can manufacturer can be held liable for, which can lead to some insurance companies being unwilling to risk covering them. This leads to metal can manufacturers preferring to deal with specialist can manufacturers insurance firms who are familiar with the issues in the industry.
What Type Of Insurance Do Can Manufacturers Need?
Companies in this industry need to hold various types of can manufacturers insurance policies to cover all that is required. They have to protect themselves from liability and disaster amongst others.
When deciding their total coverage needs there are various factors to consider such as location, local laws, size of their plant, and the exact nature of their business.
It is essential to always consult a proven insurance broker who is experienced in handling commercial insurance coverage. The following types of can manufacturers insurance are always deemed necessary:
- Workers Compensation: If a worker is injured during the manufacturing process of metal cans, any work-related injury needs to be covered or you can face a large payout if a personal injury attorney gets involved. This policy should cover all medical expenses and for any lost salary while the worker is recuperating.
- Commercial Property: It is essential for any commercial property to secure this type of insurance. Your firm will be properly covered in case of fire or acts of nature, vandalism, theft, etc. It will also cover your property and all of your contents inside.
- Equipment Breakdown Coverage: There are various types of equipment breakdown insurance, so you need to sit down with your expert insurance agent to work out what best covers your business.
These are just some of the types of can 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.
Can Manufacturing's Risks & Exposures
Premises liability exposure is usually light due to limited access by visitors. If tours are given, visitors may be injured by slips, trips or falls. Fumes, dust, and noise from woodwork or metal work could affect neighboring properties.
Products liability exposure can be high due to the potential for bodily injury to humans or animals when cans used to store food or beverages are not properly sanitized and sealed to prevent spoilage or contamination. Aerosol cans may explode if the metal or seals fail.
The manufacturer should have a recording method to identify their products and customers in case a recall is necessary. Quality control should be conducted.
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 exposures are moderate to high due to the potential for burns from molten metal. Injuries from production machinery are common, as are minor cuts, 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. Welding and spray-painting increase the potential for burns, eye and skin irritants, and respiratory problems. Chemical burns and eye, skin, and lung irritants can present long-term occupational disease.
Property exposures consist of an office, plant, and warehouse for storage of raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, molten metal, and heat or sparks generated in the cutting or punching operations.
Dust from processing can cause fire or explosion unless there are properly maintained dust collection systems with adequate ventilation. Welding and spray-painting should be conducted in separate areas away from combustibles. 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, electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in severe loss, both direct and under time element.
Crime exposures are chiefly from employee dishonesty. 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. The primary causes of loss are collision, overturn, and water damage.
Automobile exposure can be high if the manufacturer picks up raw materials or delivers finished products to customers. 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 Can Manufacturers Insurance Cover & Pay For?
Can manufacturers, like any other industry, can be sued for a variety of reasons. Here are some common reasons and how insurance can help:
Product Liability: If a can manufacturer produces a defective product that causes harm or injury to a consumer, they can be held liable. For example, a can could have a sharp edge that causes a cut, or a can's lining could contaminate the food inside and cause illness.
Insurance: Product liability insurance can help in these cases. This insurance coverage helps pay for legal defense costs, court fees, and any settlements or judgments that the business may be required to pay. If the can manufacturer is found liable for the injury, the insurance can cover the damages up to the limit of the policy.
Worker's Compensation Claims: If an employee is injured on the job, such as from a machine malfunction or unsafe working conditions, the manufacturer could face a worker's compensation lawsuit.
Insurance: Worker's compensation insurance can help pay for medical expenses, rehabilitation costs, and a portion of lost wages if an employee is injured at work. This insurance can also help cover the legal costs associated with defending against a worker's compensation claim.
Breach of Contract: Can manufacturers may have contracts with suppliers, clients, or other businesses. If they fail to fulfill the terms of these contracts, they could be sued. For example, if a manufacturer promises to deliver a certain quantity of cans by a certain date and fails to do so, they could be sued for breach of contract.
Insurance: Professional liability insurance, also known as errors and omissions (E&O) insurance, can help cover the costs of such lawsuits. This insurance can help pay for legal defense and any damages awarded.
Environmental Damage: Can manufacturing involves the use of various materials and chemicals, which can potentially harm the environment. If a company is found responsible for environmental damage, they could face hefty fines and lawsuits.
Insurance: Environmental liability insurance can help cover costs associated with environmental clean-up, as well as legal defense costs associated with environmental damage claims.
Intellectual Property Infringement: If a can manufacturer is accused of infringing on another company's patents, trademarks, or copyrights, they could face a lawsuit.
Insurance: Intellectual property insurance can help cover the legal costs associated with defending against such claims, as well as any damages awarded if the company is found liable.
Property Damage: Accidents or disasters can cause damage to the property where the cans are manufactured. For example, a fire could damage or destroy the manufacturing plant.
Insurance: Commercial property insurance can help cover the costs to repair or replace the damaged property, including machinery and inventory. It can also help cover the cost of business interruption, which can help replace lost income if the business has to temporarily close for repairs.
Remember, each insurance policy will have different coverages, exclusions, and limits, and it's important for businesses to thoroughly understand their policies to ensure they have the right protection in place.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3411 Metal Cans
- NAICS CODE: 332431 Metal Can Manufacturing
- Suggested Workers Compensation Code(s): 3220 Can Manufacturing
Description for 3411: Metal Cans
Division D: Manufacturing | Major Group 34: Fabricated Metal Products, Except Machinery And Transportation Equipment | Industry Group 341: Metal Cans And Shipping Containers
3411 Metal Cans: Establishments primarily engaged in manufacturing metal cans from purchased materials. Establishments primarily engaged in manufacturing foil containers are classified in Industry 3497.
- Beer cans, metal
- Can lids and ends, metal
- Cans, aluminum
- Cans, metal
- Food containers, metal
- General line cans, metal
- Ice cream cans, metal
- Milk cans, metal
- Oil cans, metal
- Packers' cans, metal
- Pails, except shipping and stamped: metal
- Pans, tinned
- Tin cans
Can Manufacturers Insurance - The Bottom Line
Can manufacturers insurance polices can vary a lot in exclusions and coverage. To find out if your business has all its insurance needs covered in a comprehensive plan, speak with a reputable commercial insurance broker.
In many cases they can 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.
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- Plastic Goods
- Plastics Molding, Forming & Extruding
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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.