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:
- How Much Does Can Manufacturers Insurance Cost?
- Why Do Can Manufacturers Need Insurance?
- What Type Of Insurance Do Can Manufacturers Need?
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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3411 Metal Cans
- NAICS CODE: 332431 Metal Can Manufacturing
- Suggested ISO General Liability Code(s): 51734 Can Manufacturing - Metal, 51001 Aerosol Container 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.
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.
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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Policies||What 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 Insurance||What 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 Bond||What 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
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.
- 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
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- 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
- Vending Machines
- Vegetable Juice
- Wire Rope
- Wood Furniture
- Writing Instruments
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.