Canvas Products Manufacturers Insurance Policy Information
Canvas Products Manufacturers Insurance. Manufacturers of canvas goods require appropriate insurance coverage, and should be proactive about making sure they have it, because accidents and other circumstances beyond your control could easily devastate your company in a very short period of time.
Various risks lurk around every proverbial corner, and although they come in a multitude of forms, they all share one thing in common - they lead to financial setbacks, and potentially massive ones.
Canvas product manufacturers produce a wide range of items, including athletic gear such as backpacks, awnings, canopies, chair cushions, sails, and tents. Canvas items may be produced from natural or synthetic fibers. Natural fibers come from animal, plant, and insect sources, and include cotton and linen. Common synthetic fibers include acrylic, nylon, polyester and polypropylene.
Natural and synthetic fibers may be blended to produce desired qualities such as absorbency, comfort, durability, or water resistance. The process consists of designing the item, developing patterns, cutting the individual pieces, sewing the parts together, applying trims or clasps, and then packaging for shipment.
Although some automation may be possible in the cutting process, sewing of individual items is often a labor-intensive process. Because of the varieties of materials and processes involved in production, the different phases of manufacture may be carried out in different locations or different countries.
Armed with the right kinds of canvas products manufacturers insurance, the risks you face - hazards common to all commercial ventures and threats unique to your field alike - can be overcome.
A fire, flood, or earthquake could severely damage your manufacturing facility and everything inside it, to name one scenario. Theft and vandalism, which can take severe forms like arson, could render your facility unusable and cost you your valuable inventory too.
Companies that use canvas made from natural fibers have threats such as mildew and mold to contend with. Industrial sewing machines may break down and require repair or replacement at any time. There is, likewise, the risk that a worker becomes injured in the workplace.
These are all threats you want to be insured against.
Canvas products 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 canvas products manufacturing insurance questions:
- How Much Does Canvas Products Manufacturers Insurance Cost?
- Why Do Canvas Products Manufacturers Need Insurance?
- What Type Of Insurance Do Canvas Products Manufacturers Need?
How Much Does Canvas Products Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small canvas products manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Woodworkers Need Insurance?
All companies - large, small, and anything in between, regardless of their field - expose themselves to countless risks. Even if you do everything you can to ensure the financial success of your company, things can always go wrong.
Some of the unforeseen circumstances that threaten your business will be familiar to all commercial ventures, while others are going to be more common within your specific area of industry.
Acts of nature, such as wildfires, earthquakes, hurricanes, and serious floods, might strike your company with little warning, and in some cases even if your geographical location is not especially vulnerable.
Theft and vandalism (including arson, which could have a devastating effect) can also always turn your business upside down, regardless of security measures you may have taken.
Should you produce brooms and brushes with synthetic fibers, there is the risk that valuable machinery suddenly breaks down, halting your production line while you wait for repair or replacement - and losing you money on two fronts in the process.
Companies that work largely with natural materials will face this same possibility, but should also be aware of the threat that their raw materials are ruined by mold or pests.
You also have to consider this scenario - even if your company does not use dangerous machinery, a worker could sustain injuries on the premises, and the same can happen to third parties who visit your facilities as well.
Canvas products manufacturers insurance is important because when something goes wrong, the proper coverage will be there to catch you.
What Type Of Insurance Do Canvas Products Manufacturers Need?
You should be aware that only a competent business insurance specialist can advise you on the forms of insurance your particular canvas goods company needs for optimal protection.
That is because your canvas products manufacturers needs depend on factors such as the size of your company, the number of workers you employ, the location of your manufacturing facility, and your storage solutions, among others.
However, important forms of insurance for any manufacturer include:
- Commercial Property: This form of canvas products manufacturers protects your physical building, but also the assets within, from perils that include theft, vandalism, and certain acts of nature. It is designed to allow your company to recover from these unforeseen circumstances, and can cover lost revenue as well.
- General Liability: Does your company host third parties on its premises, ever? Does it deliver goods to third party properties? If so, any of these third parties may accidentally become injured, or their property damaged as a result of your company's activities. Lawsuits can follow, and general liability insurance serves to cover your legal expenses, including settlement costs.
- Product Liability: Some companies will additionally need product liability insurance, which covers your products in case of third party bodily injury or property damage claims. Should you make sails, for instance, a sail that malfunctions as a result of a production error could lead to an injury on the part of a user, for which the company might be held liable. Product liability insurance is designed for these kinds of situations.
- Workers Compensation: Whether an employee slips and falls, gets their hand caught in a sewing machine, or develops repetitive stress injury because their job requires them to make the same movements over a long period of time, workplace injuries can be costly. Companies may be held liable, and workers' compensation insurance steps in to shoulder employees' medical bills and lost income.
With that overview of important types of canvas products manufacturers insurance that firms within this industry need, you can make further inquiries with a business insurance broker who has insights into your specific situation.
Canvas Products Manufacturing's Risks & Exposures
Premises liability exposure is normally low due to limited access by visitors. If the manufacturer has a showroom or offers tours, visitors may be injured by slips, trips, or falls. Chemicals used in the coating and finishing may be corrosive and/or toxic. Fumes, spills or leaks may cause serious injury or property damage to neighboring premises.
Products liability exposure varies depending on the items produced and the source of fabrics and related supplies. Products exposure could be light for duffel bags or car tarps as a rip may simply result in minor damage to or loss of personal property.
The exposure increases for large items such as circus tents, which may collapse and result in serious bodily injury or death. Knowing the end use of the product is vital.
Environmental impairment exposure is light unless the manufacturer performs any fabric dyeing or treating. Fumes and improper disposal or scrap can result in air, ground, or water contamination. Disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposure can be moderate to high. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, foreign objects in the eye, hearing loss from machinery noise, and back injuries from lifting. 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 used to treat fabrics can cause skin irritation, eye irritation and possible long-term occupational disease.
The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair. Repetitive motion injuries can result from ongoing use of machinery. Workstations should be ergonomically designed.
Safety consciousness and commitment of management, especially in the form of ongoing enforcement and awareness programs, are important considerations. A large amount of the piece work may be done by individuals whose status (employee or independent contractor) must be made clear. Production incentives can be a disincentive to safety if the only consideration is by piece production.
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. Chemicals used in fabric dyeing or coating are often flammable and should be properly labeled, separated, and stored in approved containers.
Dust from textile processing operations can explode if ignited. This hazard increases in the absence of a well maintained dust collection system. Fabrics (raw materials, supplies, scrap and finished goods) and foam fillers are often highly combustible, especially if poorly stored without adequate aisle space and shelving. Fabric is susceptible to damage by fire or smoke, water and moisture, or temperature. Minor fires may result in major inventory losses.
Poor housekeeping, such as failure to collect and dispose of scraps 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.
Sprinkler systems may be advisable. Appropriate security controls must be taken including 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.
Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. These should be properly maintained and records kept in a central location.
Crime exposure comes from employee dishonesty and theft. 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), exhibitions, 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, collision, overturn, theft, or water damage.
Business auto 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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2394 Canvas And Related Products
- NAICS CODE: 314910 Textile Bag and Canvas Mills
- Suggested ISO General Liability Code(s): 58822 Sail Making, 59306 Sporting Goods or Athletic Equipment Manufacturing, 59713 Tent or Canopy Manufacturing
- Suggested Workers Compensation Code(s): 2501 Umbrella Manufacturing
Description for 2394: Canvas And Related Products
Division D: Manufacturing | Major Group 23: Apparel And Other Finished Products Made From Fabrics And Similar Materials | Industry Group 239: Miscellaneous Fabricated Textile Products
2394 Canvas And Related Products: Establishments primarily engaged in manufacturing awnings, tents, and related products from purchased fabrics. Establishments primarily engaged in manufacturing canvas bags are classified in Industry 2393.
- Air cushions, canvas
- Awnings, fabric
- Canopies, fabric
- Canvas products, except bags and knapsacks
- Cloths, drop: fabric
- Covers, fabric
- Curtains: dock and welding
- Liners and covers, fabric: pond, pit, and landfill
- Pneumatic mattresses
- Shades, canvas
- Swimming pool covers and blankets, fabric
- Tarpaulins, fabric
Canvas Products Manufacturers Insurance - The Bottom Line
Not all canvas products manufacturers insurance programs offer the costs, coverages and exclusions. You can find out if your business has the best fit insurance policies by talking 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.
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.