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:
- What Is Canvas Products Manufacturer Insurance?
- How Much Does Canvas Products Manufacturers Insurance Cost?
- Why Do Canvas Products Manufacturers Need Insurance?
- What Type Of Insurance Do Canvas Products Manufacturers Need?
- What Does Canvas Products Manufacturers Insurance Cover & Pay For?
What Is Canvas Products Manufacturer Insurance?
Canvas products manufacturer insurance is a type of insurance coverage specifically designed for companies that manufacture canvas products.
This type of insurance provides protection for the manufacturer against potential financial losses or liabilities that may occur during the production process. Some common coverage included in canvas products manufacturer insurance includes product liability, property damage, business interruption, and workers' compensation.
This insurance helps to mitigate the risks associated with producing canvas products and ensures that the manufacturer is able to continue operating in the event of a loss or injury.
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.
What Does Canvas Products Manufacturers Insurance Cover & Pay For?
Canvas product manufacturers, like any other business, may face several types of lawsuits. Here are some examples and how insurance can help:
Product Liability: If a product made by the manufacturer is faulty or causes harm to a customer, they might face a product liability lawsuit. For example, a canvas tent could collapse and injure someone, or a canvas bag might have harmful chemicals that cause health issues.
Insurance Protection: Product Liability Insurance can help cover the costs associated with such lawsuits. This policy can pay for the manufacturer's legal defense, settlements, and any court-ordered judgments. It can also cover medical costs if a customer is injured.
Worker's Compensation Claims: If an employee gets injured while working, they could sue the company for compensation. For example, a worker might get injured while operating machinery used in the canvas production process.
Insurance Protection: Worker's Compensation Insurance can help pay for medical expenses, rehabilitation costs, and a portion of lost wages for an injured employee. In many jurisdictions, having this insurance also limits the ability of employees to sue for injuries, as the insurance provides the mandated benefits.
Property Damage: Accidents or natural disasters could damage the manufacturing facility, leading to substantial repair costs. For instance, a fire could break out, damaging the machinery and canvas stock.
Insurance Protection: Commercial Property Insurance can cover the costs of repairing or replacing damaged property, including buildings, equipment, and inventory. This can enable the business to recover without bearing the full financial burden of such incidents.
Intellectual Property Infringement: If the manufacturer inadvertently uses a design patented by another company, they could face a lawsuit for infringement.
Insurance Protection: Intellectual Property Insurance can help cover the costs associated with defending against accusations of patent, copyright, or trademark infringement. It could also cover damages if the business is found to have infringed on someone else's intellectual property rights.
Contract Disputes: Disagreements with suppliers, clients, or partners over contractual obligations could lead to lawsuits. For instance, a supplier might sue the manufacturer for not fulfilling the agreed purchasing quantities.
Insurance Protection: Commercial General Liability Insurance often includes coverage for personal and advertising injury, which can include some types of contractual liability. Additionally, a Directors and Officers (D&O) policy can cover legal costs when company leaders are sued over their business decisions.
Data Breaches: If the manufacturer stores sensitive information (like customer or employee data) and this data is breached, they could be sued for negligence.
Insurance Protection: Cyber Liability Insurance can cover the costs related to a data breach, including customer notification, credit monitoring services, public relations efforts, and any resulting lawsuits.
Remember, insurance policies can vary widely, so manufacturers need to work closely with their insurance agent or broker to make sure they have the right coverage for their specific risks. Always read the policy documents carefully to understand what is covered, what isn't, and what the policy limits are.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2394 Canvas And Related Products
- NAICS CODE: 314910 Textile Bag and Canvas Mills
- 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
- Sails
- Shades, canvas
- Swimming pool covers and blankets, fabric
- Tarpaulins, fabric
- Tents
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.
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
- Adhesives
- Alarms
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Boxes
- Bricks
- Brooms & Brushes
- Buttons
- Cabinets
- Camping Equipment
- Canned Fruit & Vegetables
- Cans
- Canvas Products
- Caskets
- CBD Oil And Hemp
- Cement
- Ceramics
- Chemical
- Clock & Watch
- Clothing
- Coffee
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Computers
- Condoms
- Construction Equipment
- Cork Products
- Cosmetics
- Cutlery
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Electroplating
- Elevators
- Engines
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fences
- Fertilizer
- Fireworks
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gears
- Glass
- Glasswear
- Gypsum Products
- Hosiery
- Ice Cream
- Industrial Equipment
- Ink
- Insecticides
- Iron & Steel Foundries
- Jewelry
- Lawn Mowers
- Leather Apparel
- Leather Goods
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Manufacturing
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Millwork
- Monuments
- Musical Instruments
- Nanotechnology
- Nonferrous Foundries
- Ornamental Metalwork
- Paint
- Paper & Allied Products
- Pesticides
- Pet Food
- Pharmaceuticals
- Plastic & Rubber Toys
- Plastic Goods
- Plastics
- Plastics Molding, Forming & Extruding
- Pottery
- Product Liability
- Prosthetics
- Psychedelic Drugs
- Pulp & Paper Mills
- Refractory
- Residential Air Conditioning & Heating
- Rubber Goods
- Rugs
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Shoes
- Small Electrical Appliances
- Sporting Goods
- Springs
- Stone Products
- Tanneries
- Textiles
- Textiles Finishing & Coating
- Tires
- Tobacco
- Tool & Die Shops
- Vegetable Juice
- Vending Machines
- Watercraft
- Wire
- Wire Rope
- Wood Furniture
- Woodworking
- Writing Instruments
- Yarn
- 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.
