Cement Manufacturers Insurance Policy Information
Cement Manufacturers Insurance. Cement is a strong, durable, and widely-used binding material in construction. Its manufacture, which involves materials such as shale, mill scale, bauxite, silica sand, iron ore, and fly ash, requires grinding, blending, heating, and a kiln phase as well as cooling and packaging.
Cement manufacturers mix clay, limestone, and other materials into a binding and hardening agent for use in construction projects. The limestone is baked in a kiln (either dry or wet), mixed to proper proportions with gypsum and other materials, and ground to a very fine powder.
Concrete is cement mixed with "aggregate" (sand and gravel), water, and sometimes other materials required for a particular end use. Aggregate is run through several crushing and mixing operations to obtain the required coarseness and proper proportions of materials.
For ready-mix concrete, the aggregate and cement are combined in mixers called batch plants and sold to customers in an unhardened state. Many operations own their quarries and mine their own clay, gravel, lime, and sand.
Manufacturing cement is a surprisingly sensitive and hazardous process. Although there is no doubt that the modern world is unimaginable without cement, this means that companies producing cement have to take particular care to safeguard their business against risks that could easily have devastating financial consequences.
What types of unforeseen circumstances are likely to pose a threat for companies that make cement, and what kind of cement manufacturers insurance do they need to protect their assets? To start learning more, read this handy guide.
Cement 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 cement manufacturing insurance questions:
- How Much Does Cement Manufacturers Insurance Cost?
- Why Do Cement Manufacturers Need Insurance?
- What Type Of Insurance Do Cement Manufacturers Need?
How Much Does Cement Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small cement manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Cement Manufacturers Need Insurance?
As a cement manufacturer, your company is vulnerable to a multitude of perils, some of which could bankrupt your company overnight without the proper insurance coverage. Some of those risks are dangers shared by businesses in all fields, but others are exclusive to your own industry.
Theft and vandalism are two examples of risks common to all companies; they could damage equipment essential to your production process or even, in the case of arson, destroy your entire facility.
Acts of nature, which would include lightning strikes, earthquakes, and floods, can also impact any company, though the kind of natural disaster your company is most likely to encounter will vary according to climate and geography.
The biggest threat specific to your industry comes in the form of occupational hazards related to the raw materials cement manufacturers work with; workers in this field are more likely to suffer workplace injury or illness than those in many other fields.
Up to 10 percent of workers in cement manufacturing suffer work-induced health conditions, in fact. The most common causes include respiratory conditions resulting from the inhalation of raw materials over time, injuries from using unguarded machinery, and serious skin reactions. Companies can be held liable for many of these health hazards.
You also, of course, have to consider the possibility that third parties sustain injuries on your premises and then file a lawsuit against you, or that your company damages a third party property.
All these threats can lead to disastrous, and even bankrupting, outcomes without the right cement manufacturers insurance.
What Type Of Insurance Do Cement Manufacturers Need?
The types of cement manufacturers insurance needed vary depending on the size and scope of their company, where they are based, and how many workers they employ, among other factors.
Because your insurance needs are as unique as your business, it is vital to have an in-depth consultation with an broker who specializes in commercial insurance and understands the specifics of your industry.
Let's take a look at the types of insurance cement manufacturers will certainly need to carry, however:
- General Liability: This type of insurance coverage is essential in case of claims of third party bodily injury or property damage, and covers both legal expenses and medical or repair costs. You will need to rely on general liability insurance if a third party suffers respiratory symptoms after attending your facility, or if your product contaminates the local environment, for example.
- Product Liability: This category of liability insurance is designed to protect you from liability claims related directly to your product itself. That means you are covered even after your product is sold, should it cause injury or property damage and a third party attempts to hold you responsible. It can also help compensate for cases in which a batch of cement needs to be recalled.
- Commercial Property: Another vital type of cement manufacturers insurance coverage, business property insurance shields your physical assets - your building and its contents, but also outdoor assets - in case of damage or destruction resulting from unforeseen circumstances like fire or theft.
- Workers' Compensation: Should an employee develop chronic obstructive pulmonary disease despite proper health and safety precautions, or become injured over the course of manufacture, this type of insurance covers their medical expenses as well as lost wages if they are unable to return to work. It further covers death benefits. Compulsory in most jurisdictions, workers' compensation insurance also guards your company against civil suits from employees.
These examples of essential types of cement manufacturers insurance may not cover all your needs. To find out what insurance your particular company requires as well as what it will cost, consult a commercial insurance agent.
Cement Manufacturing's Risks & Exposures
Premises liability exposure is high even though access by visitors is limited. If tours are given or outsiders are allowed on premises, visitors may be injured by slips, trips, or falls. Cement manufacturing generates a great deal of dust and noise that may affect neighbors, resulting in a high frequency of nuisance claims.
The manufacturing process may also cause serious health problems due to the exposure to silica dust. Ready-mix concrete operations may have constant traffic from delivery trucks trying to pick up product to meet construction deadlines.
Hazards increase if the location is not fenced and monitored while not in use, as the edge of a quarry is commonly a cliff, presenting a catastrophic fall hazard. Mounds of sand and gravel and the equipment may be visible at a distance and are an attractive nuisance to trespassers, particularly children.
Products liability exposure can be high due to the use of cement and concrete in residential and commercial structures. A product failure due to improper mixing or specifications can result in costly losses. Quality control procedures for products while in the process and of finished goods reduce the exposure.
Environmental impairment exposure is high as dust, vapors and spillage of fuel tanks may contaminate air, land, and surface or ground water. Most cement manufacturers will have fuel tanks on premises and may require a UST (underground storage tank) policy.
Disposal of wastes must adhere to all federal and state guidelines. Reclamation procedures should be in place to control the impact of the quarrying operation. Claims for cumulative structural damage to neighboring foundations may arise from the ongoing heavy traffic.
Workers compensation exposure is serious even if there is no quarry. Injuries from production machinery are common, as are minor cuts, burns, 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. Maintenance and fueling of machinery and kilns may require workers to enter confined spaces. Work at heights and below grade can result in falls and injuries from falling material.
Exposures to rock dust and silica may cause serious skin, eye, and respiratory irritations and lead to occupational diseases such as silicosis.
Property exposure consists of an office, plant, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, and production machinery. Hazards come from a large amount of fuel on hand to run the machinery and the kilns. The processing machinery is huge and conveys heavy loads. Maintenance is critical to prevent overheating and other potential fire hazards.
Operating the kilns, batch plants, and stone crushers present the potential for buildup of dust, flammable vapors, and heat, which can result in fire or explosion. There should be well-maintained dust collection systems and adequate ventilation. Fuels stored on premises should be separated from processing areas.
Poor housekeeping may be a serious fire hazard. Unless disposed of properly, greasy, oily rags (such as those used to clean the machinery) can cause a fire without a separate ignition source. Property in the open is exposed to weather, including lightning, high winds, and freezing.
If mining or quarrying is done, there may be blasting and the exposure for theft can be high. Appropriate security controls must be taken including lighting and 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 for the kiln and the hydraulic press used to compact the clay, 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 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 exposure includes 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 fire, wind, hail, theft, collision, and overturn. If there is a quarry, there will be a contractors' equipment exposure.
Commercial auto exposure can be high if the manufacturer has a quarry, picks up raw materials, or delivers finished goods to customers, particularly mix-in-transit concrete. As these trucks are among the heaviest on the road, they can cause severe bodily injury or property damage even in minor collisions. Because of their compactness and weight, these units are difficult to tow if they get driven into a ditch or stuck in mud at a job site.
Delivery to job sites may involve travel on uneven terrain and temporary roads, increasing the risks of upset and overturn. 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, especially mix-in-transit concrete trucks, must be well maintained, with documentation kept in a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3273 Ready-Mixed Concrete, 3241 Cement, Hydraulic
- NAICS CODE: 327999 All Other Miscellaneous Nonmetallic Mineral Product Manufacturing, 327320 Ready Mix Concrete Manufacturing, 327310 Cement Manufacturing
- Suggested ISO General Liability Code(s): 51808, 51809, 51956
- Suggested Workers Compensation Code(s): 1701, 7228
Description for 3273: Ready-Mixed Concrete
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 327: Concrete, Gypsum, And Plaster Products
3273 Ready-Mixed Concrete: Establishments primarily engaged in manufacturing portland cement concrete manufactured and delivered to a purchaser in a plastic and unhardened state. This industry includes production and sale of central-mixed concrete, shrink-mixed concrete, and truck-mixed concrete.
- Central-mixed concrete
- Ready-mixed concrete, production and distribution
- Shrink-mixed concrete
- Truck-mixed concrete
Description for 3241" Cement, Hydraulic
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 324: Cement, Hydraulic
3241 Cement, Hydraulic: Establishments primarily engaged in manufacturing hydraulic cement, including portland, natural, masonry, and pozzolana cements.
- Cement, hydraulic: portland, natural, masonry, and pozzolana
Cement Manufacturers Insurance - The Bottom Line
Every cement manufacturers insurance policy has different exclusions and coverage. To find out if your cement manufacturing operation has the best fit policies - talk to an experienced business 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.
- Audio & Video Equipment
- Auto Parts
- 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
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fur Garment
- Garage Door
- Gypsum Products
- 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
- 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
- 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.