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Cement Manufacturers Insurance Policy Information

Cement Manufacturers Insurance

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:

What Is Cement Manufacturers Insurance?

Cement manufacturers insurance is a type of insurance coverage specifically designed for companies that produce and distribute cement. This insurance protects the manufacturer from financial losses due to unexpected events such as accidents, natural disasters, equipment failure, and product liability claims. The policy may cover property damage, business interruption, liability for personal injury or property damage, and costs associated with product recalls or lawsuits. The coverage can also provide protection for employees, machinery, and equipment.

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?

Insurance For Manufacturers

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.

What Does Cement Manufacturers Insurance Cover & Pay For?

Cement Manufacturers Insurance Claim Form

Cement manufacturers, like any other business, can face various lawsuits. Here are a few examples and how insurance can help protect them:

Product Liability: Cement manufacturers could be sued if their product is found to be defective, causing harm or damage. For instance, if a building collapses due to faulty cement, the manufacturer could be held liable.
Insurance Solution: Product Liability Insurance can help in such scenarios. This coverage helps businesses pay for bodily injury or property damage claims resulting from their products. It can cover the cost of defending a claim in court, any settlements or judgments awarded, and other legal expenses.

Environmental Damage: Cement manufacturing is a process that can potentially harm the environment, mainly through emissions and waste disposal. If a company fails to comply with environmental regulations, they may face lawsuits.
Insurance Solution: Environmental or Pollution Liability Insurance can help. This type of insurance provides coverage for cleanup costs, damage to natural resources, and legal defense costs associated with pollution-related incidents.

Workers' Compensation: Cement manufacturing involves physical labor, and accidents at work are a risk. If an employee gets injured on the job, the company could face a lawsuit.
Insurance Solution: Workers' Compensation Insurance is designed for such cases. It provides wage replacement and medical benefits to employees injured in the course of employment. It also typically includes employer's liability coverage, which can help pay for legal costs if an employee sues over a work injury the workers' compensation policy doesn't cover.

Commercial Property Damage: Cement manufacturing plants are exposed to risks like fire, natural disasters, or vandalism that can cause property damage. If a third party's property is damaged due to these events, the company could be sued.
Insurance Solution: Commercial Property Insurance can protect against such risks. It covers the cost of repairing or replacing business property after a covered loss. Moreover, if a company's actions lead to damage on a third party's property, General Liability Insurance can cover the associated costs.

Breach of Contract: If a cement manufacturer fails to deliver on a contract's terms, such as missing delivery deadlines or not meeting specified quality, they may be sued for breach of contract.
Insurance Solution: Professional Liability Insurance (also known as Errors and Omissions Insurance) can help in these situations. It covers legal costs and damages if a business is sued for negligence, mistakes, or failure to deliver contracted services.

Each of these insurance types is designed to cover a specific type of risk that cement manufacturers may face. By choosing the right mix of insurance policies, a cement manufacturer can significantly reduce their financial risk from potential lawsuits.

Commercial Insurance And Business Industry Classification

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.

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.

Manufacturing Insurance

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.

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