Ceramics Manufacturers Insurance Policy Information
Ceramics Manufacturers Insurance. When the average person hears the term "ceramics" - non-metallic and inorganic solids made with materials like silica, China clay, talc, and calcite - they will probably think of everyday products. Mugs, plates, tiles, and toilet bowls can all be ceramic products.
Non-industrial ceramic manufacturers produce plumbing fixtures such as sinks and tubs, dinnerware, and cookware. Ceramics products may include mixtures of clays, binding agents, and glass. High-temperature processing gives ceramic its characteristic properties.
The raw materials may be purchased from others or mined at the manufacturer's own quarries. After mining, the raw materials are run through crushing, sorting, and mixing operations to achieve the proper proportions of materials, and then baked ("fired") in a kiln. The ceramic may be glazed before the firing, or glazed afterwards and refired.
The application of ceramics stretches far beyond residential use, however, and ceramics are also used for industrial products, including microchips and resistors. As a manufacturer within the ceramics industry, you may be involved in the production of commodities that end up on someone’s kitchen table, or components that make it into space.
This versatile and exciting field has ample opportunity for growth, but with that, companies that make industrial and non-industrial ceramics alike also face a whole body of potential risks. Without the correct ceramics manufacturers insurance, circumstances beyond your control could have catastrophic consequences. What types of insurance might you need in the ceramics industry?
Ceramics 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 ceramics manufacturing insurance questions:
- What Is Ceramics Manufacturers Insurance?
- How Much Does Ceramics Manufacturers Insurance Cost?
- Why Do Ceramics Manufacturers Need Insurance?
- What Type Of Insurance Do Ceramics Manufacturers Need?
- What Does Ceramics Manufacturers Insurance Cover & Pay For?
What Is Ceramics Manufacturers Insurance?
Ceramics manufacturers insurance is a specialized insurance coverage designed for businesses that manufacture ceramic products.
This type of insurance covers a wide range of potential risks that are specific to ceramics manufacturing, such as damage or loss to equipment and machinery, theft or loss of raw materials and finished products, and liability for product defects or injuries to employees. It also covers business interruption and may include protection for liability claims arising from environmental exposure, such as contamination of soil or water.
The policy is tailored to meet the unique needs of ceramic manufacturers and helps protect against financial loss and legal exposure.
How Much Does Ceramics Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small ceramics manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Ceramics Manufacturers Need Insurance?
In a world without insurance, commercial ventures would be solely responsible for covering the costs they incur as a result of unforeseen circumstances. Accidents, acts of nature, and crimes in which your business is damaged can all lead to devastating financial and other losses.
The risks ceramics manufacturers face include those seen in any field as well as those more specifically associated with the products a company makes and their manufacturing process. So-called acts of nature - earthquakes, wildfires, floods, and similar unpredictable catastrophes - are a realistic threat regardless of where a company is based. Theft and vandalism, too, can strike any business.
Then, valuable equipment essential to your manufacturing process, like kilns and machines you use for extrusion, may break down and need to be repaired or replaced. This not only leads to immediate costs, but also lost revenue due to production interruptions.
Employees may sustain workplace injuries and hold a ceramics manufacturer responsible. Likewise, companies that manufacture ceramics for industrial purposes can be held liable if their components malfunction due to a production or design error, even once they are incorporated into a new product.
Thankfully, we do not live in a world without insurance. It is vital to embrace the best coverage you can get to protect your needs, as the costs associated with ceramics manufacturers insurance will be worth everything if disaster strikes.
What Type Of Insurance Do Ceramics Manufacturers Need?
As a manufacturer of industrial or non-industrial ceramics, you will need to carry multiple types of insurance to protect your business. The exact coverage you require will differ depending on the location of your facility, the exact products you make, and the equipment you use, among other variables.
A competent commercial insurance agent can guide you through the process of obtaining the best coverage for your needs, ideally from the same insurer. Among the types of ceramics manufacturers insurance that are likely to needed are:
- Commercial Property: This essential kind of insurance serves to protect both your physical building and various types of assets within it, as well as outdoor property. In case of theft, vandalism, or acts of nature, it will help cover any damage as well as revenue lost to interruptions in production.
- Commercial General Liability: This type of ceramics manufacturers insurance exists to cover third party bodily injury and property damage claims. That means your legal costs, and the medical or damage bills incurred by third parties, are covered. Injuries or damage sustained on your premises or outside of them as a result of your company’s activities both fall under commercial general liability insurance.
- Product Liability: A specialized type of liability insurance, product liability insurance is indispensable if there is any risk at all that the products a company manufactures can cause injury or property damage to third parties. Companies that manufacture industrial ceramics will especially benefit from it, and need to bear in mind that liability does not end when their components are incorporated into end products.
- Workers Compensation: In almost any commercial venture, ranging from the catering business to heavy industry, workers can be injured on the job. Ceramics is no exception. You can be held liable for an employee’s medical bills as well as wages lost as they recover from their injuries. This type of insurance covers both.
Because you are likely to require additional forms of ceramics manufacturers insurance, such as vehicle insurance, and your needs are as unique as your business, consulting an agent who specializes in commercial insurance is not a step you can skip. However, these common types of insurance are vital within the ceramics manufacturing industry.
Ceramics Manufacturing's Risks & Exposures
Premises liability exposure is normally low due to limited access by visitors. If tours are given or if outsiders are allowed on premises, visitors may be injured by slips, trips, or falls. Hazards increase if the yard is not fenced as piles of raw materials or finished goods present an attractive nuisance hazard to trespassers, particularly children.
Fumes, dust, and noise from processing operations may affect neighbors. This can result in a high frequency of nuisance claims, but may also cause serious health problems due to the generation of silica dust. Blasting poses high exposures as neighboring properties may be damaged either directly or by shock waves.
Products liability exposure is dependent on the final use of the product. Plates and china will have relatively low exposure while failure of plumbing fixtures could result in costly repairs to structures. Good quality control procedures should be in place, with inspections conducted to detect cracks, blemishes or other defects.
Environmental impairment exposure is moderate to high due to the potential for air, land and water pollution from dust and fuel storage tanks. Most ceramic manufacturers will have fuel tanks on premises and may require a UST policy. Vapors, fumes and air pollutants, wastewater and by-products disposal must be evaluated and controlled.
Disposal procedures must adhere to all EPA and other regulatory standards. Reclamation procedures should be in place to control the impact of the quarry operation on the environment. There is the possibility of claims for cumulative structural damage to neighboring foundations from the heavy traffic of quarry operations.
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. 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.
Maintenance and fueling of machinery and kilns may require workers to enter confined spaces. Exposure to rock dust and silica may cause serious skin, eye, and respiratory irritations, and lead to occupational diseases such as Silicosis or Shaver's Lung.
Property exposures consist of office, production plant and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, kilns, and the storage of large amounts of fuel to run them. The kilns burn continuously and must be monitored to prevent overheating.
Wear and tear and overheating of machinery are potential fire hazards. Electrical equipment must be maintained in good repair and must be adequate for the heavy-duty requirements.
In the absence of well maintained dust collection systems, cutting and buffing operations can generate dust which can catch on fire. Operating the kilns without adequate ventilation systems can build up flammable vapors and heat that can result in fire or explosion. Fuels stored on premises should be separated from processing areas.
Some types of ceramic are extremely fragile and subject to breakage; neither the raw materials nor the finished products are susceptible to fire, water or smoke damage. Explosives used in blasting operations may explode and are targets for theft.
Equipment breakdown exposures include malfunctioning production equipment for both the kiln and the hydraulic press used to compact the clay, dust collection and ventilation systems, electrical control panels and other apparatus. These should be properly maintained. Production equipment may include CNC (computer controlled) machinery. A lengthy breakdown could result in 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. There should be security methods in place to prevent theft.
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.
Backup copies of all records should be made and stored off premises. Stock in transit may be highly susceptible to damage from breakage in a collision or overturn, and possibly theft. There will be a contractors' equipment exposure if there is a quarry.
Business auto exposure can be high if the manufacturer has a quarry, picks up raw materials, or delivers finished goods to customers. The delivery of goods requires careful loading and tie-down to prevent products from coming loose and toppling over during transport.
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 Ceramics Manufacturers Insurance Cover & Pay For?
1. Product Liability: Ceramic manufacturers can be sued if their products cause harm or injury to a customer due to defects in manufacturing, design, or lack of adequate warnings. For example, a ceramic plate that shatters unexpectedly during normal use, causing injury. In such cases, a product liability insurance policy can help the manufacturer. This policy is specifically designed to cover legal costs associated with product-related damages. The insurance company will pay for legal defense, court fees, and any settlements or judgments up to the policy's limit.
2. Workers' Compensation Claims: If a worker is injured while working - for instance, from handling heavy ceramic materials or being exposed to hazardous substances - they may sue the company for medical costs, lost wages, and other damages. Workers' compensation insurance protects manufacturers in such cases. It provides coverage for medical expenses, rehabilitation costs, and a portion of lost wages for employees injured on the job. Additionally, it often includes employer's liability insurance, which can help cover legal costs if the employer is sued over the injury.
3. Property Damage: If the manufacturing facility causes damage to neighboring properties - such as pollution or structural damage from vibrations - the company could face a lawsuit. Commercial property insurance can provide protection in such scenarios. It covers the costs associated with repairing or replacing the damaged property, and may also cover legal fees if a lawsuit is filed against the company.
4. Intellectual Property Infringement: If a ceramic manufacturer is accused of copying another company's design or infringing on a patent, they could be sued. Intellectual property insurance can help protect manufacturers in these cases. This type of insurance policy covers the cost of defending against claims of IP infringement, and pays for any settlements or damages awarded to the plaintiff.
5. Supply Chain Disruption: If a ceramic manufacturer fails to fulfill contracts due to supply chain disruptions - like a key raw material supplier going bankrupt - customers could sue for breach of contract. Supply chain or business interruption insurance can be a lifesaver in these situations. These policies compensate for lost income and extra expenses incurred as a result of the disruption, including potential lawsuit costs.
Each of these insurances provides a layer of financial protection against potential lawsuits, helping ceramic manufacturers focus on their core business without the constant worry of potential litigation.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3261 Vitreous China Plumbing Fixtures And China And Earthenware Fittings And Bathroom Accessories, 3262 Vitreous China Table And Kitchen Articles, 3263 Fine Earthenware (Whiteware) Table And Kitchen Articles, 3269 Pottery Products, Not Elsewhere Classified
- NAICS CODE: 327110 Pottery, Ceramics, and Plumbing Fixtures Manufacturing
- Suggested Workers Compensation Code(s): 4053 Pottery Manufacturing - China or Tableware
Description for 3261: Vitreous China Plumbing Fixtures And China And Earthenware Fittings And Bathroom Accessories
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 326: Pottery And Related Products
3261 Vitreous China Plumbing Fixtures And China And Earthenware Fittings And Bathroom Accessories: Establishments primarily engaged in manufacturing vitreous china plumbing fixtures and china and earthenware fittings and bathroom accessories.
- Bathroom accessories, vitreous china and earthenware
- Bidets, vitreous china
- Bolt caps, vitreous china and earthenware
- Closet bowls, vitreous china
- Drinking fountains, vitreous china
- Faucet handles, vitreous china and earthenware
- Flush tanks, vitreous china
- Laundry trays, vitreous china
- Lavatories, vitreous china
- Plumbing fixtures, vitreous china
- Sinks, vitreous china
- Soap dishes, vitreous china and earthenware
- Toilet fixtures, vitreous china
- Towel bar holders, vitreous china and earthenware
- Urinals, vitreous china
Description for 3262: Vitreous China Table And Kitchen Articles
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 326: Pottery And Related Products
3262 Vitreous China Table And Kitchen Articles: Establishments primarily engaged in manufacturing vitreous china table and kitchen articles for use in households and in hotels, restaurants, and other commercial institutions for preparing, serving, or storing food or drink. Establishments primarily engaged in manufacturing fine (semivitreous) earthenware (whiteware) table and kitchen articles are classified in Industry 3263.
- Bone china
- Commercial and household tableware and kitchenware: vitreous china
- Cooking ware, china
- Dishes: commercial and household-vitreous china
- Table articles, vitreous china
Description for 3263: Fine Earthenware (Whiteware) Table And Kitchen Articles
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 326: Pottery And Related Products
3263 Fine Earthenware (Whiteware) Table And Kitchen Articles: Establishments primarily engaged in manufacturing fine (semivitreous) earthenware table and kitchen articles for preparing, serving, or storing food or drink. Establishments primarily engaged in manufacturing vitreous china table and kitchen articles are classified in Industry 3262.
- Cooking ware, fine earthenware
- Earthenware: commercial and household-semivitreous
- Kitchenware, semivitreous earthenware
- Tableware: commercial and household-semivitreous
- Whiteware, fine type semivitreous tableware and kitchenware
Description for 3269: Pottery Products, Not Elsewhere Classified
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 325: Structural Clay Products
3269 Pottery Products, Not Elsewhere Classified: Establishments primarily engaged in firing and decorating white china and earthenware for the trade and manufacturing art and ornamental pottery, industrial and laboratory pottery, stoneware and coarse earthenware table and kitchen articles, unglazed red earthenware florists' articles, and other pottery products, not elsewhere classified.
- Art and ornamental ware, pottery
- Ashtrays, pottery
- Ceramic articles for craft shops
- Chemical porcelain
- Chemical stoneware (pottery products)
- China firing and decorating, for the trade
- Cones, pyrometric: earthenware
- Cooking ware: stoneware, coarse earthenware, and pottery
- Crockery
- Decalcomania work on china and glass, for the trade
- Earthenware table and kitchen articles, coarse
- Encrusting gold, silver, or other metal on china, for the trade
- Figures, pottery: china, earthenware, and stoneware
- Filtering media, pottery
- Florists' articles, red earthenware
- Flower pots, red earthenware
- Forms for dipped rubber products, pottery
- Grinding media, pottery
- Heater parts, pottery
- Kitchen articles, coarse earthenware
- Lamp bases, pottery
- Pottery: art, garden, decorative, industrial, and laboratory
- Pyrometer tubes
- Rockingham earthenware
- Smokers' articles, pottery
- Stationery articles, pottery
- Textile guides, porcelain
- Vases, pottery (china, earthenware, and stoneware)
Ceramics Manufacturers Insurance - The Bottom Line
Ceramics manufacturers insurance policies can be different on both cost and coverage. To learn if your ceramics manufacturing operation has the best fit insurance policies - talk to an experienced business insurance broker.
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.
