Chemical Manufacturers Insurance Policy Information
Chemical Manufacturers Insurance. The manufacture of chemicals and allied products encompasses a vast and diverse field.
These companies may process basic chemicals like sodium, potassium, resins, or peroxides, or make finished chemical products that will be used as cleaning products, detergents, cosmetics, or in the pharmaceutical or agricultural industries, among others.
This field of manufacture may also produce commodities that will subsequently be processed further - synthetic fibers, dyes, or plastics, for instance.
Chemical manufacturers use a variety of raw materials and processes to produce a large assortment of consumer and industrial products, including some that are reactive, radioactive, or toxic.
Raw materials may come from animals (bone or tallow), minerals (metals or salts), petrochemicals (oils or solvents), or plants (alcohol, resins, or waxes). While some manufacturers' processes simply involve mixing and blending, such as producing cleaners with different fragrances, other processes are more involved.
Processes can include aeration, crushing, distillation, filtering, freezing, heating, mixing, pressurizing, or washing. The end product may take a variety of forms such as aerosols, gases, liquid concentrates, powder, or solids.
Cleanliness, purity, and the proper mix of ingredients are critical. Chemical manufacturers have laboratories engaged in product development, testing, and quality control.
While it is beyond question that chemicals and allied products play an essential role in the global supply chain, as well as the functioning of society, the fact that this industry is filled with perils is just as clear.
To ensure the future success of a company that manufactures chemicals and allied products, it is crucial to be armed with an air-tight insurance plan that covers all eventualities. To find out what types of chemical manufacturers insuranceare required, keep reading.
Chemical manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked chemical manufacturing insurance questions:
- How Much Does Chemical Manufacturers Insurance Cost?
- Why Do Chemical Manufacturers Need Insurance?
- What Type Of Insurance Do Chemical Manufacturers Need?
How Much Does Chemical Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small chemical manufacturing businesses ranges from $97 to $159 per month based on location, size, revenue, claims history and more.
Why Do Chemical Manufacturers Need Insurance?
All commercial ventures - from small, family-run catering companies to industry giants with global influence - have one thing in common, and that is that they all face risks.
A manufacturer of chemical and allied products of diverse kinds is vulnerable to the same threats as any other company, including acts of nature (earthquakes, wildfires, hurricanes, lightning strikes, serious floods, and others), theft, and vandalism.
All these unforeseen circumstances have the potential to cause extensive physical and financial damage.
The almost endless list of threats unique to this particular industry illustrates that the stakes are even higher for companies manufacturing chemicals and allied products, however. For companies that work with hazardous chemicals, the risk that an employee suffers a workplace injury or exposure-related illness is always a present.
Should chemicals or byproducts cause environmental damage, the liability fallout could be disastrous. The same holds true for a scenario in which a product causes bodily injury to a consumer or other third party.
As the risks a company faces increase in magnitude, so too does its need for the right chemical manufacturers insurance program that protects the business against all possible threats.
With the right insurance, these and other circumstances beyond your control can represent obstacles that can be overcome.
What Type Of Insurance Do Chemical Manufacturers Need?
Companies that make chemicals and chemical products need to carry a range of different kinds of insurance that, together, protect their financial interests.
Because a company's precise needs depend on factors such as the jurisdiction in which its manufacturing facility is based, the nature of the products it makes, the manufacturing equipment used, and its number of employees, it is essential to build a customized insurance plan.
A seasoned commercial insurance agent who understands the unique perils of the chemical industry is invaluable in this process. Certain key types of chemical manufacturers insurance are non-negotiable, however, and those include:
- Commercial Property: This type of insurance guards a company against financial losses resulting from perils such as fire, theft, and vandalism - though the exact events covered will vary. It does so by helping cover the costs of damage to physical assets including your building, manufacturing equipment, and inventory.
- General Liability: This chemical manufacturers insurance covers third party bodily injury and property damage claims resulting from your company's activities or on its premises. It can cover events such as a visitor to your facility becoming ill as a result of exposure to chemicals, and an employee's negligent actions resulting in damage to the environment.
- Product Liability: Designed to cover liability issues arising specifically from your products, this type of insurance can cover events such as end consumers suffering a burn after using a cleaning solution you manufactured. It can also cover the costs associated with product recalls.
- Workers' Compensation: Another important insurance all companies making chemical and allied products should carry, workers' compensation insurance covers the medical bills of employees who sustain occupational injuries and illnesses of any kind. Should the worker be unable to resume their job, it further covers their lost wages.
These examples of essential types of chemical manufacturers insurance do not represent an exhaustive list; companies manufacturing chemicals and allied products are highly likely to also require additional forms of insurance, such as vehicle insurance and environmental insurance.
For complete peace of mind, a commercial insurance agent should always be consulted.
Chemical Manufacturing's Risks & Exposures
Premises liability exposure is high due to the potential for explosion and release of chemicals which may be reactive (flammable, corrosive or explosive) or toxic - or both. Dust from processing, toxins released in a fire, or fumes, spills or leaks from chemical tanks may cause serious bodily injuries or property damage. There should be a distance barrier between the applicant and the closest neighbor.
An evacuation procedure must be in place. The fire department must be aware of the chemicals in use so that they can have appropriate gear on hand to control any fire or vapor release. If the manufacturer conducts tours, visitors may be injured by slips, trips, or falls. Fences should surround the facility with warnings posted to discourage trespassers.
Products liability exposure may be very high depending on the chemicals used in production and final use. Quality control at all phases of the operation from initial receipt of raw materials to packaging is critical to reducing the exposure to injury.
Poor quality control, improper storage, transport or inappropriate packaging and labeling may result in bodily injury or property damage. If chemicals are made to customer specifications, there must be a contract in place specifically detailing the product needs and the quality control process for each party.
Environmental impairment exposure is very high. Sudden or cumulative discharges may contaminate air, surface or ground water, or soil. Processes may cause thermal or noise pollution. Disposal of wastes must adhere to all federal and state guidelines.
Exposure is increased significantly if underground or outdoor tanks are used due to the potential for leakage or spillage.
Workers compensation exposures may be very high. Injuries from production machinery are common, as are burns from chemicals, slips, trips, falls, foreign objects in the eye, hearing impairment from noise, and back injuries from lifting and other material handling. With some compounds, there is the possibility of explosion.
Chemicals may be toxic or caustic, with a high potential for injury to eyes, lungs, or skin. Employees must be fully informed as to the potential effects of the chemicals, including long-term occupational disease hazards so that they can be aware of warning symptoms and obtain treatment as early as possible. Eyes must be protected and eye wash areas should be close to all vats.
Drivers of forklifts and vehicles may be injured in accidents.
Property exposure consists of an office, plant, and warehouse or yard for storage of raw materials and finished goods. There may be a laboratory for product development and testing. Ignition sources include electrical wiring, production machinery, and buildup of static electricity and sparks which could trigger a destructive chain reaction.
While some chemicals may be inert, others are reactive (flammable, corrosive or explosive) and require special handling as improper storage may result in explosions. If used to create new products, there will be a reaction and creation of energy in the form of heat. Large storage tanks for raw materials and vats for mixing and blending may contain substances with high potential for fire and explosion.
Some chemicals may be spoiled by temperature change, humidity, dust or other changes. Hazards increase without fire suppression devices or other controls designed for the particular chemical processes. Poor housekeeping is 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.
As some ingredients are targets for theft, 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, 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 exposures are chiefly from theft either by third parties or employees, particularly for precious metals or explosives. 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 exposures include accounts receivable if the manufacturer offers credit, computers (which may include testing applications and computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information, quality control testing results, and proprietary formulas.
The main causes of loss are fire, theft, and loss by spill or contamination, especially during a collision.
Commercial auto exposure is very high if the manufacturer has its own tanker trucks and transports raw materials or finished products. Transportation of volatile chemicals can result in an explosion in the event of a collision. Drivers should be trained in spill containment, have an appropriate license with a Hazardous Materials endorsement, and an acceptable MVR.
It is also important that the tankers have a standard maintenance routine that is well documented. All vehicles must be well maintained with appropriate documentation kept in a central location. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2800 Chemicals and Allied Products, 2810 Industrial Inorganic Chemicals, 2812 Other Basic Inorganic Chemical Manufacturing, 2813 Industrial Gas Manufacturing, 2816 Synthetic Dye and Pigment Manufacturing, 2819 Alumina Refining and Primary Aluminum Production, 2820 Plastic Material, Synth Resin/rubber, Cellulos (no Glass), 2821 Plastics Material and Resin Manufacturing, 2822 Synthetic Rubber Manufacturing, 2823 Artificial and Synthetic Fibers and Filaments Manufacturing, 2824 Artificial and Synthetic Fibers and Filaments Manufacturing, 2836 Biological Product (except Diagnostic) Manufacturing, 2840 Soap, Detergents, Cleang Preparations, Perfumes, Cosmetics, 2841 Soap and Other Detergent Manufacturing, 2842 Polish and Other Sanitation Good Manufacturing, 2843 Surface Active Agent Manufacturing, 2844 Toilet Preparation Manufacturing, 2860 Industrial Organic Chemicals, 2861 Cyclic Crude, 2865 Cyclic Crude, 2869 Ethyl Alcohol Manufacturing, 2870 Agricultural Chemicals, 2873 Nitrogenous Fertilizer Manufacturing, 2874 Phosphatic Fertilizer Manufacturing, 2875 Fertilizer (mixing Only) Manufacturing, 2879 Pesticide and Other Agricultural Chemical Manufacturing, 2890 Miscellaneous Chemical Products, 2891 Adhesive Manufacturing, 2892 Explosives Manufacturing, 2893 Printing Ink Manufacturing, 2895 Carbon Black, 2899 All Other Misc. Chemical Product and Preparation Manufacturing
- NAICS CODE: 325110 Petrochemical Manufacturing, 325120 Industrial Gas Manufacturing, 325130 Synthetic Dye and Pigment Manufacturing, 325180 Other Basic Inorganic Chemical Manufacturing, 325193 Ethyl Alcohol Manufacturing, 325194 Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing, 325199 All Other Basic Organic Chemical Manufacturing, 325211 Plastics Material and Resin Manufacturing, 325212 Synthetic Rubber Manufacturing, 325220 Artificial and Synthetic Fibers and Filaments Manufacturing, 325311 Nitrogenous Fertilizer Manufacturing, 325312 Phosphatic Fertilizer Manufacturing, 325314 Fertilizer (mixing Only) Manufacturing, 325320 Pesticide and Other Agricultural Chemical Manufacturing, 325611 Soap and Other Detergent Manufacturing, 325612 Polish and Other Sanitation Good Manufacturing, 325613 Surface Active Agent Manufacturing, 325620 Toilet Preparation Manufacturing, 325910 Printing Ink Manufacturing, 325920 Explosives Manufacturing, 325991 Custom Compounding Of Purchased Resins, 325992 Photographic Film, Paper, Plate, and Chemical Manufacturing, 325998 All Other Miscellaneous Chemical Product and Preparation Manufacturing
- Suggested ISO General Liability Code(s): 51850 Chemical Manufacturing - Commercial or Industrial, 51851 Chemical Manufacturing - Commercial or Industrial - Toxic and Either Flammable, Explosive or Reactive, 51852 Chemical Manufacturing - Commercial or Industrial - Primarily Flammable, Explosive or Reactive, 51853 Chemical Manufacturing - Commercial or Industrial - Primarily Toxic or Presenting A Health Hazard, 51854 Chemical Manufacturing - Household - Toxic and Either Flammable, Explosive or Reactive, 51855 Chemical Manufacturing - Household, 51856 Chemical Manufacturing - Household - Primarily Flammable, Explosive or Reactive, 51857 Chemical Manufacturing - Household - Primarily Toxic or Presenting A Health Hazard
- Suggested Workers Compensation Code(s): 4829 Chemical Manufacturing NOC - All Operations & Drivers - Includes Blending or Mixing
Description for Major Group 28: Chemicals And Allied Products
This major group includes establishments producing basic chemicals, and establishments manufacturing products by predominantly chemical processes. Establishments classified in this major group manufacture three general classes of products:
- Basic chemicals, such as acids, alkalies, salts, and organic chemicals.
- Chemical products to be used in further manufacture, such as synthetic fibers, plastics materials, dry colors, and pigments.
- Finished chemical products to be used for ultimate consumption, such as drugs, cosmetics, and soaps; or to be used as materials or supplies in other industries, such as paints, fertilizers, and explosives.
The mining of natural alkalies and other natural potassium, sodium, and boron compounds, of natural rock salt, and of other natural chemicals and fertilizers are classified in Mining, Industry Group 147. Establishments primarily engaged in manufacturing nonferrous metals and high-percentage ferroalloys are classified in Major Group 33; those manufacturing silicon carbide are classified in Major Group 32; those manufacturing baking powder, other leavening compounds, and starches are classified in Major Group 20; and those manufacturing artists' colors are classified in Major Group 39. Establishments primarily engaged in packaging, repackaging, and bottling of purchased chemical products, but not engaged in manufacturing chemicals and allied products, are classified in Wholesale or Retail Trade industries.
Industry Group 281: Industrial Inorganic Chemicals
- 2812 Alkalies and Chlorine
- 2813 Industrial Gases
- 2816 Inorganic Pigments
- 2819 Industrial Inorganic Chemicals, Not Elsewhere Classified
Industry Group 282: Plastics Materials And Synthetic Resins, Synthetic
- 2821 Plastics Materials, Synthetic Resins, and Nonvulcanizable Elastomers
- 2822 Synthetic Rubber (Vulcanizable Elastomers)
- 2823 Cellulosic Manmade Fibers
- 2824 Manmade Organic Fibers, Except Cellulosic
Industry Group 284: Soap, Detergents, And Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations
- 2841 Soap and Other Detergents, Except Specialty Cleaners
- 2842 Specialty Cleaning, Polishing, and Sanitation Preparations
- 2843 Surface Active Agents, Finishing Agents, Sulfonated Oils, and Assistants
- 2844 Perfumes, Cosmetics, and Other Toilet Preparations
Industry Group 286: Industrial Organic Chemicals
- 2861 Gum and Wood Chemicals
- 2865 Cyclic Organic Crudes and Intermediates, and Organic Dyes and Pigments
- 2869 Industrial Organic Chemicals, Not Elsewhere Classified
Industry Group 287: Agricultural Chemicals
- 2873 Nitrogenous Fertilizers
- 2874 Phosphatic Fertilizers
- 2875 Fertilizers, Mixing Only
- 2879 Pesticides and Agricultural Chemicals, Not Elsewhere Classified
Industry Group 289: Miscellaneous Chemical Products
- 2891 Adhesives and Sealants
- 2892 Explosives
- 2893 Printing Ink
- 2895 Carbon Black
- 2899 Chemicals and Chemical Preparations, Not Elsewhere Classified
Chemical Manufacturers Insurance - The Bottom Line
Chemical manufacturers insurance policies can be very different in coverage, costs and exclusions. To learn if your chemical manufacturing operation has the best fit insurance policies - talk to an experienced commercial insurance broker.
Often they are able to save you on premiums and offer you better policy options than you currently have.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Psychedelic Drugs
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vending Machines
- Vegetable Juice
- Wire Rope
- Wood Furniture
- Writing Instruments
For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.
Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.
The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.
Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.
In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.
What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.
Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.
Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.
The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.