Clock And Watch Manufacturers Insurance Policy Information
Clock And Watch Manufacturers Insurance. Mechanical clocks first made their appearance in Europe in the 1300s, but though this feat of human invention was a great improvement on ancient sundials and hourglasses, clocks and watches have undergone great transformations since then.
Clock and watch manufacturers produce a wide variety of time-pieces, including personal items such as pendants, pocket watches, and wrist watches, household items such as clock radios, grandfather clocks, travel clocks, and wall clocks, and architectural items such as bracket clocks that project from buildings, outdoor clocks, and tower clocks.
The products may operate on batteries, electricity, or a weight-driven system. The manufacture of these items combines several processes, including electronics, jewelry making, metalworking, plastic molding, and woodworking. Some clock and watch makers may subcontract the separate operations and simply perform the final assembly.
Today, clocks and watches can be both analog and digital. High-end analog clocks and watches, too, have entered the digital age, as they are painstakingly designed with computer-guided methods. Clocks and watches are made with a wide variety of materials, ranging from stainless steel, titanium, ceramic, and silicon. Timepieces may be hand-made in boutique workshops by skilled craftsmen, or manufactured in large quantities at breathtaking speeds.
While every watch manufacturer has a different business model, each company that makes watches does share one crucial commonality - they will need insurance to safeguard the future of their business should unforeseen circumstances knock on the door.
What type of clock and watch manufacturers insurance are needed, and what threats can put your financial health in peril? Read on...
Clock and watch 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 clock and watch manufacturing insurance questions:
- What Is Clock And Watch Manufacturers Insurance?
- How Much Does Clock And Watch Manufacturers Insurance Cost?
- Why Do Clock And Watch Manufacturers Need Insurance?
- What Type Of Insurance Do Clock And Watch Manufacturers Need?
- What Does Clock And Watch Manufacturers Insurance Cover & Pay For?
What Is Clock And Watch Manufacturers Insurance?
Clock and watch manufacturers insurance is a type of insurance that provides coverage for manufacturers of clocks and watches against various risks and losses. These risks may include damage to or loss of inventory, equipment, and machinery, liability claims, and damage to or loss of buildings and structures. The coverage may also include protection against business interruption and product liability claims, among others.
The insurance is designed to help manufacturers mitigate the financial impact of unforeseen events and ensure the continued operation of their business.
How Much Does Clock And Watch Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small clock and watch manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Clock And Watch Manufacturers Need Insurance?
Commercial ventures require insurance for the same reason private individuals do - accidents and other circumstances beyond your control don't happen only when you are financially able to deal with the consequences, and they don't necessarily stay within a manageable scope.
Yet, without clock and watch manufacturers insurance, you would solely be responsible for dealing with the fallout if something were to go wrong.
Some of the risks clocks and watches manufacturing firms face are common to all companies, while others are industry-specific. Take theft and vandalism, for example. Any company can fall victim to these criminal acts, which can have far-reaching financial consequences. Acts of nature, like wildfires, hurricanes, and floods, can also strike any business.
As a watch or clock maker, you will depend on valuable tools or machinery, which can break down at any point, necessitating repair or replacement and interrupting your production and therewith your revenue. High-end watch and clock makers may have closely-guarded trade secrets, and these keys to their commercial success may also be in peril as a result of cyber criminals.
There is always the risk that an employee or third party becomes injured on your premises, and if your company makes large clocks, the risk of accidental damage to third party properties rises, as well.
A reliable plan tailored to your unique business ultimately saves you money, stress, and yes, even time.
What Type Of Insurance Do Clock And Watch Manufacturers Need?
Clock and watch manufacturers find themselves within a diverse industry. Your precise insurance needs depend on factors like the size of your company, the type of timepieces your company makes, the location of your manufacturing facility, and the number of workers you employ.
An experienced commercial insurance agent should be your trusted partner in determining what kinds of clock and watch manufacturers insurance are essential for your particular company. Having said that, types of insurance which companies that make timepieces cannot avoid include:
- Commercial Property: This vital type of clock and watch manufacturers insurance protects your physical assets - which means your building as well as its contents, including inventory - from unforeseen circumstances like fire and theft. It can also cover lost revenue resulting from such events. Equipment breakdown insurance is a specific sub-category that can help you cover the cost of broken manufacturing equipment.
- Commercial General Liability: In today's highly-litigious world, no field is safe from third party bodily injury and personal property damage claims. As a company that manufactures watches or clocks, you may not have to worry that your product could malfunction and injure someone, but that does not mean that a third party who visits your premises cannot be injured onsite, for instance.
- Workers' Compensation: Workplace injuries can take many forms, and they include less dramatic kinds like a fall on your premises or repetitive stress injury as a result of making the same movements over and over. Should any employee suffer a work-related illness or injury, workers' compensation insurance covers their medical bills and any lost wages should they not be able to return to work for some time.
These types of clock and watch manufacturers insurance are examples of the coverage you will need in this industry. You may also look into product liability insurance, in the instance your product needs to be recalled due to design or manufacturing errors, or should advertising prove to make misleading claims.
Any company that uses vehicles will need commercial auto insurance, and should you have important digital assets, like watch design plans, cyber insurance is also invaluable.
Clock And Watch Manufacturing's Risks & Exposures
Premises liability exposure is low as access by visitors is limited. It the manufacturer conducts tours or has a retail outlet, visitors may be injured by slips, trips, or falls. Fumes, dust, and noise from woodwork or metalwork could pose a nuisance hazard to neighbors.
Products liability exposure is generally low. If the end use of the product is for the specialty areas of timing devices, such as traffic signals, the exposure increases. Electric clock wiring may malfunction and present a fire or an electrocution hazard.
Environmental impairment liability exposure can be light to high, depending on the materials and processes used and the types of waste that are produced. Plastics and fiberglass may be toxic and are flammable, the catalysts may be caustic, and the final product is usually not biodegradable.
Contaminants from chemicals, paints, and solvents used in metalworking and woodworking processes can pollute the air, surface or ground water, or soil. Disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposure can be very high. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, and foreign objects in the eye, hearing loss from machinery noise, repetitive motion injuries, and back injuries from lifting. There should be safety training, protective equipment, and guarding on machines.
The exposures decrease if the work consists primarily of assembly. Workstations should be ergonomically designed. Dust generated by metalwork or grinding of stones and gems require respiratory protection devices, as well as eye protection and eye wash stations. Flammable liquids and chemicals can cause skin irritation, eye irritation, and possible long-term occupational disease.
Working with plastics, flammable liquids, and chemicals can cause eye and skin irritations. Production incentives can be a disincentive to safety if the only consideration is by-piece production. Drivers of forklifts and vehicles may be injured in accidents. Sales representatives carrying precious gems or metals may be injured or killed in holdups.
Property exposures consist of office, plant and warehouse for raw materials and finished goods. Ignition sources can include electrical wiring, heating and cooling equipment, production machinery, and dust explosions. While interiors of watches and clocks are made of metal, the exteriors vary widely. While the exposure is moderate for jewelry, electronics, or metalworking, woodworking and plastics operations represent a significant fire or explosion hazard.
A metal clock cabinet may require annealing, electroplating, or welding. Wood and metal may be painted by spray or in dip tanks. Spray-painting operations can cause fire unless carried out in spray booths with explosion-proof electrical components. Electronic components may be highly susceptible to damage by dust, static electricity, and changes in temperature or humidity.
A very small fire can result in a total loss if there is not adequate separation of combustibles from possible ignition sources. Appropriate security controls should be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
Equipment breakdown exposures include losses to malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. Breakdown and loss of use to the production machinery could result in a significant loss, both direct and indirect, notably, time element.
Crime exposure from employee dishonesty and theft is very high if the manufacturer works with precious or semiprecious metals and gemstones due to their high street value. If coverage is desired for the precious metals and gemstones, a separate Jewelers Block policy will need to be purchased.
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 computer-run production equipment), exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information. If there are precious or semiprecious metals or gemstones, they should be stored in burglar- and fire-resistant safes or vaults and covered by jewelers block.
There may be a bailees exposure for cleaning, engraving, and repairing items for customers. Goods in transit are not unusually susceptible to damage except from collision or overturn, though high-end products may be targets for theft.
Business auto exposure may be high if the manufacturer picks up raw materials or delivers finished goods to customers. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others.
Each driver should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location.
What Does Clock And Watch Manufacturers Insurance Cover & Pay For?
Clock and watch manufacturers can face various legal issues that may lead to lawsuits. Here are some common reasons and how insurance can help:
1. Product Liability: If a consumer is injured due to a defect in a watch or clock, the manufacturer may be sued for product liability. For instance, a wristwatch's strap might cause skin irritation, or a poorly designed clock might fall off a wall and injure someone.
Insurance Coverage: In such cases, product liability insurance can help. This insurance covers legal fees, court costs, and any settlements or awards if the business is found liable. This policy can also help cover recall costs if a product has to be pulled from the market due to a defect.
2. Intellectual Property Infringement: Another reason a clock and watch manufacturer might be sued is for infringing on another company's design or technology. If a watch design is too similar to another brand's protected design, it could lead to a lawsuit.
Insurance Coverage: Intellectual property insurance can provide coverage in this instance. This type of insurance can help cover legal defense fees, as well as any judgment or settlement costs. Some policies may also help cover the costs associated with counterclaims for invalidity.
3. Contract Disputes: These can occur with suppliers, distributors, or other business partners. For example, if a manufacturer fails to deliver a promised batch of clocks to a retailer, the retailer might sue for breach of contract.
Insurance Coverage: A commercial general liability (CGL) policy often covers these kinds of legal disputes. The policy can pay for the legal defense and any judgment or settlement. In some cases, it may also cover punitive damages.
4. Employee Lawsuits: Employees may sue their employers for a variety of reasons, such as workplace injuries, discrimination, wrongful termination, or wage and hour disputes.
Insurance Coverage: Employment practices liability insurance (EPLI) covers businesses against claims by workers who feel their legal rights have been violated. Workers' compensation insurance can cover medical expenses and lost wages for employees who get injured on the job.
5. Property Damage: If a manufacturer's property is damaged due to events like fire, theft, or natural disasters, it could lead to a significant financial loss.
Insurance Coverage: Commercial property insurance can cover the cost of repair or replacement of damaged property, helping the business to get back on track quickly. Business interruption insurance, often included in a property insurance policy, can cover lost income and operating expenses if the business can't operate due to a covered event.
In conclusion, the specific details of coverage can vary based on the insurer and the specific policy terms, so it's essential for businesses to work with an experienced insurance agent to make sure they have the right coverage for their needs.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3873 Watches, Clocks, Clockwork Operated Devices, And Parts, 3429 Hardware, Not Elsewhere Classified, 3495 Wire Springs
- NAICS CODE: 334519 Other Measuring and Controlling Device Manufacturing
- Suggested Workers Compensation Code(s): 3385 Clock Manufacturing, 3383 Jewelry Manufacturing
Description for 3873: Watches, Clocks, Clockwork Operated Devices, And Parts
Division D: Manufacturing | Major Group 38: Measuring, Analyzing, And Controlling Instruments; Photographic, Medical And Optical Goods; Watches And Clocks | Industry Group 387: Watches, Clocks, Clockwork Operated Devices, and Parts
3873 Watches, Clocks, Clockwork Operated Devices, And Parts: Establishments primarily engaged in manufacturing clocks (including electric), watches, watchcases, mechanisms for clockwork operated devices, and clock and watch parts. This industry includes establishments primarily engaged in assembling clocks and watches from purchased movements and cases. Establishments primarily engaged in manufacturing timeclocks are classified in Industry 3579; those manufacturing glass crystals are classified in Industry 3231; and those manufacturing plastics crystals are classified in Industry 3089.
- Appliance timers
- Chronographs, spring wound
- Chronometers, spring wound
- Clock materials and parts, except crystals and jewels
- Clocks, assembling of
- Clocks, except timeclocks
- Mechanisms for clockwork operated devices
- Movements, watch or clock
- Timers for industrial use, clockwork mechanism only
- Watches and parts: except crystals and jewels
Description for 3429: Hardware, Not Elsewhere Classified
Division D: Manufacturing | Major Group 34: Fabricated Metal Products, Except Machinery And Transportation Equipment | Industry Group 342: Cutlery, Handtools, And General Hardware
3429 Hardware, Not Elsewhere Classified: Establishments primarily engaged in manufacturing miscellaneous metal products usually termed hardware, not elsewhere classified. Establishments primarily engaged in manufacturing bolts and nuts are classified in Industry 3452; those manufacturing nails and spikes are classified in Major Group 33, those manufacturing cutlery are classified in Industry 3421; those manufacturing handtools are classified in Industry 3423; and those manufacturing pole line and transmission hardware are classified in Industry Group 364.
- Angle irons, hardware
- Animal traps, iron and steel except wire
- Bellows, hand
- Brackets iron and steel
- Builders hardware, including locks and lock sets
- Cabinet hardware, including locks and lock sets
- Car seals, metal
- Casket hardware
- Casters, industrial
- Chain fittings
- Chair glides
- Clamps, hose
- Clamps, metal
- Couplings, hose
- Crab traps, steel: except wire
- Cuffs, leg iron
- Door bolts and checks
- Door locks and lock sets
- Door opening and closing devices except electrical
- Dzus fasteners
- Fireplace equipment (hardware)
- Furniture hardware, including casters
- Gun trigger locks
- Harness hardware
- Hinge tubes
- Horse bits
- Ice chests or coolers, portable, except insulated foam plastics
- Key blanks
- Ladder jacks, metal
- Locks and lock sets except safe, vault and coin-operated
- Locks, trigger, for guns
- Luggage hardware
- Luggage racks, car top
- Marine hardware
- Metal fasteners, spring and cold-rolled steel, not made in rolling mills
- Motor vehicle hardware
- Nozzles, fire fighting
- Nut crackers and pickers, metal
- Organ hardware
- Parachute hardware
- Piano hardware
- Pulleys, metal except power transmission equipment
- Rope fittings
- Saddlery hardware
- Sleeper mechanisms, for convertible beds
- Suitcase hardware, including locks
- Tackle blocks, metal
- Thimbles, wire rope
- Time locks
- Trimmings, trunk metal
- Trunk hardware, including locks
- Utility carriers, car top
- Vacuum bottles and jugs
- Vehicle hardware aircraft, automobile, railroad, etc
Description for 3495: Wire Springs
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 325: Structural Clay Products
3495 Wire Springs: Establishments primarily engaged in manufacturing wire springs from purchased wire. Establishments primarily engaged in assembling wire bedsprings or seats are classified in Major Group 25.
- Clock springs, precision: made from purchased wire
- Furniture springs, unassembled: made from purchased wire
- Gun springs, precision: made from purchased wire
- Hairsprings, made from purchased wire
- Instrument springs, precision: made from purchased wire
- Mechanical springs, precision: made from purchased wire
- Sash balances, spring
- Spring units for seats, made from purchased wire
- Springs, except complete bedsprings made from purchased wire
- Upholstery springs, unassembled: made from purchased wire
Clock And Watch Manufacturers Insurance - The Bottom Line
Not all clock and watch manufacturers insurance policies are designed in the same way. You can discover if your company has the best fit insurance policies by speaking with 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
- 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
- Industrial Equipment
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Leather Goods
- 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
- Vegetable Juice
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
- 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.