Commercial Electronics Manufacturers Insurance Policy Information
Commercial Electronics Manufacturers Insurance. A wide variety of different products powered by electricity or batteries fall into the category of electronic apparatus - also called electric or electronic equipment.
Commercial electronic apparatus manufacturers produce a variety of items used by businesses including audio/visual systems, communication systems, lighting, medical machinery, and security systems.
The manufacture of these items involves a variety of processes. The product casing can be made of plastic, wood, glass, pottery, stone, or metal. The interior contains electrical wiring and electronic circuitry.
The various phases of manufacture may be carried out in different locations or different countries. Separate divisions or independent firms (subcontractors) may handle a single aspect of the process, such as producing circuit boards or making peripherals and accessories.
Some manufacturers may subcontract the separate operations and simply perform the final assembly.
Some examples of electronic apparatus specifically manufactured for commercial ventures include audio/visual systems, various types of lighting systems, security systems, and electronic medical equipment such as ultrasound machines and vital sign monitors.
The products companies that make electronic apparatus for commercial ventures produce frequently play a vital role in their end customers' success. In the case of medical and security devices, these products help to save lives.
Made up of numerous complex components, the design and manufacture of this electronic equipment requires a great deal of skill.
Despite the fact that companies within this field will do everything in their power to manufacture electronic equipment to their customers' specifications, the fact remains that manufacturers of electronic apparatus are also subject to major risks that could threaten their financial health.
Here, we will take a look at the types of commercial electronics manufacturers insurance that are essential in protecting them from the many perils that may strike their business.
Commercial electronics 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 commercial electronics manufacturing insurance questions:
- What Is Commercial Electronics Manufacturers Insurance?
- How Much Does Commercial Electronics Manufacturers Insurance Cost?
- Why Do Commercial Electronics Manufacturers Need Insurance?
- What Type Of Insurance Do Commercial Electronics Manufacturers Need?
- What Does Commercial Electronics Manufacturers Insurance Cover & Pay For?
What Is Commercial Electronics Manufacturers Insurance?
Commercial electronics manufacturers insurance is a type of insurance coverage specifically designed for businesses that manufacture electronic products. It covers a wide range of risks and losses associated with the production and sale of electronics, including liability for product defects, property damage, business interruption, and product recall expenses.
This insurance can also provide protection for intellectual property rights, such as patents and trademarks, as well as damage to the company's reputation due to product failure. The coverage is tailored to the specific needs of electronics manufacturers, taking into account the unique risks and challenges faced by these businesses.
How Much Does Commercial Electronics Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small commercial electronics manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Commercial Electronics Manufacturers Need Insurance?
All businesses face risks, and manufacturers of commercial electronic apparatus are no exception. Some of those risks are universal to all commercial ventures, while others are industry-specific. Some will lead to minor financial inconveniences, while others threaten the very existence of your company.
Examples of common perils that can strike any company and result in damage to, or loss of, property include theft, vandalism, and a multitude of different acts of nature, such as hail storms, tornadoes, earthquakes, and wildfires.
Costly business interruptions can further represent consequential, or indirect, loss after a company falls victim to any of these unforeseen circumstances.
Liability risk is also important to consider. An employee may, for example, suffer an accident over the course of their job, holding you responsible in the aftermath. A third party could be injured on your premises, or your company's activities may cause damage to the property of someone else.
In the event that electronic equipment you produce for commercial ventures causes injury or property damage to anyone else, a lawsuit is very likely to follow as well.
Companies with inadequate insurance coverage will struggle to survive if any of these perils affect their business, as all are associated with significant costs. The right commercial electronics manufacturers insurance coverage, on the other hand, offers you peace of mind.
What Type Of Insurance Do Commercial Electronics Manufacturers Need?
Companies that make electronic equipment intended for commercial markets will need to carry multiple different types of insurance. The exact nature of their insurance needs is dependent on factors such as the type of electronic equipment they manufacture, the location of their facility, and their number of employees.
A skilled commercial insurance broker is best placed to assist you in designing a customized insurance plan.
Having said that, the following are examples of types of commercial electronics manufacturers insurance are important:
- Commercial Property: This type of coverage protects companies from financial loss associated with property damage or loss due to acts of nature, theft, or vandalism. It covers your physical building as well as the assets therein.
- General Liability: Designed to (partially) cover the costs associated with lawsuits alleging third party property damage or bodily injury, a company may think of this kind of commercial electronics manufacturers insurance as an important legal defense tool.
- Product Liability: Should your product cause harm to someone else because it malfunctioned, the financial fallout can be disastrous. This type of insurance covers attorney fees and settlement costs in these cases. It is prudent to keep in mind that even baseless lawsuits can be accompanied by enormous costs.
- Workers Compensation: This type of insurance covers medical expenses and lost wages in the event that an employee suffers an occupational injury or illness. In all fields of industry, a wide spectrum of workplace accidents can occur, and workers comp also reduces the risk that an employee will attempt to sue you.
In addition to these important types of commercial electronics manufacturers insurance, companies in this industry may also require commercial auto or business interruption insurance, among others.
Direct further inquiries to a commercial insurance agent to ensure that your business is fully protected.
Commercial Electronics Manufacturing's Risks & Exposures
Premises liability exposure is normally low as access by visitors is limited.
If the manufacturer conducts tours, has a showroom or retail outlet, or permits customers' employees on premises due to customization, visitors may be injured by slips, trips, or falls. Fumes, dust, and noise from woodwork or metalwork could affect neighbors.
There may be significant off-premises exposures at promotional events.
Products liability exposure varies depending on the type of equipment and the customer. For office equipment, the exposure may be light, but if the product is medical apparatus or a security system, the exposure could be very high. Malfunction of wiring could present a fire or electrocution hazard. There must be adequate warnings of precautions customers must take to avoid the possibility of electrocution.
Sharp edges could result in cuts and other injuries. Small parts in electronics designed for children's use could present a choking hazard. Cumulative radiation from screens and monitors could result in claims. User instruction and warranty information are very important. Governmental regulations, guidelines, and standards must be observed.
Environmental impairment exposure may be very high due to possible contamination of ground, air, and water from chemicals and toxic lubricants, solvents and paints. For plastics, the raw materials may be toxic and are flammable, the catalysts may be caustic, and the final product is usually not biodegradable.
For wood and metal, contaminants may come from the chemicals, paints, and solvents used. Storage and 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 minor cuts, puncture wounds, burns, foreign objects in the eye, hearing impairment from noise, slips, trips, falls, back injuries from lifting, and repetitive motion injuries. Working with electronics can result in electrocution.
Workstations should be ergonomically designed. The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair to increase production. Chemical exposures could result in skin and eye irritations, as well as respiratory problems.
Workers must be made aware of the potential side effects of the ingredients they work with, including long-term occupational disease hazards, so they can recognize symptoms and obtain treatment as early as possible.
Production incentives can be a disincentive to safety if the only consideration is by piece production.
Property exposures consist of office, plant, and warehouse or yard for storage of raw materials and finished goods. Ignition sources include heating and cooling equipment, production machinery, electrical panels, and the build-up of dust from the cutting and sanding that can cause fire and explosion. The risk increases in the absence of proper dust collection systems, ventilation, and adequate disposal procedures.
Paints, lubricants, degreasers, and solvents can be flammable and must be adequately separated and stored away from other operations. Plastic work may include molding or extrusion. Metal housing may require soldering, electroplating, or annealing. Welding and soldering must be done away from combustibles and flammable liquids. Wood and metal may be painted or finished by spray or in dip tanks.
Spray-painting operations can cause a fire unless carried out in spray booths with explosion-proof electrical components. Testing may produce arcing. Chemicals used in the process may cause noxious fumes and corrosion.
Without a sterile environment, circuitry may be contaminated by dust or damaged by static. Electronic circuitry is highly susceptible to smoke and other contamination. Any process that could produce heavy smoke with a small fire should be isolated from the storage of the finished product and the electronic circuitry to prevent a large loss. All casing work should be separate from the circuitry and final assembly.
Electronics may be targets for theft. 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.
There can be a significant business income and extra expense exposure, depending on the amount of time required to restore operations.
Equipment breakdown exposures include breakdown losses to the building services systems, malfunctioning production equipment, ventilation and dust collection systems, electrical control panels and other apparatus. Breakdown and loss of use to the conveyor and other production machinery could result in a significant loss, both direct and under time element.
Crime exposure comes from employee dishonesty and theft of circuitry, precious metal plating in the fixtures, and some high-end products. 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. The manufacturer should have security methods in place to prevent theft.
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 the manufacturer installs products for customers, there may be an installation exposure. The primary causes of loss are breakage, fire, water damage, theft, collision, and upset.
Business auto exposure may be high if the manufacturer picks up raw materials or delivers the finished goods to customers. Because some products are high targets for theft, vehicles transporting the product should be unmarked and contain appropriate protective devices.
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 Commercial Electronics Manufacturers Insurance Cover & Pay For?
Commercial Electronics Manufacturers can face various types of lawsuits. Here are a few examples and how insurance can help protect them:
1. Product Liability: This is perhaps the most common reason for lawsuits. If a manufactured electronic product malfunctions or causes harm to a consumer, the manufacturer may face a product liability lawsuit. This can include issues like faulty wiring, battery explosions, or software errors that result in personal injury or property damage. Product Liability Insurance can protect manufacturers in such scenarios. It typically covers the legal costs of defending the lawsuit, as well as any settlements or judgements that may arise from the suit.
2. Intellectual Property Infringement: A company may be sued if it's accused of infringing on another's patent, trademark, or copyright. These cases can be complex and expensive. Intellectual Property Insurance can help cover legal fees, damages, and settlements related to these types of lawsuits. This insurance can also potentially fund the legal defense if the company needs to counter-sue.
3. Breach of Contract: If a manufacturer fails to fulfill a contract's terms, such as not delivering products on time or not meeting specified quality standards, they could be sued for breach of contract. Professional Liability Insurance, also known as Errors and Omissions (E&O) Insurance, can help cover the legal costs associated with these types of claims. This insurance is particularly useful for businesses that provide services or advice, but can also apply to manufacturers who fail to meet contractual obligations.
4. Employee-Related Lawsuits: Employees may sue for reasons ranging from workplace injuries to discrimination or wrongful termination. Employer's Liability Insurance or Workers' Compensation Insurance can cover costs related to workplace injuries or illnesses. Employment Practices Liability Insurance (EPLI) can cover defense costs and damages related to employment-related lawsuits, such as claims of discrimination, harassment, or wrongful termination.
5. Environmental Damage: If the manufacturing process results in environmental harm, a company could face a lawsuit. Environmental or Pollution Liability Insurance can help cover the costs of cleaning up environmental damage, as well as any legal fees or damages related to such a lawsuit.
Overall, it's crucial for Commercial Electronics Manufacturers to work closely with insurance professionals to ensure they have adequate coverage to protect against the various risks they face.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3612 Power, 3613 Switchgear and Switchboard Apparatus Manufacturing, 3620 Electrical Industrial Apparatus, 3621 Motor and Generator Manufacturing, 3624 Carbon and Graphite Product Manufacturing, 3625 Relay and Industrial Control Manufacturing, 3629 All Other Misc. Electrical Equipment and Component Manufacturing, 3676 Capacitor, 3677 Electronic Coil, 3678 Electronic Connector Manufacturing, 3679 Other Electronic Component Manufacturing
- NAICS CODE: 334412 Bare Printed Circuit Board Manufacturing, 334413 Semiconductor and Related Device Manufacturing, 334416 Capacitor, Resistor, Coil, Transformer, and Other Inductor Manufacturing, 334417 Electronic Connector Manufacturing, 334418 Printed Circuit Assembly (electronic Assembly) Manufacturing, 334419 Other Electronic Component Manufacturing, 335311 Power, Distribution, and Specialty Transformer Manufacturing, 335312 Motor and Generator Manufacturing, 335313 Switchgear and Switchboard Apparatus Manufacturing, 335314 Relay and Industrial Control Manufacturing, 35999 All Other Miscellaneous Electrical Equipment and Component
- Suggested Workers Compensation Code(s): 3179 Electrical Apparatus Manufacturing NOC, 3643 Electric Power or Transmission Equipment Manufacturing
Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment
This major group includes establishments engaged in manufacturing machinery, apparatus, and supplies for the generation, storage, transmission, transformation, and utilization of electrical energy. Included are the manufacturing of electricity distribution equipment; electrical industrial apparatus; household appliances; electrical lighting and wiring equipment; radio and television receiving equipment; communications equipment; electronic components and accessories; and other electrical equipment and supplies. The manufacture of household appliances is included in this group, but industrial machinery and equipment powered by built-in or detachable electric motors is classified in Major Group 35. Establishments primarily engaged in manufacturing instruments are classified in Major Group 38.
Industry Group 361: Electric Transmission And Distribution Equipment
- 3612 Power, Distribution, And Specialty Transformers
- 3613 Switchgear and Switchboard Apparatus
Industry Group 362: Electrical Industrial Apparatus
- 3621 Motors and Generators
- 3624 Carbon and Graphite Products
- 3625 Relays and Industrial Controls
- 3629 Electrical Industrial Apparatus, Not Elsewhere Classified
Industry Group 367: Electronic Components And Accessories
- 3671 Electron Tubes
- 3672 Printed Circuit Boards
- 3674 Semiconductors and Related Devices
- 3675 Electronic Capacitors
- 3676 Electronic Resistors
- 3677 Electronic Coils, Transformers, and Other Inductors
- 3678 Electronic Connectors
- 3679 Electronic Components, Not Elsewhere Classified
Commercial Electronics Manufacturers Insurance - The Bottom Line
Not all commercial electronics manufacturers insurance policies offer the same coverages and exclusions. You can see if your manufacturing business has the best fit insurance policies by talking 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.
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
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- Cork Products
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- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
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- 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.