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:
- How Much Does Commercial Electronics Manufacturers Insurance Cost?
- Why Do Commercial Electronics Manufacturers Need Insurance?
- What Type Of Insurance Do Commercial Electronics Manufacturers Need?
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.
Commercial Insurance And Business Industry Classification
- SIC CODE: All codes that start with 361, 362 or 367
- NAICS CODE: 35999 All Other Miscellaneous Electrical Equipment and Component, All codes that start with 3353, or 3344
- Suggested ISO General Liability Code(s): 52432, 52433
- Suggested Workers Compensation Code(s): 3179, 3643
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.
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.