Communications Equipment Manufacturers Insurance Policy Information
Communications Equipment Manufacturers Insurance. Manufacturers within the field of communications and intercommunications make a vital contribution to the functioning of modern society.
They may manufacture finished products or components that will later be incorporated into other equipment, and the types of products they make or play a role in making are as diverse as telephones, modems, LANs, cables, broadcasting equipment, and satellite communication systems.
Communications or intercommunications equipment manufacturers produce telephones, data communications equipment, modems, local area networks (LANs), radios, televisions, broadcasting equipment, cables, global positioning systems (GPSs), pagers, and satellite communication systems.
The manufacture of these items involves a variety of operations. The equipment's housing can be made of plastic, wood, or metal. The interior contains the electrical wiring and electronic circuitry.
The different 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. Some manufacturers may subcontract the separate operations and simply perform the final assembly.
Companies working within this fast-paced and ever-evolving field are more aware than anyone that change is always on the horizon. That change can come in the form of exciting innovations, but it may just as easily take the shape of calamities that pose a serious risk to a company's survival.
Should a company fall victim to an unforeseen and disastrous event, the right communications equipment manufacturers insurance program can come to the rescue - but what types of insurance are vital for manufacturers in the communications and intercommunications industry?
Communications equipment 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 communications equipment manufacturing insurance questions:
- What Is Communications Equipment Manufacturers Insurance?
- How Much Does Communications Equipment Manufacturers Insurance Cost?
- Why Do Communications Equipment Manufacturers Need Insurance?
- What Type Of Insurance Do Communications Equipment Manufacturers Need?
- What Does Communications Equipment Manufacturers Insurance Cover & Pay For?
What Is Communications Equipment Manufacturers Insurance?
Communications equipment manufacturers insurance is a type of insurance policy designed specifically for companies that manufacture communications equipment. This coverage is designed to protect the manufacturer from financial losses associated with product defects, liability claims, or other issues that arise during the production process.
The insurance policy may cover costs related to product recalls, legal fees, and damages that result from product-related claims. This type of insurance is typically purchased by companies in the telecommunications, IT, and electronics industries.
How Much Does Communications Equipment Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small communications equipment manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Communications Equipment Manufacturers Need Insurance?
Every business faces risks that can have serious financial repercussions, and the communications field is no different. Both threats shared by all business owners and perils exclusive to your own industry have the potential to endanger your current and future revenue - and without the proper insurance, the entire burden would fall on your shoulders.
Examples of perils virtually any company can come face to face with include criminal acts like theft and vandalism, including arson. Acts of nature, including serious storms and earthquakes, are another universal threat.
These unforeseen circumstances cannot be planned for, but may seriously damage or destroy your facility and the assets within it at any time.
Then, there are risks more specific to the communications field. The breakout of a fire, the malfunction of a product leading to an explosion, or damaging an end user's financial health, and worker exposure to hazardous substances such as xylene, ammonia, or phosphine, are merely some examples of things that could go wrong.
Not all disasters can be prevented, but thankfully, communications equipment manufacturers insurance is available so that your company can recover from the setback. Knowing that you are correctly insured, your company can focus on what it does best with peace of mind.
What Type Of Insurance Do Communications Equipment Manufacturers Need?
complex, and no two businesses within this industry are alike. Your exact insurance needs are determined by factors that include your manufacturing facility's location, the nature of the equipment or components you produce, the value of your manufacturing equipment, and how many workers you employ.
A seasoned commercial insurance broker is best placed to help you create an insurance program tailored to your needs. Examples of the types of communications equipment manufacturers insurance that plan will need to include are:
- Commercial Property: This type of insurance is designed to protect your physical property - your building, machinery, raw materials, and finished products, among others - in case of perils such as fire and theft. It may further cover revenue lost due to these disasters.
- Commercial General Liability: Designed to cover third party bodily injury and property damage resulting from accidents on your premises or caused by your company's activities, this kind of communications equipment manufacturers insurance covers your legal fees as well as any settlement costs.
- Product Liability: Simply said, product liability insurance covers your attorney fees and settlement payouts in the unfortunate event that a product you manufactured causes physical injury or property damage to an end user. That includes components incorporated into other products.
- Workers Compensation: In the event that an employee sustains an on-the-job injury for which your company could be held responsible, or suffers an occupational illness (such as a long-term respiratory condition), this type of insurance handles the resulting costs. That includes medical bills, but also any wages an employee loses due to illness-related absences from work that can follow a workplace accident.
Alongside these essential forms of insurance, companies that produce communications equipment are also highly likely to require commercial auto, cyber, inland marine, and business interruption insurance.
A trusted commercial insurance broker will have your back and guide you through the process of acquiring the communications equipment manufacturers insurance coverage that best shields your company from all possible risks.
Communications Equipment Manufacturing's Risks & Exposures
Premises liability exposure is normally low as access by visitors is limited. If the manufacturer conducts tours or has a showroom or retail outlet, visitors may be injured by slips, trips, or falls. Fumes, dust, and noise from woodwork or metalwork could affect neighbors.
If the manufacturer installs equipment on customers' premises, there may be a frequency of property damage claims. There may be significant off-premises exposures at promotional events.
Products liability exposure varies depending on the type of equipment and the customer. A malfunction in the wiring could present a fire or electrocution hazard, such as products designed for use in kitchens and baths. Sharp edges could result in cuts and other injuries.
Small parts in electronics designed for children's use could present a choking hazard. Cords and cables represent a potential tripping hazard. Any device used to help in distress situations such as baby monitoring devices or off-site life support notification would pose a high potential for loss and require additional evaluation.
Warning labels regarding dangers of personal injury are important, but provide only limited defense, especially in the case of household products.
Older appliances made before improved safety features were introduced may still be in use.
Environmental impairment liability exposure may be very high due to possible contamination of ground, air, and water from chemicals and toxic lubricants, solvents and paints. The type of housing manufactured may also affect hazards.
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.
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. Production incentives can be a disincentive to safety if the only consideration is by piece production.
Property exposures consist of office, plant, and warehouse 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 by spray or in dip tanks. Spray painting operations can cause a fire unless carried out in spray booths with explosion-proof electrical components.
Without a sterile environment, circuitry may be contaminated by dust or damaged by static electricity. Electronic circuitry has a high susceptibility to smoke and other contamination. Fire suppression systems designed to protect the building may cause serious losses to the sensitive circuitry.
Communications equipment may be targeted 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.
Equipment breakdown exposures include breakdown losses to the building services systems, malfunctioning production equipment, dust and ventilation 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 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 equipment on customers' premises, there may be an installation floater exposure. Stock in transit is susceptible to damage from fire, breakage, water damage, collision or overturn, and especially theft.
Commercial exposure may be high if the manufacturer picks up raw materials or delivers finished goods to customers. Because the goods are high crime target items, vehicles transporting the product should be unmarked and have appropriate crime 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 Communications Equipment Manufacturers Insurance Cover & Pay For?
Communications equipment manufacturers can face a variety of legal challenges. Lawsuits can stem from different reasons, ranging from product liability claims to patent infringements. Insurance can help manage the financial risk associated with these lawsuits. Here are some examples:
1. Product Liability: If a product malfunctions or causes harm to a customer, the manufacturer may be held responsible. For example, if a router overheats and starts a fire, the customer could sue the manufacturer for damages. A Product Liability Insurance policy can protect the company by covering the costs associated with legal defense, settlements, and court-ordered judgments. This type of insurance can also help pay for medical costs if a customer is injured due to the product.
2. Patent Infringement: If a manufacturer is accused of infringing on another company's patents, they could face a lawsuit. Intellectual Property (IP) insurance can help in these situations. This policy can cover the costs associated with defending against an infringement claim, including attorney fees, court costs, and any awarded damages.
3. Contract Disputes: If a manufacturer fails to meet the terms of a contract with a client or a vendor, they could be sued for breach of contract. Commercial General Liability (CGL) insurance typically covers the costs associated with lawsuits over contract disputes, including legal fees and any settlements or judgments.
4. Employee Claims: Employees can sue employers for a variety of reasons, such as wrongful termination, discrimination, or harassment. Employment Practices Liability Insurance (EPLI) can help cover the costs of defending against such lawsuits and any settlements or judgments that may arise.
5. Data Breach: As manufacturers become increasingly digital, they are also more susceptible to cyber threats. If customer or employee data is stolen due to a security breach, the manufacturer could be sued for negligence. Cyber Liability Insurance can cover the costs of responding to a data breach, including notification, credit monitoring, public relations, legal fees, and any associated fines or settlements.
In conclusion, insurance can be a critical risk management tool for communications equipment manufacturers. By understanding the potential legal challenges and having appropriate insurance policies in place, manufacturers can protect themselves against significant financial loss.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3661 Telephone And Telegraph Apparatus, 3663 Radio And Television Broadcasting And Communications Equipment, 3669 Communications Equipment, Not Elsewhere Classified
- NAICS CODE: 334210 Telephone Apparatus Manufacturing, 334220 Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Suggested Workers Compensation Code(s): 3681 Television, Radio, Telephone, or Telecommunication Device Manufacturing NOC, 3574 Air Pressure or Steam Gauge Manufacturing, 3179 Electrical Apparatus Manufacturing NOC
Description for 3661: Telephone And Telegraph Apparatus
Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 366: Communications Equipment
3661 Telephone And Telegraph Apparatus: Establishments primarily engaged in manufacturing wire telephone and telegraph equipment. Included are establishments manufacturing modems and other telephone and telegraph communications interface equipment. Establishments primarily engaged in manufacturing cellular radio telephones are classified in Industry 3663.
- Auto-transformers for telephone switchboards
- Carrier equipment, telephone and telegraph
- Communications headgear, telephone
- Data sets, telephone and telegraph
- Facsimile equipment
- Headsets, telephone
- Message concentrators
- Modems
- Multiplex equipment, telephone and telegraph
- Switchboards, telephone and telegraph
- Switching equipment, telephone
- Telegraph office switching equipment
- Telephone answering machines
- Telephone central office equipment, dial and manual
- Telephone dialing devices, automatic
- Telephone sets, except cellular radio telephone
- Telephone station equipment and parts, wire
- Telephones, sound powered (no battery)
- Telephones underwater
- Toll switching equipment, telephone
Description for 3663: Radio And Television Broadcasting And Communications Equipment
Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 366: Communications Equipment
3663 Radio And Television Broadcasting And Communications Equipment: Establishments primarily engaged in manufacturing radio and television broadcasting and communications equipment. Important products of this industry are closed-circuit and cable television equipment; studio equipment; light communications equipment; transmitters, transceivers and receivers (except household and automotive); cellular radio telephones; communication antennas; receivers; RF power amplifiers; and fixed and mobile radio systems. Establishments primarily engaged in manufacturing household audio and video equipment are classified in Industry 3651; those manufacturing intercommunications equipment are classified in Industry 3669; and those manufacturing consumer radio and television receiving antennas are classified in Industry 3679.
- Airborne radio communications equipment
- Amplifiers: RF power and IF
- Antennas, transmitting and communications
- Broadcast equipment (including studio), radio and television
- Cable television equipment
- Cameras, television
- Carrier equipment, radio communications
- Cellular radio telephones
- Citizens' band (CB) radios
- Closed circuit television equipment
- Digital encoders
- Encryption devices
- Light communications equipment
- Marine radio communications equipment
- Microwave communications equipment
- Mobile communications equipment
- Multiplex equipment, radio
- Pagers (one-way)
- Phototransmission equipment
- Radio and television switching equipment
- Radio receiver networks
- Radio transmitting and communications antennas and ground
- Receivers, radio communications
- Satellites, communications
- Space satellite communications equipment
- Studio equipment, radio and television broadcasting
- Telemetering equipment, electronic
- Television monitors
- Television transmitting antennas and ground equipment
- Transceivers
- Transmitter-receivers, radio
- Transmitting apparatus, radio and television
Description for 3669: Communications Equipment, Not Elsewhere Classified
Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 366: Communications Equipment
3669 Communications Equipment, Not Elsewhere Classified: Establishments primarily engaged in manufacturing communications and related equipment, not elsewhere classified. Important products of this industry are intercommunication equipment, traffic signaling equipment, and fire and burglar alarm apparatus.
- Burglar alarm apparatus, electric
- Fire alarm apparatus, electric
- Fire detection systems, electric
- Highway signals, electric
- Intercommunications equipment, electronic
- Marine horns, electric
- Pedestrian traffic control equipment
- Railroad signaling devices, electric
- Signaling apparatus, electric
- Signals: railway, highway, and traffic-electric
- Sirens, electric: vehicle, marine, industrial, and air raid
- Smoke detectors
- Traffic signals, electric
Communications Equipment Manufacturers Insurance - The Bottom Line
All communications equipment manufacturers insurance policies are not designed the same. To see if your manufacturing business has the best fit insurance policies - speak with an experienced commercial insurance agent.
Often they are able to save you on premiums and offer you better policy options than you currently have.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- 3D Printing
- Adhesives
- Alarms
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Boxes
- Bricks
- Brooms & Brushes
- Buttons
- Cabinets
- Camping Equipment
- Canned Fruit & Vegetables
- Cans
- Canvas Products
- Caskets
- CBD Oil And Hemp
- Cement
- Ceramics
- Chemical
- Clock & Watch
- Clothing
- Coffee
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Computers
- Condoms
- Construction Equipment
- Cork Products
- Cosmetics
- Cutlery
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Electroplating
- Elevators
- Engines
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fences
- Fertilizer
- Fireworks
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gears
- Glass
- Glasswear
- Gypsum Products
- Hosiery
- Ice Cream
- Industrial Equipment
- Ink
- Insecticides
- Iron & Steel Foundries
- Jewelry
- Lawn Mowers
- Leather Apparel
- Leather Goods
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Manufacturing
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Millwork
- Monuments
- Musical Instruments
- Nanotechnology
- Nonferrous Foundries
- Ornamental Metalwork
- Paint
- Paper & Allied Products
- Pesticides
- Pet Food
- Pharmaceuticals
- Plastic & Rubber Toys
- Plastic Goods
- Plastics
- Plastics Molding, Forming & Extruding
- Pottery
- Product Liability
- Prosthetics
- Psychedelic Drugs
- Pulp & Paper Mills
- Refractory
- Residential Air Conditioning & Heating
- Rubber Goods
- Rugs
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Shoes
- Small Electrical Appliances
- Sporting Goods
- Springs
- Stone Products
- Tanneries
- Textiles
- Textiles Finishing & Coating
- Tires
- Tobacco
- Tool & Die Shops
- Vegetable Juice
- Vending Machines
- Watercraft
- Wire
- Wire Rope
- Wood Furniture
- Woodworking
- Writing Instruments
- Yarn
- Specialty Manufacturing
- Specialty Product Liability
The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
