Computer Manufacturers Insurance

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Computer Manufacturers Insurance Policy Information

Computer Manufacturers Insurance

Computer Manufacturers Insurance. The manufacture of computers - which are in turn often incorporated into increasing numbers of the products we rely on daily, from airplanes to rice cookers - is among the most complex and cutting-edge industries today.

Companies within this field are unlikely to be solely responsible for the manufacture of a finished product, since modern computers have so many different components. Instead, they will be manufacturing computer components or assembling computers from already finished parts.

This exciting and always evolving field makes mainframes, servers, hard disks, circuit boards, and DRAM, to name just a few examples. Globally, the majority of computer components are currently manufactured in South East Asia, but smaller companies all over the world also work in this business, including on American soil.

Like other fields, the computer manufacturing industry faces a wide range of hazards. Each could lead to massive financial losses, unless a company that assembles computers or manufactures computer components has the right commercial insurance. To find out what a comprehensive computer manufacturers insurance plan might include, read on.

Computer 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 computer manufacturing insurance questions:


How Much Does Computer Manufacturers Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small computer manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.


Why Do Computer Manufacturers Need Insurance?

Insurance For Manufacturers

While companies in this field make important contributions to both technological advances and the economy, many circumstances beyond their control also threaten their continued financial success.

Accidents and other catastrophes could, without the outstanding insurance you need, destroy your company - and that includes risks common to all businesses, as well as those unique to computers.

Security systems alone are not necessarily enough to protect your company from theft and vandalism, for instance, and disastrous acts of nature like earthquakes or wildfires could threaten both your manufacturing facility and your supply line.

The equipment used to make components could break down, leading to repair or replacement costs as well as interruptions in production.

Within the computer field, more unique risks include occupational hazard faced by workers, often due to the chemicals such as organic solvents used in this industry, and the possibility that a manufacturing malfunction leads end users to lose valuable data. The prospect that they will try to hold your company liable is realistic.

All manufacturers need insurance, in short, because while you will never know when unforeseen circumstances are going to affect your business, you can be quite sure that you will need to rely on your computer manufacturers insurance plan sooner or later.


What Type Of Insurance Do Computer Manufacturers Need?

The insurance needs of each business are unique - as unique as your company. That is especially true in an industry as diverse as computers. The forms of insurance essential to protect your particular business are determined by factors like the chemicals used in your production process, the equipment you depend on, your jurisdiction, the size of your company, and the number of workers you employ.

A commercial insurance broker you trust will be able to walk you through the process of obtaining the right computer manufacturers insurance coverage for your business. Some of the most common kinds of insurance computer manufacturing firms cannot do without, however, are:

  • Commercial Property: This kind of insurance exists to protect your physical assets - anything from your building to equipment and components in storage - from perils like fire or theft.
  • Cyber Insurance: This umbrella term covers multiple types of insurance, including liability and data breach insurance. It serves to protect your company from losses relating to cyber attacks and data breaches.
  • Commercial General Liability: Third party bodily injury and property damage claims can result if anyone who does not work for your company becomes injured on its premises or as a result of your activities, or if property not belonging to you is damaged. Commercial liability insurance covers the resulting legal and repair or medical costs.
  • Product Liability: This kind of computer manufacturers insurance covers liability claims relating to your products, which can include components built into computers by other companies, in case of malfunction. It would cover scenarios ranging from physical injury to data loss.
  • Workers Compensation: Within all fields, no matter how seriously a company takes health and safety, workers can sustain occupational injuries or illnesses. They may range from a cut to chronic respiratory conditions resulting from long-term exposure to chemicals. Workers comp insurance covers their medical expenses, but also the wages they miss out on while they recover or if they are not able to return to work.


Keep in mind that this already fairly lengthy list may not meet all your requirements. A commercial insurance agent is your trusted partner in guiding you through the process of obtaining the computer manufacturers insurance coverage your specific business needs to continue thriving.

Computer Manufacturing's Risks & Exposures

Manufacturing

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 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, the end customer, and the extent to which the insured is responsible for the programming of the computer's operating system. A malfunction in the wiring (or in the battery of laptop computers) could present a fire or electrocution hazard. 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. Other hazards for computers designed for home use may be low but will require well-written instructions and adequate warning labels.

Computers intended for use in networks or use in adverse conditions may pose higher risks due to the potential for bodily injury or property damage in the event of a malfunction, such as those used in aeronautics, marine use, or military equipment. Computers to be used in very cold, hot, or humid conditions may have special design elements, often backed by written or implied warranties.

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 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, production 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. Susceptibility to loss is extremely high because of the high damageability of the equipment.

Any fire that produces smoke has the potential to cause a total loss even though the actual fire might be very small.

Computers and related 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 auto exposure may be high if the manufacturer picks up raw materials or delivers finished goods to customers. Because the goods are crime target items, vehicles transporting the product should be unmarked and contain alarms and 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.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 3571 Electronic Computers, 3572 Computer Storage Devices, 3575 Computer Terminals, 3577 Computer Peripheral Equipment, Not Elsewhere Classified
  • NAICS CODE: 334111 Electronic Computer Manufacturing, 334112 Computer Storage Devices Manufacturing, 334118 Computer Terminal and Other Computer Peripheral Equipment Manufacturing
  • Suggested ISO General Liability Code(s): 51941
  • Suggested Workers Compensation Code(s): 3574

Description for 3571: Electronic Computers

Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 357: Computer And Office Equipment

3571 Electronic Computers: Establishments primarily engaged in manufacturing electronic computers. Electronic computers are machines which: (1) store the processing program or programs and the data immediately necessary for execution of the program; (2) can be freely programmed in accordance with the requirements of the user; (3) perform arithmetical computations specified by the user; and (4) execute, without human intervention, a processing program which requires them to modify their execution by logical decision during the processing run. Included in this industry are digital computers, analog computers, and hybrid digital/analog computers. Establishments primarily engaged in manufacturing machinery or equipment which incorporate computers or a central processing unit for the purpose of performing functions such as measuring, displaying, or controlling process variables are classified based on the manufactured end product.

  • Computers: digital, analog, and hybrid
  • Mainframe computers
  • Microcomputers
  • Minicomputers
  • Personal computers

Description for 3572: Computer Storage Devices

Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 357: Computer And Office Equipment

3572 Computer Storage Devices: Establishments primarily engaged in manufacturing computer storage devices.

  • Auxiliary computer storage units
  • Computer storage units
  • Disk drives, computer
  • Drum drives, computer
  • Magnetic storage devices for computers
  • Optical storage devices for computers
  • Recorders, tape: for computers
  • Tape storage units, computer

Description for 3575: Computer Terminals

Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 357: Computer And Office Equipment

3575 Computer Terminals: Establishments primarily engaged in manufacturing computer terminals. Establishments primarily engaged in manufacturing point-of-sale, funds transfer, and automatic teller machines are classified in Industry 3578.

  • Cathode ray tube (CRT) teleprinter, multistation
  • Computer terminals
  • Multistation CRT/teleprinters
  • Teleprinters (computer terminals)

3577: Computer Peripheral Equipment, Not Elsewhere Classified

Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 357: Computer And Office Equipment

3577 Computer Peripheral Equipment, Not Elsewhere Classified: Establishments primarily engaged in manufacturing computer peripheral equipment, not elsewhere classified, including printers, plotters, and graphic displays. Establishments primarily engaged in manufacturing modems and other communications interface equipment are classified in Industry 3661.

  • Card punching and sorting machines
  • Card-type conversion equipment, computer peripheral equipment
  • Computer output to microfilm units, computer peripheral equipment
  • Computer paper tape punchers and devices, computer peripheral
  • Decoders, computer peripheral equipment
  • Disk pack inspectors, computer peripheral equipment
  • Document entry conversion devices, computer peripheral equipment
  • Graphic displays, except graphic terminals: computer peripheral
  • Input/output equipment, computer: except terminals
  • Key-disk or diskette equipment, computer peripheral equipment
  • Key-tape equipment: reel, cassette, or cartridge
  • Keying equipment, computer peripheral equipment
  • Key punch/verify cards, computer peripheral equipment
  • Magnetic ink recognition devices, computer peripheral equipment
  • Media-to media data conversion equipment, computer peripheral
  • Optical scanning devices, computer peripheral equipment
  • Plotter controllers, computer peripheral equipment
  • Plotters, computer
  • Printers, computer
  • Punch card equipment: card readers, tabulators, collators, sorters, and
  • Tape cleaners, magnetic: computer peripheral equipment
  • Tape print units, computer peripheral equipment

Computer Manufacturers Insurance - The Bottom Line

Every computer manufacturers insurance policy is not the same - in fact the premium and coverages can vary by a lot. To find out if your computer manufacturing operation has the best fit insurance policies - talk to an experienced commercial insurance broker.

Often they are able to save you on premiums and offer you better policy options than you currently have.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 PoliciesWhat 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 InsuranceWhat 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 BondWhat 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
Small Business Commercial Insurance

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.


Manufacturing Insurance

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.


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