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Computer Manufacturers Insurance Policy Information

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:

• What Is Computer Manufacturers Insurance?
• How Much Does Computer Manufacturers Insurance Cost?
• Why Do Computer Manufacturers Need Insurance?
• What Type Of Insurance Do Computer Manufacturers Need?
• What Does Computer Manufacturers Insurance Cover & Pay For?

Why Do Computer Manufacturers Need Insurance?

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.

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

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.

What Does Computer Manufacturers Insurance Cover & Pay For?

Computer manufacturers face a number of potential legal risks, given the complex nature of the business. Some of these risks can be mitigated with the help of various types of insurance. Below are a few examples of situations in which computer manufacturers could be sued, and how insurance could help cover the costs of such lawsuits.

1. Product Liability: This is a common risk for any manufacturing company. If a computer has a defect that causes harm to a user, the manufacturer could be sued. For instance, if a computer's battery overheats and causes a fire, the manufacturer might be held liable for the damages. In such a case, product liability insurance would cover the legal costs and potential settlements or judgments. This type of insurance is specifically designed to protect companies that manufacture or distribute products.

2. Intellectual Property Infringement: Given the technological nature of the industry, computer manufacturers can be accused of infringing on another company's patent, trademark, or copyright. These lawsuits can be extremely costly. Intellectual property insurance (or patent insurance) can help cover the costs of defending against such claims, including attorney fees, court costs, and any settlements or judgments.

3. Breach of Warranty: If a computer manufacturer makes promises about the quality or longevity of its product, it can be sued if the product fails to live up to these promises. If a computer crashes and loses a customer's data, for instance, the manufacturer could be sued for breach of warranty. Warranty liability insurance can help cover the costs of these lawsuits, including the costs of defense and any resulting damages.

4. False Advertising: If a computer manufacturer is accused of making false or misleading statements in its marketing materials, it can be sued by consumers or competitors. A commercial general liability policy typically includes coverage for advertising injury, which can help cover the costs of defending against such claims and any resulting damages.

5. Employment Practices Liability: Computer manufacturers, like all employers, can face lawsuits from employees alleging things like discrimination, wrongful termination, or sexual harassment. Employment practices liability insurance (EPLI) can help cover the costs of defending against these lawsuits, including legal fees, settlement costs, and judgments.

It's important to note that while insurance can help protect a computer manufacturer from the financial impact of these and other potential legal risks, it's also crucial for the company to have robust risk management and compliance programs in place to help prevent these issues from arising in the first place.

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 Workers Compensation Code(s): 3574 Air Pressure or Steam Gauge Manufacturing

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.

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.