Condom Manufacturers Insurance Policy Information
Condom Manufacturers Insurance. Condoms serve the important dual purpose of preventing unwanted pregnancy and sexually transmitted infections, and there is no doubt that condom manufacturers have an important social responsibility.
Condom manufacturers produce prophylactics which are used during sexual activity to prevent conception and to prevent the spread of sexually transmitted diseases (STDs). While some condoms are made of natural materials such as sheep intestine, these have not proven to be effective in preventing the spread of STDs.
The majority are rubber latex or polyurethane. Latex condoms are made of raw latex, water, and other chemicals that are vulcanized, dipped one or more times, and then cured in an oven. Water jets are used to roll the condom, and cornstarch or talcum powder added to prevent sticking.
Spermicides or lubricants may be added before the condom is packaged. At all stages of manufacture, quality control procedures are critical to prevent leakage or breakage during use. Condoms are regulated by the Food and Drug Administration (FDA).
While a few industry giants hold a large share in the global condom market, smaller ventures can be competitive and successful as well.
Condoms are, after all, made out of numerous materials besides the latex that has become so well-known. Polyurethane, other synthetic components like polyisoprene, and even natural materials such as lambskin, cater to more specialized markets, such as people with latex allergies.
Condoms can be male or female, come in different sizes, and can contain the spermicide and infection killer nonoxynol-9 or not.
No matter what market a condom manufacturer targets, one thing is clear - manufacturers in this industry face a myriad of risks. Just as condoms exist to “shield” their users from certain hazards, insurance is there to protect their manufacturers.
What kind of condom manufacturers insurance coverage would manufacturers in the prophylactics industry need to prevent potentially catastrophic financial losses? To find out more, read on.
Condom 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 condom manufacturing insurance questions:
- What Is Condom Manufacturers Insurance?
- How Much Does Condom Manufacturers Insurance Cost?
- Why Do Condom Manufacturers Need Insurance?
- What Type Of Insurance Do Condom Manufacturers Need?
- What Does Condom Manufacturers Insurance Cover & Pay For?
What Is Condom Manufacturers Insurance?
Condom manufacturers insurance is a type of insurance that provides protection to condom manufacturers against various types of risks and liabilities associated with their business operations.
This type of insurance covers the manufacturer against product liability, property damage, business interruption, and other risks that may arise in the manufacturing and distribution of condoms. The coverage may also include protection for employees and customers, as well as coverage for legal expenses incurred in the event of a lawsuit.
How Much Does Condom Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small condom manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Condom Manufacturers Need Insurance?
Condom manufacturers will be extremely familiar with risk management - it is, after all, quite literally their business. While you are protecting your consumers from life-changing and even potentially fatal dangers, however, your own business is just one unforeseen event away from threat, too.
Theft, criminal acts of vandalism, and acts of nature such as wildfires, floods, and big storms, cannot always be prevented or even planned for. Besides damaging or destroying a manufacturing facility and its contents, they are also likely to interrupt your production line, thereby resulting in large-scale revenue loss.
A malfunction or human error in the manufacturing process could lead to inventory loss and injured workers, and equipment breakdown can lead to interruptions in business, too.
These risks threaten manufacturers in any field, but you will also be subject to hazards more specific to your own industry. Should poor marketing decisions lead consumers to form erroneous beliefs about the safety or use of your products, or should a condom you manufactured break or lead to severe allergic reactions, a lawsuit is likely just around the corner.
To manage the potential risks your company always faces, it is essential to carry the appropriate condom manufacturers insurance policies - so that if circumstances beyond your control do jeopardize your company's financial health, you won't be solely responsible for the cleanup.
What Type Of Insurance Do Condom Manufacturers Need?
As a condom manufacturer, your company will need several different kinds of insurance to defend itself from a variety of financial risks. The exact policies that best meet your needs will vary; the location of your manufacturing facility or facilities, your number of employees, the type of materials you use in your production, and how you store your inventory all play a role in determining what kind of insurance you need.
Only a thorough consultation with an experienced commercial insurance agent can enlighten you fully. Having said that, some types of condom manufacturers insurance are indispensable. Among them are:
- Commercial Property: This type of insurance serves to protect both your building(s) and the assets within from unforeseen circumstances such as theft, vandalism, and certain - but not necessarily all - acts of nature. It can cover the repair or replacement of equipment, but also compensate your company for lost revenue resulting from catastrophes.
- Commercial General Liability: Think of this kind of insurance as part of your legal fund; should third parties become injured on your premises or should your activities cause damage to third party property, general liability insurance covers legal expenses and, where relevant, settlement fees.
- Product Liability: Another kind of insurance that will be important for condom manufacturers, product liability insurance is essential in case a consumer who experiences an adverse reaction, or suffers product malfunction, decides to sue. It can also cover the costs you face should a batch of condoms have to be recalled.
- Workers Compensation: This type of insurance has your back in the event that an employee sustains a work-related injury, which can be as simple as a fall caused by a floor that shouldn't have been slippery. Workers' comp insurance covers the worker's lost wages as well as their medical costs in these cases.
These kinds of condom manufacturers insurance are examples of coverage that businesses sin this industry will need to have, but remember that your insurance options are much broader. To make sure your needs are met, your commercial insurance agent is there to analyze your business' specific circumstances and advise you.
To make sure your needs are met properly, consult an agent who specializes in commercial insurance.
Condom Manufacturing's Risks & Exposures
Premises liability exposure normally is low because of limited access to the general public. Visitors may be injured by slips, trips, or falls, or may be exposed to toxic or caustic chemicals. Fumes, spills, or leaks from tanks may cause serious injury or property damage to neighboring properties.
There may be some off-premises liability exposures from trade shows or exhibitions. If the manufacturer permits online ordering, failure to adequately protect customers' information from hackers could result in cyberliability losses.
Products liability exposure can be severe because a product failure can result in pregnancy or the spread of a sexually transmitted disease. Allergic reactions may occur from users' contact with latex. There should be a list of product ingredients along with instructions for use.
Considering that latex loses its integrity when exposed to heat, the manufacturer may be held liable even if the product failure is due to inadequate climate control after it leaves the manufacturer's premises. It may be impossible to defend against questionable claims unless there is an aggressive quality control program, including high standards for materials, testing, and monitoring and documentation of the product at each stage of production and distribution.
Environmental impairment exposures can be high if the release of chemicals contaminates air, surface or ground water, or soil. Disposal procedures must adhere to all EPA and other regulatory standards. Processes themselves may cause thermal or noise pollution. If there are underground tanks, a UST policy may be required.
Workers compensation exposures are moderate. Workers can incur back injuries from lifting, slips, trips, and falls, flying debris during testing, electrical or chemical burns, or burns from boiling latex. Employees should be provided with safety training and protective equipment.
Occupational disease exposures include allergic reactions to latex or lanolin, inhalation of chemicals, and hearing impairment due to high noise levels. Workers must be made aware of the potential side effects, including long-term occupational disease hazards, so they can be aware of warning symptoms and obtain treatment as early as possible.
Drivers of forklifts and vehicles may be injured in accidents.
Property exposures consist of an office, plant, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating and cooling equipment, and production machinery. Flammable lubricants and cleaning agents may be stored on premises.
Some chemicals and final products may be damaged by fire, smoke, or changes in temperature or humidity. Due to the sterile conditions that must be maintained throughout the manufacturing process, even a small fire can result in a total loss of stock.
Business interruption exposure can be high as a large loss can result in lengthy downtime for repairing or replacing production equipment.
Equipment breakdown exposures include breakdown losses to processing systems, heating and cooling equipment, electrical control panels, and other apparatus. Breakdown and loss of use of the production machinery could result in a significant loss, both direct and indirect, particularly, time element.
Crime exposures are chiefly from employee dishonesty and theft of money and securities. Employees may act alone or in collusion with outsiders in stealing money 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.
Inland marine exposures include accounts receivable if the manufacturer offers credit to customers, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information as well as quality control testing results. Goods in transit may be damaged by fire, theft, collision and overturn, spillage, or contamination.
Business auto exposure may be high if the manufacturer transports raw materials or finished products. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others.
Each driver should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location.
What Does Condom Manufacturers Insurance Cover & Pay For?
Condom manufacturers, like any other business, may face a variety of lawsuits. Here are some potential reasons they might be sued, along with ways in which insurance coverage can help mitigate the financial risks associated with these lawsuits:
1. Product Liability: This is perhaps the most common reason for lawsuits in this sector. If a condom fails, it could lead to serious repercussions such as unwanted pregnancies or sexually transmitted infections. If the consumer can prove the failure was due to a manufacturing defect or inadequate instructions/warnings, they may have a case for a product liability lawsuit.
Insurance Solution: Product Liability Insurance would be essential here. This insurance covers the legal costs and any awarded damages resulting from a defective product that causes injury or bodily harm. In this case, if a lawsuit claims that a product defect resulted in damages, the insurance can help cover the legal costs and potential settlement or judgment.
2. False Advertising: If a condom manufacturer makes unproven claims about their product, such as "100% effective," they could be sued for false advertising. Consumers who relied on these false claims and suffered damages as a result could potentially sue the manufacturer.
Insurance Solution: Commercial General Liability (CGL) Insurance often includes coverage for advertising injuries, including false advertising. It can help pay for legal defense costs, settlements, and judgments associated with such claims.
3. Intellectual Property Infringement: A condom manufacturer could be sued if they are accused of copying another company's design or infringing on their patents.
Insurance Solution: Intellectual Property Insurance can provide coverage in such scenarios. It can help cover legal defense costs, as well as any settlements or judgments if the manufacturer is found guilty.
4. Breach of Contract: Manufacturers may face lawsuits if they fail to fulfill contractual obligations, such as supplying a certain quantity of product to distributors or retailers, or meeting agreed-upon quality standards.
Insurance Solution: Commercial General Liability (CGL) Insurance can potentially provide coverage for some types of contract disputes. However, more specific coverage for contractual liability may be needed depending on the nature of the contract and the dispute. This can help cover the legal costs, settlements, and any awarded damages associated with the breach of contract claim.
5. Employment Practices Liability: Condom manufacturers, like any other employer, can be sued by their employees for a variety of reasons, such as discrimination, sexual harassment, wrongful termination, or wage disputes.
Insurance Solution: Employment Practices Liability Insurance (EPLI) is designed to cover these types of lawsuits. It can cover legal defense costs, settlements, and judgments associated with employment-related lawsuits.
6. Cyber Liability: If a condom manufacturer's data is breached, resulting in the exposure of sensitive customer or employee information, they could face lawsuits for failing to adequately protect that data.
Insurance Solution: Cyber Liability Insurance can help cover the costs associated with a data breach, including legal defense costs, settlements, and judgments, as well as expenses related to notifying affected individuals and providing credit monitoring services.
Insurance can't prevent lawsuits, but it can help condom manufacturers (and other businesses) manage the financial risks associated with them. By having the right coverage, a manufacturer can ensure they're protected against a variety of potential legal challenges.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3069 Fabricated Rubber Products, Not Elsewhere Classified
- NAICS CODE: 326299 All Other Rubber Product Manufacturing
- Suggested Workers Compensation Code(s): 4410 Boot or Shoe Manufacturing - Rubber
Description for 3069: Fabricated Rubber Products, Not Elsewhere Classified
Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 306: Fabricated Rubber Products, Not Elsewhere Classified
3069 Fabricated Rubber Products, Not Elsewhere Classified: Establishments primarily engaged in manufacturing industrial rubber goods, rubberized fabrics, and vulcanized rubber clothing, and miscellaneous rubber specialties and sundries, not elsewhere classified. Included in this industry are establishments primarily engaged in reclaiming rubber and rubber articles. Establishments primarily engaged in the wholesale distribution of scrap rubber are classified in Wholesale Trade, Industry 5093. Establishments primarily engaged in rebuilding and retreading tires are classified in Services, Industry 7534; those manufacturing rubberized clothing from purchased materials are classified in Industry 2385; and those manufacturing gaskets and packing are Classified in Industry 3053.
- Acid bottles, rubber
- Air supported rubber structures
- Aprons, vulcanized rubber and rubberized fabric-mits
- Bags, rubber or rubberized fabric
- Balloons advertising and toy: rubber
- Balloons metal foil laminated with rubber
- Balls, rubber: except athletic equipment
- Bath sprays, rubber
- Bathing caps and suits, rubber-mits
- Battery boxes, jars, and parts: hard rubber
- Bibs, vulcanized rubber and rubberized fabric-mits
- Bottles, rubber
- Boxes, hard rubber
- Brake lining, rubber
- Brushes, rubber
- Bulbs for medicine droppers, syringes, atomizers, and sprays: rubber
- Bushings, rubber
- Capes, vulcanized rubber and rubberized fabric-mits
- Caps, rubber-mits
- Castings, rubber
- Chlorinated rubbers, natural
- Cloaks, vulcanized rubber and rubberized fabric-mits
- Clothing, vulcanized rubber and rubberized fabric-mits
- Combs, hard rubber
- Culture cups, rubber
- Custom compounding of rubber materials
- Cycle rubbers, natural
- Diaphragms, rubber: separate and in kits
- Dress shields, vulcanized rubber and rubberized fabric-mits
- Druggists' sundries, rubber
- Erasers: rubber, or rubber and abrasive combined
- Fabrics, rubberized
- Film, rubber
- Finger cots, rubber
- Flooring, rubber: tile or sheet
- Foam rubber
- Fountain syringes, rubber
- Friction tape, rubber
- Fuel cells, rubber
- Fuel tanks, collapsible: rubberized fabric
- Funnels, rubber
- Gloves: e.g., surgeons', electricians', household-rubber
- Grips and handles, rubber
- Grommets, rubber
- Gutta perch compounds
- Hair curlers, rubber
- Hairpins, rubber
- Handles, rubber
- Hard rubber products
- Hard surface floor coverings: rubber
- Heels, boot and shoe: rubber, composition, and fiber
- Jar rings, rubber
- Laboratory sundries: e.g., cases, covers, funnels, cups, bottles-rubber
- Latex, foamed
- Life jackets: inflatable rubberized fabric
- Life rafts, rubber
- Liner strips, rubber
- Linings, vulcanizable elastomeric: rubber
- Mallets, rubber
- Mats and matting: e.g., bath, door-rubber
- Mattress protectors, rubber
- Mattresses, pneumatic: fabric coated with rubber
- Medical sundries, rubber
- Mittens, rubber
- Mouthpieces for pipes and cigarette holders, rubber
- Nipples, rubber
- Orthopedic sundries, molded rubber
- Pacifiers, rubber
- Pads, kneeling: rubber
- Pants, baby: vulcanized rubber and rubberized fabric-mits
- Pillows, sponge rubber
- Pipe stems and bits, tobacco: hard rubber
- Platens, except printers': solid or covered rubber
- Plumbers' rubber goods
- Pontoons, rubber
- Printers' blankets, rubber
- Printers' rolls rubber
- Prophylactics rubber
- Pump sleeves, rubber
- Reclaimed rubber (reworked by manufacturing processes)
- Rods, hard rubber
- Roll coverings: rubber for papermill; industrial, steel mills, printers'
- Roller covers, printers': rubber
- Rolls, solid or covered rubber
- Roofing, single ply membrane: rubber
- Rubber heels, soles, and soling strips
- Rubber-covered motor mounting rings (rubber bonded)
- Rug backing compounds, latex
- Separators, battery: rubber
- Sheeting, rubber or rubberized fabric
- Sheets, hard rubber
- Sleeves, pump: rubber
- Soles, boot and shoe: rubber, composition, and fiber
- Soling strips, boot and shoe: rubber, composition, and fiber
- Spatulas, rubber
- Sponge rubber and sponge rubber products
- Stair treads, rubber
- Stationers' sundries, rubber
- Stoppers, rubber
- Tape, pressure sensitive (including friction), rubber
- Teething rings, rubber
- Thermometer cases, rubber
- Thread, rubber: except fabric covered
- Tile, rubber
- Top lift sheets, rubber
- Top roll covering, for textile mill machinery: rubber
- Toys, rubber: except dolls
- Trays, rubber
- Tubing, rubber: except extruded and lathe-cut
- Type, rubber
- Urinals, rubber
- Valves, hard rubber
- Wainscoting, rubber
- Wallcoverings, rubber
- Water bottles, rubber
- Weather strip, sponge rubber
- Wet suits, rubber
Condom Manufacturers Insurance - The Bottom Line
Condom manufacturers insurance policies can be very different in premium, coverage and exclusions. To see if your manufacturing operation 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
- 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
- Industrial Equipment
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Leather Goods
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Psychedelic Drugs
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vegetable Juice
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
- Specialty Manufacturing
- Specialty Product Liability
The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.