Contruction Equipment Manufacturers Insurance

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Construction Equipment Manufacturers Insurance Policy Information

Construction Equipment Manufacturers Insurance

Construction Equipment Manufacturers Insurance. Construction equipment, as a term, typically refers to earth-moving heavy equipment, and includes a range of essential machines such as excavators, bulldozers, motor grazers, trenchers, and dump trucks.

Construction machinery and equipment manufacturers produce large items such as bulldozers, excavators, and cranes used in building roads, clearing land, digging foundations, or lifting heavy objects.

The process consists of product design, developing patterns or molds for component parts, making or subcontracting the various parts, assembling the final product, finishing, testing and quality control, and delivery to the customer.

Operations include metal casting, electroplating, heat treating, and sheet metal stamping, fabricating exposures from welding to grinding to spray-painting, plastic extrusion or molding, and fabric upholstery work.

Because of the varieties of materials and processes involved, the different phases of manufacture may be carried out in different locations, or different countries.

These heavy-duty machines are vital to construction and demolition projects of almost any size, from the construction of a single residential home to large-scale projects in which entire neighborhoods are erected.

While industry giants hold a large share of the construction equipment market, smaller ventures can be successful in this industry as well. They may manufacture components or assemble construction equipment with components made by other companies.

As a manufacturer of construction equipment, there is little doubt that your field carries a tremendous amount of responsibility. Well-built heavy vehicles used in construction and demolition may last a lifetime, but your company itself faces a range of serious risks.

Investing in the best insurance coverage is essential to protect the financial health of a company in this field. What forms of construction equipment manufacturers insurance should companies in this industry be aware of? Discover more by reading this brief guide.

Construction 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 construction equipment manufacturing insurance questions:


How Much Does Construction Equipment Manufacturers Insurance Cost?

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


Why Do Construction Equipment Manufacturers Need Insurance?

Insurance For Manufacturers

Manufacturers of construction equipment require insurance for two distinct reasons - to meet the legal requirements within their jurisdiction, but also because the appropriate insurance coverage can make the difference between devastating financial losses and continued financial success.

The perils that threaten manufacturers of construction equipment are many. Some are almost universal, applying to companies in all fields, while others are more unique to your own industry. Acts of nature, such as wildfires, earthquakes, and floods, could demolish your manufacturing facility almost overnight, often with very little warning.

Vandalism and theft are two further risks that can impact companies within any industry.

Manufacturers of construction equipment make giant machines composed of complex components ranging from engines and hydraulics as well as heavy steel, glass, and rubber parts. Not only might employees become seriously injured during the assembly process, the same could happen to third parties who attend manufacturing premises.

Furthermore, should a manufacturing error or design fault lead to bodily injury or serious property damage on the part of third parties, the fallout is likely to be nothing short of catastrophic.

Construction equipment manufacturers insurance coverage acts as an essential bodyguard that protects your interests and assets from the many unforeseen circumstances your company could fall victim to, and for this reason, it is absolutely essential to take steps to make sure you have the right insurance plan.


What Type Of Insurance Do Construction Equipment Manufacturers Need?

The kinds of insurance that manufacturers of construction equipment need are influenced by variables that include the location of their manufacturing facility, the exact machines they make, the scope of their activities, and the number of workers they employ.

Only a competent commercial insurance broker familiar with both your field and your specific circumstances can help you build the right insurance plan.

Having said that, certain types of construction equipment manufacturers insurance are invaluable to companies in this industry. They include:

  • Commercial Property: This type of insurance covers your physical assets - your building, but also the assets within and the outdoor property you own - from the financial fallout of perils like theft, vandalism, and acts of nature. The cost of repairing or replacing your manufacturing equipment can be covered, alongside the revenue lost to catastrophes.
  • General Liability: Another must-have form of insurance, commercial general liability insurance protects companies in case of lawsuits filed due to third party property damage or bodily injury caused by their activities or on their premises. That includes, for example, a contractor being injured should construction equipment back into them as it is moved.
  • Product Liability: This type of insurance covers third party bodily injury and property damage claims relating to products you manufacture, whether they are entire machines or merely components included in other machines. Scenarios it would cover include construction workers being injured because one of your components malfunctions on a job site.
  • Workers Compensation: Should an employee suffer a workplace injury, workers' comp covers their medical expenses as well as the wages they lose as a result of medical leave they need to take as they recover. Death benefits also fall under this type of insurance.


Because the manufacture of construction equipment is a complex industry that induces numerous risks, these examples of important kinds of insurance are unlikely to amount to a comprehensive insurance plan.

Speaking with a commercial insurance agent will allow you to discover what additional types of construction equipment manufacturers insurance coverage you require.

Construction Equipment Manufacturing's Risks & Exposures

Manufacturing

Premises liability exposure is normally low due to limited access by visitors. If tours are given or if outsiders are allowed on premises, visitors may be injured by slips, trips, or falls. If stock is stored in the open, it becomes attractive to trespassers, particularly children. Fumes and noise from processing may affect properties, resulting in nuisance claims.

Off-premises liability exposures come from exhibitions or demonstrations at retail locations, fairs, or conventions.

Products liability exposure is high due to the high potential for bodily injury to users. Construction equipment is designed for heavy use such as excavating on rugged terrains. Operations may be far away from rapid-response emergency services.

Safety devices must be installed in such a way that they are not easily bypassed or damaged. Machinery may roll over when used on rough terrain, ejecting operators and potentially crushing them.

Warning labels regarding dangers of personal injury are important; but provide only limited defense as courts commonly apply strict liability standards to inherently dangerous products. Sharp-edged parts could break off and cause severe injuries. Malfunction in the wiring could present a fire or an electrocution hazard.

Rupture in the fuel lines or tanks could result in an explosion. Construction machinery tends to have a longer use span than other types of motorized equipment. Older equipment made before improved safety features were introduced may still be in use, extending the period for product liability claims to be made.

Environmental impairment exposures can range from moderate to high due to the potential for air, land and water pollution from dust and fuel storage tanks. Raw plastics are flammable and may be toxic, the catalysts may be caustic, and the final product is usually not biodegradable.

Metal contaminants may come from the chemicals, paints, and solvents used. Vapors, fumes and air pollutants, wastewater and by-products disposal must be evaluated and controlled. Disposal of plastics, chemicals, and flammable liquids must adhere to all EPA and other regulatory standards.

There may be fuel tanks on premises with the potential for spillage and contamination. If there are underground tanks, a UST policy may be required.

Workers compensation exposures can be extremely high. Injuries from production machinery are common, as are minor cuts, burns, slips, trips, falls, foreign objects in the eye, back injuries from lifting, hearing loss from noise, and repetitive motion losses. Workstations should be ergonomically designed.

Employees should be provided with safety training and protective equipment. Areas that generate dust require respiratory protection devices, as well as eye protection and eye wash stations. Metalworking can result in injuries from cuts, amputations, burns from welding and heated metal, exposure to dust, and respiratory problems from spray paint or solvents.

Plastics have similar exposures plus a potential for burns from heated machinery and eye and skin irritation from chemicals and resins. Since testing and demonstrations may take place, there can be over-the-road exposures for non-sales employees.

Property exposures consist of offices, plant, and warehouse or yard for storage of raw materials, components, and finished units. Ignition sources include electrical wiring, heating systems, production machinery, welding and spray painting. Wear and tear and overheating of machinery are potential fire hazards.

There may be fuel tanks on premises. Hazards may include woodworking, sheet metal work, casting, heat-treating, electroplating, plastic, fiberglass work, and upholstery operations. In the absence of well-maintained dust collection systems, cutting and buffing operations can generate dust which can catch on fire. Welding should be done in a separate area away from combustibles.

Spray painting should be conducted in an area with explosion-proof wiring that meets all UL standards. Poor housekeeping, such as failure to collect and dispose of trash on a regular basis, could contribute significantly to a loss. Unless disposed of properly, greasy, oily rags (such as those used to clean machinery) can cause a fire without a separate ignition source.

Property stored in the open may be subject to loss by wind or hail or a target for vandalism. Appropriate security controls must be taken including lighting and 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.

Bottlenecks in the assembly process may result in a high concentration of values of partially completed units, affecting both property valuation and business income. There may be a substantial exposure to loss of income resulting from damage to dependent properties such as key suppliers or customers.

Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. These should be properly maintained and records kept in a central location. A lengthy breakdown could result in severe loss, both direct and under time element.

Crime exposure comes from employee dishonesty and theft as component parts and finished items are high in value. Employees may act alone or in collusion with dealerships or 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. There should be 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), goods in transit, and valuable papers and records for customers' and suppliers' information. Backup copies of all records should be made and stored off premises.

There may be contractors' equipment such as forklifts. If finished machinery is sent to dealerships under financing provided by the manufacturer, floor plan coverage will be needed. The primary causes of loss are fire, wind, hail, theft, collision, and overturn.

Commercial auto exposure can be high if the manufacturer picks up raw materials or components or delivers finished goods to customers. Transportation of oversized watercraft requires careful loading and tie down to prevent items from coming loose and toppling over during transport. 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: 3531 Construction Machinery And Equipment, 3532 Mining Machinery And Equipment, Except Oil And Gas Filled Machinery And Equipment, 3533 Oil And Gas Filled Machinery And Equipment
  • NAICS CODE: 333120 Construction Machinery Manufacturing, 333131 Mining Machinery and Equipment Manufacturing, 333132 Oil and Gas Filled Machinery and Equipment Manufacturing
  • Suggested ISO General Liability Code(s): 56650, 56654
  • Suggested Workers Compensation Code(s): 3507

Description for 3531: Construction Machinery And Equipment

Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 353: Construction, Mining, And Materials Handling

3531 Construction Machinery And Equipment: Establishments primarily engaged in manufacturing heavy machinery and equipment of a type used primarily by the construction industries, such as bulldozers; concrete mixers; cranes, except industrial plant overhead and truck-type cranes; dredging machinery; pavers; and power shovels. Also included in this industry are establishments primarily engaged in manufacturing forestry equipment and certain specialized equipment, not elsewhere classified, similar to that used by the construction industries, such as elevating platforms, ship cranes and capstans, aerial work platforms, and automobile wrecker hoists. Establishments primarily engaged in manufacturing mining equipment are classified in Industry 3532; those manufacturing well-drilling machinery are classified in Industry 3533; those manufacturing industrial plant overhead traveling cranes are classified in Industry 3536; and those manufacturing industrial truck-type cranes are classified in Industry 3537.

  • Aerial work platforms, hydraulic or electric truck or carrier mounted
  • Aggregate spreaders
  • Asphalt plants, including travel-mix type
  • Automobile wrecker hoists
  • Backfillers, self-propelled
  • Backhoes
  • Ballast distributors (railway track equipment)
  • Batching plants, bituminous
  • Batching plants, for aggregate concrete and bulk cement
  • Blades for graders, scrapers, dozers, and snowplows
  • Breakers, paving
  • Buckets, excavating: e.g., clamshell, concrete, dragline, drag scraper,
  • Bulldozers, construction
  • Cab, construction machinery
  • Capstans, ship
  • Carriers, crane
  • Chip spreaders, self-propelled
  • Chippers, commercial: brush, limb, and log
  • Concrete buggies, powered
  • Concrete grouting equipment
  • Concrete gunning equipment
  • Concrete plants
  • Construction machinery, except mining
  • Cranes, construction
  • Cranes, except industrial plant
  • Crushers, mineral: portable
  • Derricks, except oil and gas field
  • Distributors (construction machinery)
  • Ditchers, ladder: vertical boom or wheel
  • Dozers, tractor mounted: material moving
  • Draglines, powered
  • Drags, road (construction and road maintenance equipment)
  • Dredging machinery
  • Excavators: e.g., cable, clamshell, crane, derrick, dragline, power
  • Extractors, piling
  • Finishers and spreaders, construction
  • Finishers, concrete and bituminous: powered
  • Grader attachments, elevating
  • Graders, road (construction machinery)
  • Grapples: rock, wood, etc.
  • Grinders, stone: portable
  • Hammer mills (rock and ore crushing machines), portable
  • Hammers, pile driving
  • Line markers, self-propelled
  • Locomotive cranes
  • Log splitters
  • Logging equipment
  • Mixers: e.g., concrete, ore, sand, slag, plaster, mortar, bituminous
  • Mortar mixers
  • Mud jacks
  • Pavers
  • Pile driving equipment
  • Planers, bituminous
  • Plaster mixers
  • Plows, construction: excavating and grading
  • Post hole diggers, powered
  • Power cranes, draglines, and shovels
  • Pulverizers, stone: portable
  • Railway track equipment: e.g., rail layers, ballast distributors
  • Rakes, land clearing: mechanical
  • Road construction and maintenance machinery
  • Rock crushing machinery, portable
  • Rollers, road
  • Rollers, sheepsfoot and vibratory
  • Sand mixers
  • Scarifiers, road
  • Scrapers, construction
  • Screeds and screeding machines
  • Screeners, portable
  • Ship cranes and derricks
  • Ship winches
  • Shovel loaders
  • Shovels, power
  • Silos, cement (batch plant)
  • Slag mixers
  • Snowplow attachments
  • Soil compactors: vibratory
  • Spreaders and finishers, construction
  • Subgraders, construction equipment
  • Subsoiler attachments, tractor-mounts
  • Surfacers, concrete grinding
  • Tampers, powered
  • Tamping equipment, rail
  • Teeth, bucket and scarifier
  • Tractors, construction
  • Tractors, crawler
  • Tractors, tracklaying
  • Trenching machines
  • Trucks, off-highway
  • Vibrators for concrete construction
  • Wellpoint systems
  • Winches, all types
  • Work platforms, elevated

Description for 3532: Mining Machinery And Equipment, Except Oil And Gas Filled Machinery And Equipment

Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 353: Construction, Mining, And Materials Handling

3532 Mining Machinery And Equipment, Except Oil And Gas Filled Machinery And Equipment: Establishments primarily engaged in manufacturing heavy machinery an equipment used by the mining industries, such as coal breakers, mine cars, mineral cleaning machinery, concentration machinery, core drills, coal cutters, portable rock drills, and rock crushing machinery. Establishments primarily engaged in manufacturing construction machinery are classified in Industry 3531; those manufacturing welldrilling machinery are classified in Industry 3533; and those manufacturing coal and ore conveyors are classified in Industry 3535.

  • Amalgamators (metallurgical and mining machinery)
  • Auger mining equipment
  • Bits, rock: except oil and gas field tools
  • Cages, mine shaft
  • Car dumpers, mining
  • Clarifying machinery, mineral
  • Classifiers, metallurgical and mining
  • Cleaning machinery, mineral
  • Coal breakers, cutters, and pulverizers
  • Concentration machinery (metallurgical and mining)
  • Crushers, mineral: stationary
  • Drills and drilling equipment, mining: except oil and gas field
  • Drills, core
  • Drills, rock: portable
  • Feeders, ore and aggregate
  • Flotation machinery (mining machinery)
  • Grinders, stone: stationary
  • Hammer mills (rock and ore crushing machines), stationary
  • Loading machines, underground: mobile
  • Mining cars and trucks (dollies)
  • Mining equipment, except oil and gas field: rebuilding on a factory
  • Mining machinery and equipment except oil and gas field
  • Ore crushing, washing, screening, and loading machinery
  • Pellet mills (mining machinery)
  • Plows, coal
  • Pulverizers, stone: stationary
  • Scraper loaders, underground
  • Screeners, stationary
  • Sedimentation machinery, mineral
  • Separating machinery, mineral
  • Shuttle cars, underground
  • Stamping mill mining machinery
  • Washers, aggregate and sand: stationary type

Description for 3533: Oil And Gas Filled Machinery And Equipment

Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 353: Construction, Mining, And Materials Handling

3533 Oil And Gas Filled Machinery And Equipment: Establishments primarily engaged in manufacturing machinery and equipment for use in oil and gas fields or for drilling water wells, including portable drilling rigs. Establishments primarily engaged in manufacturing offshore oil and gas well drilling and production platforms are classified in Industry 3731.

  • Bib, rock: oil and gas field tools
  • Derricks, oil and gas field
  • Drill rigs, all types
  • Drilling tools for gas, oil, or water wells
  • Gas well machinery and equipment
  • Oil and gas field machinery and equipment
  • Water well drilling machinery
  • Well logging equipment
  • Well surveying machinery

Construction Equipment Manufacturers Insurance - The Bottom Line

Not all construction equipment manufacturers insurance policies are designed identically. To discover if your company has the best fit insurance policies - chat with an experienced business 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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