Cork Products Manufacturers Insurance Policy Information
Cork Products Manufacturers Insurance. Cork is a natural material harvested from a certain type of oak that is native to Europe and Northern Africa. Particularly, cork is a part of the bark of cork oak. Not only is it impermeable to fluids, cork also floats on water and other liquids, and slows fire down.
Cork product manufacturers import raw cork from countries that border the Mediterranean. The slabs of raw cork may be cured in the open for up to six months to strengthen them. The slabs are softened by boiling or placing into a chemical bath, then cut and formed into end products. Any remaining cork is ground, mixed with adhesives or binders, formed into shapes, and then baked.
A vinyl coating may be added to help protect the cork and make cleaning easier. Cork is buoyant, impermeable to gases or liquids, and resistant to fire, insects, moisture, rot, and wear. Products made from cork include acoustic tiles, bottle stoppers, bulletin boards, flooring and wall tiles, personal flotation devices, shoe insoles, and sporting goods such as baseball and cricket ball cores, handles for fishing rods, and helmet cushioning.
Cork has been used more recently in "green" construction as insulation and roofing.
The first thing that comes to mind when talking about cork are cork stoppers for wine bottles, but its versatile features are what makes cork, as a material, useful in a variety of industries.
The uses of cork are many. Besides cork stoppers, cork is also used as a flooring material, both in homes and on boats, because of the cork's virtual impermeability to water. It's used as an insulator in house walls, roofs, and floors.
Cork has also seen use in sports, as it is a part of balls in both baseball and cricket, as well as in badminton shuttlecocks. It can be used in motors, bulletin boards and fishing floats.
As the cork oak grows mostly in the Mediterranean, it is natural that its largest producers are countries in that region, such as Portugal, Spain, France, and Morocco, but there are dozens of cork product manufacturers in the US as well.
The value of this industry in Portugal alone is close to one billion euros. In the US, the growth of the cork stopper market has shown a growth of approximately 7 percent annually.
While this means cork manufacturers have ample opportunity for success and expansion, they are also exposed to a number of threats that could have devastating consequences for their future. Hence, business in this industry need to make sure they have the right cork products manufacturers insurance on their side.
What should you know if you own and run a company that manufactures cork products?
Cork products 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 cork products manufacturing insurance questions:
- How Much Does Cork Products Manufacturers Insurance Cost?
- Why Do Cork Products Manufacturers Need Insurance?
- What Type Of Insurance Do Cork Products Manufacturers Need?
How Much Does Cork Products Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small cork products manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Woodworkers Need Insurance?
Each business faces a range of risks. Some of those risks are universal, while others are highly specific to certain types of businesses.
Whatever type of product you produce, you're not immune to natural disasters such as earthquakes, wildfires, lightning strikes, tornadoes, and floods. On the other hand, since cork is harvested from wood, damage to vehicles might be expected, and injuries also pose a great risk to the employees. Machines get broken, and theft and vandalism also pose a risk for many industries, including cork production.
Certain risks can be avoided if proper precautions are taken, but other disasters just happen. Cork products manufacturers insurance is important because when something goes wrong, the proper coverage will be there to catch you.
What Type Of Insurance Do Cork Products Manufacturers Need?
While some risks are universal, it should be noted that each company is unique - and the same holds true for their insurance needs. That is why manufacturers of cork products should consult a commercial insurance agent, who can talk them through the factors that influence the required insurance coverage.
They include the amount of cork products you produce, your local climate and terrain, and your number of employees. Together, you'll find the cork products manufacturers insurance that is most suitable for your needs.
While each industry, and each company are unique, the essential types of insurance that cover the basic hazards your company will face include:
- General Liability: This type of insurance covers the expenses caused by damaging property owned by third parties, such as the machines you rent, or a building you rent. It also covers the expenses of bodily injury liability, if it takes place on your premises.
- Commercial Property: This type of cork products manufacturers insurance protects your business from any damage caused to your property as a result of theft and vandalism, as well as damage caused by natural disasters, such as wildfires, tornadoes, earthquakes, and lightning strikes, among others.
- Product Liability: This type of insurance covers the expenses of lost revenue, if you are, for any reason, in the situation that you need to recall your product. It also covers legal expenses and medical bills in the case that your products cause bodily harm to third parties.
- Workers Compensation: This type of insurance protects both your workers and your company, in this case from potential lawsuits. In the case of a work-related injury, medical expenses and lost income are both covered.
Bear in mind that these examples of essential kinds of insurance may not cover the whole spectrum of your company's needs, and that consulting an insurance agent who specializes in cork products manufacturers insurance is your fastest and most effective way of discovering the unique insurance requirements of your business.
Cork Products Manufacturing's Risks & Exposures
Premises liability exposure is normally low as access by visitors is limited. If tours are given or if there is a retail outlet on the premises, visitors may be injured by slips, trips, or falls. The storage of cork in the open could pose an attractive nuisance hazard.
The yard should be fenced with proper lighting and warnings. Fire and fumes or vapors from coating and finishing operations may reach neighboring premises. If the manufacturer does installations, there may be frequent small property damage claims.
Products liability exposure depends on the type of product that is manufactured. The exposure can be very low for consumer products such as acoustic, flooring, or wall tiles, or very high for safety devices such as life preservers and life jackets.
Environmental impairment exposure is usually low to moderate because cork is a natural product that is nontoxic and nonflammable. Disposal of adhesives and binders may result in air, ground, or water contamination. Storage and disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposures may be high. Injuries from production machinery are common, as are cuts, puncture wounds from sewing, slips, trips, falls, back injuries from lifting, hearing loss from noise, and repetitive motion injuries.
Workstations should be ergonomically designed. Exposure to binding agents or dust can result in respiratory problems. Drivers of forklifts and vehicles may be injured in accidents.
Property exposures consist of an office, shop, warehouse for finished goods, and a yard for storage of cork that is being seasoned. While cork is not flammable, the adhesives and binders used to process ground cork can cause fire and explosion.
These should be adequately separated and stored away from other operations. The processes involved in producing the cork product involve machinery that must be maintained to prevent fires. Cork stored in the open may attract thieves.
Equipment breakdown exposures include malfunctioning production equipment, electrical control panels, and other apparatus. Breakdown and loss of use to the production machinery could result in a significant loss, both direct and under time element.
Crime exposure is from employee dishonesty. 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, computers (which may include computer-run production equipment), exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information.
The major perils are fire, theft, water, collision, and upset. There may be an ocean marine cargo exposure if the manufacturer owns the cork being imported.
Business auto exposure is high if the manufacturer transports its finished goods or picks up raw materials. Manufacturers generally also 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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2499 Wood Products, Not Elsewhere Classified
- NAICS CODE: 321999 All Other Miscellaneous Wood Products Manufacturing
- Suggested ISO General Liability Code(s): 59985 Wood Products Manufacturing, 59986 Wood Turned Products Manufacturing
- Suggested Workers Compensation Code(s): 2841 Wood Turned Products Manufacturing NOC
Description for 2499: Wood Products, Not Elsewhere Classified
Division D: Manufacturing | Major Group 24: Lumber And Wood Products, Except Furniture | Industry Group 249: Miscellaneous Wood Products
2499 Wood Products, Not Elsewhere Classified: Establishments primarily engaged in manufacturing miscellaneous wood products, not elsewhere classified, and products from rattan, reed, splint, straw, veneer, veneer strips, wicker, and willow.
- Applicators, wood
- Bakers' equipment, wood
- Baskets, except fruit, vegetable, fish, and bait: (e.g., rattan, reed,
- Battery separators, wood
- Bearings, wood
- Beekeeping supplies, wood
- Bentwood (steam bent) products, except furniture
- Blocks, tackle: wood
- Blocks, tailors' pressing: wood
- Boards, bulletin: wood and cork
- Boards- clip, ironing, meat, and pastry-wood
- Boot and shoe lasts, regardless of material
- Bowls, wood: turned and shaped
- Briquettes, sawdust or bagasse: non-petroleum binder
- Bungs, wood
- Buoys, cork
- Bushings, wood
- Cane, chair: woven of reed or rattan
- Carpets, cork
- Cloth winding reels, wood
- Clothes dryers (clothes horses), wood
- Clothes drying frames, wood
- Clothes pins, wood
- Clubs, police: wood
- Cooling towers, wood or wood and sheet metal combination
- Cork products
- Corks, bottle
- Covers, bottle and demijohn: willow, rattan, and reed
- Curtain stretchers, wood
- Dishes, wood
- Display forms for boots and shoes, regardless of material
- Dowels, wood
- Extension planks, wood
- Faucets, wood
- Fellies, wood
- Fencing, wood: except rough pickets, poles, and rails
- Firewood and fuel wood containing fuel binder
- Flour, wood
- Frames: medallion, mirror, photograph, and picture-wood or metal
- Furniture inlays (veneers)
- Garment hangers, wood
- Gavels, wood
- Grain measures, wood: turned and shaped
- Hammers, meat: wood
- Hampers, laundry: rattan, reed, splint, veneer, and willow
- Handles, wood: turned and shaped
- Hubs, wood
- Insulating materials, cork
- Jacks, ladder: wood
- Knobs, wood
- Ladders, wood
- Last sole patterns, regardless of material
- Letters, wood
- Life preservers, cork
- Mallets, wood
- Market baskets, except fruit and vegetable: veneer and splint
- Marquetry, wood
- Mashers, potato: wood
- Masts, wood
- Mauls, wood
- Moldings, picture frame: finished
- Novelties, wood fiber
- Oars, wood
- Pads, table: rattan, reed, and willow
- Paint sticks, wood
- Pencil slats
- Plugs wood
- Poles wood: e.g., clothesline, tent, flag
- Pressed logs of sawdust and other wood particles, non-petroleum
- Pulleys, wood
- Racks, for drying clothes: wood
- Rattan ware, except furniture
- Reed ware, except furniture
- Reels cloth winding wood
- Reels for drying clothes: wood
- Reels, plywood
- Rollers, wood
- Rolling pins, wood
- Rules and rulers: wood, except slide
- Saddle trees, wood
- Sawdust, reground
- Scaffolds, wood
- Scoops, wood
- Seat covers, rattan
- Seats, toilet: wood
- Shoe stretchers, regardless of material
- Shoe trees, regardless of material
- Signboards, wood
- Skewers, wood
- Snow fence
- Spars, wood
- Spigots, wood
- Spokes, wood
- Spools, except for textile machinery: wood
- Stakes, surveyors': wood
- Step-ladders, wood
- Stoppers, cork
- Tile, cork
- Tool handles, wood: turned and shaped
- Toothpicks, wood
- Trays: wood, wicker, and bagasse
- Trophy bases, wood
- Vats, wood: except coopered
- Washboards, wood and part wood
- Webbing: cane, reed, and rattan
- Willow ware, except furniture
- Wood, except furniture: turned and carved
- Woodenware, kitchen and household
- Yardsticks, wood
Cork Products Manufacturers Insurance - The Bottom Line
Cork products manufacturers insurance policies can vary widely in coverage and exclusions. Discover if your insurance policies cover your operations by talking to an experienced business insurance agent.
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.
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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Policies||What 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 Insurance||What 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 Bond||What 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
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.
- 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
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- 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
- Vending Machines
- Vegetable Juice
- Wire Rope
- Wood Furniture
- Writing Instruments
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.