Cutlery Manufacturers Insurance Policy Information
Cutlery Manufacturers Insurance. Cutlery, also called silverware or flatware, is an essential part of everyday life in western cultures, with the term now more specifically referring to metal knives, forks, and spoons used to eat with.
Cutlery manufacturers can work with a variety of metals, including stainless steel, silver, copper, and various alloys. Handles are frequently made of different materials, which can include wood, plastic, and bone.
Cutlery manufacturers produce knives, forks, spoons, and other food preparation and eating utensils. These utensils may be stainless steel, sterling silver, or silver-plated, and may have ceramic, wood, or plastic handles. Most knives and other utensils are stamped from sheets of steel, rolled to the correct thickness and shape, and annealed (heated) for strengthening.
For knives, the edge is ground for sharpness. Rough edges are trimmed off. Additional processes include embossing a pattern into the metal, silver plating, buffing, and polishing, or attaching a non-metal handle. Quality control inspects for scratches, rough spots between fork tines, and other flaws before packaging.
The different phases of manufacture may be carried out in different locations or different countries.
When cutlery is manufactured in larger facilities, much of the process will depend on valuable machinery used to blank, roll, cut, and polish the products. High-heat ovens are essential in the production process, too. In boutique workshops, skilled craftsmen may do much of the work by hand.
If you own and manage a company that manufacturers flatware, you will be aware that the hard work of growing and protecting your business is never finished. Like other companies, yours, too, faces a number of perils that could seriously threaten its future.
This is why it is essential that you are familiar with the kinds of cutlery manufacturers insurance available. Read on to find out more.
Cutlery 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 cutlery manufacturing insurance questions:
- What Is Cutlery Manufacturers Insurance?
- How Much Does Cutlery Manufacturers Insurance Cost?
- Why Do Cutlery Manufacturers Need Insurance?
- What Type Of Insurance Do Cutlery Manufacturers Need?
- What Does Cutlery Manufacturers Insurance Cover & Pay For?
What Is Cutlery Manufacturers Insurance?
Cutlery manufacturers insurance is a type of insurance coverage specifically designed for companies that manufacture cutlery products, such as knives, forks, spoons, and other kitchen utensils. This insurance provides protection for the manufacturer against various risks and losses, such as property damage, theft, liability claims, and workers' compensation. It covers the cost of repairs or replacement of equipment, medical expenses for employees, and legal fees in the event of a lawsuit.
The insurance also provides protection against business interruption losses, ensuring that the manufacturer can continue operating even if there is a temporary shutdown due to a covered loss.
How Much Does Cutlery Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small cutlery manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Cutlery Manufacturers Need Insurance?
Cutlery manufacturers, like other companies, need insurance because unforeseen circumstances that you cannot manage on your own can strike at any time - whether you are prepared or not. Some of the many perils that can jeopardize the financial health of your business are almost universal, while others are exclusive to the manufacturing field and even your company in particular.
Working with extremely costly machinery such as annealing ovens, you will know how devastating it could be if equipment vital to your production process suddenly breaks down. Not only will the equipment need to be replaced or repaired, you will also lose revenue as your production line temporarily grinds to a halt.
Employees could sustain serious injuries over the course of their professional activities, or even as the result of common accidents like falls. Third parties, too, could try to hold your company responsible if they become injured on your premises or if your company's activities inadvertently cause damage to others' properties.
Theft, vandalism, and acts of nature - events like fires, floods, hurricanes, and earthquakes - could befall almost any company, meanwhile.
Cutlery manufacturing companies will take steps to mitigate the risks, of course, as well as hope that such circumstances beyond your control do not occur. When accidents and other bad outcomes do come to pass, however, your insurance is your fall-back.
That is why it is vital to invest in the cutlery manufacturers insurance coverage you need.
What Type Of Insurance Do Cutlery Manufacturers Need?
Cutlery manufacturers will need to carry several different types of insurance. The exact coverage that is most suitable for any individual business depends on factors such as the size of the company, its number of employees, the machinery they use in their manufacturing process, and their location.
Consulting a competent commercial insurance agent enables you to obtain the cutlery manufacturers insurance coverage that will best meet your needs. However you will certainly need:
- Commercial Property: Essential for any company with physical assets, this type of insurance protects both your building and the contents inside it. That includes equipment and inventory. Should your company be hit by theft, vandalism, or an act of nature, commercial property insurance helps cover repairs as well as lost revenue.
- Commercial General Liability: This type of cutlery manufacturers insurance exists to protect your company from third party personal injury or property damage claims, in which case it can cover legal expenses and settlement fees. Medical and repair bills are also covered.
- Workers' Compensation: While workers' compensation insurance is vital for almost any company, that is particularly true in manufacture. As a cutlery manufacturer, your company will work with high-heat ovens that could result in a variety of work-related injuries, for example. Should that happen, workers' comp will cover both the employee's medical bills and any lost wages while they recover.
Be aware that these three essential types of business insurance are merely examples of the kind of coverage cutlery manufacturers need. You could even face claims from wholesale buyers if, for instance, the color of your cutlery is different from that shown in advertising materials.
This is why you may need product liability insurance, as well. Inland marine and vehicle insurance are two additional types of insurance you may require. Consult with an agent who specializes in cutlery manufacturers insurance to discuss your company's precise needs.
Cutlery Manufacturing's Risks & Exposures
Premises liability exposure is usually light due to lack of public access. If there is a retail or factory outlet store or tours are given, visitors may be injured by slips, trips or falls. Fumes, vapors, dust or noise from operations may affect neighboring premises.
Products liability exposure is limited but can occur if the knife shatters or the handle detaches from the blade. Quality control should be conducted. Warranties and life-time guarantees may be a concern as some products are used for decades.
Environmental impairment exposure can be significant due to possible contamination of ground, air, and water from the chemicals, paint, and solvents used. Disposal of wastes must adhere to all federal and state guidelines.
Workers compensation exposure is moderate to high due to the potential for burns from molten metals during forging and grinding operations. Injuries from production machinery are common, as are cuts and puncture wounds, slips, trips and falls, foreign objects in the eye, back injuries from lifting, hearing loss from noise, and repetitive motion injuries.
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.
As sharp edges are always present, first aid areas should be close to most workstations. Chemical burns and eye, skin, and lung irritants can present long-term occupational disease.
Property exposure consists of an office, plant, and warehouse for storage of raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, hot metal, heat-treating, application of coatings, and sparks generated by grinding and buffing operations.
Production of handles may involve ceramic, plastic or woodworking operations. Spray-painting or varnishing may be involved in a finishing process.
Dust from metals, plastic or wood can cause fire or explosion unless there are properly maintained dust collection systems and adequate ventilation. Poor housekeeping, such as failure to collect and dispose of trash on a regular basis, could contribute significantly to a loss.
Degreasers, solvents, chemicals to clean or coat, and other flammables must be adequately controlled. Unless disposed of properly, greasy, oily rags (such as those used to clean the machinery) can cause a fire without a separate ignition source.
In general, the stock is not susceptible to moisture or temperature change.
Theft is a concern if sterling silver or silver-plated utensils are produced. 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 malfunctioning production equipment, electrical control panels, and other apparatus. A lengthy breakdown to production machinery could result in a severe loss, both direct and under time element.
Crime exposures are chiefly from employee dishonesty and theft. 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. If silver is used for plating, 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), goods in transit, and valuable papers and records for customers' and suppliers' information. The primary perils are fire, theft, overturn, collision, and water damage.
Business auto exposure can be high if the manufacturer picks up raw goods, transports goods between multiple locations, or delivers finished products to customers. 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 Cutlery Manufacturers Insurance Cover & Pay For?
Cutlery manufacturers can face lawsuits for a variety of reasons, including:
1. Product liability: If a cutlery product is defective or dangerous and causes harm to a consumer, the manufacturer may be held liable for the damages. Examples of defects may include sharp edges that break off easily and cause injury or materials that contain harmful chemicals.
2. Intellectual property infringement: If a cutlery manufacturer uses a patented design without permission or creates a product that is too similar to another company's product, they may be sued for copyright or trademark infringement.
3. Breach of contract: If a cutlery manufacturer fails to meet the terms of a contract, such as providing products on time or meeting quality standards, they may be sued for breach of contract by the other party.
Insurance can protect cutlery manufacturers from the financial impact of lawsuits by providing coverage for legal fees and damages awarded. For example:
1. Product liability insurance: This type of insurance can help cover legal fees and damages resulting from claims of product defects or failures. It can also provide coverage for the costs associated with product recalls.
2. Intellectual property insurance: This type of insurance can help cover legal fees and damages resulting from claims of intellectual property infringement.
3. General liability insurance: This type of insurance can help cover legal fees and damages resulting from claims of bodily injury or property damage caused by the manufacturer's products. It can also provide coverage for claims of false advertising or other types of alleged misconduct.
By having insurance coverage in place, cutlery manufacturers can mitigate the financial risk associated with lawsuits and protect their business operations. However, it's important for manufacturers to carefully review their insurance policies to ensure that they have the appropriate coverage for their specific needs.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3421 Cutlery, 3914 Silverware, Plated Ware, And Stainless Steel Ware
- NAICS CODE: 32215 Metal Kitchen Cookware, Utensil, Cutlery and Flatware (except Precious) Manufacturing, 339910 Jewelry and Silverware Manufacturing
- Suggested Workers Compensation Code(s): 3122 Cutlery Manufacturing NOC
Description for 3421: Cutlery
Division D: Manufacturing | Major Group 34: Fabricated Metal Products, Except Machinery And Transportation Equipment | Industry Group 342: Cutlery, Handtools, And General Hardware
3421 Cutlery: Establishments primarily engaged in manufacturing safety razors, razor blades, scissors, shears, and other cutlery of metal, except precious metal and table cutlery with handles of metal. Establishments primarily engaged in manufacturing precious metal cutlery and table cutlery with handles of metal are classified in Industry 3914; those manufacturing electric razors, knives, or scissors are classified in Industry 3634; those manufacturing hair clippers for human use are classified in Industry 3999 and for animal use in Industry 3523; and those manufacturing power hedge shears and trimmers are classified in Industry 3524.
- Barbers' scissors
- Butchers' knives
- Carving sets: except all metal
- Clippers, fingernail and toenail
- Cutlery, except table cutlery with handles of metal
- Forks, table: except all metal
- Hedge shears and trimmers, except power
- Kitchen cutlery
- Knife blades
- Knife blanks
- Knives, table: metal, except all metal
- Knives: butchers', hunting, pocket, table-except all metal table and
- Potato peelers, hand
- Razor blades
- Razors: safety and straight
- Safety razor blades
- Scissors, hand
- Shears, hand
- Shears, metal cutting: hand
- Snips, tinners'
- Table cutlery, except table cutlery with handles of metal
- Tailors' scissors
Description for 3914: Silverware, Plated Ware, And Stainless Steel Ware
Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 391: Jewelry, Silverware, And Plated Ware
3914 Silverware, Plated Ware, And Stainless Steel Ware: Establishments primarily engaged in manufacturing flatware (including knives, forks, and spoons), hollow ware, ecclesiastical ware, trophies, trays, and related products made of sterling silver; of metal plated with silver, gold, or other metal; of nickel silver; of pewter; or of stainless steel. Also included are establishments primarily engaged in manufacturing table flatware with blades and handles of metal. Establishments primarily engaged in manufacturing other metal cutlery are classified in Industry 3421, and those manufacturing metal trophies, trays and toilet ware, other than silver, nickel silver, pewter, stainless steel, and plated, are classified in Industry 3499.
- Carving sets, with metal handles and blades
- Cutlery, with metal handles and blades
- Ecclesiastical ware: silver, nickel silver, pewter, and plated
- Flatware, table with metal handles and blades
- Hollow ware, silver, nickel silver pewter, stainless steel, and plated
- Loving cups, silver, nickel silver, pewter, and plated
- Silverware: nickel silver, silver plated,
- Solid silver, and sterling
- Table and kitchen cutlery, all metal
- Toilet ware: silver, nickel silver, pewter, and plated
- Trays: silver, nickel silver, pewter,
- Trophies: silver, nickel silver, pewter, and plated
Cutlery Manufacturers Insurance - The Bottom Line
Cutlery manufacturers insurance policies can be very different in coverages, costs and exclusions. To learn if your cutlery 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
- 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.