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:
- How Much Does Cutlery Manufacturers Insurance Cost?
- Why Do Cutlery Manufacturers Need Insurance?
- What Type Of Insurance Do Cutlery Manufacturers Need?
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.
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 ISO General Liability Code(s): 51999
- Suggested Workers Compensation Code(s): 3122
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.
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.
- Audio & Video Equipment
- Auto Parts
- 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
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fur Garment
- Garage Door
- Gypsum Products
- 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
- 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
- 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.