Dry Ice Manufacturers Insurance Policy Information

Dry Ice Manufacturers Insurance. Dry ice is the colorless, non-flammable, solid form of carbon dioxide. It is primarily used as a cooling agent, since the temperature of this compound is -109F, or -78.5C, which is well below the freezing point of water. Since the production of dry ice is both uncomplicated and cheap, it has seen a variety of usage in many different fields.

Dry ice manufacturers subject carbon dioxide or CO2 to high pressure, forming "snow" that is then compressed into pellets or blocks.

Dry ice is used to refrigerate perishables, to cool small shipments of food or biological samples, for cloud seeding, to produce special effects "fog" for the entertainment industry, as a safer alternative to sandblasting, to remove flammable vapors from storage tanks, and to "inert" military fuel tanks to reduce the risk of explosion in combat.

Some manufacturers will produce their own CO2 to convert, while others will purchase it from other industries that produce CO2 as a byproduct of their regular operations.

Dry ice is widely used in medicine, veterinary medicine, pharmacology, biology and other life sciences, to store samples, vaccines, chemicals, or medicine for a prolonged period of time, or transport them from one facility to another. It is also used in the food industry for the rapid freezing of meat, as well as for making ice cream.

Dry ice can be used to solidify oil spills, industrial cleaning, or even as an insecticide; mosquitoes, bedbugs, and a number of other insects are attracted to carbon dioxide.

The production of dry ice is rather simple. First, the highly concentrated carbon dioxide gas is captured, pressurized and refrigerated until it turns to liquid. After the gas has turned to liquid, the pressure is rapidly reduced, turning the liquid into solid, snow-like substance.

Next, the snow-like powder is compressed either into large blocks of dry ice, or into small pellets, depending on the intended use.

The widespread application of dry ice makes its manufacture a profitable field, but companies that produce dry ice also face a number of perils which they need to be insured for to protect their business interests. Read on to discover what kinds of dry ice manufacturers insurance are needed.

Dry ice 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 dry ice manufacturing insurance questions:

What Is Dry Ice Manufacturers Insurance?
How Much Does Dry Ice Manufacturers Insurance Cost?
Why Do Dry Ice Manufacturers Need Insurance?
What Type Of Insurance Do Dry Ice Manufacturers Need?
What Does Dry Ice Manufacturers Insurance Cover & Pay For?

What Is Dry Ice Manufacturers Insurance?

Dry ice manufacturers insurance is a type of insurance coverage specifically designed for companies that manufacture and distribute dry ice. It provides protection for businesses against a range of risks associated with the production and transportation of dry ice, including liability for property damage, injury to employees, and damage to products during shipping and storage.

This insurance may also provide coverage for legal and medical expenses in the event of an accident or incident involving the use of dry ice.

How Much Does Dry Ice Manufacturers Insurance Cost?

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

Why Do Dry Ice Manufacturers Need Insurance?

Dry ice production inherently involves numerous risks, both obvious and hidden. While making dry ice requires only basic physics, the procedure itself can be dangerous and potentially deadly if safety parameters aren't adhered to. The transportation of dry ice carries potential financial risk, since every delay increases the risk of the ice melting.

Also, since dry ice is basically the solid form of carbon dioxide, its evaporation can be viewed as a health hazard to workers in this field, and people handling your product.

Then, there are other risks, which affect each business regardless of the field of industry - earthquakes, wildfires, lightning strikes, floods, tornadoes, vandalism, theft… No industry is safe from those risks.

By following health and safety regulations, companies that make dry ice can avoid certain risks, but others are just catastrophes waiting to happen. Certain mishaps can be quite expensive, or might even lead to bankruptcy.

This, in short, is why it is essential to have the rightdry ice manufacturers insurance.

What Type Of Insurance Do Dry Ice Manufacturers Need?

While some risks are universal, each industry is specific and each facility is unique, so it's hard to propose a universal insurance plan which covers the needs of every operation.

Many factors influence which type of dry ice manufacturers insurance you may need, such as geography, climate, terrain, the amount of dry ice produced, and your number of employees.

That is why you are advised to discuss the details of your needs with a commercial insurance agent. Together, you'll be able to find suitable coverage.

Some of the most common types of insurance companies that make dry ice need include:

Commercial General Liability: This type of insurance shields your company from expenses related to damage caused to third party property, such as the machines you rent, or from lawsuits resulting from injury to third parties.
Commercial Property: This type of dry ice manufacturers insurance covers the cost of damage caused to your property in case of unforeseen circumstances such as theft, vandalism, and acts of nature.
Product Liability: This type of insurance specifically covers the costs of damage your product might cause to third parties. Since carbon dioxide can be toxic, product liability insurance covers the costs caused by potential intoxication of third parties and costs caused by damage to the environment, and if you need to recall your product for whatever reason, the potential lost revenue can also be covered.
Workers Compensation: This type of insurance protects both your company and your employees. In case of work related injury, medical bills are financially covered, as well as lost income for the injured worker.

These essential types of insurance will certainly benefit your company, but dry ice manufacturing firms may additionally require other coverage, such as commercial auto insurance.

Therefore, ask a commercial insurance agent of your choice to explain the best dry ice manufacturers insurance options to you.

Dry Ice Manufacturing's Risks & Exposures

Premises liability exposure is normally low as access by visitors is limited. If the manufacturer conducts tours or permits customers to pick up products, visitors may be injured by slips, trips, or falls. As dry ice evaporates, it converts back to gaseous form and displaces oxygen in the air.

Proper ventilation is mandatory. While not technically toxic, fatalities have occurred when odorless CO2 displaces breathable air in a confined space. If the manufacturer has a railroad sidetrack on premises, it may present an attractive nuisance exposure unless it is fenced with proper lighting and warnings to deter trespassers.

Products liability exposure is generally limited. Improperly purified CO2 can leave an odor in products that are cooled by the dry ice. Consumption of dry ice may result in illness. Fatalities have occurred when odorless CO2 displaces breathable air in a confined space. Containers must have clear instructions and warnings regarding the necessity of adequate ventilation.

Environmental impairment exposure is generally low as CO2 dissipates quickly and does not require remediation if it is accidentally released. If ammonia is used in the manufacturer's refrigeration units, a leak or spill could contaminate air, ground or surface water, or soil.

Use of outside or underground tanks must be closely monitored and evaluated. Disposal of wastes must adhere to all federal and state guidelines.

Workers compensation exposures may be extensive as contact with dry ice will result in severe frostbite damage to unprotected skin surfaces. Injuries from production machinery are common, slips, trips, falls, foreign objects in the eye, hearing impairment from noise, and back injuries from lifting and other material handling.

The release of CO2 gas in a confined space may result in fatalities or permanent disabilities. Drivers of forklifts and vehicles may be injured in accidents.

Property exposures include an office, shop, and warehouse for storage of raw materials and finished goods. Ignition sources include machinery, refrigeration and heating units, and heat generated by the first stage of CO2 pressurization. As CO2 is an extinguishing agent, it is not combustible.

Water damage losses could be severe, since CO2 is easily dissolved back into gas form by contact with water. If refrigeration equipment uses ammonia, leaks may result in explosion. Lubricants, solvents, or degreasers may be flammable and must be adequately separated and stored from other operations.

Equipment breakdown exposures include malfunctioning production equipment, electrical control panels and other apparatus. A lengthy breakdown to production machinery, such as refrigeration and conveyors, could result in severe loss, both direct and under time element.

Crime exposures are chiefly 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), goods in transit, and valuable papers and records for customers' and suppliers' information. Stock in transit can be damaged by collision, overturn, or contact with water.

Business auto exposure is very high if the manufacturer has its own tanker trucks to transport raw materials or finished dry ice. Transportation of ammonia can result in an explosion in the event of a collision. Drivers should be trained in spill containment, have an appropriate license with a Hazardous Materials endorsement, and an acceptable MVR.

All vehicles must be well maintained, particularly tankers, with documentation kept in a central location. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others.

What Does Dry Ice Manufacturers Insurance Cover & Pay For?

Dry Ice Manufacturers Insurance Claim Form

Dry ice manufacturers can face a variety of lawsuits due to the inherently hazardous nature of their product. Here are some potential reasons for litigation, along with the corresponding insurance coverages that can protect them:

1. Workplace Injuries: Due to the extremely cold temperature of dry ice, employees might suffer from frostbite or cold burns. Workers might also face injuries from handling heavy equipment or from accidental slips and falls. Workers' Compensation Insurance can help in these situations. It typically covers medical expenses, rehabilitation costs, and a portion of lost wages for injured workers. This insurance can help pay for any legal fees and settlements if an employee decides to sue the company over the injury.

2. Product Liability: Dry ice is a hazardous material that can cause harm if not handled correctly. If a customer or a business is injured by a product due to insufficient instructions or warnings, they might sue the manufacturer. Product Liability Insurance can help in these scenarios. It can help cover legal costs, judgments, and settlements related to claims of bodily injury, property damage, or economic loss caused by a product.

3. Environmental Damage: The manufacturing process of dry ice could potentially result in environmental damage. If a company is found responsible for such damage, they may face significant legal liabilities. Environmental Liability Insurance (or Pollution Liability Insurance) can help cover the costs of clean-up, fines, penalties, and legal defense costs associated with such claims.

4. Property Damage: Mishaps such as fires, explosions, or equipment malfunction can cause significant damage to the business premises or to third-party properties. Commercial Property Insurance can help cover the costs to repair or replace damaged property, while General Liability Insurance can cover the legal costs if a third-party sues the business for property damage.

5. Business Interruption: If a catastrophic event, like a fire or a natural disaster, forces a dry ice manufacturing plant to halt operations, they could face loss of income. In these cases, Business Interruption Insurance can provide coverage for lost income, fixed costs, and the expense of setting up a temporary location.

Insurance is a crucial part of risk management for any business, including dry ice manufacturers. It can help cover unexpected costs, including legal defense costs, judgments, and settlements. Therefore, having the right insurance policies in place can protect a company from potentially devastating financial losses.

Commercial Insurance And Business Industry Classification

SIC CODE: 2813 Industrial Gases
NAICS CODE: 325120 Industrial Gas Manufacturing
Suggested Workers Compensation Code(s): 4635 Hydrogen or Oxygen Manufacturing & Drivers

Description for 2813: Industrial Gases

Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 281: Industrial Inorganic Chemicals

2813 Industrial Gases: Establishments primarily engaged in manufacturing industrial gases (including organic) for sale in compressed, liquid, and solid forms. Establishments primarily engaged in manufacturing fluorine and sulfur dioxide are classified in Industry 2819; those manufacturing household ammonia are classified in Industry 2842; those manufacturing other ammonia are classified in Industry 2873; those manufacturing chlorine are classified in Industry 2812; and those manufacturing fluorocarbon gases are classified in Industry 2869. Distributors of industrial gases and establishments primarily engaged in shipping liquid oxygen are classified in Wholesale Trade, Industry 5169.

Acetylene
Argon
Carbon dioxide
Dry ice (solid carbon dioxide)
Gases, industrial: compressed, liquefied, or solid
Helium
Hydrogen
Neon
Nitrogen
Nitrous oxide
Oxygen, compressed and liquefied

Dry Ice Manufacturers Insurance - The Bottom Line

There are different dry ice manufacturers insurance policies on the market. To find out if your business has the best fit insurance policies - speak with a 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.

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.

Buy Dry Ice Manufacturers Insurance

Dry Ice Manufacturers Insurance Policy Information

What Is Dry Ice Manufacturers Insurance?

How Much Does Dry Ice Manufacturers Insurance Cost?

Why Do Dry Ice Manufacturers Need Insurance?

What Type Of Insurance Do Dry Ice Manufacturers Need?

Dry Ice Manufacturing's Risks & Exposures

What Does Dry Ice Manufacturers Insurance Cover & Pay For?

Commercial Insurance And Business Industry Classification

Description for 2813: Industrial Gases

Dry Ice Manufacturers Insurance - The Bottom Line

Additional Resources For Manufacturing Insurance

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