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:
- How Much Does Dry Ice Manufacturers Insurance Cost?
- Why Do Dry Ice Manufacturers Need Insurance?
- What Type Of Insurance Do Dry Ice Manufacturers Need?
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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2813 Industrial Gases
- NAICS CODE: 325120 Industrial Gas Manufacturing
- Suggested ISO General Liability Code(s): 53902
- Suggested Workers Compensation Code(s): 4635
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.
- Carbon dioxide
- Dry ice (solid carbon dioxide)
- Gases, industrial: compressed, liquefied, or solid
- 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.
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.