Dye And Pigment Manufacturers Insurance Policy Information
Dye And Pigment Manufacturers Insurance. Dyes and pigments have been used since the dawn of time. While both serve a similar purpose, the main difference between a dye and a pigment is that a dye chemically binds to the surface it is applied to, while a pigment does not. Pigments are not soluble in water, while dye is, at least in some steps of production.
Dye and pigment manufacturers produce chemicals or additives used to color other substances such as fabrics, paper, paints and varnishes, plastics, inks, metals, cosmetics, leathers, or woods. While dyes may be developed from plant sources such as roots or bark, most are synthetic or man-made.
Some dyes are used in the medical diagnosis field, including contrast dyes injected for magnetic resonance imaging. While dyes used in the food, medical, and cosmetics industries are subject to rigid governmental standards, other dyes are less regulated and can be toxic.
Exposures range from light for inert pigments (such as water-based coloring) to very high for reactive or radioactive and toxic. Final products may be in various forms, including liquid concentrates, powder, solid cakes, or metal foil.
Dyes and pigments have almost countless different applications; from art to home decor, and from hair colors to garment dying. Dyes are additionally extensively used in biology, histology, medicine, microbiology and other life sciences, for tissue and cell staining. Edible dyes are used to make food coloring.
Manufacturers in this industry need not be concerned that the demand for their product will disappear, as the dye and pigment field is projected to grow. They should, however, be very much aware of the perils that can befall their business, and to have the right dye and pigment manufacturers insurance . What do you need to know?
Dye and pigment 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 dye and pigment manufacturing insurance questions:
- How Much Does Dye And Pigment Manufacturers Insurance Cost?
- Why Do Dye And Pigment Manufacturers Need Insurance?
- What Type Of Insurance Do Dye And Pigment Manufacturers Need?
How Much Does Dye And Pigment Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small dye and pigment manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Dye And Pigment Manufacturers Need Insurance?
Each line of work faces certain potentially bankrupting risks specific to their field, while other hazards pose a universal danger to all types of businesses.
Regardless of the field of industry a company is in, natural disasters such as wildfires, floods, earthquakes, storms, and hurricane can cause a great deal of financial damage. Theft and vandalism are also a possibility which needs to be taken into consideration when talking about potential risks to your business.
Risks specific to your industry should not be neglected, either; since producing pigments and dye involves a lot of chemistry and valuable machines, spills and leaks, intoxication, fire, and malfunction can all threaten your company's future.
That is why it is of utmost importance to for companies that manufacture dyes and pigments to protect themselves if worst-case scenarios come to pass. Some incidents might incur worrying costs, while others can even drive a company into bankruptcy.
The only way to guard yourself if unforeseen circumstances affect your business to have the proper dye and pigment manufacturers insurance.
What Type Of Insurance Do Dye And Pigment Manufacturers Need?
While some risks can affect any field, there are certain threats which endanger only certain types of industries. Producing dyes and pigments necessitates working with dangerous and toxic and flammable chemicals, which might cause serious environmental damage, as well as a number of complicated processes and machines.
Since each company is unique, and faces specific risks, you are advised to talk to a competent commercial insurance agent and discuss all the characteristics of your business.
Even characteristics such as climate, terrain, geography, and the quantities of dye or pigment you produce can influence what type of insurance might be most suitable for your business. Some of the most common types of dye and pigment manufacturers insurance needed include:
- Commercial General Liability: This type of insurance shields your company from expenses caused third party property damage. For example, if a machine you rent to produce dye, or a truck you rent to deliver your product, is damaged, your legal expenses are covered. The same is true for third party bodily injury.
- Commercial Property: While the previous type of dye and pigment manufacturers insurance protects you from costs incurred as a result of damage caused to third parties, this form of insurance protects your property. Manufacturing equipment and buildings alike are covered by commercial property insurance, should they be by a flood or vandalism or other unforeseen circumstances.
- Product Liability: If your product causes any property damage, or bodily harm, to anyone, this type of insurance will cover the financial damage. It also prevents financial loss in the case of spills or leaks which might cause environmental damage. If for any reason you need to recall your product, the potential loss revenue will be covered.
- Workers Compensation: This fourth essential insurance covers employees' medical bills and lost income if they are injured in the workplace.
Dyes and pigments are widely used in many different industries, and will always be needed, so this makes the idea of investing in such a business a good one.
No business is safe without the proper dye and pigment manufacturers insurance, however, so consult a commercial insurance agent as soon as you can.
Dye And Pigment Manufacturing's Risks & Exposures
Premises liability exposure may be very high due to the potential release or spill of pigments and solvents which may be reactive (flammable, corrosive or explosive), toxic, or both. Fumes and vapors, both on premises and off, can affect visitors, neighbors, and passersby.
Evacuation plans should be in place. The fire department should be aware of the types of chemicals in use so they can have appropriate gear on hand to control any fire or vapor release. If the manufacturer conducts tours, visitors may be injured by slips, trips, or falls.
Products liability exposure depends on the final use. If any of the dyes are to be used in products designed for human consumption, under the skin, or for medical purposes, there is a greater chance of loss.
It may be impossible to defend against questionable claims unless there is an aggressive quality control program including high standards for materials, testing and monitoring of components, and documentation of sources. Significant injuries or damage may follow from improper storage, transport, or inappropriate packaging and labeling.
Environmental impairment exposure is very high as vapors, fumes, or spillage may contaminate air, surface or ground water, or soil. Processes may cause thermal or noise pollution. Disposal of wastes must adhere to all federal and state guidelines.
Workers compensation exposure may be high due to work with chemicals. Ingredients may be toxic or caustic, with a high potential for injury to eyes, lungs, or skin. Work with production equipment may result in cuts, amputations, and similar losses, especially without proper safety, training and guarding.
Other common injuries include back injuries from heavy lifting, slips, trips, falls, hearing loss from noise, and repetitive motion injuries. Workstations should be ergonomically designed.
All employees must be aware of the potential side effects and symptoms of medical conditions associated with the chemicals used, including long-term occupational disease hazards. Regular physicals to monitor workers' health may be advisable.
Property exposure consists of an office, plant, and warehouse or yard for storage of raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, and buildup of static electricity and sparks. Hazards vary depending on the flammability of the base used to produce the dye or pigment.
If they are water or latex based, the fire exposure is limited. If the dyes or pigments are made with solvents and similar substances or reactive chemicals, the fire and explosion potential is high and must be controlled, including separation during storage or processing, and proper ventilation to control fumes, dust, and vapors. Storage areas should be kept cool to prevent explosions.
Poor housekeeping may be a serious fire hazard. Unless disposed of properly, greasy, oily rags (such as those used to clean the machinery) can cause a fire without a separate ignition source. Raw materials and finished stock may be susceptible to loss by fire, moisture or temperature change, or theft.
Equipment breakdown exposures include malfunctioning production equipment, ventilation systems, 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 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. The manufacturer should have security methods in place to prevent theft.
Inland marine exposures consist of 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.
Dye and pigment manufacturers typically have laboratories with significant schedules of EDP equipment for spectrographic analysis, color matching, and other quality control functions. The main causes of loss during transport are fire, loss by spill or contamination, especially during a collision, and theft.
Commercial auto exposure from the operation's own tanker trucks is very high due to the potential for overturn and spillage. Drivers should be trained in spill containment, have an appropriate license with a Hazardous Materials endorsement, and an acceptable MVR.
All vehicles, especially tankers, must be well maintained 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: 2861 Gum And Wood Chemicals, 2899 Chemicals And Chemical Preparations, Not Elsewhere Classified, 2816 Inorganic Pigments, 2865 Cyclic Organic Crudes And Intermediates, And Organic Dyes And Pigments, 2819 Industrial Inorganic Chemicals, Not Elsewhere Classified
- NAICS CODE: 325194 Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing, 325998 All Other Miscellaneous Chemical Product and Preparation Manufacturing, 325130 Synthetic Dye and Pigment Manufacturing
- Suggested ISO General Liability Code(s): 51919
- Suggested Workers Compensation Code(s): 4825, 4558
Description for 2861: Gum And Wood Chemicals
Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 286: Industrial Organic Chemicals
2861 Gum And Wood Chemicals: Establishments primarily engaged in manufacturing brick and structural clay tile. Establishments primarily engaged in manufacturing hardwood and softwood distillation products, wood and gum naval stores, charcoal, natural dyestuffs, and natural tanning materials. Establishments primarily engaged in manufacturing synthetic organic tanning materials are classified in Industry 2869, and those manufacturing synthetic organic dyes are classified in Industry 2865.
- Acetate of lime, natural
- Acetone, natural
- Annato extract
- Brazilwood extract
- Brewers' pitch, product of softwood distillation
- Calcium acetate, product of hardwood distillation
- Charcoal, except activated
- Chestnut extract
- Dragon's blood
- Dyeing and extract materials, natural
- Dyestuffs, natural
- Ethyl acetate, natural
- Fustic wood extract
- Gambier extract
- Gum naval stores, processing but not gathering or warehousing
- Hardwood distillates
- Hemlock extract
- Logwood extract
- Mangrove extract
- Methanol, natural (wood alcohol)
- Methyl acetone
- Methyl alcohol, natural (wood alcohol)
- Myrobalans extract
- Naval stores, wood
- Oak extract
- Oils, wood product of hardwood distillation
- Pine oil, produced by distillation of pine gum or pine wood
- Pit charcoal
- Pitch, wood
- Pyroligneous acid
- Quebracho extract
- Quercitron extract
- Rosin, produced by distillation of pine gum or pine wood
- Softwood distillates
- Sumac extract
- Tall oil, except skimmings
- Tanning extracts and materials, natural
- Tar and tar oils, products of wood distillation
- Turpentine, produced by distillation of pine gum or pine wood
- Valonia extract
- Wattle extract
- Wood alcohol, natural
- Wood creosote
- Wood distillates
Description for 2899: Chemicals And Chemical Preparations, Not Elsewhere Classified
Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 289: Miscellaneous Chemical Products
2899 Chemicals And Chemical Preparations, Not Elsewhere Classified: Establishments primarily engaged in manufacturing miscellaneous chemical preparations, not elsewhere classified, such as fatty acids, essential oils, gelatin (except vegetable), sizes, bluing, laundry sours, writing and stamp pad ink, industrial compounds, such as boiler and heat insulating compounds, metal, oil, and water-treating compounds, waterproofing compounds, and chemical supplies for foundries. Establishments primarily engaged in manufacturing vegetable gelatin (agar-agar) are classified in Industry 2833; those manufacturing dessert preparations based on gelatin are classified in Industry 2099; those manufacturing printing ink are classified in Industry 2893; and those manufacturing drawing ink are classified in Industry 3952.
- Acid resist for etching
- Acid, battery
- Anise oil
- Antifreeze compounds, except industrial alcohol
- Bay oil
- Binders (chemical foundry supplies)
- Boiler compounds, antiscaling
- Bombs, flashlight
- Caps, for toy pistols
- Carbon removing solvents
- Chemical cotton (processed cotton linters)
- Chemical supplies for foundries
- Citronella oil
- Concrete curing compounds (blends of pigments, waxes, and resins)
- Concrete hardening compounds
- Core oil and binders
- Core wash
- Core was
- Correction fluid
- Corrosion preventive lubricant, synthetic base: for jet engines
- Deicing fluid
- Desalter kits, sea water
- Dextrine sizes
- Drilling mud
- Dyes, household
- Essential oils
- Ethylene glycol antifreeze preparations
- Eucalyptus oil
- Esothermics for metal industries
- Facings (chemical foundry supplies)
- Fatty acids: margaric, oleic, and stearic
- Fire extinguisher charges
- Fire retardant chemical preparations
- Fluidifier (retarder) for concrete
- Fluorescent inspection oil
- Fluxes: brazing, soldering, galvanizing, and welding
- Foam charge mixtures
- Food contamination testing and screening kits
- Foundry supplies, chemical preparations
- Fuel tank and engine cleaning chemicals, automotive and aircraft
- Fusees: highway, marine, and railroad
- Gelatin capsules, empty
- Gelatin: edible, technical, photographic, and pharmaceutical
- Glue size
- Grapefruit oil
- Grouting material (concrete mending compound)
- Gum sizes
- Gun slushing compounds
- Heat insulating compounds
- Heat treating salts
- Hydrofluoric acid compound, for etching and polishing glass
- Igniter grains, boron potassium nitrate
- Industrial sizes
- Insulating compounds
- Jet fuel igniters
- Laundry sours
- Lemon oil
- Lighter fluid
- Magnetic inspection oil and powder
- Margaric acid
- Metal drawing compound lubricants
- Metal treating compounds
- Military pyrotechnics
- Oil treating compounds
- Oleic acid (red oil)
- Orange oil
- Orris oil
- Oxidizers, inorganic
- Packers' salt
- Parting compounds (chemical foundry supplies)
- Patching plaster, household
- Penetrants, inspection
- Peppermint oil
- Plating compounds
- Pyrotechnic ammunition: flares, signals, flashlight bombs, and rockets
- Railroad torpedoes
- Red oil (oleic acid)
- Rifle bore cleaning compounds
- Rosin sizes
- Rubber processing preparations
- Rust resisting compounds
- Signal flares, marine
- Sizes: animal, vegetable, and synthetic plastics materials
- Sodium chloride, refined
- Soil testing kits
- Spearmint oil
- Spirit duplicating fluid
- Stearic acid
- Stencil correction compounds
- Tints and dyes, household
- Torches (fireworks)
- Vegetable oils, vulcanized or sulfurized
- Water treating compounds
- Water, distilled
- Waterproofing compounds
- Wintergreen oil
- Wood, plastic
- Writing ink and fluids
Description for 2816: Inorganic Pigments
Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 281: Industrial Inorganic Chemicals
2816 Inorganic Pigments: Establishments primarily engaged in manufacturing inorganic pigments. Important products of this industry include black pigments, except carbon black, white pigments, and color pigments. Organic color pigments, except animal black and bone black, are classified in Industry 2865, and those manufacturing carbon black are classified in Industry 2895.
- Animal black Barium sulfate, precipitated (blanc fixe)
- Barytes pigments
- Black pigments, except carbon black
- Blanc fixe (barium sulfate, precipitated)
- Bone black
- Chrome pigments: chrome green, chrome yellow, chrome orange, and
- Color pigments, inorganic
- Ferric oxide pigments
- Iron blue pigments
- Iron colors
- Iron oxide, black
- Iron oxide, magnetic
- Iron oxide, yellow
- Lamp black
- Lead oxide pigments
- Lead pigments
- Metallic pigments, inorganic
- Mineral colors and pigments
- Minium (pigments)
- Paint pigments, inorganic
- Pearl essence
- Pigments, inorganic
- Prussian blue pigments
- Red lead pigments
- Satin white pigments
- Titanium pigments
- Ultramarine pigments
- Vermilion pigments
- White lead pigments
- Zinc oxide pigments
- Zinc pigments: zinc yellow and zinc sulfide
Description for 2865: Cyclic Organic Crudes And Intermediates, And Organic Dyes And Pigments
Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 286: Industrial Organic Chemicals
2865 Cyclic Organic Crudes And Intermediates, And Organic Dyes And Pigments: Establishments primarily engaged in manufacturing cyclic organic crudes and intermediates, and organic dyes and pigments. Important products of this industry include: (1) aromatic chemicals, such as benzene, toluene, mixed xylenes naphthalene; (2) synthetic organic dyes; and (3) synthetic organic pigments. Establishments primarily engaged in manufacturing coal tar crudes in chemical recovery ovens are classified in Industry 3312, and petroleum refineries which produce such products as by-products of petroleum refining are classified in Industry 2911.
- Acid dyes, synthetic
- Acids, coal tar: derived from coal tar distillation
- Alkylated dipheoylamines, mixed
- Alkylated phenol, mixed
- Aniline oil
- Anthraquinone dyes
- Azine dyes
- Azo dyes
- Azoic dyes
- Benzene hexachloride (BHC)
- Benzene, made in chemical plants
- Benzoic acid
- Biological stains
- Chemical indicators
- Coal tar crudes, derived from coal tar distillation
- Coal tar distillates
- Coal tar intermediates
- Color lakes and toners
- Color pigments, organic: except animal black and bone black
- Colors, dry: lakes, toners, or full strength organic colors
- Colors, extended (color lakes)
- Cosmetic dyes, synthetic
- Creosote oil, made in chemical plants
- Cresols, made in chemical plants
- Cresylic acid, made in chemical plants
- Cyclic crudes, coal tar: product of coal tar distillation
- Cyclic intermediates, made in chemical plants
- Drug dyes, synthetic
- Dye (cyclic) intermediates
- Dyes, food: synthetic
- Dyes, synthetic organic
- Eosine toners
- Lake red C toners
- Leather dyes and stains, synthetic
- Lithol rubine lakes and toners
- Maleic anhydride
- Methyl violet toners
- Naphtha, solvent: made in chemical plants
- Naphthalene chips and flakes
- Naphthalene, made in chemical plants
- Naphthol, alpha and beta
- Nitro dyes
- Nitroso dyes
- Oils: light, medium, and heavy: made in chemical plants
- Organic pigments (lakes and toners)
- Paint pigments, organic
- Peacock blue lake
- Persian orange lake
- Phloxine toners
- Phosphomolybdic acid lakes and toners
- Phosphotungstic acid lakes and toners
- Phthalic anhydride
- Phthalocyanine toners
- Pigment scarlet lake
- Pitch, product of coal tar distillation
- Pulp colors, organic
- Quinoline dyes
- Scarlet 2 R lake
- Stilbene dyes
- Styrene monomer
- Tar, product of coal tar distillation
- Toluene, made in chemical plants
- Vat dyes, synthetic
- Xylene, made in chemical plants
Description for 2819 Industrial Inorganic Chemicals, Not Elsewhere Classified
Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 281: Industrial Inorganic Chemicals
2819: Industrial Inorganic Chemicals, Not Elsewhere Classified: Establishments primarily engaged in manufacturing industrial inorganic chemicals, not elsewhere classified. Establishments primarily engaged in mining, milling, or otherwise preparing natural potassium, sodium, or boron compounds (other than common salt) are classified in Industry 1474. Establishments primarily engaged in manufacturing household bleaches are classified in Industry 2842; those manufacturing phosphoric acid are classified in Industry 2874; and those manufacturing nitric acid, anhydrous ammonia, and other nitrogenous fertilizer materials are classified in Industry 2873.
- Activated carbon and charcoal
- Alkali metals
- Aluminum chloride
- Aluminum compounds
- Aluminum hydroxide (alumina trihydrate)
- Aluminum oxide
- Aluminum sulfate
- Ammonia alum
- Ammonium chloride, hydroxide, and molybdate
- Ammonium compounds, except for fertilizer
- Ammonium perchlorate
- Ammonium thiosulfate
- Barium compounds
- Bauxite, refined
- Beryllium oxide
- Bleach (calcium hypochlorite), industrial
- Bleach (sodium hypochlorite), industrial
- Bleaches, industrial
- Bleaching powder, industrial
- Borax (sodium tetraborate)
- Boric acid
- Boron compounds, not produced at mines
- Bromine, elemental
- Calcium carbide, chloride, and hypochlorite
- Calcium compounds, inorganic
- Calcium metal
- Catalysts, chemical
- Cerium salts
- Cesium metal
- Charcoal, activated
- Chlorosulfonic acid
- Chromates and bichromates
- Chromic acid
- Chromium compounds, inorganic
- Chromium salts
- Cobalt 60 (radioactive)
- Cobalt chloride
- Cobalt sulfate
- Copper chloride
- Copper iodide and oxide
- Copper sulfate
- Desiccants, activated: silica gel
- Ferric chloride
- Ferric oxides, except pigments
- Fissionable material production
- Fluorine, elemental
- Fuel propellants, solid: inorganic
- Fuels, high energy: inorganic
- Glauber's salt
- Heavy water
- High purity grade chemicals, inorganic: refined from technical grades
- Hydrated alumina silicate powder
- Hydrochloric acid
- Hydrocyanic acid
- Hydrofluoric acid
- Hydrogen peroxide
- Hydrogen sulfide
- Indium chloride
- Inorganic acids, except nitric or phosphoric
- Iodine elemental
- Iodine, resublimed
- Iron sulphate
- Isotopes, radioactive
- Laboratory chemicals, inorganic
- Lead oxides, other than pigments
- Lead silicate
- Lime bleaching compounds
- Lithium compounds
- Lithium metal
- Luminous compounds, radium
- Magnesium carbonate
- Magnesium chloride
- Magnesium compounds, inorganic
- Manganese dioxide powder, synthetic
- Mercury chlorides (calomel, corrosive sublimate), except U.S.P.
- Mercury compounds, inorganic
- Mercury oxides
- Mercury, redistilled
- Metals, liquid
- Mixed acid
- Muriate of potash, not produced at mines
- Nickel ammonium sulfate
- Nickel carbonate
- Nickel compounds, inorganic
- Nickel sulfate
- Nuclear cores, inorganic
- Nuclear fuel reactor cores, inorganic
- Nuclear fuel scrap reprocessing
- Oleum (fuming sulfuric acid)
- Oxidation catalyst made from porcelain
- Perchloric acid
- Peroxides, inorganic
- Phosphates, except defluorinated and ammoniated
- Phosphorus and phosphorus oxychloride
- Potash alum
- Potassium aluminum sulfate
- Potassium bichromate and chromate
- Potassium bromide
- Potassium chlorate
- Potassium chloride
- Potassium compounds, inorganic: except potassium hydroxide and
- Potassium cyanide
- Potassium hypochlorate
- Potassium iodide
- Potassium metal
- Potassium nitrate and sulfate
- Potassium permanganate
- Propellants for missiles, solid: inorganic
- Radium chloride
- Radium luminous compounds
- Rare earth metal salts
- Reagent grade chemicals, inorganic: refined from technical grades
- Rubidium metal
- Salt cake (sodium sulfate)
- Salts of rare earth metals
- Silica gel
- Silica, amorphous
- Silver bromide, chloride, and nitrate
- Silver compounds, inorganic
- Soda alum
- Sodium aluminate
- Sodium aluminum sulfate
- Sodium antimoniate
- Sodium arsenite, technical
- Sodium bichromate and chromate
- Sodium borates
- Sodium borohydride
- Sodium bromide, not produced at mines
- Sodium chlorate
- Sodium compounds, inorganic
- Sodium cyanide
- Sodium hydrosulfite
- Sodium molybdate
- Sodium perborate
- Sodium peroxide
- Sodium phosphate
- Sodium polyphosphate
- Sodium silicate
- Sodium silicofluoride
- Sodium stannate
- Sodium sulfate-bulk or tablets
- Sodium tetraborate not produced at mines
- Sodium thiosulfate
- Sodium tungstate
- Sodium uranate
- Sodium, metallic
- Stannic and stannous chloride
- Strontium carbonate precipitated and oxide
- Strontium nitrate
- Sublimate corrosive
- Sulfate of potash and potash magnesia, not produced at mines
- Sulfides and sulfites
- Sulfur chloride
- Sulfur dioxide
- Sulfur hexafluoride gas
- Sulfur recovered or refined including from sour natural gas
- Sulfuric acid
- Tanning agents synthetic inorganic
- Thiocyanates, inorganic
- Tin chloride
- Tin compounds, inorganic
- Tin oxide
- Tin salts
- Tungsten carbide powder except abrasives or by metallurgical process
- Uranium slug, radioactive
- Water glass
- Zinc chloride
Dye And Pigment Manufacturers Insurance - The Bottom Line
Dye and pigment manufacturers insurance policies vary a lot in coverage and premium. You can find out if your company has the best fit insurance policies by talking to an experienced business 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.