Electroplating Manufacturers Insurance Policy Information
Electroplating Manufacturers Insurance. Electroplating is a process in which direct electric current is used to add a metal coating to solid surfaces. This is done both for decorative purposes and for protection; electroplated surfaces are resistant to corrosion and abrasion. A variety of different metals and alloys can be used in the process of electroplating, such as copper, zinc, tin, nickel, gold, silver and palladium.
Electroplating is the process of coating or plating metal objects with a thin layer of another metal to improve their appearance, to protect them from corrosion or damage, or to facilitate electrical conductivity. Just about any type of metal can be used for plating, and the objects to be coated or plated can be of almost any size.
Examples include brass-plated doorknobs and decorative light fixtures, chrome-plated steel bumpers for autos, gold- or silver-plated jewelry, or flatware, silver-plated copper electrical wiring, and zinc-plated nuts and bolts.
The process begins with cleaning and preparing the object to be coated. Areas that will not be plated are protected with tape, lacquer, or other material. The object to be plated and a bar of the plating metal are submerged in a plate bath, an acidic solution that is electrically charged to transfer the plating metal onto the object.
Sometimes a very thin special coating called a strike is first applied to the object to improve the adherence of subsequent coatings.
Aside from visual and protective purposes, electroplating can also be used to improve electrical conductivity, and for this reason, silver and copper are used in electrical components. On the other hand, gold, and zinc-nickel improve heat resistance, and are applied to objects exposed to high temperatures.
Electroplating plays an important role in a number of different industries, from the aerospace and automotive industries to medicine, where titanium, silver, and gold are used extensively especially for implants and joint replacements.
Manufacturers in this industry can welcome positive prospects, then, but unforeseen circumstances that nobody could have predicted can always pose a threat. That is why it is so important for manufacturers in the electroplating industry to be aware of their insurance needs. Read on to discover what kind of electroplating manufacturers insurance coverage you may need.
Electroplating 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 electroplating manufacturing insurance questions:
- How Much Does Electroplating Manufacturers Insurance Cost?
- Why Do Electroplating Manufacturers Need Insurance?
- What Type Of Insurance Do Electroplating Manufacturers Need?
How Much Does Electroplating Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small electroplating manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Electroplating Manufacturers Need Insurance?
Regardless of the industry in question, each company faces certain, universal risks. Hurricanes, wild fires, earthquakes, floods, and other acts of nature can affect and endanger any type of business, leading to immense costs. Theft and vandalism affect all different types of businesses as well.
Industries also face risks unique to their fields, and electroplating is no exception. For instance, the large quantities of heavy metals used in electroplating pose a potential threat to the environment. Any leak or spill could have catastrophic consequences for the natural world, and clean-up costs can devastating for your company.
Different toxic gases, such as hydrogen cyanide, acids, alkalis, and cyanides are used in electroplating, and, of course, you will face the challenge of managing toxic waste. While electroplating is highly profitable, a company in this industry faces many potential hazards.
Some of those hazards might even lead your company into bankruptcy - if you don't have the right electroplating manufacturers insurance, that is.
What Type Of Insurance Do Electroplating Manufacturers Need?
Even though all companies in the electroplating industry engage in very similar activities, it is impossible to create a universal insurance plan, as each company is unique in a number of ways. For this reason, it is important to talk to a commercial insurance agent.
Many factors influence the type of insurance you might need, and this includes climate, geography, the number of people working in your facility, and the quantity of products you produce. Together with your commercial insurance agent, you will find the coverage most suitable for your needs.
The most common types of electroplating manufacturers insurance include:
- Commercial General Liability: This type of insurance covers the expenses of potential damage caused to third party properties. This includes, for instance, machines which you rent. It further covers claims relating to bodily injury liability.
- Commercial Property: This type of insurance protects your own property, including real estate, industrial equipment, and inventory, from unforeseen circumstances like theft and vandalism, as well as forces of nature such as floods, earthquakes, and lightning strikes.
- Product Liability: This type of electroplating manufacturers insurance covers the costs of any damage caused by your product. This includes environmental damage, in the case of leaks or spills, but also bodily injury. Product recalls can also be covered.
- Workers' Compensation: This type of insurance provides protection to both your workers and you company. In the case an employee sustains a work-related injury, your workers' medical bills will be covered, as well as lost income.
The uses of electroplated materials are many, and the demand is ever-growing - but because your industry is accompanied by environmental and occupational health hazards, investing in the right electroplating manufacturers insurance coverage that will help keep your company safe is essential.
You are advised to connect with a commercial insurance broker with a deep understanding of your industry's unique risk profile.
Electroplating Manufacturing's Risks & Exposures
Premises liability exposure is limited due to limited access by visitors. If the manufacturer offers tours, visitors may be injured by slips, trips, falls, burns from the plate bath, or inhalation of cyanide or other toxins. Fumes, vapors and discharge can damage neighboring premises. The fumes are corrosive and can cause damage to vehicles in the area.
Products liability exposure is usually moderate unless the plating or coating is used to strengthen the object being electroplated. There should be a contract in place specifying the nature of the job and the customer's specifications. Quality control should be done by both the processor and the customer to verify that the job is completed successfully.
Environmental impairment exposure is very high due to possible contamination of ground, air, and water from the disposal of waste water, used solutions (which can contain cyanide and other toxins), metal residue, and other by-products. Disposal of wastes must adhere to all federal and state guidelines.
Workers compensation exposures are high because of the chemicals used in the electroplating process. Many are toxic, including cyanide, and special controls are needed. Skin and eye irritations are common, and continued exposure can result in serious lung and respiratory problems.
Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, and foreign objects in the eye, hearing impairment from noise, over-heating, and exhaustion in high temperatures, back injuries from lifting, and repetitive motion injuries.
Workstations should be ergonomically designed. Safety training, protective equipment, and guarding of machines are important. Eyewash areas must be provided.
Employees must be fully informed as to the potential effects of the chemicals, including long-term occupational disease hazards, so that they can take action as quickly as possible.
Property exposures consist of office, shop or plant, and warehouse for raw materials or finished goods. Ignition sources include electrical wiring, production machinery, vapors from chemicals, and flammable liquids in use. Having baths and combustibles in close proximity is particularly dangerous. Degreaser or solvents used to clean the objects being coated add to the fire load.
These chemicals and flammables must be very well controlled and separated. The chemicals used can be highly corrosive. Since significant electrical currents are used, wiring must meet current codes for the occupancy. Poor housekeeping may be a serious fire hazard. Unless disposed of properly, greasy, oily rags (such as those used to clean the objects or the machinery) can cause a fire without a separate ignition source.
There is often a significant amount of property of others exposure that may be better insured on an inland marine bailees customers form. If there are exotic or precious metals, theft can be a concern.
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 Business income can be a significant exposure if the machines are special-ordered for a specific job.
Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in severe loss, both direct and under time element.
Crime exposures are chiefly from employee dishonesty, particularly if exotic metals are used for the coatings. Employees may act alone or in collusion with outsiders in stealing money, raw materials or finished stock.
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 shop should have security methods in place to prevent theft.
Inland marine exposures include accounts receivable if the shop offers credit, bailees' customers for goods belonging to others, computers (which may include computer-run production equipment), goods in transit, jewelers block if there are precious metals, and valuable papers and records for customers' and suppliers' information.
The items being coated that belong to the insured's customers are subject to the same causes of loss as property owned by the electroplating shop, plus transit and the processing itself. Jewelers block coverage is necessary if precious metals are used to coat the items. Theft is the major cause of loss.
Business auto exposure may be high if the manufacturer transports raw materials or finished products. Deadlines placed on drivers (such as just-in-time processing schedules) may increase the hazard. As the chemicals used in the plate bath are toxic, drivers transporting these must have Haz Mat licenses and be trained to contain spills.
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: 3471 Electroplating, Plating, Polishing, Anodizing, And Coloring
- NAICS CODE: 332813 Electroplating, Plating, Polishing, Anodizing, and Coloring
- Suggested ISO General Liability Code(s): 52547
- Suggested Workers Compensation Code(s): 3372
Description for 3471: Electroplating, Plating, Polishing, Anodizing, And Coloring
Division D: Manufacturing | Major Group 34: Fabricated Metal Products, Except Machinery And Transportation Equipment | Industry Group 347: Coating, Engraving, And Allied Services
3471 Electroplating, Plating, Polishing, Anodizing, And Coloring: Establishments primarily engaged in all types of electroplating, plating, anodizing, coloring, and finishing of metals and formed products for the trade. Also included in this industry are establishments which perform these types of activities, on their own account, on purchased metals or formed products. Establishments that both manufacture and finish products are classified according to the products.
- Anodizing of metals and formed products, for the trade
- Buffing, for the trade
- Chromium plating of metals and formed products, for the trade
- Cleaning and descaling metal products, for the trade
- Coloring and finishing of aluminum and formed products, for the
- Decontaminating and cleaning of missile and satellite parts, for the
- Decorative plating and finishing of formed products, for the trade
- Depolishing metal, for the trade
- Electrolizing steel, for the trade
- Electroplating of metals and formed products, for the trade
- Finishing metal products and formed products, for the trade
- Gold plating, for the trade
- Plating of metals and formed products for the trade
- Polishing of metals and formed products, for the trade
- Rechroming auto bumpers, for the trade
- Sandblasting of metal parts, for the trade
- Tumbling (cleaning and polishing) of machine parts, for the trade
Electroplating Manufacturers Insurance - The Bottom Line
Electroplating manufacturers insurance policies differ widely in coverages and exclusions. To learn if your electroplating manufacturing firm has the best fit insurance policies - talk to an experienced business insurance agent.
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.