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:
- What Is Electroplating Manufacturers Insurance?
- How Much Does Electroplating Manufacturers Insurance Cost?
- Why Do Electroplating Manufacturers Need Insurance?
- What Type Of Insurance Do Electroplating Manufacturers Need?
- What Does Electroplating Manufacturers Insurance Cover & Pay For?
What Is Electroplating Manufacturers Insurance?
Electroplating Manufacturers Insurance is a type of insurance designed for manufacturers who specialize in electroplating. This insurance covers the manufacturer in case of any damages or losses that may occur as a result of their electroplating activities. This insurance typically covers areas such as property damage, liability for injury or death to employees or customers, environmental damage, and loss of income due to business interruption.
The purpose of this insurance is to provide financial protection for the manufacturer and to minimize the risk of financial loss in the event of an accident or other unforeseen circumstances.
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.
What Does Electroplating Manufacturers Insurance Cover & Pay For?
Electroplating manufacturers may face various legal issues that could lead to lawsuits. Insurance policies offer different types of protection depending on the nature of the claim. Here are a few examples:
1. Product Liability Claims: If the electroplated parts fail or cause harm in any way, the manufacturer may be sued for product liability. For example, if an electroplated part used in an automobile fails and causes an accident, the manufacturer could be held responsible.
Insurance Solution: Product Liability Insurance would cover the costs associated with such a lawsuit, including legal defense and any awarded damages. This insurance helps businesses survive claims without needing to pay these potentially crippling costs out of pocket.
2. Environmental Damage Claims: Electroplating involves the use of potentially harmful chemicals. If these chemicals are mishandled or improperly disposed of, causing environmental damage, a lawsuit could ensue.
Insurance Solution: Environmental Liability Insurance would cover the cost of cleanup, legal fees, and damages related to pollution caused by the manufacturer. This insurance offers coverage for instances where the manufacturer's activities harm the environment, whether by accident or negligence.
3. Employee Injury Claims: Electroplating can be a hazardous job due to the use of chemicals and machinery. If an employee is injured on the job, they may sue the company for damages.
Insurance Solution: Workers' Compensation Insurance is designed to cover these costs. It can pay for medical expenses, lost wages, and legal costs if the employee decides to sue. This insurance is mandatory in most states and provides essential protection for businesses and their workers.
4. Intellectual Property Claims: If an electroplating manufacturer is alleged to have infringed upon another company's patent or proprietary process, they could face a lawsuit.
Insurance Solution: Intellectual Property Insurance would cover the legal costs of defending against such a claim, and any damages awarded if the manufacturer is found to have infringed. This coverage helps protect businesses from the financial risks associated with IP disputes.
Insurance is a critical aspect of risk management for electroplating manufacturers, providing financial protection against a range of potential lawsuits. It's essential for businesses to work with an experienced insurance broker to ensure they have the right types and levels of coverage to meet their specific needs.
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 Workers Compensation Code(s): 3372 Metal Finishing
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.
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.
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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.