Elevator Manufacturers Insurance Policy Information
Elevator Manufacturers Insurance. When we think of elevators, the first thing that comes to mind are the residential kind we use every day, when we leave our home, go to work, or visit a shopping mall.
Elevators also have many other uses, in freight transport, for cars, or even aircraft or boats. The first modern elevators, in the industrial era, were in fact built to move coal and lumber.
Elevator manufacturers produce freight and passenger elevators. They may also produce escalators, power-operated dumbwaiters, moving sidewalks, and other assorted conveyor systems. While elevator components are built in a manufacturing facility, they are actually assembled on the building site.
Component parts include a steel-framed elevator box or car, wire rope or cable for lowering and lifting the box, electronic and computer components to control the opening and closing of doors and the ascent and descent, and a motor that hoists the actual load. The elevator box is generally finished with decorative or functional paneling and flooring.
The suspended ceiling hides the lighting fixtures. The girders and other framing elements into which the elevator is installed must support the load and withstand the vibration of its operation. Most elevators use a pulley system and counterweights installed in a separate shaft to reduce the weight that must be supported by the motor.
Component parts may be manufactured in different locations or different countries. Elevators must meet the safety standards of the American National Standards Institute and the American Society of Mechanical Engineers, and are subject to frequent state inspection and certification.
There are a variety of types of elevators as well. They include traction elevators, hydraulic elevators, elevators that use electromagnetic propulsion, and pneumatic elevators, among others. When people first started making elevators, consumers were scared of using them, but in the present, elevators have become a regular part of everyday life.
Because we're constructing increasingly tall buildings, it seems that the demand for more advanced elevators will constantly continue to rise in the future.
The elevator construction industry is a steady industry, and the same holds true for the elevator installation and service business. As it is closely connected to the construction of new buildings, and as this industry is projected to grow in the next five years, the elevator business will continue to thrive.
Almost 100,000 people are employed in this line of work in the US, in one of more than 19,000 companies, and the total market value is estimated to be $22 billion.
Despite these optimistic figures, companies in the elevator construction field are subject to a whole range of risks, each of which could be disastrous for their financial health. How can you best protect your business - and more specifically, what types of elevator manufacturers insurance are essential?
Elevator 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 elevator manufacturing insurance questions:
- What Is Elevator Manufacturers Insurance?
- How Much Does Elevator Manufacturers Insurance Cost?
- Why Do Elevator Manufacturers Need Insurance?
- What Type Of Insurance Do Elevator Manufacturers Need?
- What Does Elevator Manufacturers Insurance Cover & Pay For?
What Is Elevator Manufacturers Insurance?
Embroidery services insurance is a type of insurance coverage specifically designed for businesses offering embroidery services. It covers a wide range of risks and exposures associated with the operation of an embroidery business, such as product liability, property damage, liability from customer injuries, theft, or loss of income.
This insurance protects the business from financial losses due to unexpected events or incidents that may occur during the normal course of business operations.
How Much Does Elevator Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small elevator manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Elevator Manufacturers Need Insurance?
Every type of business faces the risk of various accidents and other unforeseen situations, and the elevator industry is no different. Certain risks, such as wildfires, hurricanes, earthquakes, lightning strikes, and floods can affect every company. Theft and vandalism are other examples of threats common to all fields. On the other hand, certain risks are specific to each line of work, since every field is unique. A lot of machines are used in this type of business, and those machines can malfunction. Work-related accidents and injuries are, unfortunately, common as well.
Now, if precautions are taken, some of these risks can be mitigated, while others cannot. Luckily, you can protect yourself and your property, and stay safe from financial loss, in the case of various mishaps, by having the right elevator manufacturers insurance.
What Type Of Insurance Do Elevator Manufacturers Need?
Making, installing, or maintaining elevators is complex work, which includes both the use of expensive machines and hard labor. Depending on your line of work in the elevator business, some risks might not apply to you, while others can affect you disproportionately.
Each company has specific needs. That is why the best option for you would be to talk to an experienced commercial insurance agent and discuss the specifics of your industry. Each detail can affect the type of insurance you might need.
This even includes the geography surrounding your facility and its climate, the amount of work you do, and the number of people employed in your company. Some of the most common types of elevator manufacturers insurance needed include:
- Commercial General Liability: This type of insurance shields you and your company from any lawsuit filed after damage caused to third parties. This includes bodily injury liability and third party property liability, such as machines you might rent.
- Commercial Property: The previous type of elevator manufacturers insurance protects you from damage you might deal to other people's property, while this one protects your own assets. The cost of the damage caused to anything you own will be (partially) covered. This includes theft and vandalism, but it also covers costs incurred by natural disasters, such as floods, fire, or earthquake, to name a few.
- Product Liability: If your anybody gets injured using an elevator you manufactured, the legal and settlement expenses resulting will be covered by this type of insurance.
- Workers' Compensation: Employees in the elevator industry face a relatively high risk of work-related injuries. This type of insurance covers the medical bills, as well as lost income while they recover.
The elevator business has great potential, is a steady industry, and, all in all, it's a good idea to invest, or keep working in this line of work. Having a backup plan if something goes wrong is also vital, however.
The risks are many, and some of them can even make your company go bankrupt. Hope for the best, but be prepared for the worst, by speaking to your commercial insurance broker who can help you select the right elevator manufacturers insurance policies.
Elevator Manufacturing's Risks & Exposures
Premises liability exposure is limited unless customers are allowed on premises to evaluate progress on custom orders or the manufacturer conducts tours. Visitors may be injured by slips, trips, or falls. The storage of materials in the open could pose an attractive nuisance. The yard should be fenced to prevent unauthorized access, with proper lighting and warnings.
Dust, fire or explosion, fumes, and noise may affect neighboring properties. Off premises exposures are extensive if the applicant installs or services units. Passersby and employees of other contractors can be injured by falling objects, trip hazards, and falling into an unprotected opening in an elevator shaft under construction.
Because welding and soldering takes place during installation, controls must be in place to prevent fire damage to the elevator and surrounding areas.
Products liability exposure is significant due to the potential for bodily injury or property damage should an elevator fail. An improperly designed or installed elevator can fall or stop between floors, trapping passengers. Doors should not open between floors or in the event of fire. Should an elevator ever fall or swing loose, the shaft, cables, and wiring can be severely damaged.
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 down to each individual part. Losses may be caused by poor workmanship, faulty design, faulty installation, or hidden damage during storage (such as rust) or during shipping (such as unseen breakage of a part).
The life span of an elevator may span several decades. Older elevators made before improved safety features were introduced may still be in use.
Environmental impairment exposure can be significant due to possible contamination of ground, air, and water from the chemicals and paints used in processing and lubricants and solvents used to service machinery. For plastics, the raw materials may be toxic and are flammable, the catalysts may be caustic, and the final product is usually not biodegradable. Storage and disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposure may be extensive. Injuries from production machinery are common, as are burns, cuts, puncture wounds, slips, trips, falls, back injuries from lifting during production, delivery, or installation, eye injuries from flying debris, hearing loss from noise, and repetitive motion losses.
Amputations can occur from working with machinery. Workstations should be ergonomically designed. The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair to increase production.
Eye, skin and respiratory irritants can result from spray-painting, coating and finishing, or welding. Workers should be aware of the toxic nature of any chemical and should be made fully aware of the need to watch for early signs and symptoms of problems.
Drivers of forklifts and vehicles may be injured in accidents. If the manufacturer installs or services elevators, workers can fall into shafts or be injured during testing.
Property exposures consist of offices, plant, and warehouse for finished units and yard for storage of raw materials. Ignition sources include electrical wiring, heating and cooling equipment, production machinery, and explosions from the build-up of dust from the cutting and sanding operations. The risk increases dramatically in the absence of proper dust collection systems, ventilation, and adequate disposal procedures.
Lubricants, solvents, or degreasers may be flammable and must be adequately separated and stored away from other operations. Additional exposures include electroplating, welding, soldering, plastics, and spray-painting. Spray-painting operations should be conducted in spray booths with explosion-proof wiring. The use of dip tanks instead of spray booths may require special attention.
Welding should be done away from combustibles. Some materials may be attractive to theft. 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 and extra expense exposures can be high when a lengthy amount of time is required to restore operations.
Equipment breakdown exposures include malfunctioning production equipment, ventilation and dust collection 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 and theft. 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.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), contractors' equipment for forklifts and other heavy machinery including cranes used in installation, goods in transit, installation floater, and valuable papers and records for customers' and suppliers' information.
The primary causes of loss are fire, theft, overturn, collision, and water damage. Items left at job sites may be susceptible to theft and vandalism.
Business auto exposure may be high if the manufacturer picks up raw materials or delivers pre-assembled elevator components to job sites. Transporting of the elevator boxes or wire cable could result in bodily injury or property damage losses if the load should shift or become unsecured during transport, resulting in collision or overturn.
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 Elevator Manufacturers Insurance Cover & Pay For?
Elevator manufacturers may face litigation for a variety of reasons. Here are some examples, along with the types of insurance that can help protect them:
1. Product Liability: If an elevator malfunctions and causes injury or damage, the manufacturer may be held liable. This could include situations where an elevator suddenly drops, stops between floors, or the doors close too quickly, causing physical harm to users. Product Liability Insurance can help in these situations by covering the costs of legal defense, settlements, and court-ordered judgments. This type of insurance is specifically designed to protect businesses from claims related to the manufacture or sale of products, parts, or goods.
2. Installation Errors: Sometimes, an elevator may be manufactured correctly, but errors during the installation process can lead to malfunctions or accidents. If the manufacturer is also involved in the installation process, they may be held responsible. Errors and Omissions Insurance (E&O) can protect manufacturers in these situations. This insurance provides coverage for lawsuits claiming negligence, misrepresentation, violation of good faith, and inaccurate advice.
3. Breach of Warranty: If the manufacturer makes certain warranties about the elevator's safety, durability, or functionality and fails to meet these promises, they could be sued for breach of warranty. General Liability Insurance typically includes coverage for breach of warranty claims. This policy can cover legal expenses when a business is sued over personal injury, property damage, and advertising injuries.
4. Employee Injuries: Manufacturing elevators can involve physical labor and the use of heavy machinery, potentially leading to employee injuries. If a worker is injured on the job, the manufacturer could face legal action. Workers' Compensation Insurance is a must for manufacturers. It can cover medical expenses, lost wages, and legal costs if an employee is injured at work and sues the business.
5. Environmental Damage: The process of manufacturing elevators could potentially lead to environmental damage, such as chemical spills or improper disposal of industrial waste. If this happens, the manufacturer could be sued for cleanup costs and damages. Environmental Liability Insurance or Pollution Liability Insurance can provide protection in these situations. These types of insurance cover claims related to pollution and environmental damage.
6. Intellectual Property Infringement: If a manufacturer is accused of copying another company's design or technology, they could be sued for patent infringement. Intellectual Property Insurance can help cover the costs of defending against these claims and any damages awarded.
Each of these insurance policies can help protect elevator manufacturers from the financial fallout of lawsuits. However, it's important to note that the specific terms and coverage limits can vary from policy to policy. Therefore, manufacturers should work with experienced insurance brokers to ensure they have the right coverage for their specific risks.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3534 Elevators and Moving Stairway
- NAICS CODE: 333921 Elevator and Moving Stairway Manufacturings
- Suggested Workers Compensation Code(s): 3042 Elevator or Escalator Manufacturing
Description for 3534: Elevators and Moving Stairway
Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 353: Construction, Mining, And Materials Handling
3534 Elevators and Moving Stairway: Establishments primarily engaged in manufacturing passenger or freight elevators, automobile lifts, dumbwaiters, and moving stairways. Establishments primarily engaged in manufacturing commercial conveyor systems and equipment are classified in Industry 3535, and those manufacturing farm elevators are classified in Industry 3523.
- Automobile lifts (elevators)
- Elevator fronts
- Elevators and elevator equipment, passenger and freight
- Elevators, powered: nonfarm
- Escalators, passenger and freight
- Lifts (elevators), passenger and freight
- Stair elevators: motor powered
- Stairways, moving
- Walkways, moving
Elevator Manufacturers Insurance - The Bottom Line
Not every elevator manufacturers insurance policy has the same coverage and exclusions. Learn if your elevator manufacturing operation has the best fit insurance policies by talking to an experienced commercial 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.