Engine Manufacturers Insurance

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Engine Manufacturers Insurance Policy Information

Engine Manufacturers Insurance

Engine Manufacturers Insurance. Engines are, simply said, machines that turn one form of energy, from fuel, into mechanical energy that results in motion.

Engine manufacturers produce engines used to power hand tools, aircraft, contractors' equipment, forklifts, vehicles, and watercraft.

The engines may be powered by diesel, gasoline, kerosene, LPG (liquid petroleum gas) or electronic fuel cells and be used in products as varied as chainsaws, lawnmowers, end loaders, boat motors, farm and industrial equipment and conveyors, airplanes, automobiles, and trucks.

The process consists of product design, developing patterns or molds for component parts, making or subcontracting the various parts, assembling the final product, finishing, testing and quality control, and delivery to the customer.

Operations include metal casting, forging, and the assembly of parts manufactured elsewhere. In addition to cast iron engine blocks, other parts may be drawn or stamped from iron or steel alloys. Parts may be heat treated, sandblasted, electroplated and annealed.

Fabricating exposures range from machining and boring to welding and spray-painting. There may be incidental work with plastics or rubber parts.

Because of the varieties of materials and processes involved, the different phases of manufacture may be carried out in different locations or different countries.

Engines (also called motors) can be divided into two broad categories; while fuel combustion occurs within the engine in internal combustion engines, it takes place outside in the case of external combustion engines.

Cars and rucks, motorcycles, watercraft such as boats and submarines, aircraft, and locomotives are only some examples of the many inventions that ultimately depend on engines to work - and as such, engine manufacturers play a crucial role in the global supply chain.

They also, however, face a multitude of risks that could potentially have devastating financial consequences. This is why any company that manufacturers engines or engine components needs to be armed with comprehensive engine manufacturers insurance.

To find out what that may entail, keep reading.

Engine manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked engine manufacturing insurance questions:


How Much Does Engine Manufacturers Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small engine manufacturing businesses ranges from $77 to $799 per month based on location, size, revenue, claims history and more.


Why Do Engine Manufacturers Need Insurance?

Insurance For Manufacturers

Companies that manufacture engines may be impacted by a wide range of perils, despite doing everything in their power to operate a thriving business.

The risks that manufacturers within this field have to consider include those universal to all businesses, as well as those unique to their own industry.

Catastrophic property damage and loss may occur, for example, as a result of criminal acts like (digital as well as physical) theft, burglary, and vandalism, including arson. Acts of nature, which would include hail, earthquakes, lightning strikes, wildfires, and serious floods can halt your production overnight and without much warning.

Essential manufacturing equipment could suddenly break down.

Employees or third parties could become injured on your premises and subsequently hold your company liable. Engine manufacturers also have to consider the risk that vehicles or other products into which their engines are incorporated could become involved in an accident.

Should engine failure prove to be a factor, the costs of the litigation that will likely follow may be staggering.

Even despite your best efforts, not all accidents and other unforeseen circumstances can be prevented.

This is why you unquestionably need engine manufacturers insurance to protect you from the financial consequences of these and many other perils.


What Type Of Insurance Do Engine Manufacturers Need?

There is no one-size-fits-all answer to this question; each engine manufacturer is unique. Factors such as the location of your manufacturing facility, the type of engine you produce, your output quantities, and your number of employees all influence your insurance needs.

Consulting an agent specializing in commercial insurance who has a deep understanding of your field is an essential step in crafting the insurance plan you require.

The most important types of insurance coverage for engine manufacturers include:

A commercial insurance agent is an invaluable guide in your process of becoming properly insured. In spite of the fact that your needs will vary, engine manufacturers insurance policies required are:

  • Commercial General Liability: Should a third party file a bodily injury or property damage claim against your company, this type of insurance is designed to help cover the resulting legal defense costs. The exact events covered by commercial general liability insurance vary from one plan to the next.
  • Product Liability: This type of insurance covers liability claims as they relate to the products you manufacture, in this case engines or engine components, even once they are incorporated into other products. Product liability insurance is essential for any company that makes products with the potential to malfunction and cause damage or injury.
  • Commercial Property: This type of engine manufacturers insurance exists to protect commercial ventures against financial losses resulting from damage to or loss of property caused by acts of nature, theft, and vandalism. Your physical building is covered, by also physical assets within, such as raw materials, manufacturing equipment, computers, and finished inventory.
  • Workers' Compensation: In all fields, employees can become injured in the workplace, or suffer occupational illnesses resulting, for instance, from the inhalation of toxic substances or even repetitive stress injury. Should this happen within your company, the employee's medical costs as well as any wages lost while they are unable to work are reimbursed if you have workers' compensation insurance.


Insurance may not be as complex as the manufacturing of engines, but the fact remains that the modern market offers numerous different types of coverage.

Because your engine manufacturers insurance needs as well as the costs of your coverage vary widely, even among companies within the same field, consulting a commercial insurance agent is a vital step.

Engine Manufacturing's Risks & Exposures

Manufacturing

Premises liability exposure is low due to limited access by visitors. If tours are given or if outsiders are allowed on premises, visitors may be injured by slips, trips, or falls. Fumes and noise from processing may affect neighbors, resulting in nuisance claims.

Off-premises liability exposures come from exhibitions or demonstrations at retail locations, fairs, or conventions.

Products liability exposure is moderate to high depending on the final use of the engine. For small consumer items, product failure may be limited to that of an inconvenience. If the engine fails in a motor vehicle, aircraft, industrial machine or watercraft, consequences can be severe due to the high number of people who could be injured or killed. Engine failure can also result in significant indirect losses, such as factory downtime.

An engine may overheat and "seize" (the moving parts may melt together); its pressure may rise and it may then crack, rupture or fly apart; it may become corroded, leak fuel or oil, or even catch fire. Engine failure may be caused by improper use or poor maintenance by the customer, but it may also be caused by the manufacturer's negligence.

Losses may be caused by poor workmanship, faulty design, or hidden damage during storage (such as rust) or during shipping (such as unseen breakage of a part). 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 (often down to the individual part).

With proper maintenance, an engine may last a long time. Older units made before improved safety features were introduced may still be in use, extending the period for product liability claims to be made.

Environmental impairment exposure can be moderate to high due to the potential for air, land and water pollution from dust and fuel storage tanks. Metal contaminants may come from the chemicals, paints, and solvents used. Vapors, fumes and air pollutants, wastewater and disposal of by-products must be evaluated and controlled.

Disposal of plastics, chemicals, and flammable liquids must adhere to all EPA and other regulatory standards. There may be fuel tanks on premises with the potential for spillage and contamination. If there are underground tanks, a UST policy may be required.

Workers compensation exposures are significant. Injuries from production machinery are common, as are minor cuts, slips, trips, falls, foreign objects in the eye, back injuries from lifting, hearing loss from noise, and repetitive motion losses. Workstations should be ergonomically designed. Employees should be provided with safety training and protective equipment.

Areas that generate dust require respiratory protection devices, as well as eye protection and eye wash stations. Work with metals at high temperatures may result in burns, and chemical burns are also possible from lubricants and fuels. Fuels, lubricants, alloys and metal treatment agents (as in polishing) may irritate skin, eyes, and lungs.

Parts may come loose and injure workers in experimental engine design during the testing process. Containment areas should be used for testing.

Property exposure consists of office, plant, and warehouse or yard for storage of raw materials, components, and finished engines. Ignition sources include electrical wiring, heating systems, production machinery, and high-temperature operations like casting, forging, welding and soldering.

Wear and tear and overheating of machinery are potential fire hazards. There may be gasoline or kerosene tanks on premises. Hazards may include sheet metal work, casting, heat treating, or electroplating. In the absence of well-maintained dust collection systems, cutting and buffing operations can generate dust which can catch on fire. Welding should be done in a separate area away from combustibles.

Spray painting should be conducted in an area with explosion-proof wiring that meets all UL standards. Poor housekeeping, such as failure to collect and dispose of trash on a regular basis, could contribute significantly to a loss. Unless disposed of properly, greasy, oily rags (such as those used to clean machinery) can cause a fire without a separate ignition source.

Property stored in the open may be subject to loss by wind or hail or a target for vandalism. Appropriate security controls must be taken including lighting and 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.

Bottlenecks in the assembly process may result in a high concentration of values of partially completed engines, affecting both property valuation and business income. There may be a substantial exposure to loss of income resulting from damage to dependent properties such as key suppliers or customers.

Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. These should be properly maintained and records kept in a central location. A lengthy breakdown could result in a severe loss, both direct and under time element.

Crime exposure comes from employee dishonesty and theft as component parts and finished items may be high in value. 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. There should be security methods in place to prevent theft.

Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information. Backup copies of all records should be made and stored off premises. The primary causes of loss are theft, collision, and overturn.

Business auto exposure can be high if the manufacturer delivers engines to customers or picks up materials. Transportation of large engines requires careful loading and tie-down to prevent items from coming loose during transport. Manufacturers generally have private passenger fleets used by sales representatives.

There should be written procedures regarding the private use of these vehicles. 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: 3714 Motor Vehicle Parts And Accessories, 3519 Internal Combustion Engines, Not Elsewhere Classified
  • NAICS CODE: 336310 Motor Vehicle Gasoline Engine and Engine Parts Manufacturing, 333618 Other Engine Equipment Manufacturing
  • Suggested ISO General Liability Code(s): 52619
  • Suggested Workers Compensation Code(s): 3612, 3826, 3827

Description for 3714: Motor Vehicle Parts And Accessories

Division D: Manufacturing | Major Group 37: Transportation Equipment | Industry Group 371: Motor Vehicles And Motor Vehicle Equipment

3714 Motor Vehicle Parts And Accessories: Establishments primarily engaged in manufacturing motor vehicle parts and accessories, but not engaged in manufacturing complete motor vehicles or passenger car bodies. Establishments primarily engaged in manufacturing or assembling complete automobiles and trucks are classified in Industry 3711; those manufacturing tires and tubes are classified in Industry 3011; those manufacturing automobile glass are classified in Major Group 32; those manufacturing automobile stampings are classified in Industry 3465; those manufacturing vehicular lighting equipment are classified in Industry 3647; those manufacturing ignition systems are classified in Industry 3694; those manufacturing storage batteries are classified in Industry 3691; and those manufacturing carburetors, pistons, piston rings, and engine intake and exhaust valves are classified in Industry 3592.

  • Air brakes, motor vehicle
  • Automotive wiring harness sets, except ignition
  • Axle housings and shafts, motor vehicle
  • Axles, motor vehicle
  • Ball joints, motor vehicle
  • Bearings, motor vehicle: except ball and roller
  • Brake drums
  • Brakes and brake parts, motor vehicle
  • Bumpers and bumperettes, motor vehicle
  • Camshafts, motor vehicle gasoline engine
  • Cleaners, air: motor vehicle
  • Connecting rods, motor vehicle: gasoline engine
  • Control equipment, motor vehicle: acceleration mechanisms and
  • Crankshaft assemblies, motor vehicle: gasoline engine
  • Cylinder heads, motor vehicle: gasoline engines
  • Defrosters, motor vehicle
  • Differentials and parts, motor vehicle
  • Directional signals, motor vehicle
  • Drive shafts, motor vehicle
  • Dump truck lifting mechanisms
  • Engines and parts, except diesel: motor vehicle
  • Exhaust systems and parts, motor vehicle
  • Fifth wheels
  • Filters: oil, fuel, and air-motor vehicle
  • Frames, motor vehicle
  • Fuel pumps, motor vehicle
  • Fuel systems and parts, motor vehicle
  • Gas tanks, motor vehicle
  • Gears, motor vehicle
  • Governors, motor vehicle
  • Heaters, motor vehicle
  • Hoods, motor vehicle
  • Horns, motor vehicle
  • Hydraulic fluid power pumps for auto motive steering mechanisms
  • Instrument board assemblies, motor vehicle
  • Lubrication systems and parts, motor vehicle
  • Manifolds, motor vehicle: gasoline engine
  • Motor vehicle gasoline engine rebuilding on a factory basis
  • Motor vehicle parts and accessories, except motor vehicle stampings
  • Mufflers, exhaust: motor vehicle
  • Oil filters, motor vehicle
  • Pipes, fuel: motor vehicle
  • Power transmission equipment, motor vehicle
  • Pumps, motor vehicle: oil, water, fuel, and power steering
  • Radiators and radiator shells and cores, motor vehicle
  • Rear axle housings, motor vehicle
  • Rebuilding motor vehicle gasoline engines and transmissions on a
  • Rims, wheel: motor vehicle
  • Sanders, motor vehicle safety
  • Shock absorbers, motor vehicle
  • Steering mechanisms, motor vehicle
  • Thermostats, motor vehicle
  • Third axle attachments or six wheel units for motor vehicles
  • Tie rods, motor vehicle
  • Tire valve cores
  • Tops, motor vehicle: except stamped metal
  • Transmission housings and parts, motor vehicle
  • Transmissions, motor vehicle
  • Universal joints, motor vehicle
  • Vacuum brakes, motor vehicle
  • Wheels, motor vehicle
  • Windshield frames, motor vehicle
  • Windshield wiper systems, all types
  • Winterfronts, motor vehicle
  • Wiring harness sets motor vehicles, except ignition

Description for 3519: Internal Combustion Engines, Not Elsewhere Classified

Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 351: Engines And Turbines

3519 Internal Combustion Engines, Not Elsewhere Classified: Establishments primarily engaged in manufacturing diesel, semi-diesel, or other internal combustion engines, not elsewhere classified, for stationary, marine, traction, and other uses. Establishments primarily engaged in manufacturing aircraft engines are classified in Industry 3724, and those manufacturing automotive engines, except diesel, are classified in Industry 3714.

  • Diesel and semi-diesel engines for stationary, marine, traction, etc
  • Diesel engine parts
  • Engines and engine parts internal combustion military tank
  • Engines, internal combustion except aircraft and non-diesel
  • Engines diesel and semi-diesel and dual fuel-except aircraft
  • Gas and diesel engine rebuilding, on a factory basis
  • Governors, diesel engine
  • Internal combustion engines, except aircraft and non-diesel automotive
  • Marine engines: diesel, semi-diesel, and other internal combustion
  • Outboard motors, except electric
  • Semi-diesel Engines for stationary, marine, traction, or other uses
  • Tank engines and engine parts, internal combustion: military

Engine Manufacturers Insurance - The Bottom Line

Engine manufacturers insurance policies can differ widely in coverage, costs and exclusions. To find out if your engine manufacturing firm has the best fit insurance policies - talk to an experienced commercial insurance broker.

Often they are able to save you on premiums and offer you better policy options than you currently have.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 PoliciesWhat 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 InsuranceWhat 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 BondWhat 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
Small Business Commercial Insurance

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.


Manufacturing Insurance

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.


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