Exercise Equipment Manufacturers Insurance Policy Information
Exercise Equipment Manufacturers Insurance. People who exercise regularly are happier, stronger, fitter, and healthier - and whether they work out at home or at the gym, they often couldn't do it without the exercise equipment manufacturing industry.
Exercise equipment manufacturers make stationary items, such as weight machines, treadmills, or bicycles used in gyms, plus portable items that can be used at home, such as exercise balls, hand-held weights, or stretch bands. Some devices may use electricity or be monitored by a computer.
Items produced may be made of metal, plastic, rubber or wood, or any combination of these materials. Metal items may be cast, drawn, extruded, punched, or cut from sheets, then joined with seams, rivets, hinges, or screws. There may be some soldering or spot welding.
Raw plastic, which can be in powder, liquid, flakes, or pellets, is blended or mixed with a wide range of additives, resins, colorings, and catalysts, heated, then molded, formed, or extruded into an end product which is buffed and finished with paint or lacquer. As natural rubber contains latex, a substance that can cause severe allergic reactions, most rubber items are now made of synthetic, petroleum-based materials.
When natural rubber is used, the latex is imported in prevulcanized sheets that can be shredded and heated into liquid or semi-liquid form, then processed using extrusion, injection molding, or compression molding into an end product.
Wood items are cut, sanded, painted or varnished, and assembled. Each process should be individually reviewed. Component parts may be manufactured in different locations or different countries. While some manufacturers of exercise equipment sell directly to gyms, most sell through distributors, catalogs or the Internet.
The exercise equipment manufacturing industry can broadly be divided into two segments. There is, of course, the commercial market, which supplies companies ranging from gyms to hotels. The home exercise market, which supplies individual consumers who plan to use fitness equipment only within their own households, has, on the other hand, taken over the largest share of the overall industry.
If you own and manage a company that manufactures exercise equipment, nobody can argue that you don't play a vital role in keeping your consumers fit and healthy - but to maintain and grow your company, you will need to do the same for your own business interests. Every company is subject to a variety of risks and circumstances beyond your control, and that is especially true for manufacturers.
Are you prepared for every eventuality with the right exercise equipment manufacturers insurance coverage? What types of insurance would fitness equipment manufacturers need to carry? Read on to cover your bases.
Exercise equipment 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 exercise equipment manufacturing insurance questions:
- What Is Exercise Equipment Manufacturers Insurance?
- How Much Does Exercise Equipment Manufacturers Insurance Cost?
- Why Do Exercise Equipment Manufacturers Need Insurance?
- What Type Of Insurance Do Exercise Equipment Manufacturers Need?
- What Does Exercise Equipment Manufacturers Insurance Cover & Pay For?
What Is Exercise Equipment Manufacturers Insurance?
Exercise equipment manufacturers insurance is a type of insurance coverage designed specifically for companies that manufacture and sell exercise equipment.
This insurance protects the manufacturer from financial losses due to a variety of risks, such as product liability claims, property damage, and injury to employees. It covers the costs associated with defending against a lawsuit, paying damages, and repairing or replacing damaged equipment. The policy may also cover the cost of business interruption, which is the loss of income a manufacturer may incur due to a covered event.
Exercise equipment manufacturers insurance is essential for companies in this industry as it helps protect their assets and bottom line.
How Much Does Exercise Equipment Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small exercise equipment manufacturing businesses ranges from $57 to $89 per month based on location, size, revenue, claims history and more.
Why Do Exercise Equipment Manufacturers Need Insurance?
Let's be clear - comprehensive insurance coverage is not merely crucial for any business-savvy company, but also legally required. Even for exercise equipment manufacturers who make the safety as well as fitness of their consumers their utmost priority, there is the potential that something can go wrong with a treadmill or resistance machine, causing injury to users. Even incorrect use on the consumer's part could result in a lawsuit.
These examples cover only part of the risk that is specific to fitness equipment manufacturers, but your company can also face the very same risks that pose a threat to any commercial venture. Acts of nature, which would include such impossible-to-plan for events as hurricanes, wildfires, and earthquakes, may impact your manufacturing facility.
The prospect of theft, vandalism, and the unintentional damage of goods offers yet more reasons to be well-insured. Then, there is the possibility that an employee gets injured in the workplace - something that can happen no matter how seriously you take health and safety.
You need insurance - and the right kinds of exercise equipment manufacturers insurance - because you never know what is around the corner, but you do know that if disaster strikes, you want to be protected.
What Type Of Insurance Do Exercise Equipment Manufacturers Need?
The exact kinds of exercise equipment manufacturers insurance required will depend on numerous factors. The type of equipment you make, the location and size of your manufacturing facility or facilities, and even the number of employees you have will all help determine your insurance needs.
To be absolutely certain you are covered in all the right places, an experienced commercial insurance agent with a deep knowledge of your industry will prove to be invaluable. Having said that, some kinds of insurance are must-haves by definition, and those include:
- Commercial Property: This type of insurance should be one of your first priorities, as it covers your manufacturing facility - the property itself, and also the contents within, whether inventory or records - in the event of damage, theft, vandalism, and acts of nature. Several sub-categories exist, so consult your insurance agent to find out what you need.
- Commercial General Liability: Also essential to companies within the fitness equipment manufacturing field, commercial general liability insurance primarily covers legal defense costs, and, should a lawsuit be successful, settlement fees. Once again, multiple sub-types exist, and within your industry, one of the possibilities you will want to consider is that consumers could be injured while using your equipment (third-party bodily injury and product liability).
- Workers' Compensation: This kind of insurance, more casually known as "workers' comp", protects employees and companies alike. It covers workplace injuries as well as long-term occupational hazards that may result, for instance, from contact with some of the materials used in the manufacture of equipment. For workers, that means their medical costs and compensation for lost wages are taken care of. For companies, it avoids lengthy and costly litigation.
These are just some of the types of exercise equipment manufacturers insurance coverage you should carry. You can carry individual policies, or opt for a commercial package policy that combines several different types of coverage under a single policy.
Exercise Equipment Manufacturing's Risks & Exposures
Premises liability exposure is normally low as access by visitors is limited. If there is a showroom, visitors may be injured by slips, trips, or falls. Fire, fumes, dust, and noise from operations could pose a nuisance hazard to neighbors.
Exhibitions and demonstrations may substantially increase off-premises hazards because exercise equipment may be an attractive nuisance to novices and unsupervised children.
Products liability exposure varies by the type of equipment manufactured. Portable items such as exercise balls present a lower exposure, while equipment using weights or electronic monitoring can result in severe injury or death if the product should fail or be misused.
Free weights pose an extremely high risk of injury as they can fall onto users or bystanders. Automated devices can overheat or malfunction, or springs, metal rods or bars under tension may fail. Resistance devices pose less potential for harm because the device ceases to operate once the user stops. Sharp edges can result in cuts and other injuries.
Assembly instructions should be clear so the customer can assemble the equipment correctly. Since most exercise regimens involve repetitive motion, cumulative trauma injuries may arise from improper use or from poor design. Devices must carry warning labels and instruction information. Diagrams and videos showing proper use are helpful.
Professional liability exposure may arise if the manufacturer claims health benefits and warranties, real or implied, regarding the appropriateness of the product to remedy particular health conditions. Exercise machines that monitor heart rate or blood pressure and recommend a particular course of action may increase this exposure unless warnings are prominent and sources well documented.
Environmental impairment exposure is high due to possible contamination of ground, air, and water from chemicals and toxic lubricants, solvents, and paints used in the manufacturing process. Raw materials may be toxic and flammable. Fumes and improper disposal of scrap can result in air, ground, or water contamination. Disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposures can be high. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, foreign objects in the eye, hearing loss from machinery noise, back injuries from lifting, and repetitive motion injuries. Workstations must be ergonomically designed.
Areas that generate dust from metal or woodwork, or use spray-painting, require respiratory protection devices, as well as eye protection and eye wash stations. Flammable liquids and chemicals can cause skin irritation, eye irritation, and possible long-term occupational disease.
Workers must be made aware of the potential side effects of the ingredients they work with, including long-term occupational disease hazards, so they can recognize symptoms and obtain treatment as early as possible.
Property exposures consist of an office, plant, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, and production machinery. Different hazards arise depending on the processes used for items made of metal, plastic, rubber, and wood. Metalworking may include soldering or welding that may generate sparks.
These operations should be conducted away from combustibles. Flammable liquids, glues, paints, and varnishes should be kept to a minimum in the processing area and stored in approved containers in isolated areas. Hazards increase in the absence of controls, such as dust collection systems or booths with UL-approved fixtures for spray painting.
Machinery needs proper maintenance to prevent overheating and wear. If plastics or rubbers catch fire, they will produce an oily black smoke that can be very difficult to extinguish. Poor housekeeping, such as failure to collect and dispose of scraps on a regular basis, could contribute significantly to a loss. Unless disposed of properly, greasy, oily rags (such as those used to clean the machinery) can cause a fire without a separate ignition source.
Sprinklers may be advisable. Appropriate security controls must 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.
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 a severe loss, both direct and under time element.
Crime exposures are chiefly from employee dishonesty and theft of money and securities. 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. Appropriate security controls must 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.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information. Raw stock and work in process may be transported between different buildings or locations.
If large equipment is sold directly to health clubs, there may be an installation exposure. Exercise equipment may be damaged by fire, theft, collision, overturn, and water damage while in transit, or from theft or vandalism while on exhibition.
Commercial auto exposure may be may be high if the manufacturer transports raw materials or finished products. 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 Exercise Equipment Manufacturers Insurance Cover & Pay For?
Exercise equipment manufacturers can face lawsuits for several reasons including product liability, negligence, patent infringement, and breach of contract. Insurance policies such as product liability insurance, professional indemnity insurance, and intellectual property insurance can help protect them from the financial impacts of such lawsuits.
1. Product Liability: This is a common reason for lawsuits against equipment manufacturers. If a piece of exercise equipment malfunctions and causes injury to a user, the manufacturer could be held responsible. Product liability insurance can help cover the legal expenses associated with defending such a claim, as well as any compensation or settlement fees if the manufacturer is found to be at fault.
2. Negligence: Manufacturers could be sued for negligence if they fail to provide adequate instructions or safety warnings, or if they do not conduct sufficient safety checks or quality control. Professional indemnity insurance, also known as errors and omissions insurance, can protect manufacturers in these cases. This insurance covers the cost of defending a negligence claim and any damages awarded in a lawsuit.
3. Patent Infringement: If a manufacturer is accused of infringing on another company's patent, they could face a lawsuit. Intellectual property insurance can assist in these situations. It covers the cost of legal defense and any financial settlements or awards that might result from the lawsuit.
4. Breach of Contract: Manufacturers might also face lawsuits for breach of contract, for example, if they fail to deliver products as agreed with a distributor. Commercial general liability insurance typically includes coverage for such legal disputes. It can help pay for the defense costs, as well as any settlements or judgments.
Insurance is a critical risk management tool for exercise equipment manufacturers. It's important to note, however, that insurance does not absolve a manufacturer from ensuring their products are safe and meet all regulatory standards. Manufacturers must also adopt robust risk management practices, such as regular product testing, quality control, and safety measures, to reduce the likelihood of facing a lawsuit in the first place.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3949 Sporting and Athletic Goods, Not Elsewhere Classified
- NAICS CODE: 339920 Sporting and Athletic Goods Manufacturing
- Suggested Workers Compensation Code(s): 4902 Sporting Goods Manufacturing NOC
Description for 3949: Sporting and Athletic Goods, Not Elsewhere Classified
Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 394: Dolls, Toys, Games And Sporting And Athletic
3949 Sporting and Athletic Goods, Not Elsewhere Classified: Establishments primarily engaged in manufacturing sporting and athletic goods, not elsewhere classified, such as fishing tackle; golf and tennis goods; baseball, football, basketball, and boxing equipment; roller skates and ice skates; gymnasium and playground equipment; billiard and pool tables; and bowling alleys and equipment. Establishments primarily engaged in manufacturing athletic apparel are classified in Major Group 23; those manufacturing athletic footwear are classified in Industries 3021 and 3149; those manufacturing small arms ammunition are classified in Industry 3482; and those manufacturing small arms are classified in Industry 3484.
- Ammunition belts, sporting type: of all materials
- Archery equipment
- Arrows, archery
- Athletic and sporting goods: except clothing, footwear, small arms,
- Badminton equipment
- Bait, fishing: artificial
- Balls: baseball, basketball, football golf, tennis, pool, and bowling
- Baseball equipment and supplies, except uniforms and footwear
- Bases, baseball
- Basketballs and basketball equipment and supplies, except uniforms
- Baskets, fish and bait
- Bats, game: e.g., baseball, softball, cricket
- Billiard and pool balls, cues, cue tips and tables
- Billiard chalk
- Bowling alleys and accessories
- Bowling pin machines, automatic
- Bowling pins
- Bows, archery
- Boxing equipment
- Bridges, billiard and pool
- Buckets, fish and bait
- Cartridge belts, sporting type
- Cases, gun and rod (sporting equipment)
- Creels, fish
- Cricket equipment
- Croquet sets
- Decoys, duck and other game birds
- Exercise cycles
- Exercising machines
- Fencing equipment (sporting goods)
- Fishing tackle (except lines, nets, and seines)
- Flies, artificial: for fishing
- Floats for fish lines
- Footballs and football equipment and supplies, except uniforms and
- Game calls
- Gloves, sport and athletic: e.g., boxing, baseball, racketball, handball
- Golf carts, hand
- Golfing equipment: e.g., caddy cars and bags, clubs, tees, balls
- Guards: e.g., football, basketball, soccer, lacrosse
- Gymnasium and playground equipment
- Helmets, athletic
- Hockey equipment, except uniforms and footwear
- Indian clubs
- Jogging machines
- Lacrosse equipment
- Mallets, sports: e.g., polo, croquet
- Masks, sports: e.g., baseball, fencing, hockey
- Nets: e.g., badminton, basketball, tennis-not made in weaving mills
- Pads, athletic: e.g., football, basketball, soccer, lacrosse
- Pigeons, clay (targets)
- Pin-setters for bowling, automatic
- Playground equipment
- Polo equipment, except apparel and footwear
- Pool balls, pockets, tables, and equipment
- Protectors, sports: e.g., baseball, basketball, hockey
- Rackets and frames, sports: e.g., tennis, badminton, squash,
- Rowing machines
- Scoops, crab and fish
- Scuba diving equipment, except clothing
- Shafts, golf club
- Sinkers (fishing tackle)
- Skates and parts, ice and roller
- Skin diving equipment, except clothing
- Skis and skiing equipment, except apparel
- Soccer equipment, except apparel
- Spears, fishing
- Sporting goods: except clothing, footwear, small arms, and
- Squash equipment, except apparel
- Stand boards
- Sticks, sports: e.g., hockey, lacrosse
- Striking (punching) bags
- Strings, tennis racket
- Swimming pools, plastics
- Tables: billiard pool, bagatelle, and ping pong
- Target shooting equipment, except small arms and ammunition
- Targets, archery and rifle shooting
- Targets, clay
- Tennis goods: e.g., balls, frames, rackets
- Track and field athletic equipment, except apparel and footwear
- Trap racks (clay targets)
- Wading pools, plastics coated fabric
- Windsurfing boards and equipment
Exercise Equipment Manufacturers Insurance - The Bottom Line
Exercise equipment manufacturers insurance polices vary in coverage, cost and exclusions. To find out if your business has the best fit insurance policies, speak with an experienced commercial insurance broker.
Often they are able to save you on cost 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.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- 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
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Industrial Equipment
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Leather Goods
- 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
- Psychedelic Drugs
- 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
- Vegetable Juice
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
- Specialty Manufacturing
- Specialty Product Liability
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.