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:
- How Much Does Exercise Equipment Manufacturers Insurance Cost?
- Why Do Exercise Equipment Manufacturers Need Insurance?
- What Type Of Insurance Do Exercise Equipment Manufacturers Need?
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.
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 ISO General Liability Code(s): 52767, 59306
- Suggested Workers Compensation Code(s): 4902
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.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- 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
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- 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
- Vending Machines
- Vegetable Juice
- Wire Rope
- Wood Furniture
- Writing Instruments
For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.
Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.
The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.
Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.
In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.
What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.
Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.
Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.
The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.