Fertilizer Manufacturers Insurance Policy Information
Fertilizer Manufacturers Insurance. Fertilizers are products added to soil, offering plants the essential nutrients they need to survive, grow and reproduce, and greatly improving crop yield.
Fertilizer manufacturers blend or mix organic or inorganic materials with chemicals or compounds to produce either dry or wet fertilizers for agricultural or horticultural use. Organic fertilizers may be naturally occurring substances such as peat and manure, or they may be produced by composting.
Inorganic fertilizers add or replenish nutrients such as nitrogen, phosphorus, and potassium, with secondary nutrients added such as calcium, magnesium, and sulfur. Other additives may include herbicides, fungicides, or insecticides. Processes include granulating, mixing or blending, and bagging.
Dry and liquid fertilizers may be custom-blended to meet the needs of customers. As fertilizer production is federally regulated, quality control is critical.
Fertilizer is a vital component in the growth of the crops humans directly consume, as well as playing an invaluable role in the creation of the feed necessary to raise animals for meat consumption. In addition, the crops that rely on fertilizer for optimal yield are used in a variety of industrial field.
The largest group of fertilizers are nitrogen-based fertilizers. These are made by mixing air with natural gas in high pressure and high temperature environments. Phosphorus-based fertilizers are produced by treating phosphorus ores with sulphuric acid, which creates phosphoric acid.
Potassium-based fertilizers are also widely used and produced, and are made from ores as well.
Companies that manufacture fertilizer play a key part in the global supply chain, but working with a broad range of chemicals, also need to constantly be on watch against potential risks that could devastate their financial health. What type of fertilizer manufacturers insurance are needed to protect your operations? To find out more, keep reading.
Fertilizer 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 fertilizer manufacturing insurance questions:
- What Is Fertilizer Manufacturers Insurance?
- How Much Does Fertilizer Manufacturers Insurance Cost?
- Why Do Fertilizer Manufacturers Need Insurance?
- What Type Of Insurance Do Fertilizer Manufacturers Need?
- What Does Fertilizer Manufacturers Insurance Cover & Pay For?
What Is Fertilizer Manufacturers Insurance?
Fertilizer Manufacturers insurance is a type of insurance coverage specifically designed for manufacturers of fertilizers and other related products.
This insurance protects the manufacturer from various risks, including product liability, environmental damage, business interruption, and property damage, among others. It helps cover costs associated with legal fees, medical expenses, and property damage if there is a failure or malfunction of the product.
This insurance is essential for fertilizer manufacturers to help ensure their business stays afloat in the event of an unexpected loss or damage.
How Much Does Fertilizer Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small fertilizer manufacturing businesses ranges from $77 to $119 per month based on location, size, revenue, claims history and more.
Why Do Fertilizer Manufacturers Need Insurance?
All businesses share some common risks, regardless of their field of industry. Earthquakes, hurricanes, floods, wildfire, lightning strikes, and other acts of nature threaten any company. Vandalism and theft are also potential problems for each industry, including the fertilizer production business.
Manufacturers within the fertilizer industry further face risk that are specific to that type of industry itself. Since making fertilizers involves a lot of gas, some of which is highly explosive, fires and explosions can have disastrous consequences.
The chemical industry creates significant amounts of waste, which can be highly hazardous to the environment in the event of a leakage.
The risks faced within the fertilizer industry are many. Some risks can be mitigated or eliminated, while other events that could deal potentially ruinous financial consequences to your business cannot be planned for. This is why it is essential for a company manufacturing fertilizer to carry the right type of fertilizer manufacturers insurance, so that they can be compensated should the worst happens.
What Type Of Insurance Do Fertilizer Manufacturers Need?
While the process of manufacturing fertilizer will be similar across companies in the industry, many different factors need to be taken into consideration when opting for the most suitable type of insurance for your business. Factors that need to be considered when determining your fertilizer manufacturers insurance needs include the size of your facility, the amount and type of fertilizer you're producing, and the terrain and climate at your facility.
Each manufacturer has specific needs. That is why the best option is to talk to your commercial insurance agent, providing them will all the relevant details and potential hazards your business might encounter. Some types of fertilizer manufacturers insurance a company that manufacturing in this industry will certainly require include:
- Commercial General Liability: Today's highly litigious world leaves companies open to lawsuits on virtually any basis. This type of insurance protects your business from third party bodily injury liability, as well as damage your company may accidentally cause to third party properties (including premises you rent).
- Product Liability: This type of liability insurance specifically serves to shield you from financial losses should a batch of fertilizer need to be recalled, or in the event that someone sues your company after alleging damage resulting from the use of your product.
- Commercial Property: Fairly straight forward, this type of insurance safeguards your property and its contents should unforeseen circumstances strikes. If something happens to your property, you will be compensated for the damage. This may include damage to furniture, machines, computers, documents, as well as damage caused by lightning strikes, fires, earthquakes, wind storms, floods, and other natural disasters. This type of insurance covers the damage of theft and vandalism as well.
- Workers Compensation: This type of insurance is used to protect both workers who are injured in the workplace, and the business itself, from potential lawsuits. It covers medical expenses, as well as lost income.
Each line of work carries specific risks, some of which can be avoided, while others can not. To make sure your business can grow as well as the crops your products fertilize, it is important to partner with a commercial insurance agent and get the right fertilizer manufacturers insurance coverage.
Fertilizer Manufacturing's Risks & Exposures
Premises liability exposure is high due to the potential for explosion and release of caustic chemicals. Dust from processing, toxins released in a fire, or fumes, spills or leaks from chemical tanks may cause serious bodily injury or property damage.
There should be a distance barrier between the applicant and the closest neighbor. An evacuation procedure must be in place and coordinated with the local fire department. If tours are given or outsiders are allowed on premises, visitors may be injured by slips, trips, or falls. Fences should surround the facility with warnings posted to discourage trespassers.
Products liability exposure is high, as improperly mixed or applied fertilizers can ruin an entire crop or render a field unable to grow crops for some time. Another major concern is the potential poisoning of humans and livestock that ingest contaminated crops if insecticides and pesticides are added improperly.
Quality control at all phases of the operation from initial receipt of raw materials to packaging is critical to reducing the exposure to injury. Significant injuries or damage may follow from improper mixing of ingredients, improper storage, transport, inappropriate packaging, or labeling.
Environmental impairment exposure may be high for some ingredients. Waste from processing may develop bacterial contaminants that could affect air, surface or ground water, or soil. Processes may cause thermal or noise pollution. Raw materials or finished goods may spill or leak during transport. Disposal of wastes must adhere to all federal and state guidelines.
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 noise, and back injuries from lifting. Ingredients and dust may be toxic or caustic, with a high potential for injury to eyes, lungs, or skin. With some compounds, there is the possibility of explosion.
Workers must be fully aware of the potential side effects of the ingredients they work with, including long-term occupational disease hazards, so they can be aware of warning symptoms and obtain treatment as early as possible. Drivers of forklifts and vehicles may be injured in accidents.
Property exposure consists of an office, plant, and warehousing for raw materials and finished goods. Ignition sources include electrical wiring, heating and ventilation systems, and production equipment. Machines may overheat or exceed the capabilities of electrical wiring. Flammables stored on premises include nitrous compounds, anhydrous ammonia, sulfur, lubricants, and cleaning agents.
Flammable, combustible, and reactive materials need to be separated and contained as improper storage may result in explosions. Large storage tanks for raw materials and vats for mixing and blending may contain substances with high potential for fire and explosion. Dust particles from processing activities may lead to an explosion. Fire prevention and reduction methods must be evaluated.
Poor housekeeping is a serious fire hazard. Unless disposed of properly, greasy, oily rags (such as those used to clean the machinery) can cause a fire without a separate ignition source. As some ingredients are targets for theft, 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.
Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation, electrical control panels, and other apparatus. A lengthy breakdown to the production machinery could result in a significant loss, both direct and under time element.
Crime exposures are chiefly from employee dishonesty. Some ingredients with high explosive potential may be targets for theft. Significant federal controls were placed on the distribution system for certain fertilizers, such as ammonium nitrate, following the Oklahoma City bombing.
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 testing applications or computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information, quality control testing results, and proprietary formulas. Goods in transit may be damaged by fire, explosion, theft, collision, overturn, or spillage.
Commercial auto exposure may be high if the manufacturer transports raw materials or finished products due to the potential for overturn and spillage. Deliveries may often involve travel in rural areas with poor road quality and uneven ground at customers' farms. Drivers should be trained in spill containment, have an appropriate license with a Hazardous Materials endorsement, and an acceptable MVR.
All vehicles must be well maintained, particularly tankers, with documentation kept in a central location. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others.
What Does Fertilizer Manufacturers Insurance Cover & Pay For?
Fertilizer manufacturers can face several legal challenges that can potentially result in lawsuits. It's important for these manufacturers to have insurance that can protect them from these risks. Here are some common reasons for lawsuits, along with the relevant types of insurance protection:
1. Product Liability: If a fertilizer product is found to be defective and causes harm to crops, soil, or the environment, the manufacturer could be held liable. In this case, product liability insurance would be essential. This insurance helps cover the legal fees, settlement costs, and any awarded damages associated with claims that the manufacturer's product caused harm or injury.
2. Environmental Damage: Fertilizer manufacturing often involves the handling of potentially harmful chemicals. Accidental spills or improper disposal of these substances could lead to environmental damage. If this happens, manufacturers could be held liable for cleanup costs and any resulting harm to public health or the environment. In this case, environmental or pollution liability insurance can be crucial. This type of insurance coverage helps pay for cleanup costs, legal fees, and damages associated with environmental claims.
3. Workplace Accidents: Like any industrial setting, fertilizer manufacturing facilities can be hazardous places to work. If a worker gets injured, the manufacturer could be sued for workers' compensation or for failing to provide a safe working environment. Workers' compensation insurance is designed to cover such claims. This insurance helps pay for medical expenses, rehabilitation costs, and a portion of lost wages for employees injured on the job. Additionally, employers' liability insurance can protect against lawsuits claiming negligence in the provision of workplace safety.
4. Regulatory Non-Compliance: Fertilizer manufacturers have to comply with a variety of local, state, and federal regulations. If a manufacturer is found to be non-compliant, they could face legal penalties. Regulatory or compliance insurance can help in these situations. This type of insurance can cover the costs of legal defense, fines, and penalties associated with regulatory non-compliance.
5. Commercial Disputes: Disputes can arise with suppliers, customers, or competitors that can lead to lawsuits. For instance, a manufacturer could be sued for breach of contract, defamation, or unfair business practices. Commercial general liability insurance can provide coverage in these instances, helping to pay for the cost of legal defense, settlements, and any damages awarded by a court.
Thus, insurance plays a crucial role in protecting fertilizer manufacturers from various types of legal challenges, helping them manage the financial risks associated with potential lawsuits.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2873 Nitrogenous Fertilizers, 2874 Phosphatic Fertilizers, 2875 Fertilizers, Mixing Only
- NAICS CODE: 325311 Nitrogenous Fertilizer Manufacturing, 325312 Phosphatic Fertilizer Manufacturing, 325314 Fertilizer (Mixing Only) Manufacturing
- Suggested Workers Compensation Code(s): 4583 Fertilizer Manufacturing & Drivers, 4581 Phosphate Works & Drivers
Description for 2873: Nitrogenous Fertilizers
Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 287: Agricultural Chemicals
2873 Nitrogenous Fertilizers: Establishments primarily engaged in manufacturing nitrogenous fertilizer materials or mixed fertilizers from nitrogenous materials produced in the same establishment. Included are ammonia fertilizer compounds and anhydrous ammonia, nitric acid, ammonium nitrate, ammonium sulfate and nitrogen solutions, urea, and natural organic fertilizers (except compost) and mixtures.
- Ammonia liquor
- Ammonium nitrate and sulfate
- Anhydrous ammonia
- Aqua ammonia, made in ammonia plants
- Fertilizers, mixed: made in plants producing nitrogenous fertilizer
- Fertilizers: natural (organic), except compost
- Nitric acid
- Nitrogen solutions (fertilizer)
- Plant foods, mixed: made in plants producing nitrogenous fertilizer
- Urea
Description for 2874: Phosphatic Fertilizers
Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 287: Agricultural Chemicals
2874 Phosphatic Fertilizers: Establishments primarily engaged in manufacturing phosphatic fertilizer materials, or mixed fertilizers from phosphatic materials produced in the same establishment. Included are phosphoric acid; normal, enriched, and concentrated super-phosphates; ammonium phosphates; nitro-phosphates; and calcium meta-phosphates.
- Ammonium phosphates
- Calcium meta-phosphates
- Defluorinated phosphates
- Diammonium phosphates
- Fertilizers, mixed: made in plants producing phosphatic fertilizer
- Phosphoric acid
- Plant foods, mixed: made in plants producing phosphatic fertilizer
- Super-phosphates, ammoniated and not ammoniated
Description for 2875: Fertilizers, Mixing Only
Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 287: Agricultural Chemicals
2875 Fertilizers, Mixing Only: Establishments primarily engaged in mixing fertilizers from purchased fertilizer materials.
- Compost
- Fertilizers, mixed: made in plants not manufacturing fertilizer
- Potting soil, mixed
Fertilizer Manufacturers Insurance - The Bottom Line
Fertilizer manufacturers insurance polices can differ in cost, coverage and exclusions. To learn if your business has the best insurance policies for your manufacturing operation, speak with 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.
- 3D Printing
- Adhesives
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- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Boxes
- Bricks
- Brooms & Brushes
- Buttons
- Cabinets
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- Fertilizer
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- Frozen Foods
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- Fur Garment
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- Gypsum Products
- Hosiery
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- Plastic Goods
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- Product Liability
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- 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.
