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:
- How Much Does Fertilizer Manufacturers Insurance Cost?
- Why Do Fertilizer Manufacturers Need Insurance?
- What Type Of Insurance Do Fertilizer Manufacturers Need?
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.
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 ISO General Liability Code(s): 53077
- Suggested Workers Compensation Code(s): 4583, 4581
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
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.
- 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.
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.
- Audio & Video Equipment
- Auto Parts
- 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
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fur Garment
- Garage Door
- Gypsum Products
- 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
- 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
- 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.