Garage Door Manufacturers Insurance Policy Information
Garage Door Manufacturers Insurance. Garage doors are not just essential in the everyday life of any car owner, they also play an important role in the security of a home. Most modern garage doors are manufactured using durable materials that include wood, fiber glass, and of course steel and aluminum.
Some garage doors are opened manually, while many others include an electric motor to automatically open and close the doors.
Garage door manufacturers produce overhead doors made of fiberglass, metal, or wood for residential or commercial use. Processes vary by type of material. Fiberglass is typically molded. Metal panels are made by cutting. Metal component parts are made by extrusion, drawing or stamping.
Wood may be cut, planed, sanded, glued, or nailed with finish applied with paint, stains, or varnish. While some production work will employ CNC workstations (computerized machining), custom work may be done by hand.
Component parts may be manufactured in different locations or different countries. The finished product may be pre-assembled, or assembled during installation.
The manufacture of metal garage doors requires complex and costly machinery such as rollers, presses, and machines that cut metal sheets to their correct size. Adhesives, too, are essential to the manufacturing process, to attach smaller components like hinges and brackets.
As committed as garage door manufacturers are to delivering a product that meets its customers' high standards, these companies also have to contend with the knowledge that they are susceptible to any number of threats.
To secure your company's financial future, investing in the right garage door manufacturers insurance coverage is vital. What kinds of insurance must be on your radar if you own and manage a company that is manufacturing garage doors?
Garage door 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 garage door manufacturing insurance questions:
- What Is Garage Door Manufacturers Insurance?
- How Much Does Garage Door Manufacturers Insurance Cost?
- Why Do Garage Door Manufacturers Need Insurance?
- What Type Of Insurance Do Garage Door Manufacturers Need?
- What Does Garage Door Manufacturers Insurance Cover & Pay For?
What Is Garage Door Manufacturers Insurance?
Garage door manufacturers insurance is a type of insurance policy designed specifically for companies that manufacture garage doors.
This type of insurance provides coverage for the manufacturer against potential financial losses that may occur due to accidents, lawsuits, property damage, or liability issues related to their garage door products. The policy may cover costs such as medical expenses, property damage, legal fees, and other related expenses.
It is important for garage door manufacturers to have this type of insurance to protect their business from unexpected losses and ensure the stability and continued success of their operation.
How Much Does Garage Door Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small garage door manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Garage Door Manufacturers Need Insurance?
Garage door manufacturers can, like any other manufacturer, encounter a range of unforeseen circumstances that could have a devastating impact on their finances. Some of those threats are common to any commercial venture, but others are unique to your own industry.
Acts of nature - wildfires and earthquakes, floods and hurricanes, among others - might strike your manufacturing facility, simultaneously damaging your building and manufacturing equipment and leading to interruptions in production as well as costly repairs.
Even with top-notch security systems, vandalism and thefts remain possible, and can rob you of inventory as well as manufacturing machinery.
Companies that make garage doors also have to consider the risk that a malfunction or production error causes an end user of their doors to become injured or successfully burglarized; the affected party can then attempt to hold the company liable.
These and numerous other perils can put your company's future in jeopardy very easily - unless, that is, you have the righty garage door manufacturers insurance coverage.
What Type Of Insurance Do Garage Door Manufacturers Need?
The kinds of garage door manufacturers insurance needed will depend on multiple factors. The location of your manufacturing facilities, the machinery you use, and the materials your garage doors are made of will all play a role, alongside the number of workers you employ.
A skilled agent who specializes in commercial insurance will be able to help you evaluate your company's exact needs. Nonetheless, some types of insurance are indispensable. They include:
- Commercial General Liability: This kind of insurance is designed to keep you safe from financial loss in the event of third party bodily injury or property damage claims. That would include someone becoming hurt on your premises, or an employee causing damage to a home or retail facility while delivering garage doors. Commercial general liability insurance helps cover legal expenses and settlement fees, but also third party medical bills.
- Product Liability: Another kind of liability insurance, this type specifically covers claims relating to the garage doors you manufacture. You would rely on it if your product causes accidental injury to a consumer, for example, or if poor wording in advertising offers the false impression that your garage doors can withstand temperatures they cannot.
- Commercial Property: Essential to any company with physical assets, this type of garage door manufacturers insurance, also called business property insurance, is there to protect your building, manufacturing equipment, inventory, furniture, and digital assets against unforeseen circumstances that include theft and acts of nature. Be aware that commercial property insurance can also offer compensation for revenue lost due to these circumstances.
- Workers Compensation: Whether an employee sustains a serious injury on the production line or trips over inventory placed where it should not have been, workplace accidents can warrant medical attention and even render an employee unable to work for a time. Workers' compensation insurance covers their expenses, both in the form of medical bills and lost wages. It also protects your company from civil suits.
These types of garage door manufacturers insurance are standard within this industry. They may not, however, cover all your needs. It is, therefore, important to assess your risk profile with a commercial insurance agent you trust.
Product liability insurance can cover you if a product ever needs to be recalled, for instance, while vehicle insurance is another must for any business that uses cars, trucks, or other vehicles. To find out more about your needs, talk to a competent business insurance broker.
Garage Door Manufacturing's Risks & Exposures
Premises liability exposures at the plant are normally low as access by visitors is limited. If tours are given or if outsiders are allowed on premises, visitors may be injured by slips, trips, or falls. The storage of raw materials or finished goods outdoors can produce an attractive nuisance hazard.
The yard should be fenced to prevent unauthorized access, with proper lighting and warnings. Fumes, dust, fire, and explosion, and noise from production could affect neighbors.
Products liability exposure can be high as overhead doors are used in both commercial and residential structures. Should the door fail, it could fall, resulting in bodily injury or death to persons or substantial damage to property. There should be a quality control program including high standards for materials, testing and monitoring of components, and documentation of sources.
If doors are installed by others, the manufacturer should provide detailed specifications for installation. Older doors made before improved safety features were introduced may be in use for decades.
Environmental impairment exposure is high due to possible contamination of ground, air, and water from raw chemicals and paints used in processing and lubricants and solvents used to service machinery. For plastics, the raw materials may be toxic and/or flammable, the catalysts may be caustic, and the final product is usually not biodegradable. Storage and disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposures are very high. Injuries from production machinery are common, as are minor cuts, puncture wounds, burns, slips, trips, falls, foreign objects in the eye, back injuries from lifting, and hearing impairment from noise. Repetitive motion injuries can be a concern. Workstations should be ergonomically designed. Amputations can occur from working with machinery.
Springs can break during installation, resulting in severe bodily injury. Exposure to airborne dust and chemicals can cause injury to eyes, skin, and lungs. Should there be a fire, the fumes in the smoke from molten plastic are very dangerous. Workers should be made aware of potential problems and may need periodic monitoring for cumulative exposure.
The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair to increase production. Workers should be trained to operate machinery. Safety equipment should be required. Drivers of forklifts and vehicles may be injured in accidents.
Property exposures consist of an office, shop, warehouse for raw materials and finished goods, and often a yard for storage of raw materials. Ignition sources include electrical wiring, heating and cooling equipment, production machinery, welding, and explosions from the build-up of static electricity or dust from cutting and sanding operations. The risk increases dramatically in the absence of proper dust collection systems, ventilation, and disposal procedures.
Plastic is highly flammable and will cause a great deal of smoke damage if there is a fire. Molten plastic can carry a fire great distances and into crevices. Wood is highly combustible and susceptible to damage by fire, smoke, and water. Solvents used to clean machinery, adhesives, paints, varnishes and stains may be flammable and must be separated and stored away from other operations.
Spray-painting can cause fire or explosion unless carried out in spray booths with explosion-proof electrical components. The use of dip tanks instead of spray booths may require special attention. There should be fire detection and suppression systems. Smoking should be prohibited.
Producers of high-end or custom products may have a high risk of theft. Appropriate security controls should 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, ventilation and dust collection systems, electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in severe loss, both direct and under time element.
Crime exposures are from employee dishonesty. Employees may act alone or in collusion in stealing money, raw materials, or finished goods. Background checks should be conducted on all employees handling money. 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 manufacture offers credit, computers (which may include computer-run production equipment), contractors' equipment for forklifts and other heavy machinery, goods in transit, installation floater, and valuable papers and records for customers' and suppliers' information. For goods in transit, the primary causes of loss are fire, theft, collision, overturn, and water damage.
Commercial auto exposure is high as the manufacturer generally transports raw materials and finished goods. Door panels are heavy and require tie-downs during transport to prevent shifting that can cause collision or overturn.
Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding private and permissive use. 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 Garage Door Manufacturers Insurance Cover & Pay For?
Garage door manufacturers can face a variety of legal claims for a variety of reasons. Here are some common reasons they might be sued and how insurance can assist in those cases:
1. Product Liability: This is one of the most common reasons for lawsuits in this industry. If a garage door malfunctions, causing injury or property damage, the manufacturer may be held liable. For example, the door could unexpectedly close, damaging a vehicle or injuring a person. In such cases, product liability insurance can help cover the legal costs associated with defending against such claims, and if the manufacturer is found liable, the insurance can also cover the damages awarded.
2. Workers' Compensation Claims: If an employee is injured while manufacturing garage doors, they could file a workers' compensation claim. Should the manufacturer dispute the claim, this could lead to a lawsuit. Workers' compensation insurance provides coverage for medical expenses and a portion of lost wages for employees who become injured or ill on the job. Furthermore, the employer's liability portion of the policy could protect the manufacturer if they are sued over the injury.
3. Intellectual Property Infringement: If a garage door manufacturer is accused of infringing on another company's patents, trademarks, or copyrights, they could be sued. Intellectual property insurance can help cover legal defense costs, as well as any damages that might be awarded if the manufacturer is found to be infringing.
4. Breach of Contract: Manufacturers may also face lawsuits for breaching contracts with suppliers, vendors, or buyers. If a manufacturer fails to deliver goods as promised or does not meet the agreed-upon quality standards, they could be sued. Commercial general liability (CGL) insurance often includes coverage for lawsuits over contract disputes, helping to pay for legal defense costs and any damages or settlements.
5. False Advertising: If a garage door manufacturer makes false or misleading claims about their products, they could face a lawsuit. For instance, if they claim their garage doors are fireproof when they are not, a customer who suffers fire damage could sue. In such cases, a type of liability insurance known as advertising injury coverage, often included in a CGL policy, can help cover the costs of legal defense and any damages awarded.
In summary, various types of insurance policies can provide protection for garage door manufacturers against a wide range of potential lawsuits. By having the right coverages in place, these companies can defend themselves against claims, without facing devastating financial losses.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2431 Millwork, 3442 Metal Doors, Sash, Frames, Molding And Trim Manufacturing
- NAICS CODE: 321911 Wood Window and Door Manufacturing, 332321 Metal Window and Door Manufacturing
- Suggested Workers Compensation Code(s): 2802 Carpentry - Shop Only & Drivers, 3076 Soda Water Fountain or Apparatus Manufacturing
Description for 2431: Millwork
Division D: Manufacturing | Major Group 24: Lumber And Wood Products, Except Furniture | Industry Group 243: Millwork, Veneer, Plywood, And Structural Wood
2431 Millwork: Establishments primarily engaged in manufacturing fabricated wood millwork, including wood millwork covered with materials such as metal and plastics. Planing mills primarily engaged in producing millwork are included in this industry, but planing mills primarily producing standard workings or patterns of lumber are classified in Industry 2421. Establishments primarily manufacturing wood kitchen cabinets and bathroom vanities for permanent installation are classified in Industry 2434.
- Awnings, wood
- Blinds (shutters), wood
- Brackets, wood
- Door jambs, wood
- Door trim, wood
- Door units, prehung: wood and covered wood
- Doors, combination screen-storm: wood
- Doors, wood and covered wood
- Floor baseboards, wood
- Garage doors, overhead: wood
- Jalousies, glass: wood frame
- Louver windows and doors, glass with wood frame
- Millwork products
- Moldings, wood and covered wood: unfinished and prefinished
- Newel posts, wood
- Ornamental woodwork: e.g., cornices and mantels
- Panel work, wood
- Planing mills, millwork
- Porch work, wood
- Railings, stair: wood
- Sash, door and window: wood and covered wood
- Screens, door and window wood
- Shutters, door and window: wood and covered wood
- Silo staves, wood
- Staircases and stairs, wood
- Trellises, wood
- Trim, wood and covered wood
- Venetian blind slab, wood
- Wainscots, wood
- Weather strip, wood
- Window frames and sash, wood and covered wood
- Window screens, wood
- Window trim, wood and covered wood
- Window units, wood and covered wood
- Woodwork, interior and ornamental: eg., windows, doors, sash, and
Description for 3442: Metal Doors, Sash, Frames, Molding And Trim Manufacturing
Division D: Manufacturing | Major Group 34: Fabricated Metal Products, Except Machinery And Transportation Equipment | Industry Group 344: Fabricated Structural Metal Products
3442 Metal Doors, Sash, Frames, Molding And Trim Manufacturing: Establishments primarily engaged in manufacturing ferrous and nonferrous metal doors, sash, window and door frames and screens, molding, and trim. Establishments primarily engaged in manufacturing metal covered wood doors, windows, sash, door frames, molding, and trim are classified in Industry 2431.
- Baseboards, metal
- Casements, aluminum
- Door and jamb assemblies, prefabricated: metal
- Door frames and sash, metal
- Doors, louver: all metal or metal frame
- Doors, metal
- Fire doors, metal
- Garage doors, overhead: metal
- Hangar doors, sheet metal
- Jalousies, all metal or metal frame
- Louver windows, all metal or metal frame
- Moldings and trim, metal: except automobile
- Rolling doors for industrial buildings and warehouses, metal
- Screen doors, metal
- Screens, door and window: metal frame
- Shutters, door and window: metal
- Store fronts, prefabricated: metal except porcelain enameled
- Storm doors and windows, metal
- Trim and molding, except automobile: metal
- Weather strip, metal
- Window frames and sash, metal
Garage Door Manufacturers Insurance - The Bottom Line
Garage door manufacturers insurance policies differ in cost and coverages. To see if your business has the best fit commercial insurance policies - speak to an experienced insurance broker.
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.
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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.