Gear Manufacturers Insurance

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Gear Manufacturers Insurance Policy Information

Gear Manufacturers Insurance

Gear Manufacturers Insurance. Gears, or cogs, have been used for centuries. Gears are designed to amplify force, and, as such, have a wide use in a number of industries.

Motor engines, construction, conveyor belts, different types of transportation, clocks, or even, for instance, microwave ovens wouldn't be able to function if it weren't for gears.

Gear manufacturers produce gears for agricultural and industrial machinery, aircraft, vehicles, and watercraft. While most gears are made of metal, particularly brass, iron, or steel, others are made of plastic.

Smaller gears can be produced by extrusion in which a rod of heated steel or other metal is forced through a gear-shaped die, and then cut to the proper thickness.

Larger gears are typically forged into "blanks" which are then machined to cut the teeth. Forging applies high-pressure to force cold or heated metal into a special mold called a die. Blanks may be ground, cut, polished, deburred, heat treated or otherwise tempered.

Coatings may be added by electroplating or similar processes. Other operations may include welding or spray-painting.

A variety of types of gears exist, depending on their intended use; spur, helical, double helical, worm, crown, spiral, bevel, magnetic… Each kind of hear has a specific use.

The market size of this industry in the United States is $4 billion, and in this country, approximately 250 companies employ 12,500 workers in gear manufacturing. This industry's revenue is expected to grow in the next five years, but as in every field, companies that make gears also face a number of risks.

Having the right gear manufacturers insurance is crucial in protecting your interests, so let's examine what types of insurance you might need.

Gear 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 gear manufacturing insurance questions:


How Much Does Gear Manufacturers Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small gear manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.


Why Do Gear Manufacturers Need Insurance?

Insurance For Manufacturers

No matter how competent your management team is, circumstances beyond your control always threaten to cause financial devastation. Despite risk mitigation, you cannot prevent events such as earthquakes, floods, hurricanes, lightning strikes, or wildfires. Vandalism and theft are also a constant threat to any business.

On the other hand, gear production comes with risks that are specific to the industry itself as well. Gear manufacturing requires numerous machines, which can break down or cause work-related injuries in workers. The fact that gear manufacture relies on a number of electronic devices further means that fire hazard is always present.

Certain risks can be avoided, if safety procedures are followed, but others cannot. The financial blows resulting from any of these, or other, catastrophic events might be devastating, and even cause bankruptcy.

That is why no company should forego the step of buying the right gear manufacturers insurance.


What Type Of Insurance Do Gear Manufacturers Need?

While some risks are universal, meaning they could affect any company, each line of work is specific, and each company is unique in its needs and demands. Even the terrain, or climate, in the vicinity of your facility can affect the type of gear manufacturers insurance you might need.

That is why it is crucial to consult a commercial insurance agent and discuss all details relevant to your insurance requirements including, for instance, your number of employees, the amount and type of gears you produce, and even the amount of rain the place in which your facility is based experiences each year.

Having said that, some types of insurance are going to be necessary for any gear manufacturer. These include:

  • Commercial General Liability: In the case your company's activities cause damage to the property of any third party (such as machines you rent, or the building of another manufacturer in the vicinity), this type of insurance will shield you from the resulting cost. It also covers cases of third party bodily injury; scenarios in which a contractor sustains an accident on your premises, for example.
  • Commercial Property: This type of insurance protects your company from financial losses resulting from damage to your physical property. This includes both damage caused by natural disasters, such as floods, wildfires, or earthquakes, and damage caused by vandalism or theft.
  • Product Liability: This type of gear manufacturers insurance protects your company from bodily injury and property damage liability specifically caused by your product, in the event that it malfunctions. It also covers financial loss in case you need to recall your product.
  • Workers Compensation: Gear production requires a lot of machinery, and your workers are at risk of work-related injuries. This type of insurance will cover both the medical expenses and any lost income, in the case of unfortunate events.


Gears are a crucial part of virtually all machines, and as such, will always be needed in a number of different industries. That is why investing in this line of work is a good idea, especially because this type of business is expected to grow in the years to come.

However, even the tiniest mishap could set you back, or even cause such devastating damage that you might be forced to close your company.

That is why it is of utmost importance to protect your company. Gear manufacturers insurance is the plan B each serious company needs.

Gear Manufacturing's Risks & Exposures

Manufacturing

Premises liability exposure is normally low due to lack of public access. If tours are given, visitors may be injured by slips, trips, or falls. Fumes, dust, and noise from operations could affect neighboring properties.

Products liability exposure can be high because of the pressure and intensity at which gears operate. If not tempered properly, gears in industrial machinery can fail or shatter in use, sending parts flying throughout a plant, injuring workers and causing property damage. Failure of custom gears for critical parts could cause major shutdowns, with extensive lost time claims.

Failure of gears used in operating parts or safety components in aircraft, watercraft, or vehicles can result in severe injury to passengers. It may be impossible to defend against questionable claims unless there is an aggressive quality control program including high standards for materials, testing and monitoring of components, and documentation of sources (often down to the individual item in a run).

Warning labels regarding dangers of personal injury are important, but provide only limited defense, especially in the case of inherently dangerous products.

Older gears made before improved safety features were introduced may still be in use.

Environmental impairment exposure may be significant due to possible contamination of ground, air, and water from the alloys, paints, and solvents used. Disposal of wastes must adhere to all federal and state guidelines.

Workers compensation exposures are moderate to high. Injuries from production machinery are common, as are minor cuts, burns from chemicals and heat-producing operations, slips, trips, falls, foreign objects in the eye, hearing impairment from noise, back injuries from lifting, and repetitive motion losses. Machinery operators are exposed to injury from severe cuts, crushed limbs, and amputations.

Exposure to dust, spray-painting, or solvents can result in skin, eye, and lung irritation. Workstations should be ergonomically designed. Employees should be provided with safety training and protective equipment.

Quality control and testing can be dangerous if a gear has not been properly tempered. Testing areas should be protected to prevent parts from flying throughout the plant.

Property exposures consist of an office, production plant, and warehouse for storage of raw materials or finished goods. Ignition sources include electrical wiring, heating systems, production machinery, molten metal, hot forging, and sparks from welding or electroplating.

The exposure is lessened if the manufacturer outsources some of these operations. When outsourcing is used, adequate coverage for the off premises property or inland marine coverage should be obtained.

Lubricants, solvents, or degreasers may be flammable, and should be properly stored away from combustibles. Spray-painting operations can cause fire unless they are carried out in spray booths with explosion-proof electrical components. The use of dip tanks instead of spray booths may require special attention. Welding should be done away from combustibles.

Poor housekeeping may be 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. While stock is not usually susceptible to fire or water damage, some gears may be target items for 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, 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 chiefly from employee dishonesty. 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. The manufacturer should have security methods in place to prevent theft.

Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), goods in transit, installation, and valuable papers and records for customers' and suppliers' information. Stock in transit may be susceptible to damage from collision, overturn, fire and theft. As some gears may be oversized, drivers should be trained in loading, tie-down, and unloading.

Commercial auto exposure can be high if the manufacturer picks up raw materials, transports components between different plants, or delivers finished goods to customers. Transportation of oversized industrial gears requires careful loading and tie-down to prevent items from coming loose and toppling over during transport.

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: 3566 Speed Changers, Industrial High-Speed Drives, And Gears, 3714: Motor Vehicle Parts And Accessories, 3728 Aircraft Parts And Auxiliary Equipment, Not Elsewhere Classified, 3751 Motorcycles, Bicycles, And Parts
  • NAICS CODE: 333612 Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing, 336350 Motor Vehicle Transmission and Power Train Parts Manufacturing, 336413 Other Aircraft Parts and Auxiliary Equipment Manufacturing, 336991 Motorcycle, Bicycle, and Parts Manufacturing
  • Suggested ISO General Liability Code(s): 56650, 56651, 56652, 56653, 56654, 51201, 51253
  • Suggested Workers Compensation Code(s): 3635

Description for 3566: Speed Changers, Industrial High-Speed Drives, And Gears

Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 356: General Industrial Machinery And Equipment

3566 Speed Changers, Industrial High-Speed Drives, And Gears: Establishments primarily engaged in manufacturing speed changers, industrial high-speed drives, except hydrostatic drives, and gears. Establishments primarily engaged in manufacturing automotive power transmission equipment are classified in Industry 3714; those manufacturing aircraft power transmission equipment are classified in Industry 3728; and those manufacturing industrial hydrostatic drives (transmissions) are classified in Industry 3594.

  • Drives, high-speed industrial: except hydrostatic Gearmotors (power transmission equipment) Gears, power transmission: except motor vehicle and aircraft Reducers, speed Reduction gears and gear units for turbines, except automotive and Speed changers (power transmission equipment) Speed reducers (power transmission equipment) Torque converters, except motor vehicle

Description for 3714: Motor Vehicle Parts And Accessories

Division D: Manufacturing | Major Group 37: Transportation Equipment | Industry Group 371: Motor Vehicles And Motor Vehicle Equipment

3714: Motor Vehicle Parts And Accessories: Establishments primarily engaged in manufacturing motor vehicle parts and accessories, but not engaged in manufacturing complete motor vehicles or passenger car bodies. Establishments primarily engaged in manufacturing or assembling complete automobiles and trucks are classified in Industry 3711; those manufacturing tires and tubes are classified in Industry 3011; those manufacturing automobile glass are classified in Major Group 32; those manufacturing automobile stampings are classified in Industry 3465; those manufacturing vehicular lighting equipment are classified in Industry 3647; those manufacturing ignition systems are classified in Industry 3694; those manufacturing storage batteries are classified in Industry 3691; and those manufacturing carburetors, pistons, piston rings, and engine intake and exhaust valves are classified in Industry 3592.

  • Air brakes, motor vehicle
  • Automotive wiring harness sets, except ignition
  • Axle housings and shafts, motor vehicle
  • Axles, motor vehicle
  • Ball joints, motor vehicle
  • Bearings, motor vehicle: except ball and roller
  • Brake drums
  • Brakes and brake parts, motor vehicle
  • Bumpers and bumperettes, motor vehicle
  • Camshafts, motor vehicle gasoline engine
  • Cleaners, air: motor vehicle
  • Connecting rods, motor vehicle: gasoline engine
  • Control equipment, motor vehicle: acceleration mechanisms and
  • Crankshaft assemblies, motor vehicle: gasoline engine
  • Cylinder heads, motor vehicle: gasoline engines
  • Defrosters, motor vehicle
  • Differentials and parts, motor vehicle
  • Directional signals, motor vehicle
  • Drive shafts, motor vehicle
  • Dump truck lifting mechanisms
  • Engines and parts, except diesel: motor vehicle
  • Exhaust systems and parts, motor vehicle
  • Fifth wheels
  • Filters: oil, fuel, and air-motor vehicle
  • Frames, motor vehicle
  • Fuel pumps, motor vehicle
  • Fuel systems and parts, motor vehicle
  • Gas tanks, motor vehicle
  • Gears, motor vehicle
  • Governors, motor vehicle
  • Heaters, motor vehicle
  • Hoods, motor vehicle
  • Horns, motor vehicle
  • Hydraulic fluid power pumps for auto motive steering mechanisms
  • Instrument board assemblies, motor vehicle
  • Lubrication systems and parts, motor vehicle
  • Manifolds, motor vehicle: gasoline engine
  • Motor vehicle gasoline engine rebuilding on a factory basis
  • Motor vehicle parts and accessories, except motor vehicle stampings
  • Mufflers, exhaust: motor vehicle
  • Oil filters, motor vehicle
  • Pipes, fuel: motor vehicle
  • Power transmission equipment, motor vehicle
  • Pumps, motor vehicle: oil, water, fuel, and power steering
  • Radiators and radiator shells and cores, motor vehicle
  • Rear axle housings, motor vehicle
  • Rebuilding motor vehicle gasoline engines and transmissions on a
  • Rims, wheel: motor vehicle
  • Sanders, motor vehicle safety
  • Shock absorbers, motor vehicle
  • Steering mechanisms, motor vehicle
  • Thermostats, motor vehicle
  • Third axle attachments or six wheel units for motor vehicles
  • Tie rods, motor vehicle
  • Tire valve cores
  • Tops, motor vehicle: except stamped metal
  • Transmission housings and parts, motor vehicle
  • Transmissions, motor vehicle
  • Universal joints, motor vehicle
  • Vacuum brakes, motor vehicle
  • Wheels, motor vehicle
  • Windshield frames, motor vehicle
  • Windshield wiper systems, all types
  • Winterfronts, motor vehicle
  • Wiring harness sets motor vehicles, except ignition

Description for 3728: Aircraft Parts And Auxiliary Equipment, Not Elsewhere Classified

Division D: Manufacturing | Major Group 37: Transportation Equipment | Industry Group 372: Aircraft And Parts

3728 Aircraft Parts And Auxiliary Equipment, Not Elsewhere Classified: Establishments primarily engaged in manufacturing aircraft parts and auxiliary equipment, not elsewhere classified. This industry also includes establishments owned by manufacturers of aircraft parts and auxiliary equipment and primarily engaged in research and development on aircraft parts, whether from enterprise funds or on a contract or fee basis. Establishments primarily engaged in manufacturing or assembling complete aircraft are classified in Industry 3721; those manufacturing aircraft engines and parts are classified in Industry 3724; those manufacturing aeronautical instruments are classified in Industry 3812; those manufacturing aircraft engine electrical (aeronautical electrical) equipment are classified in Industry 3694; and those manufacturing guided missile and space vehicle parts and auxiliary equipment are classified in Industry 3769. Establishments not owned by manufacturers of aircraft parts but primarily engaged in research and development on aircraft parts on a contract or fee basis are classified in Services, Industry 8731.

  • Adapter assemblies, hydromatic propeller
  • Ailerons, aircraft
  • Aircraft armament, except guns
  • Aircraft arresting device system
  • Aircraft assemblies, subĂ„assemblies, and parts, except engines
  • Aircraft body assemblies and parts
  • Aircraft power transmission equipment
  • Aircraft propeller parts
  • Airframe assemblies, except for guided missiles
  • Airplane brake expanders
  • Alighting assemblies (landing gear), aircraft Beaching gear, aircraft
  • Blades, aircraft propeller: metal or wood
  • Bomb racks, aircraft
  • Brakes, aircraft
  • Chaffing dispensers, aircraft
  • Countermeasure dispensers, aircraft
  • Deicing equipment, aircraft
  • Dive brakes, aircraft
  • Dusting and spraying equipment, aircraft
  • Dynetric balancing stands, aircraft
  • Elevators, aircraft
  • Empennage (tail) assemblies and parts aircraft
  • Fins, aircraft
  • Flaps, aircraft wing
  • Fuel tanks, aircraft: including self-sealing
  • Fuselage assemblies, aircraft
  • Gears, power transmission: aircraft
  • Governors, aircraft propeller feathering
  • Hubs, aircraft propeller
  • Instrument panel mockups: aircraft training units
  • Landing gear, aircraft
  • Landing skis and tracks, aircraft
  • Link trainers (aircraft training mechanisms)
  • Nacelles, aircraft
  • Oleo struts, aircraft
  • Oxygen systems for aircraft
  • Panel assemblies (hydromatic propeller test stands), aircraft
  • Pontoons, aircraft
  • Propeller alining tables
  • Propellers, variable and fixed pitch and parts-aircraft
  • Pumps, propeller feathering
  • Refueling equipment, airplane: for use in night
  • Research and development on aircraft parts and auxiliary equipment
  • Roto-blades for helicopters
  • Rudders, aircraft
  • Seat ejector devices, aircraft
  • Spinners, aircraft propeller
  • Stabilizers, aircraft
  • Target drones, aircraft
  • Targets, trailer type: aircraft
  • Tow targets, aircraft
  • Training aids, aircraft: except electronic
  • Transmissions, aircraft
  • Turret test fixtures, aircraft
  • Turrets and turret drives, aircraft
  • Wheels, aircraft
  • Wing assemblies and parts, aircraft

Description for 3751: Motorcycles, Bicycles, And Parts

Division D: Manufacturing | Major Group 37: Transportation Equipment | Industry Group 375: Motorcycles, Bicycles, And Parts

3751 Motorcycles, Bicycles, And Parts: Establishments primarily engaged in manufacturing motorcycles, bicycles, and similar equipment, and parts. Establishments primarily engaged in manufacturing children's vehicles, except bicycles, are classified in Industry 3944. Establishments primarily engaged in manufacturing golf carts and other similar personnel carriers are classified in Industry 3799.

  • Bicycles and parts
  • Brakes, bicycle: friction clutch and other
  • Frames, motorcycle and bicycle
  • Gears, motorcycle and bicycle
  • Handle bars, motorcycle and bicycle
  • Mopeds and parts
  • Motor scooters and parts
  • Motorbikes and parts
  • Motorcycles and parts
  • Saddles, motorcycle and bicycle
  • Seat posts, motorcycle and bicycle

Gear Manufacturers Insurance - The Bottom Line

Gear manufacturers insurance policies differ in coverage, exclusions and premiums. To see if your gear manufacturing operation has the best fit insurance policies - talk to an experienced commercial insurance broker.

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.

Small Business Information

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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 PoliciesWhat 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 InsuranceWhat 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 BondWhat 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
Small Business Commercial Insurance

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.


Manufacturing Insurance

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.


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