Insecticides Manufacturers Insurance Policy Information
Insecticides Manufacturers Insurance. Insecticides, chemicals used to kill insects, are used in a number of industries - primarily agriculture, also but in medicine, the leather industry and in residential homes.
Insecticide manufacturers produce synthetic or biological compounds that control, repel, or kill insects that harm crops. Synthetic insecticide manufacturing involves formulating and mixing chemicals to create a substance toxic to certain types of insects.
Processes are generally automated and may include crushing, filtering, washing, heating, freezing, aerating, mixing, or pressurizing. Biological insecticides are common bacteria toxic to specific insects. These are less hazardous to the environment and non-targeted species than synthetic insecticides. They are grown in large vats or containers and are usually sold in an inert powder-like state.
Much of the global industry depends on crops, rawhide, and other substances that insects can feed on and ruin, and with the growing demand for those products, insecticides are being used more than ever to prevent massive damage and potential financial loss.
Insecticides can be classified in several ways; if they have residual, or long term activity, they're called systemic insecticides. If, on the other hand, they don't have long term activity, they're called contact insecticides.
Insecticides can be classified by their mode of action, as well. Insecticides can be repellent or non-repellent (primarily used against social insects).
The production of fertilizers thrives in the US, and the whole industry generates $15 billion annually. More than 11 thousand people are employed by over 200 companies producing these chemicals.
The manufacture of pesticides is a profitable business, but, as with all businesses, this field carries certain risks as well. Luckily, there are ways to protect your business.
To find out what kind of insecticides manufacturers insurance coverage manufacturers in this industry need to nurture their business interests, read more below.
Insecticides manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked insecticides manufacturing insurance questions:
- What Is Insecticides Manufacturers Insurance?
- How Much Does Insecticides Manufacturers Insurance Cost?
- Why Do Insecticides Manufacturers Need Insurance?
- What Type Of Insurance Do Insecticides Manufacturers Need?
- What Does Insecticides Manufacturers Insurance Cover & Pay For?
What Is Insecticides Manufacturers Insurance?
Insecticides manufacturers insurance is a type of insurance policy specifically designed for companies that manufacture and distribute insecticides or other pest control products.
This insurance covers a variety of potential risks associated with the production and sale of insecticides, such as product liability claims, environmental damage, and loss or damage to the product during transportation. The policy may also include coverage for lawsuits, accidents, and other unforeseen events that could impact the financial stability of the insecticides manufacturer.
The purpose of insecticides manufacturers insurance is to provide protection for the business and its assets, helping to reduce the financial impact of any potential losses.
How Much Does Insecticides Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small insecticides manufacturing businesses ranges from $97 to $139 per month based on location, size, revenue, claims history and more.
Why Do Insecticides Manufacturers Need Insurance?
Insecticides manufacturers need insurance, just like any other other manufacturing company, because even the most well-run business faces a set of serious threats that could cause severe financial set-backs.
Good insecticides manufacturers insurance coverage offers a safety net against risks that could otherwise render your company bankrupt. Some of those risks will be common to all companies, while some are specific to the manufacturing of insecticides.
Acts of nature - natural disasters - come in so many different forms that they can strike your facility no matter where it is based.
Theft and acts of vandalism, which can interrupt your production line by damaging or destroying your valuable equipment, threaten any company. Insecticides manufacturers will further risk the breakdown of essential equipment, workplace injuries among their employees, and the possibility that a third party is injured within their facility or as a result of their activities.
Should disaster strike a building constructed partially using your insecticides, there is even the risk that someone will attempt to hold you responsible and file a lawsuit.
Any of these perils can have devastating consequences - but with the right insurance coverage, insecticides manufacturers can avoid these financial blows.
What Type Of Insurance Do Insecticides Manufacturers Need?
The type of product they manufacture is the one thing all pesticide producers have in common. Other than that, each business is unique, and each company has specific needs that depend on a number of factors.
Aspects that need to be taken into consideration, when choosing the right type of insurance for your business, include the number of employees, the amount of insecticides you produce, as well as the types of pesticide, your geographical location, terrain, and climate, to name a few.
There is no universal insurance formula that covers all the needs of all insecticide manufacturers. That is why the best option would be for you to talk to a commercial insurance broker. The types of insecticides manufacturers insurance needed include:
- Workers Compensation: Insecticides are hazardous materials, and working with them can potentially cause health problems in your employees, if they touch or inhale them. This type of insurance covers the medical expenses of employees who sustain workplace injuries or develop long-term health conditions as a result of their work, as well as lost income. It also protects your business from potential lawsuits.
- General Liability: This is the type of insecticides manufacturers insurance that defends you from lawsuits in the case of third party bodily injury liability. It also protects you from any potential damage your company accidentally causes to third party properties. This includes the machines you rent.
- Product Liability: Another, more specialized, type of liability insurance, product liability insurance protects your company in the event the use of, or exposure to, your insecticide products leads to third party bodily harm, or potentially environmental damage. It can also compensate for lost revenue in case you are forced to recall a product.
- Commercial Property: This type of insurance protects your property. That means that you're covered if something happens to your machines, documents, computers, or furniture. You can also be compensated if the damage is caused by floods, fire, lightning strikes, earthquakes, wind, and other acts of fire, though coverage will vary. Other than natural disasters, damage can be caused by theft or vandalism. And this type of insurance covers that type of harm as well.
For the production of insecticides, you'll need machines, space, people, knowledge, and chemicals. But, as your product protects crops from potential harm caused by insects, insecticides manufacturers insurance protects your business from any potential harm.
That is why making an comprehensive insurance plan is one of the first things to do if you're planning on starting a business in this line.
Insecticides Manufacturing's Risks & Exposures
Property exposures arise from an office, plant, and warehouse or yard for storage of raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, along with large concentrations of flammable solvents, toxins, and other reactive (flammable, corrosive, or explosive) chemicals.
Hazards increase without proper controls, which should include separation during storage or processing and proper ventilation to control, fumes, dust, and vapors. Storage areas should be kept cool to prevent explosions. 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.
Some ingredients may be spoiled by temperature change, humidity, dust or other changes. Some synthetic insecticide manufacturers could be targeted by protestors or activists. 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 electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in a severe loss, both direct and under time element.
Crime exposures are chiefly from employee dishonesty, either product theft or fraudulent bookkeeping/ordering. When insecticides are subject to strict government control, the underground market value becomes inflated which can encourage employee theft. 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 arise from accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information. Insecticide manufacturers typically have laboratories with significant scheduled EDP equipment for research and quality control. The main causes of loss are fire, theft, and loss by spill or contamination, especially during a collision.
Premises liability exposure is very high due to the potential release or spill of synthetic insecticide or its ingredients, either on premises or off. Since the chemicals used in processing are intended to be toxic, and may be reactive (flammable, corrosive or explosive, the chance of serious health damage is high.
The fire department and local environmental agencies must be aware of chemicals in use so that appropriate action to control fire or vapor release can be taken quickly. There should be an evacuation plan on file. Biological insecticides have fewer risks associated with them. If the manufacturer conducts tours, visitors may be injured by slips, trips, or falls.
Products liability exposure is very high due to the catastrophic potential for bodily injuries or property damage from poor quality control, improper storage, transport or inappropriate packaging and labeling. Costly claims may result from bodily injury to the employees of others who apply the insecticides, and from property damage to crops if the mix is wrong for its intended use.
Additional exposure comes from the leeching effect as the plants and grains enter into the food chain and the unintended impact on non-targeted wildlife or insects such as bees. 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 batch. All products must adhere to federal specifications.
Environmental impairment exposures are very high as every phase of the operations may trigger a pollution event: storage, transportation, application, cleanup, disposal (including disposal of empty containers). The toxic effect may be cumulative or immediate. It may affect growing crops, water, air, or soil. Disposal of wastes must adhere to all federal and state guidelines.
Workers compensation exposure is very high due to work with chemicals and insecticides. Ingredients may be toxic or caustic, with a high potential for injury to eyes, lungs, or skin. Injuries from production equipment are common, as are back injuries from heavy lifting, burns, cuts, slips, trips, falls, hearing loss from noise, and repetitive motion injuries. Workstations should be ergonomically designed.
Employees should be provided with safety training and protective equipment. Workers must be fully aware of the side effects and symptoms of medical conditions associated with the chemicals they work with, including long-term occupational disease hazards. Regular physicals to monitor workers' health may be advisable.
Commercial auto exposure is very high if the manufacturer owns its tanker trucks and does its own transport. Drivers may need a hazardous material ("hazmat") license for some of the chemicals transported. Hazards increase if the insured lacks spill control procedures and equipment.
Drivers should have an appropriate license 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 Insecticides Manufacturers Insurance Cover & Pay For?
Insecticide manufacturers can be sued for various reasons. Here are some examples and how insurance can aid them:
1. Product Liability: This is one of the most common reasons for lawsuits. If an insecticide is found to be defective or causes harm to users, pets, or the environment, the manufacturer can be held liable. In this scenario, product liability insurance can protect the company. It helps cover the legal costs and any settlements or judgements that come out of the lawsuit. So, if a customer falls ill after using a particular insecticide and sues the manufacturer, the insurance would help pay for the defense costs and any potential settlements or damages awarded to the plaintiff.
2. False Advertising: If an insecticide manufacturer makes false or misleading claims about the effectiveness or safety of their products, they could face a lawsuit. In this case, an advertising injury coverage (typically a part of a commercial general liability policy) would help cover the cost of legal defense, settlements, and judgements related to accusations of false advertising.
3. Environmental Damage: If an insecticide is found to cause significant environmental harm, such as water contamination or harm to non-target species, the manufacturer can be sued. In this case, pollution liability insurance would come into play. This type of insurance policy would cover the legal costs associated with these lawsuits and pay for any fines, clean-up costs, or damages awarded by the court.
4. Workers' Compensation: Employees of the manufacturing company could get exposed to harmful chemicals during the production process, leading to health issues. If the company is found to be negligent in providing adequate safety measures, it could face lawsuits. Workers' compensation insurance would protect the company in this scenario. It would cover the legal costs associated with the lawsuit and provide benefits to the affected employees for medical costs and lost wages.
5. Intellectual Property Infringement: If an insecticide manufacturer is accused of patent, trademark, or copyright infringement by another company, they could face a lawsuit. Intellectual property insurance can help in this scenario. It would cover the costs of legal defense and any settlements or judgements if the manufacturer is found to be in violation.
In all these examples, having the right insurance policies can significantly reduce the financial burden associated with lawsuits. However, it's essential for companies to not only rely on insurance but also strive to operate responsibly, ethically, and within legal and regulatory standards to minimize the likelihood of lawsuits in the first place.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2879 Pesticides And Agricultural Chemicals, Not Elsewhere Classified
- NAICS CODE: 325320 Pesticide and Other Agricultural Chemical Manufacturing
- Suggested Workers Compensation Code(s): 4828 Chemical Blending or Mixing NOC - All Operations & Drivers, 4829 Chemical Manufacturing NOC - All Operations & Drivers - Includes Blending or Mixing
2879: Pesticides And Agricultural Chemicals, Not Elsewhere Classified
Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 287: Agricultural Chemicals
2879 Pesticides And Agricultural Chemicals, Not Elsewhere Classified: Establishments primarily engaged in the formulation and preparation of ready-to-use agricultural and household pest control chemicals, including insecticides, fungicides, and herbicides, from technical chemicals or concentrates; and the production of concentrates which require further processing before use as agricultural pesticides. This industry also includes establishments primarily engaged in manufacturing or formulating agricultural chemicals, not elsewhere classified, such as minor or trace elements and soil conditioners. Establishments primarily engaged in manufacturing basic or technical agricultural pest control chemicals are classified in Industry Group 281 if the chemicals are inorganic and in Industry Group 286 if they are organic. Establishments primarily engaged in manufacturing agricultural lime products are classified in Major Group 32.
- Agricultural disinfectants
- Agricultural pesticides
- Arsenates: calcium, copper, and lead-formulated
- Arsenites, formulated
- Bordeaux mixture
- Calcium arsenate and arsenite, formulated
- Cattle dips
- Copper arsenate, formulated
- Elements, minor or trace (agricultural chemicals)
- Exterminating products, for household and industrial use
- Fly sprays
- Growth regulants, agricultural
- Household insecticides
- Insect powder, household
- Insecticides, agricultural
- Lead arsenate, formulated
- Lime-sulfur, dry and solution
- Lindane, formulated
- Moth repellants
- Nicotine and salts
- Nicotine bearing insecticides
- Paris green (insecticide)
- Pesticides, household
- Plant hormones
- Poison: ant, rat, roach, and rodent-household
- Pyrethrin bearing preparations
- Pyrethrin concentrates
- Rotenone bearing preparations
- Rotenone concentrates
- Sheep dips, chemical
- Sodium arsenite (formulated)pp(Soil conditioners
- Sulfur dust (insecticide)
- Thiocyanates, organic (formulated)
- Trace elements (agricultural chemicals)
- Xanthone (formulated)
Insecticides Manufacturers Insurance - The Bottom Line
Not every insecticides manufacturers insurance policy does not have the same coverage, cost and exclusions. To discover if your insecticides manufacturing firm has the best fit insurance policies - talk to an experienced business 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.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Industrial Equipment
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Leather Goods
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Psychedelic Drugs
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vegetable Juice
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
- 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.