Iron And Steel Foundry Insurance

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Iron And Steel Foundry Insurance Policy Information

Iron And Steel Foundry Insurance

Iron And Steel Foundry Insurance. Foundries are dedicated to metal casting, which means they melt metals of various kinds and subsequently pour it into molds to create the desired shape.

Foundry or casting operations make castings by pouring molten metal into molds and letting it solidify. Ferrous foundries handle iron, steel, and iron-based alloys. The process begins with raw pig iron bricks that are melted in a furnace at temperatures up to 3000 degrees.

The molten iron or steel may be refined to remove impurities such as hydrogen gases, or have other ingredients added to produce alloys. This mixture is poured into molds covered with wax or refractory slurry, a paste of fine sand, clay, or similar material.

Once cooled, the casting is removed from the mold and finished by grinding, sand blasting, deburring, and often some type of heat treating or tempering. The castings may be painted to prevent corrosion.

All along the way, testing and monitoring must be conducted to ascertain quality and purity of casting. Products include cast iron pipe, cast iron skillets, engine blocks, and many other products.

Ferrous foundries can process a multitude of different ferrous metals - or metals that contain significant amounts of iron. Common examples of ferrous metals are cast iron, stainless steel, carbon steel, and alloy steel, all of which have a wide range of applications within industry as well as for domestic purposes.

While there is no question that ferrous foundries play an important role in the global supply chain, it is also abundantly clear that foundries that process ferrous metals can face a number of risks.

Foundries depend on high-temperature furnaces, and workers pour molten metals into casts, after all. The fact that foundries also risk impacting the environment is another inherent hazard to consider.

This is why it is crucial for ferrous foundries to take proactive steps to protect themselves against major hazards that could have ruinous financial consequences. What kinds of iron and steel foundry insurance might your business need if you own and run a ferrous foundry? We will take a brief look at that here.

Iron and steel foundry insurance protects your manufacturing business from lawsuits with rates as low as $99/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked iron and steel foundries insurance questions:


How Much Does Iron And Steel Foundry Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for iron and steel foundries ranges from $99 to $1499 per month based on location, size, revenue, claims history and more.


Why Do Iron And Steel Foundries Need Insurance?

Insurance For Manufacturers

Certain types of commercial insurance are legally required in some jurisdictions, while lenders also frequently only do business with companies that are properly insured. The ultimate reason to invest in excellent insurance, however, lies in the fact that unforeseen circumstances can easily destroy your business without the right coverage.

Workers within the industry of smelting and metal casting are, for example, more likely to suffer from occupational illnesses and injuries than those in some other fields. Exposure to silica and other dusts that can lead to chronic respiratory conditions in a prime concern, along with the inhalation of metal fumes.

The possibility of environmental damage is another liability hazard within this particular industry.

Along with hazards unique to their field, ferrous foundries also face the same risks as any other commercial venture. They, too, can fall victim to criminal acts such as burglary or vandalism.

Acts of nature as varied as earthquakes, hurricanes, wildfires, serous floods, and storms can damage the facility and industrial equipment, causing both immediate and long-term financial losses.

Whatever peril strikes your company, you are much more likely to survive it and thrive again with the correct iron and steel foundry insurancee coverage on your side.


What Type Of Insurance Do Iron And Steel Foundries Need?

No two companies - even within the same field - have identical insurance needs. To make sure that a company obtains optimal insurance, it is vital to consult a commercial insurance broker, who can help create a custom insurance plan.

Factors that include the location of your foundry, the value of your industrial equipment, your output quantities, and your number of employees all play in determining what policies are right for a company.

With that in mind, the following kinds of iron and steel foundry insurance are important:

  • Commercial Property: This core type of insurance is a must-have for any company with physical assets. In case of unforeseen circumstances such as fire, earthquake, theft, vandalism, and accidents, it protects your company from financial losses if your assets (your building, equipment, outdoor machines, raw materials, etc.) are damaged or lost.
  • General Liability: Should a third party become injured on your premises, or your company's actions damage the property of another, expensive legal claims can follow. Commercial general liability insurance is designed to cover (a portion of) your attorney fees and settlement costs.
  • Product Liability: This type of iron and steel foundry insurance specifically shields you from liability costs relating directly to your products. Goods produced in foundries may be incorporated, for example, into buildings plumbing fixtures, and into airplanes or locomotives. Should the product not perform as intended, the damage can be massive. This is why foundries require product liability insurance.
  • Workers Compensation: This type of insurance shoulders the financial burden associated with work-related injuries or illnesses sustained by your employees, if your company can in any way be held responsible. It covers the injured worker's medical bills, but also reimburses any wages they miss out on if they cannot return to work.


Keep in mind that these types of coverage, although important, are only examples of the iron and steel foundry insurance needed in order to protect their financial interest.

For further information regarding the specific needs of your company, you are advised to partner with a commercial insurance agent who understands your field.

Iron And Steel Foundries' Risks & Exposures

Manufacturing

Premises liability exposure is usually low to moderate due to lack of public access to the premises. If the manufacturer conducts tours, visitors may be injured by slips, trips, or falls. The storage of materials or equipment in the open could pose an attractive nuisance hazard. The yard should be fenced to prevent unauthorized access, with proper lighting and warnings. Fumes, dust, and noise from the operations could affect neighbors.

Products liability exposure can be substantial, especially if the end product is a critical component. While other processes take place on the items after they are delivered to customers, the foundry will be brought in if there is a lawsuit. Hazards increase without contracts that clearly describe the responsibilities of the forge and the quality standards that must be met for customer satisfaction.

Losses may be caused by poor workmanship, faulty design, or hidden damage during storage (such as rust) or during shipping (such as unseen breakage). 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, and documentation of sources. Older units made before improved safety features were introduced may still be in use.

Environmental impairment exposures are high due to the possible release of contaminants into the ground, air, or water. Processes themselves may cause thermal or noise pollution. Disposal of wastes must adhere to all federal and state guidelines. Exposure is increased significantly if underground or outdoor tanks are used. An underground storage tank policy may be needed.

Workers compensation exposure is very high due to the possibility of burns from molten metal or chemicals. Injuries from production machinery are common, as are slips, trips, falls, back injuries from lifting during production, delivery, or installation, exhaustion, and dehydration from the intense heat, hearing loss from noise, and repetitive motion losses.

Workstations should be ergonomically designed. Fuels, lubricants, alloys, and metal treatment agents (as in polishing) may involve irritants to the eyes, skin, and lungs. Silica dust from the molds is a major concern for lungs due to the potential for irreversible damage.

Safety equipment including mask, eye, and ear protection is important, as well as hand, foot and body protection (in the form of aprons). Since heat is extreme, it is often difficult to persuade workers to keep safety equipment on, so monitoring is important.

Property exposures consist of office, production plant, and warehouse operations or yard for storage of raw materials and finished goods. Ignition sources include heat from the foundry, production machinery, and electrical panels. The furnaces and crucibles for a foundry are constantly burning.

If the fire gets away from the designated area, damage can be extensive. Molten metal can leak or spill, and wax for product patterns can melt. Flammable lubricants, fuels, and other chemicals should be stored away from other operations. The types of metals used in producing alloys may contribute to fire load and cause an explosion.

Unless there are dust collection systems and adequate ventilation, dust from the cutting and sanding operations can cause fire and explosion. The stock itself is not usually susceptible to fire or water damage and is not a target item for theft. Fire suppression systems are difficult to design for these operations.

Equipment breakdown exposures include malfunctioning production equipment, ventilation systems, 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 or 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 include accounts receivable if the foundry offers credit, computers (which may include computer-run production equipment), contractors' equipment, goods in transit, and valuable papers and records for customers' and suppliers' information.

Contractors' equipment, which is used to transport raw materials to the furnace, may be stored in the open, and susceptible to damage by weather-related causes of loss or vandals. Stock in transit is not highly susceptible to damage, but some may be oversized and subject to collision or overturn unless properly loaded, tied down, and unloaded. Some castings may be brittle and break due to heating (fire) and sudden cooling (water).

Commercial auto exposure can be high if the foundry picks up raw materials or delivers finished goods. Iron and steel are very heavy, and some castings may be very large, requiring special shipping methods. Proper loading and tie-down procedures are essential to prevent overturn and spillage onto the road.

Drivers should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location. Manufacturers generally also 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: 3321 Gray And Ductile Iron Foundries, 3322 Malleable Iron Foundries, 3324 Steel Investment Foundries, 3325 Steel Foundries, Not Elsewhere Classified
  • NAICS CODE: 31511 Iron Foundries, 331512 Steel Investment Foundries, 331513 Steel Foundries (except Investment)
  • Suggested ISO General Liability Code(s): 53425
  • Suggested Workers Compensation Code(s): 3081, 3082, 3336

Description for 3321: Gray And Ductile Iron Foundries

Division D: Manufacturing | Major Group 33: Primary Metal Industries | Industry Group 332: Iron And Steel Foundries

3321 Gray And Ductile Iron Foundries: Establishments primarily engaged in manufacturing gray and ductile iron castings, including cast iron pressure and soil pipes and fittings.

  • Brake shoes, railroad: cast iron
  • Car wheels, railroad: chilled cast iron
  • Castings, compacted graphite iron
  • Castings, gray iron and semisteel
  • Cooking utensils, cast iron
  • Couplings, pipe: pressure and soil pipecast iron
  • Ductile iron castings
  • Elbows, pipe: pressure and soil pipecast iron
  • Fittings, soil and pressure pipe: cast iron
  • Foundries, gray iron and semisteel
  • Gas pipe, cast iron
  • Gray iron foundries
  • Ingot molds and stools
  • Manhole covers, metal
  • Nipples, pipe: pressure and soil pipe-cast iron
  • Nodular iron castings
  • Pipe and fittings, soil and pressure: cast iron
  • Railroad car wheels, chilled cast iron
  • Rolling mill rolls, iron: not machined
  • Sash balances, cast iron
  • Sewer pipe, cast iron
  • Water pipe, cast iron

Description for 3322: Malleable Iron Foundries

Division D: Manufacturing | Major Group 33: Primary Metal Industries | Industry Group 332: Iron And Steel Foundries

3322 Malleable Iron Foundries: Establishments primarily engaged in manufacturing malleable iron castings.

  • Castings, malleable iron
  • Foundries, malleable iron
  • Pearlitic castings, malleable iron

Description for 3324: Steel Investment Foundries

Division D: Manufacturing | Major Group 33: Primary Metal Industries | Industry Group 332: Iron And Steel Foundries

3324 Steel Investment Foundries: Establishments primarily engaged in manufacturing steel investment castings.

  • Investment castings, steel

Description for 3325: Steel Foundries, Not Elsewhere Classified

Division D: Manufacturing | Major Group 33: Primary Metal Industries | Industry Group 332: Iron And Steel Foundries

3325 Steel Foundries, Not Elsewhere Classified: Establishments primarily engaged in manufacturing steel castings, not elsewhere classified.

  • Alloy steel castings, except investment
  • Bushings, cast steel: except investment
  • Cast steel railroad car wheels
  • Castings, steel: except investment
  • Foundries, steel: except investment
  • Rolling mill rolls, steel: not machined
  • Steel foundries, except investment

Iron And Steel Foundry Insurance - The Bottom Line

All iron and steel foundry insurance policies are the not same - they can differ widely in premiums and coverages. You can learn if your business has the best fit insurance policies by talking 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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