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Iron And Steel Foundry Insurance Policy Information

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:

• What Is Iron And Steel Foundry Insurance?
• How Much Does Iron And Steel Foundry Insurance Cost?
• Why Do Iron And Steel Foundries Need Insurance?
• What Type Of Insurance Do Iron And Steel Foundries Need?
• What Does Iron And Steel Foundry Insurance Cover & Pay For?

Why Do Iron And Steel Foundries Need Insurance?

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.

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

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.

What Does Iron And Steel Foundry Insurance Cover & Pay For?

Iron and steel foundries can face various legal challenges due to the nature of their operations. Here are some examples of why they might be sued, and how insurance can help protect them:

1. Workplace Accidents: Foundries can be dangerous places, with high heat, heavy equipment, and hazardous materials. If an employee is injured at work, the company could be sued for damages. Worker's Compensation Insurance is a key coverage in such cases. It helps cover the medical costs, rehabilitation expenses, and lost wages for employees injured on the job. In the event of a lawsuit, it can also help cover the legal costs associated with defending the claim.

2. Environmental Damage: Foundries typically deal with various hazardous materials and emissions which can harm the environment. If the company is found responsible for environmental damage, they can be sued by regulatory bodies or affected parties. Environmental Liability Insurance can help protect the company in such cases, covering costs related to clean-up, legal defense, and potential settlements or fines.

3. Product Liability: If a product produced by the foundry is faulty and leads to an accident or injury, the company could be sued. Product Liability Insurance is designed to cover the costs associated with these types of claims, including legal defense costs, settlements, and any awarded damages.

4. Property Damage: A fire, explosion, or other incident at the foundry could cause damage to nearby properties. If the foundry is found to be at fault, it could be sued for these damages. Property Insurance and General Liability Insurance can provide protection in these cases. Property Insurance covers damage to your own property, while General Liability can cover damage to others' property. Additionally, Business Interruption Insurance can help cover the loss of income due to a shutdown or slowdown caused by a covered incident.

5. Professional Errors: If a foundry provides professional advice or services that result in financial loss for a client, they could face a lawsuit. Professional Liability Insurance (also known as Errors and Omissions Insurance) can cover legal defense costs, settlements, and damages in such cases.

In all cases, insurance provides a financial safety net for the foundry, helping to protect it from potentially devastating costs associated with lawsuits. It is important to note, however, that insurance policies have limits and exclusions, and it's crucial to understand these when purchasing coverage.

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 Workers Compensation Code(s): 3081 Foundry - Ferrous - NOC, 3082 Foundry - Steel Castings, 3336 Castings Manufacturing - Metal - Lost Wax Process

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.

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
• Adhesives
• Alarms
• Audio & Video Equipment
• Auto Parts
• Bottling Plants
• Boxes
• Bricks
• Brooms & Brushes
• Buttons
• Cabinets
• Camping Equipment
• Canned Fruit & Vegetables
• Cans
• Canvas Products
• Caskets
• CBD Oil And Hemp
• Cement
• Ceramics
• Chemical
• Clock & Watch
• Clothing
• Coffee
• Commercial Air Conditioning
• Commercial Electronics
• Communications Equipment
• Computers
• Condoms
• Construction Equipment
• Cork Products
• Cosmetics
• Cutlery
• Dairies & Creameries
• Down And Feather Products
• Dry Ice
• Dyes & Pigments
• Electronic Toys & Games
• Electroplating
• Elevators
• Engines
• Exercise Equipment
• Farm Equipment
• Feed & Grain
• Fences
• Fertilizer
• Fireworks
• Flavoring Extracts
• Frozen Foods
• Fruit Juice
• Fur Garment
• Garage Door
• Gears
• Glass
• Glasswear
• Gypsum Products
• Hosiery
• Ice Cream
• Industrial Equipment
• Ink
• Insecticides
• Iron & Steel Foundries
• Jewelry
• Lawn Mowers
• Leather Apparel
• Leather Goods
• Lighting & Wiring
• Lumber & Wood Products
• Machine Shop
• Major Electrical Appliances
• Manufacturing
• Marijuana Products
• Mattresses & Box Springs
• Metal & Plastic Furniture
• Metal Heat Treating
• Metal Toys
• Millwork
• Monuments
• Musical Instruments
• Nanotechnology
• Nonferrous Foundries
• Ornamental Metalwork
• Paint
• Paper & Allied Products
• Pesticides
• Pet Food
• Pharmaceuticals
• Plastic & Rubber Toys
• Plastic Goods
• Plastics
• Plastics Molding, Forming & Extruding
• Pottery
• Product Liability
• Prosthetics
• Psychedelic Drugs
• Pulp & Paper Mills
• Refractory
• Residential Air Conditioning & Heating
• Rubber Goods
• Rugs
• Sawmills & Planing Mills
• Screw Machine Products
• Sheet Metal
• Soap & Detergent
• Shoes
• Small Electrical Appliances
• Sporting Goods
• Springs
• Stone Products
• Tanneries
• Textiles
• Textiles Finishing & Coating
• Tires
• Tobacco
• Tool & Die Shops
• Vegetable Juice
• Vending Machines
• Watercraft
• Wire
• Wire Rope
• Wood Furniture
• Woodworking
• Writing Instruments
• Yarn
• 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.