Lighting And Wiring Manufacturers Insurance

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Lighting And Wiring Manufacturers Insurance Policy Information

Lighting And Wiring Manufacturers Insurance

Lighting And Wiring Manufacturers Insurance. Lighting fixtures have become ever more varied since the introduction of gas and electric lighting.

Lighting and wiring manufacturers produce lamps, light fixtures and light bulbs of all kinds, including heat lamps, ultraviolet bulbs and lamps used in tanning salons, and bulbs used in medical treatments. Products may be designed for residential or commercial use. The manufacture of lighting and wiring equipment involves a variety of operations.

The product exterior can be made of plastic, wood, glass, pottery, stone, or metal. The interior contains electrical wiring or electronic circuitry. The manufacture of incandescent light bulbs, fluorescent tubes, and similar replaceable components involves glass housing filled with wiring, gases, and chemicals, either in a vacuum or under high pressure.

Some of these chemicals are highly toxic, especially mercury. The different phases of manufacture may be carried out in different locations or different countries. Separate divisions or independent firms (subcontractors) may handle a single aspect of the process, such as producing circuit boards or making peripherals and accessories.

Some manufacturers may subcontract the separate operations and simply perform the final assembly.

The lighting used in residences, places of commerce, and public spaces today can broadly be divided into three categories.

General lighting, also sometimes called ambient lighting, serves to illuminate a whole space - and it includes ceiling light fixtures and wall-mounted lighting. Task lighting aids in the performance of a specific task, whether reading or performing surgical procedures, while accident lighting has a primarily visual or aesthetic function.

While companies that make lighting fixtures and their associated wiring are diverse in nature, the most common materials used in this branch of industry include aluminum, rolled steel, copper, brass, and stainless steel. These commercial ventures may also manufacture related products, such as LED light clips.

While manufacturers of lighting and wiring literally help to illuminate the world, they are vulnerable to range of risks that could - unless they are properly insured - dim the lights on their companies. In this brief guide, we will examine what kinds of lighting and wiring manufacturers insurance can help protect manufacturers in this industry from major perils.

Lighting and wiring 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 lighting and wiring manufacturing insurance questions:


How Much Does Lighting And Wiring Manufacturers Insurance Cost?

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


Why Do Lighting And Wiring Manufacturers Need Insurance?

Insurance For Manufacturers

Risk is an inherent part of owning and operating a business. While the owners and managers of companies that make lighting fixtures and associated components, such as wiring, will strive to run a thriving company, the reality is unforeseen circumstances could significantly change your financial prognosis, almost overnight.

Acts of nature - which include earthquakes, landslides, hurricanes, wildfires, and serious floods - pose a threat to any commercial venture. The same can be said for criminal acts. Both theft (physical or digital) and vandalism could have devastating financial consequences.

The breakdown of crucial industrial equipment on which your manufacturing process depends is another risk, along with the possibility that an employee could suffer an accident while at work.

Should a lighting fixture you manufactured malfunction, causing property damage or bodily injury to a third party in the process, the liability costs that follow can often easily be bankrupting in proportion.

Companies in this industry should invest in the most comprehensive lighting and wiring manufacturers insurance plan possible for the simple reason that it could save their business in the event that they are impacted by these or other perils.


What Type Of Insurance Do Lighting And Wiring Manufacturers Need?

While some types of insurance are often mandated, whether by the jurisdiction where your facility is located or by lenders, others are optional but nonetheless highly recommended.

Your company's precise insurance needs depend on factors such as the location of your facility, the type of industrial equipment you use and its value, the risk profile of your particular lighting products, and your number of employees.

For the most up-to-date information that is also highly relevant to your individual company, you are advised to consult a seasoned commercial insurance agent.

However, among the kinds of lighting and wiring manufacturers insurance which firms in this industry will unquestionably want to carry are:

  • Commercial Property: Essential for any business, this type of insurance protects your physical assets - which include your building, manufacturing equipment and tools, raw materials, and finished inventory - in case of perils such as theft, vandalism, and acts of nature. In many cases, a portion of the revenue you lose due to these events is also covered.
  • General Liability: This type of lighting and wiring manufacturers insurance shields your business in cases where third parties sustain accidents on your premises, or your company's actions lead to third party property damage. It covers both your attorney fees and any settlement costs you may incur, such as medical bills and additional compensation.
  • Product Liability: Designed to cover liability risks associated specifically with the lighting fixtures, wiring, or related goods that your company manufactured, it is a more focused form of liability insurance. Your company would need this in cases where, for example, a large lighting fixture malfunctions and heavy parts fall onto someone.
  • Workers' Compensation: Another must-have for any company, especially but not only in manufacture, this type of insurance shoulders the costs associated with work-related injuries your employees may suffer. Such workers' medical bills are covered by this kind of insurance, but also their lost wages if they are unable to return to work (for a period of time).


These types of insurance form the "meat" of any lighting and wiring manufacturers insurance plan. Your lighting and wiring company may, however, also have additional insurance needs. For complete peace of mind, ask a competent insurance agent specializing in commerce all the questions you have.

Lighting And Wiring Manufacturing's Risks & Exposures

Manufacturing

Premises liability exposure is normally low as access by visitors is limited. If the manufacturer conducts tours or has a showroom or retail outlet, visitors may be injured by slips, trips, or falls. If the manufacturer performs the retail delivery or installation, there may be frequent small property damage claims.

Fumes, dust, and noise from woodwork or metalwork could affect neighbors. There may be significant off-premises exposures at promotional events.

Products liability exposure depends on the size and type of lighting being produced. Whenever electricity is used, there must be adequate warnings of precautions customers must take to avoid the possibility of electrocution. Small parts in lamps designed for children's use could present a choking hazard. Sharp edges could result in cuts and other injuries.

Fluorescent, mercury-vapor, arc lamps, and others contain mercury, which is highly toxic. Some of these may operate under high pressure and at high temperatures, presenting an explosion hazard. Unless controlled, dangerous ultraviolet (UV) rays may be emitted. While the UV rays are desirable in operations such as tanning salons and some medical and industrial applications, they still pose the risk of severe injury to skin and eyes.

Heavy items should have bases large enough to prevent accidental overturn. All governmental regulations, guidelines, and standards must be observed.

Environmental impairment liability exposure may be very high due to possible contamination of ground, air, and water from chemicals and toxic lubricants, solvents and paints. Chemicals employed in metalwork may include solvents and heavy metals.

Mercury is still used in several common types of lamp. For plastics, the raw materials may be toxic and are flammable, the catalysts may be caustic, and the final product is usually not biodegradable. Storage and disposal procedures must adhere to all EPA and other regulatory standards.

Workers compensation exposures may be very high. Injuries from production machinery are common, as are minor cuts, puncture wounds, burns, foreign objects in the eye, hearing impairment from noise, slips, trips, falls, back injuries from lifting, and repetitive motion losses. Workstations should be ergonomically designed. Working with electronics can result in electrocution.

Metalworking can result in injury from cuts, amputations, exposure to dust, and respiratory problems from spray-painting operations and solvents employed. Plastics have similar exposures, plus the potential for burns from heated machinery and eye and skin irritants from chemicals and resins.

Lamp production may involve exposure to highly toxic chemicals, such as mercury. Workers must be made aware of the potential side effects of the ingredients they work with, including long-term occupational disease hazards, so they can recognize symptoms and obtain treatment as early as possible.

The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair to increase production.

Property exposures consist of an office, plant, and warehouse or yard for storage of raw materials and finished goods. Ignition sources include heating and cooling equipment, production machinery, electrical panels, and operations such as glass blowing, woodworking, plastic coating, molding or extruding, work with sheet metal, wire, rod, or tubing, soldering, or welding. The risk increases in the absence of proper dust collection systems, ventilation, and adequate disposal procedures.

Paints, lubricants, degreasers, and solvents can be flammable and must be adequately separated and stored away from other operations. Welding and soldering must be done away from combustibles and flammable liquids. Metal housing may require soldering, electroplating, or annealing. Metal or wood may be painted by spray or in dip tanks.

Spray-painting operations can cause a fire unless carried out in spray booths with explosion-proof electrical components. Testing may produce arcing. Chemicals used in the process may cause noxious fumes and corrosion. Without a sterile environment, circuitry may be contaminated by dust or damaged by static. Electronic circuitry is highly susceptible to smoke and other contamination. A very small fire can cause total damage if there is not adequate separation of the storage from the possible ignition sources.

Glass components or decorations are highly susceptible to marring and breakage. Electronics may be targets 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. There can be a significant business income and extra expense exposure, depending on the amount of time required to restore operations.

Equipment breakdown exposures include malfunctioning production equipment, ventilation and dust collection systems, electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in a severe loss, both direct and under time element.

Crime exposure comes from employee dishonesty and theft of circuitry, precious metal plating in the fixtures, and some high-end products. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock.

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), exhibitions, goods in transit and valuable papers and records for customers' and suppliers' information. The primary causes of loss are breakage, fire, water damage, theft, collision, and upset.

Business auto exposure may be high if the manufacturer picks up raw materials or delivers the finished goods to customers. Since some of the goods may be high targets for theft, vehicles transporting the product should be unmarked and contain appropriate protective devices.

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: 3641 Electric Lamp Bulbs And Tubes, 3643 Current-Carrying Wiring Devices, 3645 Residential Electric Lighting Fixtures, 3646 Commercial, Industrial, And Institutional Electric Lighting Fixtures, 3647 Vehicular Lighting Equipment, 3648 Lighting Equipment, Not Elsewhere Classified
  • NAICS CODE: 335110 Electric Lamp Bulb and Part Manufacturing, 335121 Residential Electric Lighting Fixture Manufacturing, 335122 Commercial, Industrial, and Institutional Electric Lighting Fixture Manufacturing, 335129 Other Lighting Equipment Manufacturing
  • Suggested ISO General Liability Code(s): 56041, 56042, 56391, 56390
  • Suggested Workers Compensation Code(s): 3180, 3223

Description for 3641: Electric Lamp Bulbs And Tubes

Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 364: Electric Lighting And Wiring Equipment

3641 Electric Lamp Bulbs And Tubes: Establishments primarily engaged in manufacturing electric bulbs, tubes, and related light sources. Important products of this industry include incandescent filament lamps, vapor and fluorescent lamps, photoflash and photoflood lamps, and electrotherapeutic lamp units for ultraviolet and infrared radiation. Establishments primarily engaged in manufacturing glass blanks for bulbs are classified in Industry 3229.

  • Electrodes, cold cathode fluorescent lamp
  • Electrotherapeutic lamp units for ultraviolet and infrared radiation
  • Filaments for electric lamps
  • Flashlight bulbs, photographic
  • Glow lamp bulbs
  • Infrared lamp bulbs
  • Lamp (bulb) parts, electric
  • Lamp bulbs and tubes, electric: incandescent filament, fluorescent,
  • Lamp bulb and tubes, health: infrared and ultraviolet radiation
  • Lamps, sealed beam
  • Lead-in wires, electric lamp: made from purchased wire
  • Light bulbs, electric: complete
  • Photoflash and photoflood lamp bulb and tubes
  • Strobotrons
  • Ultraviolet lamps

Description for 3643: Current-Carrying Wiring Devices

Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 364: Electric Lighting And Wiring Equipment

3643 Current-Carrying Wiring Devices: Establishments primarily engaged in manufacturing current-carrying wiring devices.

  • Bus bars (electrical conductors)
  • Caps and plugs, attachment: electric
  • Connectors and terminals for electrical devices
  • Contacts, electrical: except carbon and graphite
  • Convenience outlets, electric
  • Cord connectors, electric
  • Current taps, attachment plug and screw shell types
  • Cutouts, switch and fuse
  • Dial light sockets, radio
  • Fluorescent starters
  • Fuse cutouts
  • Ground clamps (electric wiring devices)
  • Lamp sockets and receptacles (electric wiring devices)
  • Lightning arrestors and coils
  • Lightning protection equipment
  • Plugs, electric
  • Rail bonds, electric: for propulsion and signal circuits
  • Snap switches, (electric wiring devices)
  • Sockets, electric
  • Solderless connectors (electric wiring devices)
  • Starting switches, fluorescent lamp
  • Switch cutouts
  • Switches for electric wiring: e.g., snap, tumbler, pressure push-button
  • Trolley line material, overhead

Description for 3645: Residential Electric Lighting Fixtures

Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 364: Electric Lighting And Wiring Equipment

3645 Residential Electric Lighting Fixtures: Establishments primarily engaged in manufacturing residential electric lighting fixtures and equipment, fixed or portable. Establishments primarily engaged in producing glassware for lighting fixtures are classified in Major Group 32; those manufacturing electric light bulbs, tubes, and related light sources are classified in Industry 3641; those manufacturing lamp shades, except glass and metal, are classified in Industry 3999; and those manufacturing nonelectric fixtures and portable electric flashlights, lanterns, and similar lamps are classified in Industry 3648.

  • Boudoir lamps
  • Chandeliers, residential
  • Desk lamps, residential
  • Floor lamps
  • Fluorescent lighting fixtures, residential
  • Lamp shades, metal
  • Lamps (lighting fixtures), residential: electric
  • Light shades, metal
  • Lighting fixtures, residential, electric: e.g., garden, patio, walkway,
  • Lights, yard: electric
  • Table lamps
  • Wall lamps

Description for 3646: Commercial, Industrial, And Institutional Electric Lighting Fixture

Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 364: Electric Lighting And Wiring Equipment

3646 Commercial, Industrial, And Institutional Electric Lighting Fixture: Establishments primarily engaged in producing glassware for lighting fixtures are classified in Major Group 32; those manufacturing residential lighting fixtures are classified in Industry 3645; and those manufacturing vehicular lighting fixtures are classified in Industry 3647.

  • Chandeliers, commercial
  • Commercial lighting fixtures
  • Desk lamps, commercial
  • Fluorescent lighting fixtures, commercial
  • Lighting fixtures, commercial
  • Luminous panel ceilings

Description for 3647: Vehicular Lighting Equipment

Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 364: Electric Lighting And Wiring Equipment

3647 Vehicular Lighting Equipment: Establishments primarily engaged in manufacturing vehicular lighting equipment. Establishments primarily engaged in manufacturing sealed-beam lamps are classified in Industry 3641.

  • Aircraft lighting fixtures
  • Automotive lighting fixtures
  • Bicycle lamps
  • Boat and ship lighting fixtures
  • Clearance lamps and reflectors, motor vehicle
  • Dome lights, motor vehicle
  • Flasher lights, automobile
  • Fog lights, motor vehicle
  • Headlights (fixtures), vehicular
  • Lamps, marker and clearance: motor vehicle
  • Lighting fixtures, vehicular
  • Locomotive and railroad car lights
  • Marker lamps, motor vehicle
  • Motorcycle lamps
  • Parking lights, automotive
  • Reflectors, clearance: vehicular
  • Spotlights, motor vehicle
  • Tail lights, motor vehicle

Description for 3648: Lighting Equipment, Not Elsewhere Classified

Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 364: Electric Lighting And Wiring Equipment

3648 Lighting Equipment, Not Elsewhere Classified: Establishments primarily engaged in manufacturing lighting fixtures and equipment, electric and nonelectric, not elsewhere classified, including flashlights and similar portable lamps, searchlights, ultraviolet lamp fixtures, and infrared lamp fixtures. Establishments primarily engaged in manufacturing electric light bulbs, tubes, and related light sources are classified in Industry 3641; those producing glassware for lighting fixtures are classified in Major Group 32; and those manufacturing traffic signals are classified in Industry 3669.

  • Arc lamps, except electrotherapeutic
  • Area and sports luminaries
  • Decorative area lighting fixtures, except residential
  • Flashlights
  • Floodlights
  • Fountain lighting fixtures
  • Gas lighting fixtures
  • Lamp fixtures, infrared
  • Lanterns: electric, gas, carbide, kerosene, and gasoline
  • Lighting fixtures, airport: runway, approach, taxi, and ramp
  • Lighting fixtures, residential, except electric
  • Miners' lamps
  • Reflectors for lighting equipment: metal
  • Searchlights
  • Spotlights, except vehicular
  • Stage lighting equipment
  • Street lighting fixtures, except traffic signals
  • Swimming pool lighting fixtures
  • Ultraviolet lamp fixtures
  • Underwater lighting fixtures

Lighting And Wiring Manufacturers Insurance - The Bottom Line

Lighting and wiring manufacturers insurance policies can be different in coverages and exclusions. You can learn if your manufacturing business has the best fit insurance policies by talking to an experienced commercial insurance agent.

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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