Major Electrical Appliances Manufacturers Insurance Policy Information
Major Electrical Appliances Manufacturers Insurance. The many millions of consumers who rely on them to make their everyday lives easier may take these machines for granted, but the manufacture of major electrical appliances is everything but simple.
Companies who take on the task of making these appliances may design and manufacture anything from fridges and freezers to ovens and washing machines for both residential and commercial markets.
In the process, they work with numerous different components; a washing machine alone, for instance, is made up of diverse parts such as a gearbox, electric motor, damping system, and a series of pulleys.
Manufacturers of major electrical appliances produce household equipment such as cooking ranges, ovens, refrigerators, freezers, dishwashers, washing machines, and dryers, as well as commercial laundry, dry-cleaning, and pressing equipment.
The manufacture of these appliances involves a variety of operations. The product's casing, housing, or cabinet can be constructed of plastic, wood or metal. The interior contains machinery and the electrical wiring or electronic circuitry.
Other parts, such as shelving, gaskets, or heating elements, may be of metal, glass, rubber, or plastic.
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, making peripherals and accessories, or filling ("charging") refrigeration coils. Some manufacturers may subcontract the separate operations and simply perform the final assembly.
While each major electrical appliance is manufactured in a unique way, all rely on complex production lines and skilled workers.
Any company that manufactures major electrical appliances is inherently going to be vulnerable to a wide range of potentially-disastrous risks that can have devastating financial consequences - if it does not have comprehensive insurance coverage.
To find out what types of major electrical appliances manufacturers insurance are essential in safeguarding your business against these perils, read on.
Major electrical appliances 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 major electrical appliances manufacturing insurance questions:
- How Much Does Major Electrical Appliances Manufacturers Insurance Cost?
- Why Do Major Electrical Appliances Manufacturers Need Insurance?
- What Type Of Insurance Do Major Electrical Appliances Manufacturers Need?
How Much Does Major Electrical Appliances Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small major electrical appliances manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Major Electrical Appliances Manufacturers Need Insurance?
The many threats that could otherwise be catastrophic in nature can become manageable with the proper insurance on your side. Risks companies that manufacture major electrical appliances have to consider include common ones universal to all commercial ventures and residences alike, but also those specific to their own field.
Your manufacturing facility and everything within it could, for instance, be hit by an act of nature.
Not every locality is equally vulnerable to all natural disasters, but an earthquake, wildfire, or severe flood is very hard to recover from if a company is under-insured. Even criminal acts like theft and vandalism have the potential to deal serious blows.
The manufacture of major electrical appliances also brings industry-specific hazards. The breakdown of equipment essential to your manufacturing process could leave you with repair or replacement costs alongside costly business interruptions.
Working with electronics, employees face the risk of occupational injuries which they could hold the company liable. Should a manufacturing error lead a consumer to become injured after using a product you manufactured, meanwhile, the financial aftermath may be a significant burden.
Accidents and other circumstances beyond a company's control cannot always be avoided, despite the fact that you will do everything in your power to minimize the risk. Should the worst happen, the right major electrical appliances manufacturers insurance is the backup plan you can count on.
What Type Of Insurance Do Major Electrical Appliances Manufacturers Need?
As a manufacturer of major electrical appliances, you will require multiple layers of protection against the many perils that threaten your financial health.
The coverage that best does this job depends on factors like the location of your manufacturing plant, the nature of the appliances you make and whether you do so for residential or commercial markets, and how many employees your company has.
Among the types of major electrical appliances manufacturers insurance you will certainly need to carry are:
- Commercial Property: In the event that unforeseen circumstances that typically include theft, vandalism, and acts of nature (but not always floods) damage your building, the assets within, or both, commercial property damage helps cover the loss.
- General Liability: While individual commercial general liability insurance plans vary in scope, all are designed to cover you in case a third party files a claim for personal injury or property damage. Both legal defense costs and settlement payouts fall under these plans.
- Product Liability: Even striving for excellence, mistakes in the manufacturing process can happen. In the event that one of the appliances you produced causes injury to a user, this kind of major electrical appliances manufacturers insurance is designed to cover the resulting liability-related costs.
- Workers Compensation: This kind of insurance protects companies from financial damage in the event that an employee suffers a workplace accident or a long-term occupational illness. It does this by covering the employee's medical bills as well as any lost wages, but also by greatly reducing the scope of possible litigation on the worker's part.
Companies that make major electrical appliances will certainly be required to carry these essential forms of insurance.
Because they are likely to have additional major electrical appliances manufacturers insurance needs that do not fall under the scope of these four kinds, discussing your options with a trusted commercial insurance broker is the next step you should take.
Major Electrical Appliances Manufacturing's Risks & Exposures
Premises liability exposure is normally low due to limited access by visitors. If the manufacturer conducts tours or has a showroom or retail outlet, visitors may be injured by slips, trips, or falls. Fumes, dust, and noise from woodwork or metalwork could affect neighbors. There may be significant off-premises exposures at promotional events.
Products liability exposure varies depending on the type of equipment and the customer. Gas-fueled appliances have the highest exposure due to the potential for explosion and carbon monoxide poisoning which can result in bodily injury, death, or property damage. Leaking washing machines and dishwashers can result in water damage. Appliances with moving parts can cause severe injuries.
Heaters may overheat or tip, resulting in fire, or produce dangerous emissions that can sicken or kill customers. Any electrical appliance that requires 220 voltage presents a higher potential for life-threatening shocks. Warning labels regarding dangers of injury are important, but provide only limited defense, especially in the case of inherently dangerous household products.
A malfunction in the wiring could present a fire or electrocution hazard, such as products designed for use in kitchens and baths. Small parts could present a choking hazard to children. Cords and cables represent a potential tripping hazard. Testing and quality control are vital. Product recall procedures should be in place. Governmental regulations, guidelines, and standards must be observed. Older appliances made before improved safety features were introduced may still be in use.
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. For plastics, the raw materials may be toxic and are flammable, the catalysts may be caustic, and the final product is usually not biodegradable.
For wood and metal, contaminants may come from the chemicals, paints, and solvents used. Storage and disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposures can 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 injuries. Working with electronics can result in electrocution.
should be ergonomically designed. 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. Chemical exposures could result in skin and eye irritations, as well as respiratory problems. Workers should be fully informed about 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. Production incentives can be a disincentive to safety if the only consideration is by piece production.
Property exposures consist of 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 the build-up of dust from the cutting and sanding that can cause fire and explosion. 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. Plastic work may include molding or extrusion. 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 has a high susceptibility 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.
Electronics may be targeted 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 breakdown losses to the building services systems, malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. Breakdown and loss of use to the conveyor and other production machinery could result in a significant loss, both direct and under time element.
Crime exposure comes from employee dishonesty and theft of circuitry or precious metal plating. Most of the larger appliances such as refrigerators and ranges are not a major target due to bulk and transport problems. 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. Stock in transit is susceptible to damage from breakage, fire, water damage, collision or overturn, and theft.
Commercial auto exposure may be high if the manufacturer picks up raw materials or delivers finished goods to customers. 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: 3631 Household Cooking Equipment, 3632 Household Refrigerators And Home And Farm Freezers, 3633 Household Laundry Equipment, 3639 Household Appliances, Not Elsewhere Classified, 3582 Commercial Laundry, Drycleaning, And Pressing Machine, 3699 Electrical Machinery, Equipment, And Supplies, Not Elsewhere Classified
- NAICS CODE: 335221 Household Cooking Appliance Manufacturing, 335222 Household Refrigerator and Home Freezer Manufacturing, 335224 Household Laundry Equipment Manufacturing, 335228 Other Major Household Appliance Manufacturing, 333318 Other Commercial and Service Industry Machinery Manufacturing, 335999 All Other Miscellaneous Electrical Equipment and Component Manufacturing
- Suggested ISO General Liability Code(s): 51221, 51224, 58663
- Suggested Workers Compensation Code(s): 3179, 3169
Description for 3631: Household Cooking Equipment
Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 363: Household Appliances
3631 Household Cooking Equipment: Establishments primarily engaged in manufacturing household electric and nonelectric cooking equipment, such as stoves, ranges, and ovens, except portable electric appliances. This industry includes establishments primarily engaged in manufacturing microwave and convection ovens, including portable. Establishments primarily engaged in manufacturing other electric household cooking appliances, such as portable ovens, hot plates, grills, percolators, and toasters, are classified in Industry 3634. Establishments primarily engaged in manufacturing commercial cooking equipment are classified in Industry 3589.
- Barbecues, grills, and braziers for outdoor cooking
- Convection ovens, household: including portable
- Microwave ovens, household: including portable
- Ovens, household: excluding portable appliances other thanmicrowave
- Ranges, household cooking: electric and gas
- Stoves, disk
Description for 3632: Household Refrigerators And Home And Farm Freezers
Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 363: Household Appliances
3632: Household Refrigerators And Home And Farm Freezers: Establishments primarily engaged in manufacturing household refrigerators and home and farm freezers. Establishments primarily engaged in manufacturing commercial and industrial refrigeration equipment, packaged room coolers, and all refrigeration compressor and condenser units are classified in Industry 3585, and those manufacturing portable room dehumidifiers are classified in Industry 3634.
- Freezers, home and farm
- Ice boxes, household
- Refrigerator cabinets, household
- Refrigerators, mechanical and absorption: household
Description for 3633: Household Laundry Equipment
Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 363: Household Appliances
3633 Household Laundry Equipment: Establishments primarily engaged in manufacturing laundry equipment, such as washing machines, dryers, and ironers, for household use, including coin-operated. Establishments primarily engaged in manufacturing commercial laundry equipment are classified in Industry 3582, and those manufacturing portable electric irons are classified in Industry 3634.
- Drycleaning and laundry machines, household: including
- Dryers, laundry: household, including coin-operated
- Ironers and mangles, household, except portable irons
- Laundry machinery, household, including coin-operated
- Washing machines, household: including coin-operated
- Wringers, domestic laundry
Description for 3639: Household Appliances, Not Elsewhere Classified
Division D: Manufacturing | Major Group 23: Apparel And Other Finished Products Made From Fabrics And Similar Materials | Industry Group 239: Miscellaneous Fabricated Textile Products
3639 Household Appliances, Not Elsewhere Classified: Establishments primarily engaged in manufacturing household appliances, not elsewhere classified, such as water heaters, dishwashers, food waste disposal units, and household sewing machines.
- Buttonhole and eyelet machines and attachments, household
- Dishwashing machines, household
- Floor waxers and polishers, household: electric
- Garbage disposal units, household
- Sewing machines and attachments, household
- Trash compactors, household
- Water heaters, household: including nonelectric
Description for 3582: Commercial Laundry, Drycleaning, And Pressing Machines
Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 358: Refrigeration And Service Industry Machinery
3582 Commercial Laundry, Drycleaning, And Pressing Machine: Establishments primarily engaged in manufacturing laundry and drycleaning equipment and pressing machines for commercial and industrial use. Establishments primarily engaged in manufacturing household laundry equipment, including coin-operated washers and dryers, are classified in Industry 3633.
- Drycleaning equipment and machinery, commercial
- Dryers, laundry: commercial, including coin-operated
- Extractors and driers, commercial laundry
- Feather cleaning and sterilizing machinery
- Ironers, commercial laundry and dry-cleaning
- Laundry machinery and equipment, commercial, including
- Pressing machines, commercial laundry and drycleaning
- Rug cleaning, drying, and napping machines: commercial laundry
- Washing machines, laundry: commercial, including coin-operated
Description for 3699: Electrical Machinery, Equipment, And Supplies, Not Elsewhere Classified
Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 369: Miscellaneous Electrical Machinery, Equipment, and Supplies
3699 Electrical Machinery, Equipment, And Supplies, Not Elsewhere Classified: Establishments primarily engaged in manufacturing electrical machinery, equipment, and supplies, not elsewhere classified, including high energy particle acceleration systems and equipment, electronic simulators, appliance and extension cords, bells and chimes, and insect traps.
- Accelerating waveguide structures
- Amplifiers; magnetic, pulse, and maser
- Appliance cords for e.g., electric irons, grills, waffle irons
- Atom smashers (particle accelerators)
- Bells, electric
- Chimes, electric
- Christmas tree lighting sets, electric
- Clothing, electrically heated
- Door opening and closing devices, electrical
- Electric fence chargers
- Electron beam metal cutting, forming, and welding machines
- Electron linear accelerators
- Electrostatic particle accelerators
- Extension cords, made from purchased insulated wire
- Flight simulators (training aids), electronic
- Flytraps, electrical
- Gongs, electric
- Grids, electric
- Lamps, insect: electric
- Laser welding, drilling and cutting equipment
- Linear accelerators
- Logs, fireplace: electric
- Maser amplifiers
- Ornaments, Christmas tree: electric
- Outboard motors, electric
- Particle accelerators, high voltage
- Teaching machines and aids, electronic
- Trouble lights
- Ultrasonic cleaning equipment, except medical and dental
- Ultrasonic generators sold separately for inclusion in tools and
- Ultrasonic welding machines and equipment
- Waveguide pressurization equipment
Major Electrical Appliances Manufacturers Insurance - The Bottom Line
Not every major electrical appliances manufacturers insurance policy offers the same coverages and exclusions. You can discover 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.
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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Policies||What 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 Insurance||What 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 Bond||What 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
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.
- 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
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- 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
- Vending Machines
- Vegetable Juice
- Wire Rope
- Wood Furniture
- Writing Instruments
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.