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:
- What Is Major Electrical Appliances Manufacturers Insurance?
- 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?
- What Does Major Electrical Appliances Manufacturers Insurance Cover & Pay For?
What Is Major Electrical Appliances Manufacturers Insurance?
Major Electrical Appliances Manufacturers Insurance is a type of insurance coverage that protects manufacturers of large electrical appliances from various risks and liabilities. This insurance can cover losses from product defects, product recalls, property damage, liability claims, and other unexpected events.
It is designed to provide financial protection for the manufacturer and their business against the costs associated with claims or lawsuits resulting from the production and sale of their products.
This insurance helps manufacturers secure their business, mitigate financial risks, and ensure their products are safe and reliable for consumers.
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.
What Does Major Electrical Appliances Manufacturers Insurance Cover & Pay For?
Major electrical appliances manufacturers can face lawsuits for various reasons, with insurance playing a critical role in managing these risks. Let's go through some examples:
1. Product Liability: If an appliance malfunctions or is defective, leading to personal injury or property damage, the manufacturer can be sued for product liability. For example, a dishwasher might leak and cause water damage to a customer's home, or a faulty toaster could cause a fire, leading to significant property damage and potentially personal injury.
Insurance Solution: Product liability insurance is designed to cover these situations. It can help pay for legal defense costs, settlements, and court-ordered judgements. Furthermore, it can also help cover the costs associated with a product recall if needed.
2. Patent Infringement: Appliance manufacturers are often involved in creating new technologies and designs. They might inadvertently infringe on another company's patent, leading to a lawsuit. For instance, a manufacturer could be sued for using a patented technology in their refrigerator design without obtaining the necessary permissions or licenses.
Insurance Solution: Intellectual property insurance can help manufacturers in this situation. It can cover the legal defense costs associated with fighting the lawsuit, and if the company is found liable, it can also cover the costs of any damages awarded.
3. Breach of Contract: Manufacturers often engage in contracts with suppliers, retailers, and other businesses. If a manufacturer fails to uphold their end of a contract, they could face a breach of contract lawsuit. For example, if they fail to deliver the agreed-upon quantity of goods to a retailer, the retailer might sue for losses incurred.
Insurance Solution: Commercial general liability insurance often includes coverage for personal and advertising injury, which can include certain types of contractual liabilities. If a claim arises from a breach of contract, this coverage can help pay for legal defense costs and any settlement or judgment amounts.
4. Employment Practices Liability: If a manufacturer is alleged to have wrongfully terminated an employee, discriminated, or created a hostile work environment, they could be sued for employment practices liability.
Insurance Solution: Employment practices liability insurance (EPLI) can help cover the costs associated with these types of claims. This can include legal defense costs, settlement amounts, and judgements related to allegations of wrongful termination, discrimination, and other employment-related issues.
In conclusion, the type of insurance a manufacturer needs will depend on the nature of their business and the specific risks they face. It's important for manufacturers to work with a knowledgeable insurance broker or agent who can help them understand their risk profile and ensure they have the appropriate coverage to protect their business.
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 Workers Compensation Code(s): 3179 Electrical Apparatus Manufacturing NOC, 3169 Heater or Radiator Manufacturing
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
- Betatrons
- Chimes, electric
- Christmas tree lighting sets, electric
- Clothing, electrically heated
- Cyclotrons
- Door opening and closing devices, electrical
- Dynamotrons
- 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.
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.
