Mattress And Box Spring Manufacturers Insurance Policy Information
Mattress And Box Spring Manufacturers Insurance. Mattresses aren't products people buy regularly - consumers would ultimately hope to make an investment that offers them many years of comfortable sleep. Companies that make mattresses do, however, have one thing going for them, and that is that everyone needs a mattress.
Mattress and box spring manufacturers produce bedding for personal or commercial use. They generally purchase metal coils or springs, ticking used for covers, and garneted cotton batting used for padding from suppliers.
Processes include sewing or quilting a mattress cover from the ticking, inserting an inner spring section of coils covered by padding, and adding cotton batting or other foam as additional padding to form the mattress. For box spring, metal coils are attached to a wood frame.
Padding covers the coils, and an additional layer or dust cover is stapled to the underside of the wood frame. The different phases of manufacture may be carried out in different locations, or different countries.
In the modern market, mattresses come in many different types. Consumers can choose a coil mattress and get lost in the many subcategories, which range from continuous coils and Bonnell coils to pocketed coils. They may also select foam, latex, gel, and hybrid mattresses.
Manufacturers within this industry may also make box spring, which are essentially mattress foundations that increase the weight a mattress can bear along with its comfort.
This industry has seen interesting developments in recent years, and modern vacuum packaging methods mean that new mattresses can be delivered to their buyers in innovative small formats.
The manufacturing of mattresses and box spring is an exciting field, but of course, companies that make these products also have to worry about a multitude of perils that could endanger their future success.
This short guide will tell you what kinds of mattress and box spring manufacturers insurance you need to protect your assets.
Mattress and box spring 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 mattress and box spring manufacturing insurance questions:
- What Is Mattress And Box Spring Manufacturers Insurance?
- How Much Does Mattress And Box Spring Manufacturers Insurance Cost?
- Why Do Mattress And Box Spring Manufacturers Need Insurance?
- What Type Of Insurance Do Mattress And Box Spring Manufacturers Need?
- What Does Mattress And Box Spring Manufacturers Insurance Cover & Pay For?
What Is Mattress And Box Spring Manufacturers Insurance?
Mattress and box spring manufacturers insurance is a type of insurance coverage designed for companies that manufacture and sell mattresses and box springs. This coverage typically includes liability protection, property insurance, and business interruption coverage.
Liability protection provides coverage for damages or injury that may occur as a result of a product defect or failure. Property insurance covers the physical assets of the business, such as the building and machinery, against damage or loss from events like fire or theft.
Business interruption coverage provides financial support in the event that the business must temporarily shut down due to an insured loss.
How Much Does Mattress And Box Spring Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small mattress and box spring manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Mattress And Box Spring Manufacturers Need Insurance?
Owning and operating a manufacturing business is hard work, and even companies that do everything in their power to thrive face many major risks that could have devastating consequences. You will take proactive steps to protect your company from unforeseen circumstances, but an outstanding insurance plan is necessary to catch you if you fall.
Among the risks manufacturers making mattresses, box spring, or both can fall victim to are the very same hazards that will be familiar to all business owners, regardless of their field. Acts of nature - wildfires, earthquakes, tsunamis, and severe storms - can disrupt your production and damage your facility and its contents.
The same can be said for crimes; theft and vandalism always pose a threat, too.
Depending on the kind of mattresses or box spring a company makes, industry-specific hazards also have to be considered. Some of the materials you use to manufacture mattresses may be flammable, while others can be subject to pests.
The breakdown of manufacturing machines is always a risk that could prove to be very costly, but you also have to consider a scenario in which a consumer is injured after using your mattress or box spring and then files a lawsuit.
These mattress and box spring manufacturers insurance examples do not represent all the risks this industry has to contend with, but they do show how important it is to examine all the possible threats and protect your company against them to the best of your ability.
What Type Of Insurance Do Mattress And Box Spring Manufacturers Need?
Many insurers offer "cookie-cutter" business owners' policies which may be suited to small and medium sized companies, but it is always best to investigate your particular needs carefully and build a custom insurance plan together with a commercial insurance agent.
That is because both obvious factors - the jurisdiction in which your facility is based, the value of your manufacturing equipment, and your number of employees, for instance - and less obvious factors that even include the material out of which your building was constructed can impact the kinds of mattress and box spring manufacturers insurance policies that are best for you.
With that in mind, these types of insurance will be essential for box spring and mattress manufacturers:
- Commercial Property: This type of insurance is there to protect your company from financial losses in case a disaster like a fire, earthquake, or serious theft damages your physical assets. This means your physical building, machines, and any other non-fixed assets can be protected.
- General Liability: Designed to guard against the economic loss that could follow if a third party files a personal injury or property damage claim against your company, this kind of mattress and box spring manufacturers insurance covers your legal expenses and settlement payouts.
- Product Liability: Another type of liability insurance, this type specifically covers damage incurred as a result of your products, and that can include damage resulting from faulty marketing claims. Imagine, for instance, that you advertise your mattresses as hypoallergenic but a consumer suffers a serious allergic reaction.
- Workers' Compensation: In all commercial ventures, workers can sustain injuries on the job. This kind of insurance covers their medical bills and any wages lost if they cannot return to work.
Although these essential kinds of mattress and box spring manufacturers insurance protect your company against the major risks it will face, be aware that the insurance market offers numerous different options.
To make sure you get the quality insurance that will keep your business safe, talk them over with a commercial insurance agent in detail.
Mattress And Box Spring Manufacturing's Risks & Exposures
Premises liability exposure is normally low as access by visitors is limited. If the manufacturer has a showroom or offers tours, visitors may be injured by slips, trips, or falls. Fire, dust, dense smoke from the burning of foam, or noise may affect neighboring premises.
Products liability exposure from standard mattresses and box spring is limited, provided the manufacturer complies with all governmental standards and regulations regarding labeling and flammability of mattresses and pads. Specialty mattresses can increase the exposure, particularly if they are warranted and advertised as aids to health, such as alleviating back problems.
Environmental impairment exposures are moderate. Manufacture using plastic, rubber, or latex materials may result in contamination of ground, air, and water from chemicals and toxic lubricants and solvents used to service machinery. Disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposure can be moderate to high. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, foreign objects in the eye, hearing impairment from noise, back injuries from lifting, and repetitive motion injuries. Wires in coiling machines can snap, injuring workers.
Workstations should be ergonomically designed. There should be safety training, protective equipment, and guarding of machines. Areas that generate dust require respiratory protection devices, as well as eye protection and eyewash stations.
Flammable liquids and chemicals can cause skin irritation, eye irritation, and possible long-term occupational disease. 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, production plant, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, and overheating of production machinery. Cutting and sewing operations generate dust which can catch on fire or result in explosion.
Wood and foam contribute to the fire load. Foam, which is used for padding, can cause thick, dense smoke and inhibit firefighting. The risk increases dramatically in the absence of proper dust collection systems, ventilation, and adequate disposal procedures. Flammable liquids, glues, paints and varnishes should be kept to a minimum in the processing area and stored in approved containers in isolated areas.
Raw materials and finished products stored in the warehouse are highly susceptible to damage by smoke, moisture, and fire. Appropriate security controls must 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.
Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. These should be properly maintained. A lengthy breakdown to production machinery could result in severe loss, both direct and under time element.
Crime exposure comes from employee dishonesty and theft due to the relatively high value of some mattresses. 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. There should be 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), contractors' equipment for forklifts, exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information.
The primary causes of loss are fire, collision, theft, overturn, and water damage.
Business auto exposure may be high if the manufacturer transports raw materials or finished products. 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 Mattress And Box Spring Manufacturers Insurance Cover & Pay For?
There are several reasons why mattress and box spring manufacturers might face lawsuits, and insurance plays a critical role in protecting these companies from significant financial loss. Here are some examples:
1. Product Liability: If a mattress or box spring is found to be defective, causing injury or harm to a customer, the manufacturer could be sued for damages. This could involve a design flaw, a manufacturing defect, or a failure to warn about potential risks. A Product Liability Insurance policy can cover the legal costs, settlements, and any court-ordered judgments associated with these types of lawsuits. The insurance provider would pay for the lawsuit up to the limit of the policy after the deductible is paid.
2. Breach of Warranty: If a manufacturer fails to fulfill the terms of a warranty, customers may sue for breach of warranty. This can be covered under a General Liability Insurance policy, which typically includes coverage for advertising injuries such as a breach of warranty. The insurance would cover the cost of defending the lawsuit, any settlement negotiated, and any damages awarded by the court, subject to the policy limits and deductibles.
3. False Advertising: In cases where a manufacturer is accused of misleading or false advertising about their mattresses or box springs, a lawsuit could be filed. Commercial General Liability Insurance often includes coverage for advertising injuries, which would encompass claims of misleading or false advertising. The insurance would cover legal defense costs, settlements, and court-ordered judgments, up to the policy limits and after the deductible is met.
4. Employee Injuries: If an employee gets injured while working - for instance, due to a machine malfunction or accident - the company could face a lawsuit. Workers Compensation Insurance is designed to protect companies in these situations. This insurance covers the medical costs, rehabilitation expenses, and a portion of lost wages for the injured worker, and it often includes Employers' Liability Insurance which would cover legal fees and damages if the employer is sued over the injury.
5. Environmental Damage: Manufacturing processes may inadvertently cause environmental harm, leading to lawsuits. Pollution Liability Insurance can cover the cost of legal defense, cleanup efforts, and damages related to pollution caused by a company's operations. This insurance would help pay for the lawsuit, including any settlements or judgments, up to the policy limits and after the deductible is paid.
It's important to note that the specifics of what is covered can vary greatly depending on the specific insurance policy and provider. Companies should work closely with their insurance provider to ensure they have the appropriate coverage for their particular risks and needs.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2515 Mattresses, Foundations, And Convertible Beds
- NAICS CODE: 337910 Mattress Manufacturing, 332613 Spring Manufacturing
- Suggested Workers Compensation Code(s): 2570 Mattress or Box Spring Manufacturing, 3300 Bedspring or Wire Mattress Manufacturing
Description for 2515: Mattresses, Foundations, And Convertible Beds
Division D: Manufacturing | Major Group 25: Furniture And Fixtures | Industry Group 251: Household Furniture
2515 Mattresses, Foundations, And Convertible Beds: Establishments primarily engaged in manufacturing innerspring mattresses, box spring mattresses, and non-innerspring mattresses containing felt, foam rubber, urethane, hair, or any other filling material; and assembled wire springs (fabric, coil, or box) for use on beds, couches, and cots. This industry also includes establishments primarily engaged in manufacturing dual-purpose sleep furniture, such as convertible sofas and chair beds, regardless of the material used in the frame. Establishments primarily engaged in manufacturing automobile seats and backs are classified in Industry 2531; those manufacturing individual wire springs are classified in Industry 3495; and those manufacturing paddings and upholstery filling are classified in Industry 2299.
- Beds, sleep-system ensembles: flotation and adjustable
- Beds, sofa and chair: on frames of any material
- Bedsprings, assembled
- Box spring, assembled
- Chair and couch springs, assembled
- Cot springs, assembled
- Cushion springs, assembled
- Cushions, spring
- Foundations, bed: spring, foam, and platform
- Mattresses, containing felt, foam rubber, urethane, etc.
- Mattresses: innerspring, box spring, and non-innerspring
- Sofas, convertible
- Spring cushions
Mattress And Box Spring Manufacturers Insurance - The Bottom Line
Many mattress and box spring manufacturers insurance policies are very different in cost and coverage. You can learn if your firm 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.
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.
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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.