Metal Heat Treating Insurance Policy Information
Metal Heat Treating Insurance. Heat treating operations are designed to change a metal's properties without altering its composition. Through heat treating, a metal can be hardened, softened, rendered more durable, protected against corrosion, and protected against abrasion, among many other possibilities.
Heat treating processors strengthen metals by heating and cooling to enhance or restore their conductivity, hardness, or malleability. Types of heat treatment include annealing (heating followed by slow cooling), case hardening, flame hardening, normalizing (uniform composition throughout an alloy), quenching (heating followed by rapid cooling), surface or induction hardening, and tempering (slow heating).
The heat treatment may be performed as a separate operation within a manufacturing plant, or it may be done as a stand-alone business or job shop. The three basic steps in heat-treating are heating, soaking, and quenching. After the metal item is in its final shape, it is heated by direct flame, hot coals, or some other fuel.
A batch furnace or continuous-conveyance furnace may be used. The speed of temperature rise and the temperature attained are critical variables in determining the qualities of the final product.
Soaking is done by keeping the item at that temperature, often buried in the coals with any required additives. Quenching is done by cooling the item slowly (annealing) or more quickly (tempering), either in the furnace or by plunging it into cold water.
Depending on the qualities required for the final product, the time for each step may vary from minutes to hours. The shop's specialty is often based on the equipment that they have available. Like contractors, they may bid on jobs and receive contracts with set terms and conditions.
The three core steps of heat treating are heating the metal to a specific temperature, holding it there for a predetermined period of time, and cooling it in accordance with a special formula.
Almost all metals used for commercial and other purposes go through some type of heat treating. Because of this, manufacturers within the heat treating industry play a vital part in enabling the production of vehicles of all kinds, industrial equipment, tools, and even computers.
What types of metal heat treating insurance might companies engaged in heat treating operations need to carry to protect their financial interests in case they are impacted by major perils? This brief guide explains.
Metal heat treating 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 metal heat treating operations insurance questions:
- What Is Metal Heat Treating Insurance?
- How Much Does Metal Heat Treating Insurance Cost?
- Why Do Metal Heat Treating Companies Need Insurance?
- What Type Of Insurance Do Metal Heat Treating Businesses Need?
- What Does Metal Heat Treating Insurance Cover & Pay For?
What Is Metal Heat Treating Insurance?
Metal heat treating insurance is a specialized type of insurance designed to protect businesses that perform metal heat treating operations. This type of insurance covers the costs associated with damage or loss to materials and equipment during the heating, cooling, and tempering processes used to alter the physical and mechanical properties of metal products. The coverage may also include liability protection for any harm that may occur to employees or third-party individuals during the heat treating operations.
How Much Does Metal Heat Treating Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for metal heat treating businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Metal Heat Treating Companies Need Insurance?
Within all branches of commerce, companies face a multitude of risks that can seriously damage their financial future - often with very little warning. Companies engaged in heat treating operations are exposed to the same risks that can befall any business at all, and they face industry-specific perils in addition.
Carrying reliable insurance does not prevent accidents and other disastrous events, but it is essential in helping business recover when something does go wrong.
Acts of nature, such as wildfires, hurricanes, serious storms, and floods, are an example of a peril to which any business is vulnerable and that could cause severe damage to both buildings and other physical assets, like industrial equipment.
Vandalism and theft, too, are always a risk, along with the possibility that equipment on which you rely in your production line suddenly breaks down.
Workers within heat treat shops risk exposure to hazardous chemicals, and a wide variety of workplace accidents is always possible. Should this happen within your company, you are likely to be responsible for the costs that result.
The same holds true if third parties are injured on your property, or if your company's actions damage property belonging to someone else.
By investing in the best fit metal heat treating insurance, a company gains the peace of mind that even if these or other perils were to affect them, they will not be alone in shouldering the costs.
What Type Of Insurance Do Metal Heat Treating Businesses Need?
There is no such thing as a cookie-cutter insurance plan for companies engaged in heat treating operations. Your exact insurance needs are determined by factors such as what kind of industrial equipment you use, where your facility is located, how many workers you employ, and the exact scope and size of your company.
A commercial insurance agent, once familiar with the characteristics that make your business unique, can help you craft the insurance plan that will best protect your company.
Companies in the industry will, however, unquestionably want to carry these types of metal heat treating insurance:
- Commercial Property: This form of insurance is designed to shield you from financial losses resulting from property loss or damage in the event that your facility is impacted by perils such as theft, vandalism, acts of nature, or accidents of various kinds. Your building falls under this type of policy, along with industrial equipment, raw materials, computers, and other physical assets.
- Commercial General Liability: If your company is sued by someone alleging that you caused them property damage or physical injury, this type of metal heat treating insurance picks up the bill for the resulting legal defense costs. In case of a successful lawsuit, it can also (partially) cover settlement fees.
- Product Liability: This more specific kind of liability insurance serves a similar purpose. In this case, however, it covers products you manufactured in the event of third party liability claims.
- Workers Compensation: Required for all but the smallest commercial ventures, workers' comp covers costs related to occupational injuries and illnesses sustained by employees. That means medical bills, but also sick leave if the worker is unable to return to their job (for a time).
Companies engaged in heat treating operations may require additional forms of metal heat treating insurance. It is likely that you will need commercial auto insurance, for example, and you may wish to invest in recall insurance, business interruption insurance, or equipment breakdown insurance.
A reputable commercial insurance broker can walk you through the pros and cons of all your options.
Metal Heat Treating's Risks & Exposures
Premises liability exposure is moderate as some customers want to observe the processes and evaluate the ability of the shop to deliver the product desired. If customers put their own employees on site for quality control purposes, these employees are subject to the same hazards as the shop's employees. Visitors may be injured by slips, trips or falls.
These concerns are greater without significant distance between the processor's premises and neighboring properties.
Products liability exposure is moderate if the processor is tempering its own products. In most cases, processing is done for customers only, and the coverage needed is for completed operations. There should be a contract in place specifying the nature of the job and the customer's specifications. Quality control should be done by both the processor and the customer to verify that the job is completed successfully.
Environmental impairment exposures can be high due to possible contamination of ground, air, and water from the disposal of wastewater, used solutions, metal residue, and other by-products. Disposal of wastes must adhere to all federal and state guidelines.
Workers compensation exposure is high due to the heat, chemicals, fumes and heated metal, which may be red hot for lengthy periods of time. Injuries from production machinery are common along with minor cuts, slips, trips, falls, foreign objects in the eye, hearing impairment from noise, back injuries from lifting, and repetitive motion losses.
Workstations should be ergonomically designed. Employees should be provided with safety training and protective equipment. 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. Continued exposure to high, intense heat can result in exhaustion and dehydration.
Exposure to irritants to the eyes, skin, and lungs can result in occupational injuries and respiratory problems. Employees must be fully informed as to the potential effects of the chemicals, including long-term occupational disease hazards so that they can take action as quickly as possible.
Property exposures consist of an office, shop or plant, and warehouse or yard for storage of raw materials and finished goods. Ignition sources include electrical wiring, furnaces, heating systems, and production machinery. Fires can occur at many stages during processing, especially during the heating and soaking operations.
The furnaces may be constantly burning. If the fire gets away from the designated area, damage can be extensive. Baths and quenching operations need to have proper controls to prevent spillover and leaks. Large vats of water in close proximity to furnaces can result in extensive damage to wiring and heating elements.
Spray painting operations should be conducted in a separate booth with explosion-proof electrical components. Degreasers and solvents may be flammable and must be adequately controlled. Poor housekeeping may be a serious fire hazard. Unless disposed of properly, greasy, oily rags (such as those used to clean the machinery) can cause a fire without a separate ignition source.
There is often a significant amount of property of others exposure that may be better insured on an inland marine bailees customers form. If there are exotic metals, theft can be a concern. 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.
Business income can be a significant exposure if the machines are special-ordered for a specific job.
Equipment breakdown exposures include malfunctioning production equipment, electrical control panels, and other apparatus. A lengthy breakdown to production machinery could result in a severe loss, both direct and under time element.
Crime exposures are chiefly from employee dishonesty, particularly if there are exotic metals. 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 shop offers credit, bailees' customers for goods belonging to others, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information.
Items belonging to customers are subject to the same causes of loss as property owned by the processor, plus transit and the processing itself. For goods in transit the primary causes of loss are fire, theft, collision, overturn, and water damage.
Commercial auto exposure can be high if the processor picks up raw materials or delivers finished products. Deadlines placed on drivers (such as just-in-time processing schedules) may increase the hazard. Drivers should be trained in handling whatever product they are required to carry, including the tie-down of unwieldy pieces of metal.
Processors 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 Metal Heat Treating Insurance Cover & Pay For?
Metal Heat Treaters can face a variety of legal issues in their line of work, including product liability, workplace injuries, property damage, and professional negligence. Appropriate insurance coverage can help mitigate the financial risks associated with these potential lawsuits. Here are some examples:
1. Product Liability: If a component treated by a Metal Heat Treater fails due to improper treatment, and this failure results in damages or injuries, the treater may face a product liability lawsuit. For instance, if an airplane part treated by the heat treater fails, causing an accident, the company could be held liable.
Insurance Protection: Product liability insurance can help in such situations. It can cover the cost of legal defense, settlements, and judgments associated with claims that a business's product caused personal injury or property damage.
2. Workplace Injuries: The process of metal heat treatment can be hazardous, and workers may be injured on the job. If the company fails to maintain a safe working environment, it could be sued for negligence.
Insurance Protection: Workers' compensation insurance can help cover medical expenses, rehabilitation costs, and a portion of lost wages for employees who get injured or become ill due to their job. Employers' liability insurance, typically included in workers' compensation policies, can cover legal costs if an employee decides to sue for damages beyond what workers' compensation covers.
3. Property Damage: The high temperatures used in heat treatment processes could cause a fire or other damage to the premises. If a company's operations damage a client's property or neighboring businesses, it could face a lawsuit.
Insurance Protection: Commercial property insurance can help cover costs to repair or replace damaged property. Moreover, general liability insurance can protect against claims of third-party property damage caused by the business's operations.
4. Professional Negligence: If a Metal Heat Treater provides professional advice or services that lead to financial loss for a client-for instance, if they recommend a treatment that results in a product's failure-they could face a lawsuit for professional negligence.
Insurance Protection: Professional liability insurance, also known as errors and omissions (E&O) insurance, can help cover costs related to such lawsuits. This includes legal defense costs, settlements, and judgments.
Remember, the specifics of what each type of insurance policy covers and the policy limits can vary, so it's important for businesses to carefully review their policies and work with knowledgeable insurance agents or brokers to ensure they have the right coverage for their needs.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3398 Metal Heat Treating
- NAICS CODE: 332811 Metal Heat Treating
- Suggested Workers Compensation Code(s): 3307 Heat Treating - Metal
Description for 3398: Metal Heat Treating
Division D: Manufacturing | Major Group 22: Textile Mill Products | Industry Group 226: Dyeing And Finishing Textiles, Except Wool Fabrics
3398 Metal Heat Treating: Establishments primarily engaged in heat treating of metal for the trade.
- Annealing of metal for the trade
- Brazing (hardening) metal for the trade
- Burning metal for the trade
- Hardening of metal for the trade
- Heat treating of metal for the trade
- Shot peening-treating steel to reduce fatigue
- Stainless steel, brazing (hardening) for the trade
- Tempering of metal for the trade
Metal Heat Treating Insurance - The Bottom Line
Not all metal heat treating insurance policies are the same in cost or coverage. You can learn if your heat treating 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.
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
- Industrial Equipment
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Leather Goods
- 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
- Vegetable Juice
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
- 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.