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Metal Heat Treating Insurance Policy Information

Metal Heat Treating Insurance

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:

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?

Insurance For Manufacturers

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.

Commercial Insurance And Business Industry Classification

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.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).

Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Manufacturing Insurance

Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.

Manufacturing Insurance

For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.

Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.

The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.

Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.

In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.

What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.

Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.

Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.

The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.

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