Metal And Plastic Furniture Manufacturers Insurance Policy Information
Metal And Plastic Furniture Manufacturers Insurance. Although wood has long been a popular material in the manufacture of furniture, diverse pieces of furniture like tables, chairs, beds, bean bags, ottomans, love seats, and futons are also frequently crafted using different raw materials.
The choices here are almost endless - plastics, various types of metal, natural fibers like rattan and even cloth, and fiber glass can all be used to make furniture.
Furniture manufacturers produce a variety of furnishings including beds, chairs, mobile room dividers and partitions, shelving, sofas, and tables. Furniture or component parts may be made of cloth, fiberglass, metal, natural fibers (such as wicker and rattan), plastic, and other synthetic materials.
Various materials may be combined into one piece of furniture. The finished product may be pre-assembled, or assembled during installation by the customer or contractor.
Processes vary by type of material. Fiberglass is typically molded. Metal parts may be made by extrusion, drawing or stamping. Plastic chairs or parts may be molded or extruded.
Modern production work will usually employ CNC workstations (computerized machining), but custom work may be done by hand. Custom manufacturers may also install their product. Some furniture makers may also own a retail outlet. Component parts may be manufactured in different locations or different countries.
Manufacturers in this industry run companies of varying sizes, ranging from small workshops to large factories. Whatever the nature of their company and the market it caters to, businesses that make non-wood furniture have the potential to be extremely successful. Each type of furniture will, after all, appeal to a different kind of consumer.
Companies that make furniture from materials other than wood also, on the other hand, have to consider their risk profile and ways to reduce the odds that their financial future will be threatened by circumstances beyond their control.
Metal and plastic furniture manufacturers insurance is one of the most important paths to improved financial security. Read on to find out more about the types of coverage non-wood furniture manufacturers may need.
Metal and plastic furniture manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked metal and plastic furniture manufacturing insurance questions:
- How Much Does Metal And Plastic Furniture Manufacturers Insurance Cost?
- Why Do Metal And Plastic Furniture Manufacturers Need Insurance?
- What Type Of Insurance Do Metal And Plastic Furniture Manufacturers Need?
How Much Does Metal And Plastic Furniture Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small metal and plastic furniture manufacturing businesses ranges from $77 to $99 per month based on location, size, revenue, claims history and more.
Why Do Metal And Plastic Furniture Manufacturers Need Insurance?
All commercial ventures should equip themselves with comprehensive insurance for one simple reason - while the world we live in is filled with opportunities for savvy business owners, it is also risky and dangerous.
It is not realistic to expect that your business will thrive without challenges and significant setbacks, which are almost always costly.
Circumstances beyond your control include theft and vandalism, which you can fall victim to even with state of the art security systems. Acts of nature, such as wildfires or hurricanes, cannot be prevented either.
Depending on the materials you use in the manufacture of your non-wood furniture, you will rely on valuable tools and machinery that can break down, requiring repair or replacement and halting your production for a time.
As your employees perform their duties, they may suffer workplace accidents, and a third party visiting your facility may also be injured. Your risk does not stop once you have successfully sold your furniture, either - should a user become injured after a malfunction, your company could be held liable.
All these threats are well within the realm of possibility, and all have the power to have devastating financial consequences. With the right metal and plastic furniture manufacturers insurance plan, however, the resulting costs are greatly reduced so that your company can recover.
What Type Of Insurance Do Metal And Plastic Furniture Manufacturers Need?
Companies that make non-wood furniture will need to craft a customized insurance plan that meets their own unique needs.
Factors like the types of raw materials used, the equipment essential to your manufacturing process, the size of your company and the number of workers you employ, and the location of your facility all help determine the types of coverage best suited to you.
Companies that make furniture from diverse materials will, however, require the following types of metal and plastic furniture manufacturers insurance:
- Commercial Property: This type of metal and plastic furniture manufacturers insurance coverage protects you from financial loss in the event that your physical assets - your building, raw materials, equipment, computers, and finished inventory, for instance - are damaged due to theft, fire, or acts of nature. It may cover a portion of the revenue lost to business interruptions as well.
- General Liability: Another essential form of insurance for any business, this type has your back should a third party file a property damage or bodily injury claim against you. It covers legal fees and settlement costs in case, for instance, a delivery person is injured if something falls on them.
- Product Liability: Should a third party become injured, or suffer property damage, due to the use of your furniture, this type of insurance protects you from the financial fallout.
- Workers' Compensation: Whether a worker is injured while using heavy power tools or sustains an occupational illness following exposure to dust, this type of insurance covers the expenses related to workplace injuries. Their medical bills and lost wages are covered, and in turn your company is protected against litigation.
Because companies making non-wood furniture are all unique, you have to be aware that your company may require further types of metal and plastic furniture manufacturers insurance coverage as well.
To discover more about the exact nature of your insurance needs, consult an experienced commercial insurance agent.
Metal And Plastic Furniture Manufacturing's Risks & Exposures
Premises liability exposures is normally low, as access by visitors is limited. If the manufacturer has a showroom or retail outlet, visitors may be injured by slips, trips, falls, or flying debris. Storage of raw materials in the open presents an attractive nuisance hazard.
The yard should be fenced to prevent unauthorized access, with proper lighting and warnings. Dust, fire or explosion, fumes, and noise may affect neighboring properties. If the manufacturer performs retail delivery or installation, there may be frequent small property damage claims.
Products liability exposure varies based on type of furniture produced. Chairs can collapse, and recliners and beds that open and close can tilt over or trap children or smaller adults inside. Children's furniture, particularly baby cribs, can result in large losses if not manufactured according to current governmental regulations, guidelines, and standards.
Warnings, age-appropriate information regarding potential hazards, and recall procedures are very important Although household furniture tends to have lighter use than heavy institutional furniture (such as in bars, restaurants, and hotels), more injuries occur because household furniture is not subject to regular inspection and maintenance.
Courts tend to apply stricter liability standards to consumer goods. As furniture can be used for a long time, older items made before improved safety features were introduced may still be in use.
Environmental impairment exposure is moderate to high due to possible contamination of ground, air, and water from dust, chemicals, paint, and varnishes used in processing and the lubricants and solvents used to service machinery. For plastics, the raw materials may be toxic and/or flammable, the catalysts may be caustic, and the final product is usually not biodegradable. Storage and disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposures can be high. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, foreign objects in the eye due to flying debris, hearing impairment from noise, back injuries from lifting, and repetitive motion injuries. Workstations should be ergonomically designed. Metalworking can result in injury from amputations, exposure to dust, respiratory problems due to spray-painting operations and solvents, and eye injuries from welding.
Plastics have similar exposures, plus potential for burns from heated machinery and eye and skin irritations from chemicals and resins. Workers should be aware of the toxic nature of any chemical and should be made fully aware of the need to watch for early signs and symptoms of problems. Drivers of forklifts and vehicles may be injured in accidents.
Property exposures consist of an office, plant, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating and cooling equipment, and overheating of production machinery, buildup of static electricity, and dust explosions if there is work with cloth, metals, natural fibers, or wood. The exposure increases in the absence of proper dust collection systems, ventilation, and adequate disposal procedures. Additional exposure depends on the materials and processes.
Metal furniture may be finished by attaching plastic or wood with adhesives. Additional exposure may include spray-painting, welding, and soldering. Spray-painting operations should be done in spray booths with explosion-proof electrical components. The use of dip tanks instead of spray booths may require special attention. Welding should be done away from combustibles.
Plastic is highly flammable and will cause a great deal of smoke damage if there is a fire. Molten plastic can carry a fire great distances and into crevices. Wicker and rattan furniture are manufactured from dry grasses and are highly combustible. The rattan and wicker will have glues, paints and varnishes applied which can significantly increase a fire load. Large producers of high-end or custom products may have a significant risk of 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 malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. 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 if any items are high in value. 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), contractors' equipment for forklifts and other heavy machinery, exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information.
Larger firms may transport raw stock and work in process between different buildings or locations. The major causes of loss are fire, water damage, theft, collision, and upset. If the manufacturer installs products, an installation floater should be considered.
Commercial auto exposures may be high if the manufacturer transports raw materials or finished goods. Retail delivery to homes represents a serious exposure due to the street presence of children and possible time pressures on the drivers.
Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others. Drivers should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2514 Metal Household Furniture, 2519 Household Furniture, Not Elsewhere Classified, 2531 Public Building And Related Furniture, 2522 Office Furniture, Except Wood, 2542 Office and Store Fixtures, Partitions, Shelving, And Lockers, Except Wood
- NAICS CODE: 337124 Metal Household Furniture Manufacturing, 337121 Upholstered Household Furniture Manufacturing, 337125 Household Furniture (except Wood and Metal) Manufacturing, 337127 Institutional Furniture Manufacturing, 337214 Office Furniture (except Wood) Manufacturing, 337215 Showcase, Partition, Shelving, and Locker Manufacturing
- Suggested ISO General Liability Code(s): 53731, 53732, 53733
- Suggested Workers Compensation Code(s): 3076, 2913
Description for 2514: Metal Household Furniture
Division D: Manufacturing | Major Group 25: Furniture And Fixtures | Industry Group 251: Household Furniture
2514 Metal Household Furniture: Establishments primarily engaged in manufacturing metal household furniture of a type commonly used in dwellings. Establishments primarily engaged in manufacturing dual-purpose sleep furniture, such as convertible sofas and chair beds, are classified in Industry 2515, regardless of the material used in the frame.
- Backs for metal household furniture
- Beds, including folding and cabinet beds: household-metal
- Bookcases, household metal
- Breakfast sets (furniture), metal
- Bridge sets (furniture), metal
- Cabinets, kitchen metal
- Cabinets, medicine metal
- Cabinets, radio and television metal
- Camp furniture, metal
- Chairs, household metal
- Cots, household metal
- Cribs, metal
- Dinette sets, metal
- Frames for box springs or bedsprings, metal
- Furniture, clubroom metal
- Furniture household: metal
- Furniture household upholstered on metal frames, except dual-purpose
- Garden furniture, metal
- Gliders (furniture), metal
- Hammocks, metal or fabric and metal combination
- Juvenile furniture, metal
- Lawn furniture, metal
- Novelty furniture, metal
- Nursery furniture, metal
- Playpens, children's metal
- Seats for metal household furniture
- Serving carts, household metal
- Smoking stands, metal
- Stools, household metal
- Swings, porch metal
- Tables, household: metal
- Tea wagons, metal
- Vanities, household metal
Description for 2519: Household Furniture, Not Elsewhere Classified
Division D: Manufacturing | Major Group 25: Furniture And Fixtures | Industry Group 251: Household Furniture
2519 Household Furniture, Not Elsewhere Classified: Establishments primarily engaged in manufacturing reed, rattan, and other wicker furniture, plastics and fiberglass household furniture and cabinets, and household furniture, not elsewhere classified.
- Bassinets, reed and rattan
- Cabinets, radio and television: plastics
- Camp furniture, reed and rattan
- Chairs, cane
- Furniture, household: glass and plastics (including fiberglass)
- Furniture, household: rattan, reed, malacca, fiber, willow, and wicker
- Garden furniture: except wood, metal, stone, and concrete
- Household furniture: rattan, reed, malacca, fiber, willow, and wicker
- Juvenile furniture, rattan and reed
- Lawn furniture: except wood, metal, stone, and concrete
Description for 2531: Public Building And Related Furniture
Division D: Manufacturing | Major Group 25: Furniture And Fixtures | Industry Group 253: Public Building And Related Furniture
2531 Public Building And Related Furniture: Establishments primarily engaged in manufacturing furniture for schools, theaters, assembly halls, churches, and libraries. Establishments primarily engaged in manufacturing seats for public conveyances, as well as seats for automobiles and aircraft, are included in this industry. Establishments primarily engaged in manufacturing stone furniture are classified in Industry 3281, and those manufacturing concrete furniture are classified in Industry 3272.
- Benches for public buildings
- Blackboards, wood
- Bleacher seating, portable
- Chairs, portable folding
- Church furniture, except stone or concrete
- Furniture: church, library, school, theater, and other public buildings
- Pews, church
- School furniture, except stone and concrete
- Seats: automobile, vans, aircraft, railroad, and other public
- Stadium seating
Description for 2522: Office Furniture
Division D: Manufacturing | Major Group 25: Furniture And Fixtures | Industry Group 252: Office Furniture
2522 Office Furniture: Establishments primarily engaged in manufacturing office furniture, except furniture chiefly of wood. Establishments primarily engaged in manufacturing safes and vaults are classified in Industry 3499.
- Benches, office: except wood
- Bookcases, office: except wood
- Cabinets, office: except wood
- Chairs, office: except wood
- Desks, office except wood
- File drawer frames: except wood
- Filing boxes, cabinets, and cases except wood
- Furniture, office: except wood
- Modular furniture systems, office except wood
- Panel furniture systems, office: except wood
- Partitions, office: not for floor attachment-except wood
- Stools, office: rotating-except wood
- Tables, office: except wood
- Wall cases, office: except wood
Description for 2542: Office and Store Fixtures, Partitions, Shelving, And Lockers, Except Wood
Division D: Manufacturing | Major Group 25: Furniture And Fixtures | Industry Group 254: Partitions, Shelving, Lockers, And Office
2542 Office and Store Fixtures, Partitions, Shelving, And Lockers, Except Wood: Establishments primarily engaged in manufacturing office and store fixtures, shelving, storage racks, lockers, and related fabricated products, chiefly of materials other than wood. Prefabricated partitions are included in this industry if designed to be attached to the floor and are classified in Industry 2522 if designed to be free-standing or part of an office furniture panel system. Establishments primarily engaged in manufacturing refrigerated cabinets, showcases, and display cases are classified in Industry 3585 and those manufacturing safes and vaults are classified in Industry 3499.
- Bar fixtures, except wood
- Butchers' store fixtures, except wood
- Cabinets, show, display, and storage: not refrigerated-except wood
- Carrier cases and tables, mail: except wood
- Counters and counter display cases, not refrigerated: except wood
- Display cases and fixtures, not refrigerated: except wood
- Fixtures, display: office and store-except wood
- Garment racks except wood
- Lockers not refrigerated except wood
- Lunchroom fixtures except wood
- Mail pouch racks except wood
- Mailing racks postal service except wood
- Pallet racks, except wood
- Partitions prefabricated except wood and free standing
- Postal service lock boxes, except wood
- Racks merchandise display and storage, except wood
- Shelving angles and slotted bars: except wood
- Shelving office and store: except wood
- Showcases not refrigerated: except wood
- Sorting racks, mail: except wood
- Stands, merchandise display: except wood
- Telephone booths, except wood
Metal And Plastic Furniture Manufacturers Insurance - The Bottom Line
Not all metal and plastic furniture manufacturers insurance policies are the same - either in cost or coverage. You can see if your business has the best fit insurance policies by talking to an experienced commercial insurance broker.
Often they are able to save you on premiums and offer you better policy options than you currently have.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Psychedelic Drugs
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vending Machines
- Vegetable Juice
- Wire Rope
- Wood Furniture
- Writing Instruments
For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.
Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.
The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.
Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.
In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.
What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.
Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.
Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.
The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.