Metal Toys Manufacturers Insurance Policy Information
Metal Toys Manufacturers Insurance. Despite the introduction of plastic and electronic toys, children the world over still play with toys that are either fully or partially manufactured out of metal every day. These metal toys include toy cars, trucks, and trains as well as doll-house components, but also larger items such as bicycles and tricycles. Even ice and roller skates can be said to fall into this category.
Metal toy manufacturers produce various items for play, including automobiles, bicycles and tricycles, doll houses and furnishings, games, skates, trains, trucks and other vehicles. Metal (usually steel or heavy aluminum) may be cast, drawn, or extruded. Sheet metal may be bent, corrugated, cut, drilled, punched, or shaped.
Component parts may be joined with rivets, hinges, or screws, or soldered or spot-welded. The parts are normally polished or deburred before being painted through dipping or spraying. A lacquer or other strong finish is then applied. Additional objects such as tires may be attached as part of the final assembly.
If you own and operate a company that makes metal toys, your business is likely to rely on costly mechanical or computerized equipment in the process. Welding and painting will be part of your production line, and both of those processes can be hazardous.
While metal toy manufacturers are in the business of bringing joy to children, your company will also be vulnerable to a multitude of perils that could deal serious financial blows. Unforeseen circumstances can endanger manufacturers of metal toys at any time - and a comprehensive insurance plan represents an essential component of their risk management plan.
What kinds of metal toys manufacturers insurance are available and what types are needed, though? Read on to discover more.
Metal toys manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked metal toys manufacturing insurance questions:
- What Is Metal Toys Manufacturers Insurance?
- How Much Does Metal Toys Manufacturers Insurance Cost?
- Why Do Metal Toys Manufacturers Need Insurance?
- What Type Of Insurance Do Metal Toys Manufacturers Need?
- What Does Metal Toys Manufacturers Insurance Cover & Pay For?
What Is Metal Toys Manufacturers Insurance?
Metal toys manufacturers insurance is a type of insurance coverage specifically designed for companies that manufacture metal toys. This insurance protects against various risks and losses associated with the production and sale of metal toys, including product liability, property damage, and business interruption.
It covers the cost of legal fees, settlements, and other expenses associated with lawsuits or other claims related to the production and sale of metal toys. This insurance is essential for manufacturers of metal toys to protect their businesses from potential losses and financial instability.
How Much Does Metal Toys Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small metal toys manufacturing businesses ranges from $97 to $139 per month based on location, size, revenue, claims history and more.
Why Do Metal Toys Manufacturers Need Insurance?
Metal toy makers need insurance because accidents and other circumstances beyond your control may affect your company, no matter how much effort you put into managing and growing your business responsibly. The perils that could affect any industry as well as those unique to toy manufacture are many and varied.
Criminal acts - physical theft and vandalism, but now also increasingly cyber crime, which can include the theft of design plans - can have devastating consequences. Even alongside proactive mitigating steps, your company could fall victim to them.
Acts of nature such as fires, floods, earthquakes, and hurricanes could also ravage any company, leaving rebuilding costs and interruptions in production in their wake. Are you prepared? Not without the right insurance.
Metal toy manufacturers also have to consider the risk that welding or flying metal parts could cause workplace injuries to their employees.
In the event that a malfunction or manufacturing error leads to the injury of a consumer, it is likely that parents will file a lawsuit as they attempt to hold you legally liable.
A good metal toys manufacturers insurance plan can guard you from these and other threats.
What Type Of Insurance Do Metal Toys Manufacturers Need?
Companies that make metal toys, or toys with metal components, will need to carry several different kinds of insurance to shield them from different risks. The specifics depend on factors that include the kinds of toys you make, the location of your manufacturing facility, and your number of employees.
Consulting a reputable commercial insurance agent who understands your field will give you the best insights into your needs. Some examples of the types of metal toys manufacturers insurance needed, however, include:
- Commercial Property: This kind of insurance is there to protect your business from unforeseen circumstances such as theft and acts of nature. It covers your physical building as well as the assets inside or on outdoor property.
- Commercial General Liability: Think of commercial general liability insurance as a key part of your legal defense strategy. In case of third party injury or property damage claims - resulting from injuries third parties sustain on your premises, or damage your company's activities cause to others' property - it helps cover attorney and settlement fees, but also repair and medical bills.
- Product Liability: This kind of metal toys manufacturers insurance also protects you in case of third party bodily injury and property damage claims, but specifically relates to harm caused by products you manufactured. Consider, for instance, scenarios such as small parts coming loose and being ingested by a child. Complex civil suits may follow, and product liability insurance is invaluable in that case.
- Workers Compensation: While you prioritize health and safety, it always remains possible that an employee suffers a work-related injury or illness - due to, for example, inhaling metal dust or a welding burn. Workers' comp insurance covers their medical bills and wages lost due to absences caused by these events.
Keep in mind that these examples of metal toys manufacturers insurance coverage are not an exhaustive list; numerous different kinds of insurance are now available. Some will be compulsory, while others should be invested in to safeguard your company's future.
To begin discovering what other kinds of insurance your company requires, as well as what the costs may be, a commercial insurance agent should be consulted.
Metal Toys Manufacturing's Risks & Exposures
Premises liability exposure is usually moderate to low, as access to the premises is limited. If there is a showroom, factory outlet, or retail operation, or if the company handles its own on-site testing using focus groups of children, visitors may be injured by slips, trips, or falls.
Children may be injured by playing with defective products while on premises. Fumes, dust, and noise from metalwork may affect neighbors. There are significant off-premises exposures if the applicant attends toy shows and exhibitions to demonstrate products.
Products liability exposure is high as the end products are designed for and used by children. Toys may be recreational or may be for rigorous athletic use. Small parts in toys designed for young children can present a choking hazard. Sharp edges could result in cuts and other injuries.
Riding toys can present life safety issues. Paints, lacquers, and some types of metal may be toxic if ingested. Warnings and age-appropriate information are very important, as are product recall procedures. Governmental regulations, guidelines, and standards must be observed.
Environmental impairment exposures are generally moderate due to possible contamination of ground, air, and water from the disposal of flammable or toxic lubricants, solvents, paints, and metal shavings. Storage and disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposures are moderate. Injuries from production machinery are common, as are burns, cuts, puncture wounds, slips, trips, falls, foreign objects in the eye, hearing impairment from machinery noise, back injuries from lifting, and repetitive motion injuries. Workstations should be ergonomically designed.
Injuries from cutting and welding can occur in the absence of the necessary protective coverings, including eye and hand protection, and guards on the machinery used for cutting or punching.
Exposure to chemicals, dust, and paints can result in chemical burns and eye, skin, and lung irritation. The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair.
Workers must be made aware of the potential side effects of the ingredients they work with, including long-term occupational disease hazards, so they can recognize symptoms and obtain treatment as early as possible. Drivers of forklifts and vehicles may be injured in accidents.
Property exposure consists of an office, shop, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating and cooling equipment, production machinery, and the build-up of metal dust from the cutting and sanding that can cause fire and explosion. The risk increases in the absence of proper dust collection systems, ventilation, and adequate disposal procedures.
Paints, lubricants, degreasers, and solvents can be flammable and must be adequately separated and stored away from other operations. Spray-painting operations can cause a fire unless carried out in spray booths with explosion-proof electrical components.
Some expensive or hard-to-find toys may be targets for theft. Appropriate security controls should be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
There can be a significant business income and extra expense exposure, depending on the amount of time required to restore operations.
Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, 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 moderate to high for employee dishonesty and theft. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock, which may include brand names, limited edition sets, or popular "must have" Christmas items.
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, exhibitions, goods in transit and valuable papers and records for customers' and suppliers' information.
Raw stock and work in process may be transported between different buildings or locations. The primary causes of loss are fire, theft, collision, 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. The drivers' age, training, experience, and records, as well as the age, condition, and maintenance of vehicles, are main items to consider.
What Does Metal Toys Manufacturers Insurance Cover & Pay For?
Metal toy manufacturers, like any other product manufacturer, can face a variety of lawsuits. Here are some of the key reasons they might be sued, and how insurance can assist in these scenarios:
1. Product Liability: One of the most common reasons for a lawsuit is product liability. If a child is injured by a metal toy, for instance, due to sharp edges, the parents could sue the manufacturer. The company's Product Liability Insurance would cover the legal fees, settlements, or judgment costs associated with such lawsuits. This insurance policy is a crucial safeguard for businesses producing consumer goods, as it helps them manage the financial risks of claims related to manufacturing or design defects, failure to provide adequate warnings or instructions, and more.
2. Intellectual Property Infringement: If a metal toy manufacturer creates a product that inadvertently infringes on the intellectual property rights of another company, they could be sued. In this case, Intellectual Property Insurance would come into play. This insurance provides coverage for legal fees and potential settlement costs associated with defending against claims of copyright, patent, or trademark infringement.
3. Workplace Accidents: If an employee is injured while manufacturing toys, they might sue the company. Workers' Compensation Insurance is designed to protect businesses in these cases. This type of insurance covers medical bills, rehabilitation costs, and a portion of lost wages for employees injured on the job. Additionally, it generally includes Employer's Liability Insurance, which can help cover legal fees if an employee sues over the injury.
4. Breach of Contract: If a metal toy manufacturer fails to fulfill their contractual obligations to a supplier, retailer, or another third party, they could be sued. Commercial General Liability Insurance often includes coverage for personal and advertising injury, which can include allegations of contractual violations. Additionally, specific Contractual Liability Insurance can also be purchased to cover such scenarios.
5. Environmental Damage: Manufacturing processes can sometimes lead to environmental harm, such as pollution. If a metal toy manufacturer is sued for causing environmental damage, Environmental Liability Insurance (or Pollution Liability Insurance) would be essential. This type of policy can cover the costs associated with cleanup efforts, restorations, and any legal fees or fines associated with environmental lawsuits.
Insurance serves as a risk management strategy, providing financial protection to businesses against various potential lawsuits. It's important for any business, including metal toy manufacturers, to thoroughly assess their risks and obtain appropriate insurance coverage to protect their operations and financial health.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3944 Games, Toys, And Children's Vehicles, Except Dolls And Bicycles, 3949 Sporting And Athletic Goods, Not Elsewhere Classified
- NAICS CODE: 339920 Sporting and Athletic Goods Manufacturing, 339930 Doll, Toy and Game Manufacturing
- Suggested Workers Compensation Code(s): 3400 Metal Stamped Goods Manufacturing NOC, 1925 Die Casting Manufacturing
Description for 3944: Games, Toys, And Children's Vehicles, Except Dolls And Bicycles
Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 394: Dolls, Toys, Games And Sporting And Athletic
3944 Games, Toys, And Children's Vehicles, Except Dolls And Bicycles: Establishments primarily engaged in manufacturing games and game sets for adults and children, and mechanical and nonmechanical toys. Important products of this industry include games; toy furniture; doll carriages and carts; construction sets; mechanical trains; toy guns and rifles; baby carriages and strollers; children's tricycles, coaster wagons, play cars, sleds, and other children's outdoor wheel goods and vehicles, except bicycles. Included are establishments primarily engaged in manufacturing electronic board games; electronic toys; and electronic game machines, except coin-operated. Establishments primarily engaged in manufacturing dolls and stuffed toys are classified in Industry 3942; those manufacturing bicycles are classified in Industry 3751; those manufacturing sporting and athletic goods for children and adults are classified in Industry 3949; those manufacturing coin-operated game machines are classified in Industry 3999; those manufacturing electronic video game cartridges are classified in Services, Industry 7372; and those manufacturing rubber toys, except dolls, are classified in Industry 3069.
- Airplanes, toy
- Automobiles and trucks, toy
- Automobiles, children's pedal driven
- Banks, toy
- Baskets, toy
- Bells, toy
- Blocks, toy
- Carriages, baby
- Cars, play (children's vehicles)
- Craft and hobby kits and sets
- Cycles, sidewalk: children's
- Darts and dart games
- Dishes, toy
- Doll carriages and carts
- Drums, toy
- Electronic game machines, except coin-operated
- Electronic toys
- Engines, miniature
- Erector sets, toy
- Games for children and adults: puzzles, bingo, marbles, poker chips,
- Gocarts, children's
- Guns, toy
- Hobby horses
- Horns, toy
- Magic lanterns (toys)
- Models, toy and hobby: e.g., airplane, boat, ship, railroad equipment
- Musical instruments, toy
- Paint sets, children's
- Pistols, toy
- Poker chips
- Rifles, toy
- Rocking horses
- Science kits: microscopes, chemistry sets, and natural science sets
- Scooters, children's
- Sleds, children's
- Strollers, baby (vehicles)
- Structural toy sets
- Sulkies, baby (vehicles)
- Tenders, baby (vehicles)
- Toys: except dolls, bicycles, rubber toys, and stuffed toys
- Trains and equipment, toy: electric an mechanical
- Tricycles, children's
- Vehicles except bicycles, children's
- Video game machines, except coin-operated
- Wagons, children's: coaster, express, and play
- Walkers, baby (vehicles)
Description for 3949: Sporting And Athletic Goods, Not Elsewhere Classified
Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 394: Dolls, Toys, Games And Sporting And Athletic
3949 Sporting And Athletic Goods, Not Elsewhere Classified: Establishments primarily engaged in manufacturing sporting and athletic goods, not elsewhere classified, such as fishing tackle; golf and tennis goods; baseball, football, basketball, and boxing equipment; roller skates and ice skates; gymnasium and playground equipment; billiard and pool tables; and bowling alleys and equipment. Establishments primarily engaged in manufacturing athletic apparel are classified in Major Group 23; those manufacturing athletic footwear are classified in Industries 3021 and 3149; those manufacturing small arms ammunition are classified in Industry 3482; and those manufacturing small arms are classified in Industry 3484.
- Ammunition belts, sporting type: of all materials
- Archery equipment
- Arrows, archery
- Athletic and sporting goods: except clothing, footwear, small arms,
- Badminton equipment
- Bait, fishing: artificial
- Balls: baseball, basketball, football golf, tennis, pool, and bowling
- Baseball equipment and supplies, except uniforms and footwear
- Bases, baseball
- Basketballs and basketball equipment and supplies, except uniforms
- Baskets, fish and bait
- Bats, game: e.g., baseball, softball, cricket
- Billiard and pool balls, cues, cue tips and tables
- Billiard chalk
- Bowling alleys and accessories
- Bowling pin machines, automatic
- Bowling pins
- Bows, archery
- Boxing equipment
- Bridges, billiard and pool
- Buckets, fish and bait
- Cartridge belts, sporting type
- Cases, gun and rod (sporting equipment)
- Creels, fish
- Cricket equipment
- Croquet sets
- Decoys, duck and other game birds
- Exercise cycles
- Exercising machines
- Fencing equipment (sporting goods)
- Fishing tackle (except lines, nets, and seines)
- Flies, artificial: for fishing
- Floats for fish lines
- Footballs and football equipment and supplies, except uniforms and
- Game calls
- Gloves, sport and athletic: e.g., boxing, baseball, racketball, handball
- Golf carts, hand
- Golfing equipment: e.g., caddy cars and bags, clubs, tees, balls
- Guards: e.g., football, basketball, soccer, lacrosse
- Gymnasium and playground equipment
- Helmets, athletic
- Hockey equipment, except uniforms and footwear
- Indian clubs
- Jogging machines
- Lacrosse equipment
- Mallets, sports: e.g., polo, croquet
- Masks, sports: e.g., baseball, fencing, hockey
- Nets: e.g., badminton, basketball, tennis-not made in weaving mills
- Pads, athletic: e.g., football, basketball, soccer, lacrosse
- Pigeons, clay (targets)
- Pin-setters for bowling, automatic
- Playground equipment
- Polo equipment, except apparel and footwear
- Pool balls, pockets, tables, and equipment
- Protectors, sports: e.g., baseball, basketball, hockey
- Rackets and frames, sports: e.g., tennis, badminton, squash,
- Rowing machines
- Scoops, crab and fish
- Scuba diving equipment, except clothing
- Shafts, golf club
- Sinkers (fishing tackle)
- Skates and parts, ice and roller
- Skin diving equipment, except clothing
- Skis and skiing equipment, except apparel
- Soccer equipment, except apparel
- Spears, fishing
- Sporting goods: except clothing, footwear, small arms, and
- Squash equipment, except apparel
- Stand boards
- Sticks, sports: e.g., hockey, lacrosse
- Striking (punching) bags
- Strings, tennis racket
- Swimming pools, plastics
- Tables: billiard pool, bagatelle, and ping pong
- Target shooting equipment, except small arms and ammunition
- Targets, archery and rifle shooting
- Targets, clay
- Tennis goods: e.g., balls, frames, rackets
- Track and field athletic equipment, except apparel and footwear
- Trap racks (clay targets)
- Wading pools, plastics coated fabric
- Windsurfing boards and equipment
Metal Toys Manufacturers Insurance - The Bottom Line
Metal toys manufacturers insurance policies vary in coverages, premiums and exclusions. To see if your manufacturing business has the best fit insurance policies - chat with an experienced commercial insurance broker.
Often they are able to save you on premiums and offer you better policy options than you currently have.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- 3D Printing
- 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.