Nonferrous Foundries Insurance Policy Information

Nonferrous Foundries Insurance. Nonferrous metals are those that do not contain significant amounts of iron - such as aluminum, copper, lead, titanium, zinc, and nickel.

Foundry or casting operations make castings by pouring molten metal into molds and letting it solidify. Nonferrous foundries handle all metals other than iron or steel, including aluminum, copper, and nickel. The process begins with raw metals, often in the form of standard sized ingots, blocks, or bars, that are melted in a furnace.

Most metals, other than nickel and tungsten, melt at temperatures lower than iron or steel. The molten metal may be refined to remove impurities such as hydrogen gases, or have other ingredients added to form alloys.

This mixture is poured into molds and cooled. Once done, the casting is removed from the mold and finished by grinding, sanding, deburring, and often some type of coating or electroplating. All along the way, testing and monitoring must be conducted to ascertain quality and purity of casting.

These nonferrous metals are processed, by smelting and casting, in so-called nonferrous foundries, which make up around half of all foundries.

Although the castings manufactured within non-ferrous foundries have a wide range of applications, they play an especially crucial role in the medical, automotive, construction, and aerospace industries.

As such, nonferrous foundries can be extremely profitable - but this branch of industry is also filled with potential hazards. From worker injuries to the malfunction of end goods, any peril can be disastrous.

That is why it is so important to invest in the right nonferrous foundries insurance coverage. What types of insurance might companies in this industry need to rely on, however? Read on to learn more.

Nonferrous foundries insurance protects your manufacturing business from lawsuits with rates as low as $99/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked nonferrous foundry insurance questions:

What Is Nonferrous Foundries Insurance?
How Much Does Nonferrous Foundries Insurance Cost?
Why Do Nonferrous Foundries Need Insurance?
What Type Of Insurance Do Nonferrous Foundries Need?
What Does Nonferrous Foundries Insurance Cover & Pay For?

What Is Nonferrous Foundries Insurance?

Nonferrous foundries insurance is a type of insurance designed for businesses that manufacture and cast nonferrous metals, such as aluminum, copper, zinc, and brass. This insurance provides coverage for a wide range of potential losses and risks associated with the nonferrous casting process, including:

Property damage: Coverage for damage to the foundry's physical property, including machinery, buildings, and raw materials.
Business interruption: Protection against financial losses caused by the interruption of normal business operations due to a covered loss or event.
Liability: Coverage for third-party liability claims arising from the foundry's operations, such as personal injury or property damage.
Product liability: Protection against financial losses resulting from defects in the foundry's products that cause harm to others.

Nonferrous foundries insurance is designed to protect businesses from the unique risks and exposures associated with the nonferrous casting process. By having this insurance in place, businesses can reduce the financial impact of unexpected losses and protect their bottom line.

How Much Does Nonferrous Foundries Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for nonferrous foundries ranges from $99 to $149 per month based on location, size, revenue, claims history and more.

Why Do Nonferrous Foundries Need Insurance?

Being a business owner is fraught with risk, regardless of the branch of commerce a company falls into. Non-ferrous foundries are vulnerable to the same perils that can befall any business, and they also have to consider some hazards that are specific to their own field.

While these risks are diverse in nature, the potential outcome is always similar - serious financial challenges, or even bankruptcy. To prevent these worst-case scenarios even in the face of disaster, it is crucial to carry solid insurance.

Considering that, in the United States, many non-ferrous foundries are located along coast lines, the acts of nature a non-ferrous foundry there are most likely to come face to with include earthquakes, wildfires, and also landslides.

Any of these natural disasters can render your foundry unusable for the foreseeable future. Vandalism and theft are two more examples of major perils that can strike any company, including yours.

Non-ferrous foundries are also vulnerable to employee injuries and illnesses due to occupational hazards, such as silica and metal fume exposure. This liability risk can be extremely costly, along with the possibility that one of your products malfunctions in such a way that it causes harm to third parties.

Despite all possible risk mitigation measures, no business can be made risk-free. When these or other disasters impact your company, however, the right nonferrous foundries insurance can protect you from financial ruin.

What Type Of Insurance Do Nonferrous Foundries Need?

Non-ferrous foundries will need to arm themselves with multiple different kinds of insurance for optimal protection in the face of a variety of perils. Your exact insurance needs are determined by factors that include the location of your foundry, your number of employees, the type of furnace you use and its value, and what materials you use for molds.

A skilled commercial insurance agent can help you craft an insurance plan based on your foundry's unique risk profile. You will, however, certainly need to carry these essential types of nonferrous foundries insurance:

Commercial Property: This type of insurance protects your physical assets - your building, industrial equipment, outdoor assets, finished inventory, etc. Should your facility be struck by perils as varied as theft, vandalism, or natural disasters, commercial property insurance can cover (a significant portion of) the resulting financial losses. Some of the revenue lost due to these perils can also be covered.
Commercial General Liability: This type of nonferrous foundries insurance protects your company against another risk - if a third party were to be injured on your property, or your foundry's actions lead to third party property damage, it covers legal costs and settlement fees when you are sued.
Product Liability: Specifically designed to cover liability costs resulting from claims alleging that a product you manufactured caused harm to a third party, this type of insurance will also be vital for non-ferrous foundries.
Workers Compensation: In the event that an employee suffers an occupational injury or illness and your company can be held partially liable, this type of insurance pays for the worker's medical costs as well as replacing any wages they lost due to related work absences. In the process, carrying workers' compensation insurance protects you from litigation in these cases.

Keep in mind that these are just examples of types of nonferrous foundries insurance available. You may further need to carry commercial auto insurance, and investing in environmental and business interruption insurance may also be desired. Ask a trusted commercial insurance agent for more information.

Nonferrous Foundries' Risks & Exposures

Premises liability exposure is usually low to moderate due to lack of public access to the premises. If the manufacturer conducts tours, visitors may be injured by slips, trips, or falls. The storage of materials or equipment in the open could pose an attractive nuisance hazard. The yard should be fenced to prevent unauthorized access, with proper lighting and warnings. Fumes and noise may affect neighboring properties.

Products liability exposure can be substantial, especially if the end product is a critical component. While other processes take place on the items after they are delivered to customers, the foundry will be brought in if there is a lawsuit. Hazards increase without contracts that clearly describe the responsibilities of the forge and the quality standards that must be met for customer satisfaction.

Losses may be caused by poor workmanship, faulty design, or hidden damage during storage (such as corrosion) or during shipping (such as unseen breakage). It may be impossible to defend against questionable claims unless there is an aggressive quality control program including high standards for materials, testing and monitoring, and documentation of sources. Older items made before improved safety features were introduced may still be in use.

Environmental impairment exposure is high due to the possible release of contaminants into the ground, air or and water. Processes themselves may cause thermal or noise pollution. Disposal of wastes must adhere to all federal and state guidelines. Exposure is increased significantly if underground or outdoor tanks are used. An underground storage tank policy may be needed.

Workers compensation exposure is very high due to the possibility of burns from molten metal or chemicals. Injuries from production machinery are common, as are slips, trips, falls, back injuries from lifting during production, delivery, or installation, exhaustion and dehydration from the intense heat, hearing loss from noise, and repetitive motion losses.

Workstations should be ergonomically designed. Fuels, lubricants, alloys and metal treatment agents (as in polishing) may involve irritants to the eyes, skin and lungs. Safety equipment and personal protective devices are critical. Since heat is extreme, it is often difficult to persuade workers to keep safety equipment on, so monitoring is important.

Property exposures consist of office, production plant, and warehouse operations or yard for storage of raw materials and finished goods. Ignition sources include heat from the foundry, production machinery, and electrical panels. The furnaces and crucibles for a foundry are constantly burning. If the fire gets away from the designated area, damage can be extensive. Molten metal can spill or leak.

Flammable lubricants, fuels, and other chemicals should be stored away from other operations. The types of metals used in producing alloys may contribute to fire load and cause for explosion. Unless there are dust collection systems and adequate ventilation, dust from the cutting and sanding operations can cause fire and explosion.

As some nonferrous metals will melt depending on the temperature, susceptibility to damage by fire or water will vary greatly.

Equipment breakdown exposures include malfunctioning production equipment, 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 chiefly from employee dishonesty and theft, either by third parties or employees, especially for high-end products or precious raw materials. 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 forge offers credit, computers (which may include computer-run production equipment), contractors' equipment, goods in transit, and valuable papers and records for customers' and suppliers' information. Contractors' equipment, which is used to transport raw materials to the furnace, may be stored in the open and susceptible to damage by weather-related causes of loss and vandals.

Stock in transit is not highly susceptible to damage, but some may be oversized, and subject to collision and overturn unless properly loaded, tied down, and unloaded. Some castings may be brittle and break due to heating (fire) and sudden cooling (water).

Commercial auto exposure can be high if the foundry picks up raw materials or delivers finished goods. Some castings may be very large, requiring special shipping methods. Proper loading and tie-down procedures are essential to prevent overturn and spillage onto the road.

Drivers should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location. Manufacturers generally also have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others.

What Does Nonferrous Foundries Insurance Cover & Pay For?

Nonferrous Foundries Insurance Claim Form

Nonferrous foundries, like any businesses, can be sued for various reasons. Some of the common reasons for litigation include:

1. Workplace accidents: Foundries can be dangerous places to work, and accidents can occur. Employees may suffer from burns, injuries from falling objects, or long-term health issues due to exposure to harmful substances. In such cases, employees might sue the foundry for compensation.

Insurance Solution: Workers' Compensation Insurance is designed to cover such issues. It provides benefits to employees for work-related injuries or illnesses including medical care, wages from lost work time, and more. If the worker sues, this insurance can also help cover the legal fees.

2. Environmental damage: Foundries, especially nonferrous ones, can produce harmful byproducts which, if not properly managed, can cause environmental damage. If this damage leads to health issues in the local community or negatively impacts the local ecosystem, the foundry may be sued.

Insurance Solution: Environmental or Pollution Liability Insurance can help in such cases. This type of insurance is designed to cover costs associated with pollution, including the cleanup of environmental damage and legal fees associated with any lawsuits.

3. Product liability: If a foundry produces a component that fails and causes injury or damage, the end user of that component might sue the foundry for compensation.

Insurance Solution: Product Liability Insurance protects businesses against claims made from the manufacture or sale of products, food, medicines, or other goods to the public. It covers the manufacturer's or seller's liability for losses or injuries to a buyer, user, or bystander caused by a defect or malfunction of the product.

4. Property damage: Foundries often contain heavy machinery and deal with high temperatures, increasing the risk of property damage. If a fire or machinery failure results in damage to neighboring properties, the foundry could be held liable.

Insurance Solution: Commercial Property Insurance can provide coverage for these types of risks. It can help pay for repairs or replacement of damaged property, as well as any legal costs that might arise from property damage lawsuits.

5. Breach of contract: If a foundry fails to deliver on the terms of a contract, such as not producing an order on time or to the agreed-upon specifications, the other party might sue for breach of contract.

Insurance Solution: Professional Liability Insurance (also known as Errors & Omissions Insurance) can cover legal defense costs if a client sues over a job performance issue. This insurance can help pay for any damages that the business is found liable for.

These are just some of the common reasons nonferrous foundries can be sued. By having the appropriate insurance coverage in place, these businesses can protect themselves from the financial consequences of such lawsuits.