Paint Manufacturers Insurance Policy Information
Paint Manufacturers Insurance. Paint is a pigment, most commonly in liquid form, used to color or protect surfaces. Most paints are either water-based or oil-based; each type of paint has its own characteristics, such intended surface, the temperature object to be painted, or the durability of the paint. Paint is composed of a binder, pigment and additives.
Paint manufacturers produce solvent-based or water-based paints, varnishes, and lacquers. While paint or varnish is designed to protect the surface to which it is applied, it is also used to provide decoration.
Paint is made by mixing pigments with resin, solvents, or additives to form a paste or liquid that is packaged in tubes, bottles, or cans. Aerosol paints are packaged under pressure. Quality control procedures are needed to inspect the final product for its dispersion of ingredients, density, texture, and viscosity before shipping to customers.
Paint has a broad number of uses. It is widely used in art, in many forms: solid, liquid, or aerosol. Historically, different vehicles, such as egg yolk or milk, have been used, and remain in use today.
Other than art, the uses of paint are numerous, and not just aesthetic. For instance, roof paint also provides UV protection, and some types of paint used to coat the lower parts of boats protect against barnacles. There are also urine-repelling paints, anti-climb paints (usually used on drainpipes), and road marking paints, to name a few.
Paint production is a huge business all around the globe. In the US, the annual revenue is measured in tens of billions of dollars, and more than 150,000 people work in this industry. Each business is also, however, vulnerable to certain dangers, and the bigger the business, the bigger the risk.
That is why it is essential that paint manufacturers carry the right insurance. What are your paint manufacturers insurance needs? Read on to find out more.
Paint manufacturers 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 paint manufacturing insurance questions:
- What Is Paint Manufacturers Insurance?
- How Much Does Paint Manufacturers Insurance Cost?
- Why Do Paint Manufacturers Need Insurance?
- What Type Of Insurance Do Paint Manufacturers Need?
- What Does Paint Manufacturers Insurance Cover & Pay For?
What Is Paint Manufacturers Insurance?
Paint manufacturers insurance is a type of insurance coverage specifically designed for businesses that manufacture, produce, or distribute paint products.
This insurance provides protection for the manufacturer against potential losses or damages arising from the production, storage, or sale of paint products. It covers a wide range of risks, including product liability, property damage, and loss of income due to business interruption. The coverage can also include protection against environmental hazards, such as spills or leaks, and exposure to hazardous chemicals used in the manufacturing process.
The aim of paint manufacturers insurance is to protect the business and its assets, as well as its reputation, from financial losses resulting from unexpected incidents or events.
How Much Does Paint Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small paint manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Paint Manufacturers Need Insurance?
Each business is faces risks, regardless of its line of work. Some risks are universal, while others apply only to a certain type of production, but, nevertheless, no business is absolutely safe. Catastrophes like earthquakes, wildfires, floods, or hurricanes can affect any company.
On the other hand, there are risks unique to the paint production as well. Since producing paint requires the use of numerous chemicals, most of them extremely flammable, fire hazard is among the prime risks in this line of work. Toxic fumes, leakage, and spills also pose a great risk.
Now, some of these risks can be avoided, and the potential damage minimized, if safety standards are adhered to, while others can neither be planned for nor prevented.
That is why it is important to be safe from potential financial loss, or even bankruptcy, if the worst happens - it is why adequate paint manufacturers insurance is an investment you cannot skip.
What Type Of Insurance Do Paint Manufacturers Need?
Paint production is not an easy process, and it involves a lot of chemistry as well as a number of expensive machines. Depending on the type of the paints produced in your facility, certain risks might not apply to you, while others can pose an especially great threat.
Each business is specific, and no set of rules and advice can be applied to all companies. That is why the best option would be to talk to your commercial insurance agent, and introduce them to the specific traits of your business.
Factors like climate, geographical position, terrain, and the amount of paint you produce, as well as your number of employees, all affect the type of the paint manufacturers insurance that is most suitable for you and your business.
- Commercial General Liability: This type of insurance shields your company from financial loss resulting from lawsuits due to damage caused to third parties, such as bodily injury liability and third party property damage (like a machine you rent).
- Commercial Property: This type of paint manufacturers insurance covers your property in case of damage caused by circumstances beyond your control, such as theft, vandalism, and natural disasters (earthquakes, lightning strikes or the damage caused by wind, to name a few).
- Product Liability: Paint is widely used, but is also toxic. Product liability insurance covers the expenses in the case of bodily harm caused by your product, as well as damage caused to the environment, in the case of spills or leaks. If you need to recall a product, you can be covered for the potential loss revenue as well.
- Workers Compensation: Most paints are toxic, and your workers come in contact with it on a daily basis. If health issues arise from occupational exposure to toxic materials, this type of insurance covers employees' medical expenses and lost income. It also, of course, covers everyday workplace injuries such as those caused by falls.
Paint production is a complex process with a lot of potential hazards that can affect both health and finances. Your insurance needs may not end here; if your business uses any vehicles, you will, for instance, also need auto insurance.
A seasoned commercial insurance broker will be able to guide you through the process of obtaining the high-quality paint manufacturers insurance policies that will keep your business safe.
Paint Manufacturing's Risks & Exposures
Premises liability exposures can be significant due to the potential release or spill of solvents which may be reactive (flammable, corrosive or explosive), toxic or both. Fumes and vapors, both on premises and off, can affect visitors, neighbors, and passersby.
Evacuation plans should be in place. The fire department must be aware of the chemicals in use so that they can have appropriate gear on hand to control any fire or vapor release. If the manufacturer conducts tours, visitors may be injured by slips, trips, or falls.
Products liability exposure is based on final usage. The exposure for industrial or commercial applications will be lower, while paints used for residential applications or children's furniture are higher as chemicals used around children can have a long-term impact on their health.
The product ingredients must be clearly labeled. 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 of components, and documentation of sources. Older lead-based paints manufactured before improved safety requirements were introduced may still be in use in homes or schools.
Environmental impairment exposure is very high as vapors, fumes or spillage may contaminate air, surface or ground water, or soil. Processes may cause thermal or noise pollution. Disposal of wastes must adhere to all federal and state guidelines.
Workers compensation exposure may be high due to work with chemicals. Ingredients may be toxic or caustic, with a high potential for injury to eyes, lungs, or skin. Work with production machinery may result in cuts, amputations, and similar losses, especially without proper safety, training and guarding.
Other common injuries include back injuries from heavy lifting, slips, trips, falls, hearing loss from noise, and repetitive motion injuries. Workstations should be ergonomically designed.
All employees must be aware of the potential side effects and symptoms of medical conditions associated with the chemicals used, including the long-term occupational disease hazards. Regular physicals to monitor workers' health may be advisable.
Property exposures consist of an office, plant, and warehouse or yard for storage of raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, and buildup of static electricity and sparks. Hazards vary depending on the flammability of fluids mixed with dyes or pigments. If the paint is water or latex based, the fire exposure is limited.
If the paints are made with resins, solvents or reactive chemicals, the fire and explosion potential is high and must be controlled, including separation during storage or processing, and proper ventilation to control fumes, dust, and vapors. Storage areas should be kept cool to prevent explosions.
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. Raw materials and finished stock may be susceptible to loss by fire, moisture, or temperature change.
Equipment breakdown exposures include malfunctioning production equipment, ventilation 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 theft. 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 consist of accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information.
Paint manufacturers typically have laboratories with significant schedules of EDP equipment for spectrographic analysis, color matching, and other quality control functions. The main causes of loss during transport are fire and loss by spill or contamination, especially during a collision.
Automobile exposure from the operation's own tanker trucks is very high due to the potential for overturn and spillage. Drivers should be trained in spill containment, have an appropriate license with a Hazardous Materials endorsement, and an acceptable MVR.
All vehicles must be well maintained, particularly tankers, with documentation kept in a central location. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others.
What Does Paint Manufacturers Insurance Cover & Pay For?
Paint manufacturers can be sued for a variety of reasons. Here are some examples and how insurance can help cover the costs associated with these lawsuits:
1. Product Liability: If a paint product is defective, fails to perform as expected, or causes damage or injury, customers may file a lawsuit. For example, if a paint causes harmful fumes, discolors quickly, or causes damage to property, the manufacturer can be held liable.
Insurance Coverage: Product liability insurance can protect paint manufacturers in such cases. It helps to cover the legal fees, settlements, and any damages awarded in a lawsuit related to a faulty product. This insurance can also help cover medical costs if a customer or third party suffers injury due to the product.
2. Environmental Damage: Paint production often involves the use of potentially harmful chemicals. If a manufacturer improperly disposes of these chemicals and causes environmental damage, they could face legal action from regulatory bodies or affected parties.
Insurance Coverage: Pollution liability insurance can protect manufacturers from claims related to environmental damage. It can cover legal costs, cleanup operations, and fines or penalties that may be imposed by regulatory bodies.
3. Workplace Accidents: Accidents can occur in the production process, potentially leading to employee injuries. If an employee gets injured on the job and believes that the manufacturer did not take adequate safety measures, they could sue for damages.
Insurance Coverage: Workers' compensation insurance can protect manufacturers from such claims. It typically covers medical expenses and a portion of lost wages for injured employees, and may also cover legal fees if an employee decides to sue.
4. Intellectual Property Infringement: If a paint manufacturer is accused of copying a competitor's product design, formula, or branding, they could face an intellectual property infringement lawsuit.
Insurance Coverage: Intellectual property insurance can help cover the costs of legal defense in such cases, and can also cover any damages or settlements that the manufacturer may be required to pay.
5. Breach of Contract: A paint manufacturer may be sued if they fail to deliver products on time, don't meet specified product quality, or otherwise breach a contract with a supplier, retailer, or customer.
Insurance Coverage: Commercial general liability insurance often includes coverage for lawsuits related to breach of contract. It can help pay for legal defense costs, court fees, and any settlements or judgments.
Overall, a comprehensive insurance program is crucial for paint manufacturers to protect themselves from a wide range of potential legal risks.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2851 Paints, Varnishes, Lacquers, Enamels, And Allied Products
- NAICS CODE: 321999 All Other Miscellaneous Wood Product Manufacturing
- Suggested Workers Compensation Code(s): 2841 Wood Turned Products Manufacturing NOC, 2802 Carpentry - Shop Only & Drivers
Description for 2851: Paints, Varnishes, Lacquers, Enamels, And Allied Products
Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 285: Paints, Varnishes, Lacquers, Enamels, And Allied
2851 Paints, Varnishes, Lacquers, Enamels, And Allied Products: Establishments primarily engaged in manufacturing paints (in paste and ready-mixed form); varnishes; lacquers; enamels and shellac; putties, wood fillers, and sealers; paint and varnish removers; paint brush cleaners; and allied paint products. Establishments primarily engaged in manufacturing carbon black are classified in Industry 2895; those manufacturing bone black, lamp black, and inorganic color pigments are classified in Industry 2816; those manufacturing organic color pigments are classified in Industry 2865; those manufacturing plastics materials are classified in Industry 2821; those manufacturing printing ink are classified in Industry 2893; those manufacturing caulking compounds and sealants are classified in Industry 2891; those manufacturing artists' paints are classified in Industry 3952; and those manufacturing turpentine are classified in Industry 2861.
- Calcimines, dry and paste
- Coating, air curing
- Colors in oil, except artists'
- Dispersions, thermoplastics and colloidal: paint
- Dopes, paint
- Driers, paint
- Enamels, except dental and china painting
- Epoxy coatings, made from purchased resin
- Intaglio ink vehicle
- Japans, baking and drying
- Kalsomines, dry or paste
- Lacquer bases and dopes
- Lacquer thinner
- Lacquer, clear and pigmented
- Lacquers, plastics
- Lead-in-oil paints
- Linoleates, paint driers
- Lithographic varnishes
- Marine paints
- Naphthanate driers
- Oleate driers
- Paint driers
- Paint removers
- Paintbrush cleaners
- Paints, asphalt and bituminous
- Paints, plastics texture: paste and dry
- Paints, waterproof
- Paints: oil and alkyd vehicle, and water thinned
- Phenol formaldehyde coatings, baking and air curing
- Plastics base paints and varnishes
- Plastisol coating compound
- Polyurethane coatings
- Primers, paint
- Resinate driers
- Shellac, protective coating
- Soyate driers
- Stains: varnish, oil, and wax
- Tallate driers
- Thinners, paint: prepared
- Undercoatings, paint
- Varnish removers
- Vinyl coatings, strippable
- Vinyl plastisol
- Water paints
- Wood fillers and sealers
- Wood stains
- Zinc oxide in oil, paint
Paint Manufacturers Insurance - The Bottom Line
Not every paint manufacturers insurance policy has the same cost, coverage and exclusions. To find out if your paint manufacturing company has the best fit insurance policies - talk to an experienced business 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.