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:
- How Much Does Paint Manufacturers Insurance Cost?
- Why Do Paint Manufacturers Need Insurance?
- What Type Of Insurance Do Paint Manufacturers Need?
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.
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 ISO General Liability Code(s): 59985 Wood Products Manufacturing, 59986 Wood Turned Products 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.
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.