Pesticides Manufacturers Insurance Policy Information
Pesticides Manufacturers Insurance. Any product that is employed to kill, repel, or otherwise control those plants and animals considered to be pests can be called a pesticide. More specifically, insecticides are designed to control insects, herbicides to control vegetation, and fungicides to control various kinds of fungi and molds.
Products such as rodenticides (rodent poison) and even disinfectants that kill bacteria can also be said to fall into the category of pesticides.
Pesticides manufacturers produce synthetic or biological compounds that control, repel, or kill fungi, weeds, and rodents or other animals that harm crops. Synthetic pesticide manufacturing involves formulating and mixing chemicals to create a substance toxic to certain types of rodents or other animals.
Processes are generally automated and may include crushing, filtering, washing, heating, freezing, aerating, or pressurizing. Biological pesticides are common bacteria toxic to specific pests.
As such they are less hazardous to the environment and non-targeted species than synthetic pesticides. They are grown in large vats or containers and are usually sold in an inert powder-like state.
While essential to global production, especially but not exclusively in the field of agriculture, there is no doubt that pesticides can be hazardous to humans as well as to those pests they aim to eliminate.
Many pesticides are further highly flammable. This makes the pesticide manufacturing industry one that is particularly vulnerable to risks; risks that could have devastating consequences in terms of both human health and the financial future of your company.
As such, investing in air-tight insurance coverage is even more important for pesticide manufacturers than it is for companies working in other fields. What types of pesticides manufacturers insurance should you have? Read on to find out more.
Pesticides 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 pesticides manufacturing insurance questions:
- How Much Does Pesticides Manufacturers Insurance Cost?
- Why Do Pesticides Manufacturers Need Insurance?
- What Type Of Insurance Do Pesticides Manufacturers Need?
How Much Does Pesticides Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small pesticides manufacturing businesses ranges from $97 to $139 per month based on location, size, revenue, claims history and more.
Why Do Pesticides Manufacturers Need Insurance?
As a company that manufactures pesticides, you are in the business of keeping other companies and private individuals safe from the pests that threaten their activities. In the process, however, you incur a range of risks of your own.
These risks come in broadly two varieties - those that can befall commercial ventures in any field at all, including non-manufacturing businesses, and those exclusive to your own industry.
The first, "garden variety", threats would include theft, vandalism (including arson), and acts of nature such as floods and hurricanes. Even if your company has taken mitigating steps, these risks can never be prevented entirely.
Risks unique to pesticide manufacturers would be those relating to the hazardous nature of pesticides. They include the occupational hazard your workers face as they work with materials such as glyphosate; long-term pesticide exposure has been linked with health conditions ranging from respiratory complications to cancer.
Your end consumers, too, can be exposed to these risks, and subsequently attempt to hold your company liable. Environmental spills are another risk pesticide manufacturers may have to contend with.
Manufacturing firms in this industry with the correct insurance coverage are able to weather any storms that come their way, and that is why investigating your pesticides manufacturers insurance needs thoroughly is not a step that can be skipped.
What Type Of Insurance Do Pesticides Manufacturers Need?
Each company that manufactures pesticides is unique; their insurance needs will also vary greatly. Factors that determine the kind of coverage you need include the nature of the chemicals the company uses in its manufacturing process, its location, and its size, including the number of employees.
A skilled and experienced commercial insurance agent deeply familiar with your industry's risk profile should guide you through the process of selecting the right coverage.
Some examples of pesticides manufacturers insurance types essential within your industry are, however:
- Commercial Property: To protect your real estate, outdoor assets, and the contents of your facility (such as machinery and inventory) from threats like theft and acts of nature, commercial property insurance is absolutely essential. This type of insurance also helps cover revenue lost to these perils.
- Workers Compensation: This type of insurance serves to protect both your company's interests and your employees. Should a worker suffer an acute workplace injury or an occupational illness associated with long-term pesticide exposure, workers comp covers their medical bills and wages lost if they are unable to return to work. In the most severe of workplace injuries, this kind of insurance further covers death benefits.
- Commercial General Liability: This general type of liability insurance shields pesticide manufacturers from third party bodily injury and property damage claims. While policies vary, that could include environmental damage as well as cases in which a third party slips on your premises.
- Product Liability: A more specific kind of pesticides manufacturers insurance coverage, product liability insurance exists to cover claims relating to your pesticide products themselves. Imagine, for example, that a user misreads usage instructions or there is a misprint, or that a user suffers an adverse health outcome after exposure to your product. Even if your company did not directly sell the product to such a customer, your business could be held liable. This is why you require product liability insurance, which helps cover attorney costs as well as settlement fees in the event of successful lawsuits.
It is prudent to keep in mind that only a commercial insurance agent can advise your company on its specific insurance needs, as they will be familiar with your unique circumstances. Nonetheless, these types of pesticides manufacturers insurance are essential for pesticide manufacturers.
Pesticides Manufacturing's Risks & Exposures
Premises liability exposure is very high due to the potential release or spill of synthetic pesticide or its ingredients, either on premises or off. Since the chemicals used in processing are intended to be toxic, and may be reactive (flammable, corrosive or explosive), the chance of serious health damage is high.
The fire department and local environmental agencies must be aware of chemicals in use so that appropriate action to control fire or vapor release can be taken quickly. There should be an evacuation plan on file.
Biological pesticides have fewer risks associated with them. If the manufacturer conducts tours, visitors may be injured by slips, trips, or falls.
Products liability exposure is very high due to the catastrophic potential for bodily injuries or property damage from poor quality control, improper storage, transport or inappropriate packaging and labeling.
Costly claims may result from bodily injury to the employees of others who apply the pesticides, and from property damage that can occur to crops if the mix is wrong for its intended use. Additional exposure comes from the leeching effect as the plants and grains enter into the food chain and the unintended impact on non-targeted wildlife or insects such as bees.
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, often down to the individual batch. All products must adhere to federal specifications.
Environmental impairment exposure is very high as every phase of the operations may trigger a pollution event: storage, transportation, application, cleanup, disposal (including disposal of empty containers).
The toxic effect may be cumulative or immediate. It may affect growing crops, water, air, or soil. Disposal of wastes must adhere to all federal and state guidelines.
Workers compensation exposure is very high due to work with chemicals and pesticides. Ingredients may be toxic or caustic, with a high potential for injury to eyes, lungs, or skin. Injuries from production equipment are common, as are back injuries from heavy lifting, burns, cuts, slips, trips, falls, hearing loss from noise, and repetitive motion injuries.
Workstations should be ergonomically designed. Employees should be provided with safety training and protective equipment. Workers must be fully aware of the side effects and symptoms of medical conditions associated with the chemicals they work with, including long-term occupational disease hazards. Regular physicals to monitor workers' health may be advisable.
Property exposures arise from an office, plant, and warehouse or yard for storage of raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, along with large concentrations of flammable solvents, toxins, and other reactive (flammable, corrosive, or explosive) chemicals.
Hazards increase without proper controls, including separation during storage or processing, and proper ventilation to controls, 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. Some synthetic pesticide manufacturers could also be the target of vandalism by protestors or activists.
Some ingredients may be spoiled by temperature change, humidity, dust or other changes. Some synthetic pesticide manufacturers could be targeted by protestors or activists. 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.
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 either from product theft or fraudulent bookkeeping/ordering. When pesticides are subject to strict government control, the underground market value becomes inflated which can encourage 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 arise from 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.
Pesticide manufacturers typically have laboratories with significant scheduled EDP equipment for research and quality control. The main causes of loss are fire, theft, and loss by spill or contamination, especially during a collision.
Commercial auto exposure is very high if the manufacturer owns its tanker trucks and does its own transport. Drivers will need a hazardous material ("hazmat") endorsement for some chemicals transported. Hazards increase if the insured lacks spill control procedures and equipment.
Drivers should have an appropriate license 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: 2879 Pesticides And Agricultural Chemicals, Not Elsewhere Classified
- NAICS CODE: 325320 Pesticide and Other Agricultural Chemical Manufacturing
- Suggested ISO General Liability Code(s): 51850, 51853, 51854, 51857
- Suggested Workers Compensation Code(s): 4828, 4829
Description for 2879: Pesticides And Agricultural Chemicals, Not Elsewhere Classified
Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 287: Agricultural Chemicals
2879 Pesticides And Agricultural Chemicals, Not Elsewhere Classified: Establishments primarily engaged in the formulation and preparation of ready-to-use agricultural and household pest control chemicals, including insecticides, fungicides, and herbicides, from technical chemicals or concentrates; and the production of concentrates which require further processing before use as agricultural pesticides. This industry also includes establishments primarily engaged in manufacturing or formulating agricultural chemicals, not elsewhere classified, such as minor or trace elements and soil conditioners. Establishments primarily engaged in manufacturing basic or technical agricultural pest control chemicals are classified in Industry Group 281 if the chemicals are inorganic and in Industry Group 286 if they are organic. Establishments primarily engaged in manufacturing agricultural lime products are classified in Major Group 32.
- Agricultural disinfectants
- Agricultural pesticides
- Arsenates: calcium, copper, and lead-formulated
- Arsenites, formulated
- Bordeaux mixture
- Calcium arsenate and arsenite, formulated
- Cattle dips
- Copper arsenate, formulated
- Elements, minor or trace (agricultural chemicals)
- Exterminating products, for household and industrial use
- Fly sprays
- Growth regulants, agricultural
- Household insecticides
- Insect powder, household
- Insecticides, agricultural
- Lead arsenate, formulated
- Lime-sulfur, dry and solution
- Lindane, formulated
- Moth repellants
- Nicotine and salts
- Nicotine bearing insecticides
- Paris green (insecticide)
- Pesticides, household
- Plant hormones
- Poison: ant, rat, roach, and rodent-household
- Pyrethrin bearing preparations
- Pyrethrin concentrates
- Rotenone bearing preparations
- Rotenone concentrates
- Sheep dips, chemical
- Sodium arsenite (formulated)pp(Soil conditioners
- Sulfur dust (insecticide)
- Thiocyanates, organic (formulated)
- Trace elements (agricultural chemicals)
- Xanthone (formulated)
Pesticides Manufacturers Insurance - The Bottom Line
Not all pesticides manufacturers insurance policies are the same. In fact, many differ widely in coverage, costs and exclusions. To find out if your pesticides manufacturing operation has the best fit insurance policies - talk to an experienced business insurance agent.
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.
- Audio & Video Equipment
- Auto Parts
- 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
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fur Garment
- Garage Door
- Gypsum Products
- 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
- 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
- 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.