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:
- What Is Pesticides Manufacturers Insurance?
- How Much Does Pesticides Manufacturers Insurance Cost?
- Why Do Pesticides Manufacturers Need Insurance?
- What Type Of Insurance Do Pesticides Manufacturers Need?
- What Does Pesticides Manufacturers Insurance Cover & Pay For?
What Is Pesticides Manufacturers Insurance?
Pesticides manufacturers insurance is a type of liability insurance coverage specifically designed for companies that manufacture and distribute pesticides and other chemicals used in agriculture and horticulture.
The coverage provides protection against financial loss resulting from legal action brought against the company by individuals or organizations claiming harm or damage as a result of their use of the products. This type of insurance typically covers the costs of defending the company in court, as well as any monetary damages awarded to plaintiffs.
The policy may also include coverage for environmental liability, such as cleanup costs associated with contamination from the products.
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.
What Does Pesticides Manufacturers Insurance Cover & Pay For?
Pesticide manufacturers can be sued for a variety of reasons. Here are some examples and how insurance can help them in each situation:
1. Product Liability: This is the most common reason for lawsuits against pesticide manufacturers. If a pesticide is found to have caused harm to humans, animals, or the environment due to its design, manufacture, or inadequate warnings, the manufacturer could be held liable. In such cases, a product liability insurance policy would protect manufacturers. This insurance covers the legal costs and any settlements or judgments that result from a product liability claim. For instance, if a user of the pesticide fell ill due to exposure and sued the company, the insurance would cover legal defense fees and any resulting financial settlement.
2. False Advertising: Pesticide manufacturers could also be sued for false or misleading advertising if they make inaccurate claims about the effectiveness or safety of their products. A Commercial General Liability (CGL) policy typically includes coverage for 'advertising injury', which would cover the legal costs associated with defending against such a claim and any damages awarded.
3. Environmental Damage: If a pesticide causes substantial damage to the environment, such as contaminating water sources or killing non-target species, the manufacturer may face lawsuits from environmental groups or government agencies. Environmental liability insurance or pollution liability insurance can help in this case. These policies cover the costs of legal defense and damages or cleanup costs ordered by the court.
4. Workplace Accidents: Accidents or injuries at the manufacturing facility can lead to lawsuits. For instance, if a worker was injured due to exposure to hazardous substances used in pesticide production, they might sue the company. Workers' compensation insurance can cover the costs of medical treatment for the injured worker, as well as provide liability coverage if the company is sued for the incident.
5. Intellectual Property Infringement: Another company could sue a pesticide manufacturer for patent infringement if they believe their intellectual property rights have been violated. Intellectual Property (IP) insurance would cover the legal defense costs in such a case, as well as any damages if the court rules in favor of the plaintiff.
Having a comprehensive insurance program can provide a significant financial buffer for pesticide manufacturers, helping them navigate the complex legal landscape and defend against potential lawsuits. However, it's important to note that while insurance can provide financial protection, it doesn't absolve companies of their responsibilities to ensure their products are safe, effective, and marketed honestly.
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 Workers Compensation Code(s): 4828 Chemical Blending or Mixing NOC - All Operations & Drivers, 4829 Chemical Manufacturing NOC - All Operations & Drivers - Includes Blending or Mixing
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.
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.
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- Commercial Air Conditioning
- Commercial Electronics
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- 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
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- Lawn Mowers
- Leather Apparel
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- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
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- Nonferrous Foundries
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- 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
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- 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.