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Plastic Goods Manufacturers Insurance Policy Information

Plastic Goods Manufacturers Insurance

Plastic Goods Manufacturers Insurance. Since the first plastic was introduced to the market in the 19th century, these synthetic materials have been used in an ever-increasing range of commercial and residential applications.

In the modern market, plastics are everywhere - and with increased environmental awareness, those manufactured using renewable or recycled substances are quickly joining plastic derived from petroleum and natural gas.

Plastic goods manufacturers produce a wide variety of products including bottles, component parts for domestic or industrial goods, fabrics, kitchenware, novelties, packaging materials, plumbing materials, sporting goods, and toys.

While they do not make the actual plastic, they bore, cut, or punch products or their component parts from "profile shapes" received from plastics manufacturers. These "profile shapes" include plates, rods, sheets, or tubes.

Companies within this field are as diverse as plastic goods themselves are; they might manufacture anything from single-use plastic bottles, cups, or plates to commodities designed to be extremely durable. Toys, modern kitchenware, plumbing materials such as pipes, and synthetic textiles such as polyester are merely some examples.

Although manufacturers of plastic goods undoubtedly have the potential to make handsome profits, these companies should be aware that the perils they could be confronted with are almost as diverse in nature as the plastic goods now available for purchase.

What kinds of plastic goods manufacturers insurance might they need to shield themselves from major risks? This brief guide offers insights.

Plastic goods 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 plastic goods manufacturing insurance questions:

What Is Plastic Goods Manufacturers Insurance?

Plastic goods manufacturers insurance is a type of liability insurance that provides protection to manufacturers of plastic products against financial losses due to damages, accidents, and other related incidents. This insurance coverage includes protection against property damage, product liability, and third-party lawsuits.

It covers the costs associated with settling claims and legal fees for defending against lawsuits that may arise from the production, marketing, and distribution of plastic products. This insurance is essential for plastic manufacturers to ensure their financial stability and protect their assets in the event of any unforeseen incidents.

How Much Does Plastic Goods Manufacturers Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small plastic goods manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.

Why Do Plastic Goods Manufacturers Need Insurance?

Insurance For Manufacturers

Just like manufacturers within any other branch of industry, companies that make plastic goods face a multitude of risks. Some of those risks are common to all commercial ventures, while others are unique to your own field.

All, however, have the potential to inflict severe financial damage. Investing in comprehensive insurance coverage protects your company from these threats.

Should your manufacturing facility be impacted by an act of nature, for example, the damage to your physical building, manufacturing equipment, raw materials, computers, and finished inventory can be downright daunting.

Even smaller-scale catastrophes such as theft and vandalism could lead to massive costs, as well as interrupting your production line. For that matter, even the sudden breakdown of industrial equipment essential to your manufacturing process needs to be considered.

Then, manufacturers within the field of plastic goods also face liability risks. Workers may become injured over the course of their jobs, for instance, while third parties as varied as service contractors or potential buyers could also be involved in accidents on your premises.

If faulty design or a problem with your raw materials leads your products to not function as intended, again, a lawsuit may follow.

Armed with the types of plastic goods manufacturers insurance that meet your company's needs, these and other perils do not need to be catastrophic.

Manufacturers of plastic goods should invest in the best insurance they can because this act will ultimately further, rather than stand in the way of, their success.

What Type Of Insurance Do Plastic Goods Manufacturers Need?

As a manufacturer of plastic goods, you are aware that your company is unique. The factors that make it so include the location of your manufacturing facility and the exact type of goods you make, but also your industrial equipment and your number of workers.

All the characteristics that define your business also determine its insurance needs, and a commercial insurance agent is best placed to guide you through the process of obtaining the plastic goods manufacturers insurance coverage you require.

However, companies making plastic goods will certainly need:

  • Commercial Property: Acts of nature, theft, vandalism, and other accidents can damage your physical assets (including but not limited to your building), or lead to losses. Should that happen, commercial property insurance covers a significant portion of the costs.
  • General Liability: In today's highly-litigious society, you can expect to be sued if a third party becomes injured on your premises or if your company's activities inflict property damage. This type of plastic goods manufacturers insurance helps cover the resulting legal costs.
  • Product Liability: This type of insurance covers third party property damage and bodily injury claims relating to goods you manufactured. In scenarios that can include a child being injured by a plastic toy you made or plastic kitchenware not functioning as advertised, product liability insurance funds your legal costs.
  • Workers Compensation: Essential for any company with more than five employees, this type of insurance protects your workers as well as your company. If an employee is injured on the job, it reimburses their medical expenses as well as any wages they lose if they need time off work.

Companies that make plastic goods will want to rely on a commercial insurance broker to guide them through the process of acquiring the best commercial insurance. These types of plastic goods manufacturers insurance are invaluable, but you are likely to have further needs as well.

Plastic Goods Manufacturing's Risks & Exposures

Manufacturing PLASTIC GOODS

Premises liability exposure at the plant is normally low as access by visitors is limited. If tours are given or if outsiders are allowed on premises, visitors may be injured by slips, trips, or falls. Chemicals used in processing may be corrosive and/or toxic. Fumes, dust, and noise from production could affect neighbors.

Should a fire occur, the difficulty in extinguishing it could result in the release of toxins and cause smoke damage to neighboring properties. Evacuation plans should be on file with the fire department. The storage of raw materials or finished goods outdoors can create an attractive nuisance.

Products liability exposure varies depending on the final usage of the product. General packaging, photographic film and utility sheeting, such as that used to insulate windows, present the lowest potential for loss, while moderate risks are posed by plumbing supplies and miscellaneous functional parts (such as handles and coverings). Sheet plastic presents an inherent suffocation hazard.

The failure of products used for medical supplies, food packaging, or gaskets for high-pressure piping present significant potential for serious bodily injury or property damage.

Environmental impairment exposure is high due to possible contamination of ground, air, and water from raw chemicals, solvents, and fuels. The catalysts may be caustic, and the final product is usually not biodegradable. Disposal procedures must adhere to all EPA and other regulatory standards.

Workers compensation exposures are very high. Injuries from production machinery are common, as are minor cuts, puncture wounds, burns, slips, trips, falls, foreign objects in the eye, back injuries from lifting, hearing loss from noise, and repetitive motion losses.

More serious hazards come from chemical usage that can cause injury to eyes, skin, and lungs. Workers should be made aware of potential problems and may need periodic monitoring for cumulative exposure. Work with heavy machinery can cause major cuts and amputations.

Employees should be provided with safety training and protective equipment. Workstations should be ergonomically designed. Areas that generate dust require respiratory protection devices, as well as eye protection and eye wash stations.

he high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair. If there is a fire on premises, the fumes in the smoke are very dangerous and can cause severe respiratory distress.

Ventilation systems are needed to prevent the buildup of toxic vapors. Dense smoke makes egress from the premises difficult.

Property exposures consist of an office, production plant, and a warehouse for storage of raw materials and finished products. Ignition sources include electrical wiring, heating systems, production machinery, buildup of static electricity, and dust explosions. If the stock catches fire, it can be very difficult to extinguish and will cause a great deal of smoke damage.

Molten plastic can carry the fire great distances and into crevices. The chemicals must be adequately controlled, separated, and stored. Nearly all aspects of the operation present fire hazards that can only be minimized by separation and fire suppression systems.

Machinery needs proper maintenance to prevent overheating and wear. Fuel sources to run machinery and to heat the plant must be adequately controlled.

Cutting, punching, and buffing operations generate dust which can catch on fire. This hazard increases in the absence of properly maintained dust collection systems. Poor housekeeping could contribute significantly to a loss.

Unless disposed of properly, greasy, oily rags (such as those used to clean machinery) can cause a fire without a separate ignition source.

Equipment breakdown exposures include malfunctioning production equipment and electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in severe loss, both direct and under time element.

Crime exposure comes from employee dishonesty and theft if finished items are high in demand. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock. Background checks should be conducted on all employees.

There must be a separation of duties between persons handling deposits and disbursements and handling bank statements. The manufacturer should have security methods in place to prevent theft.

Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information.

The main causes of loss are collision, upset, fire, or theft. There may be contractors' equipment such as forklifts or heavier equipment used to move raw materials and finished goods.

Commercial auto exposure is high if the manufacturer assumes responsibility for the transport of raw materials or finished products. If raw chemicals are transported, potential contamination due to overturn or spillage is high. Transporting the final product is less hazardous, unless there is also a fire.

Hazards are substantially higher without proper controls, including any required Hazardous Material licenses and spill containment procedures and equipment.

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

What Does Plastic Goods Manufacturers Insurance Cover & Pay For?

Plastic Goods Manufacturers Insurance Claim Form

Plastic goods manufacturers, like any other businesses, can face a number of different lawsuits for various reasons. It's essential to understand that insurance can provide critical financial protection in these scenarios. Here are some examples:

1. Product Liability: If a company's plastic product is found to have caused harm or injury, they can be sued for product liability. For example, a child might choke on a small plastic toy part or a plastic kitchen utensil might break and cause injury. In this case, product liability insurance can help cover the costs of the lawsuit. This type of insurance typically covers legal fees, court costs, and any settlements or judgments up to the policy limit.

2. Property Damage: Plastic goods manufacturers could be sued if their operations inadvertently cause damage to someone else's property. For example, if a fire at the manufacturing plant spreads to a neighboring property, the owner of that property might sue for damages. Commercial property insurance or a business owner's policy (BOP) can help pay for legal fees, settlements, and other costs related to such a lawsuit.

3. Environmental Pollution: The manufacturing process can sometimes result in the release of harmful substances into the environment. If a manufacturer is found to be polluting the environment, they could face a lawsuit. Environmental or pollution liability insurance can provide coverage in these situations, helping to pay for legal defense, clean-up costs, and any fines or settlements.

4. Employment Practices Liability: A company could be sued by its employees for reasons such as discrimination, sexual harassment, or wrongful termination. Employment practices liability insurance (EPLI) can help cover the costs of defending against these claims, including any settlements or judgments.

5. Intellectual Property Infringement: If a plastic goods manufacturer is accused of infringing on another company's patent, trademark, or copyright, they could be sued. Intellectual property insurance can help cover the legal expenses associated with defending against these types of claims.

6. Workers' Compensation: If a worker is injured on the job, the company could face a lawsuit if the employee believes the company was negligent in ensuring their safety. Workers' compensation insurance not only provides medical benefits and wage replacement for injured workers but also includes employer's liability coverage, which can help protect the company from lawsuits related to workplace injuries.

It's important to note that each insurance policy has its own terms and conditions, so businesses must understand what their policies cover and what they don't. Additionally, insurance policies have limits, and any costs that exceed those limits will typically be the responsibility of the business.

Commercial Insurance And Business Industry Classification

Description for 3052: Rubber And Plastics Hose And Belting

Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 305: Gaskets, Packing, And Sealing Devices And Rubber

3052 Rubber And Plastics Hose And Belting: Establishments primarily engaged in manufacturing rubber and plastics hose and belting, including garden hose. Establishments primarily engaged in manufacturing rubber tubing are classified in Industry Group 306; those manufacturing plastics tubing are classified in Industry 3082; and those manufacturing flexible metallic hose are classified in Industry 3599.

  • Air brake and air line hose, rubber or rubberized fabric
  • Automobile hose, plastics or rubber
  • Belting, rubber e.g., conveyor, elevator, transmission
  • Firehose, rubber
  • Garden hose, plastics or rubber
  • Heater hose, plastics or rubber
  • Hose, plastics or rubber
  • Hose: cotton fabric, rubber lined
  • Pneumatic hose, rubber or rubberized fabric e.g., air brake and
  • Vacuum cleaner hose, plastics or rubber

Description for 3083: Laminated Plastics Plate, Sheet, And Profile Shapes

Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 308: Miscellaneous Plastics Products

3083 Laminated Plastics Plate, Sheet, And Profile Shapes: Establishments primarily engaged in manufacturing laminated plastics plate, sheet, profiles, rods, and tubes. Establishments primarily engaged in manufacturing laminated flexible packaging are classified in Industry Group 267..

  • Plastics, laminated: plate, rods, tubes, profiles and sheet, except
  • Thermoplastics laminates: rods, tubes, plates, and sheet, except
  • Thermosetting laminates: rods, tubes, plates, and sheet, except

Description for 3084: Plastics Pipe

Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 308: Miscellaneous Plastics Products

3084 Plastics Pipe: Establishments primarily engaged in manufacturing plastics pipe. Establishments primarily engaged in manufacturing plastics pipe fittings are classified in Industry 3089.

  • Pipe, plastics

Description for 3085: Plastics Bottles

Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 308: Miscellaneous Plastics Products

3085 Plastics Bottles: Establishments primarily engaged in manufacturing plastics bottles.

  • Bottles, plastics

Description for 3086: Plastics Foam Products

Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 308: Miscellaneous Plastics Products

3086 Plastics Foam Products: Establishments primarily engaged in manufacturing plastics foam products.

  • Cups, foamed plastics
  • Cushions, carpet and rug: plastics foam
  • Foamed plastics products
  • Ice chests or coolers, portable: foamed plastics
  • Insulation and cushioning: foamed plastics
  • Packaging foamed plastics
  • Plates foamed plastics
  • Shipping pads, plastics foam

Description for 3087: Custom Compounding Of Purchased Plastics Resins

Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 308: Miscellaneous Plastics Products

3087 Custom Compounding Of Purchased Plastics Resins: Establishments primarily engaged in custom compounding of purchased plastics resins.

  • Custom compounding of purchased resins

Description for 3088: Plastics Plumbing Fixtures

Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 308: Miscellaneous Plastics Products

3088 Plastics Plumbing Fixtures: Establishments primarily engaged in manufacturing plastics plumbing fixtures. Establishments primarily engaged in assembling plastics plumbing fixture fittings are classified in Industry 3432. Establishments primarily engaged in manufacturing plastics plumbing fixture components are classified in Industry 3089.

  • Bathroom fixtures, plastics
  • Drinking fountains, except mechanically refrigerated: plastics
  • Flush tanks, plastics
  • Hot tubs, plastics or fiberglass
  • Laundry tubs, plastics
  • Lavatories, plastics
  • Plumbing fixtures, plastics
  • Portable chemical toilets, plastics shower stalls, plastics
  • Sinks, plastics
  • Toilet fixtures, plastics
  • Tubs, plastics: bath, shower, and laundry
  • Urinals, plastics
  • Water closets, plastics

Description for 3089: Plastics Products, Not Elsewhere Classified

Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 308: Miscellaneous Plastics Products

3089 Plastics Products, Not Elsewhere Classified: Establishments primarily engaged in manufacturing plastics products, not elsewhere classified. Establishments primarily engaged in manufacturing artificial leather are classified in Industry 2295..

  • Air mattresses, plastics
  • Aquarium accessories, plastics
  • Awnings, fiberglass and plastics combination
  • Bands, plastics
  • Bathware, plastics: except plumbing fixtures
  • Battery cases, plastics
  • Bearings, plastics
  • Billfold inserts, plastics
  • Blister packaging, plastics
  • Boats, nonrigid: plastics
  • Bolts, plastics
  • Bowl covers, plastics
  • Boxes, plastics
  • Brush handles, plastics
  • Bubble formed packaging, plastics
  • Buckets, plastics
  • Buoys and floats, plastics
  • Caps, plastics
  • Carafes, plastics
  • Casein products, molded for the trade
  • Cases, plastics
  • Casting of plastics for the trade, except foam plastics
  • Ceiling tile, unsupported plastics
  • Celluloid products, molded for the trade
  • Closures, plastics
  • Clothes hangers, plastics
  • Clothes pins, plastics
  • Combs, plastics
  • Composition stone, plastics
  • Containers, plastics: except foam, bottles, and bags
  • Corrugated panels, plastics
  • Cotter pins, plastics
  • Counter coverings, plastics
  • Cups, plastics: except foam
  • Dinnerware, plastics: except foam
  • Dishes, plastics: except foam
  • Doors, folding: plastics or plastics coated fabric
  • Downspouts, plastics
  • Drums, plastics (containers)
  • Engraving of plastics
  • Fascia, plastics (siding)
  • Fittings for pipe, plastics
  • Fittings, plastics
  • Flat panels, plastics
  • Floor coverings, plastics
  • Flower pots, plastics
  • Food casings, plastics
  • Garbage containers, plastics
  • Gate hooks, plastics
  • Glazing panels, plastics
  • Gloves and mittens, plastics
  • Grower pots, plastics
  • Gutters, plastics: glass fiber reinforced
  • Hardware, plastics
  • Heels, boot and shoe: plastics
  • Holders, plastics: paper towel, grocery bag, dust mop and broom
  • Hospital-ware, plastics: except foam
  • Ice buckets, plastics: except foam
  • Ice chests or coolers, portable, plastics: except insulated or foam
  • Jars, plastics
  • Kitchenware, plastics: except foam
  • Laboratory ware, plastics
  • Ladders, plastics
  • Lamp bases, plastics
  • Lamp shades, plastics
  • Lenses, plastics: except ophthalmic or optical
  • Life jackets, plastics
  • Life rafts, nonrigid: plastics
  • Lock washers, plastics
  • Machine nuts, plastics
  • Microwave ware, plastics
  • Molding of plastics for the trade, except foam
  • Monofilaments, plastics: not suited for textile use
  • Netting, plastics
  • Nuts, plastics
  • Organizers for closets, drawers, and shelves: plastics
  • Ovenware, plastics
  • Pails, plastics
  • Picnic jugs, plastics
  • Planters, plastics
  • Pontoons, nonrigid: plastics
  • Printer acoustic covers, plastics
  • Rivets, plastics
  • Saucers, plastics: except foam
  • Screw eyes, plastics
  • Scrubbing pads, plastics
  • Septic tanks, plastics
  • Shutters, plastics
  • Siding, plastics
  • Sinkware, plastics
  • Skirts, plastics (siding)
  • Soffit, plastics (siding)
  • Soles, boot and shoe: plastics
  • Soling strips, boot and shoe: plastics
  • Sponges, plastics
  • Spouting, plastics: glass fiber reinforced
  • Spring pins, plastics
  • Spring washers, plastics
  • Suitcase shells, plastics
  • Swimming pool covers and blankets: plastics
  • Tableware, plastics: except foam
  • Tires, plastics
  • Tissue dispensers, plastics
  • Toggle bolts, plastics
  • Tool handles, plastics
  • Tops, plastics (e.g., dispenser, shaker)
  • Trash containers, plastics
  • Trays, plastics: except foam
  • Tubs, plastics (containers)
  • Tumblers, plastics: except foam
  • Unions, plastics
  • Utility containers, plastics
  • Vials, plastics
  • Vulcanized fiber plate, sheet, rods and tubes
  • Wall coverings, plastics
  • Warmers, bottle: plastics, except foam
  • Washers, plastics
  • Watering pots, plastics
  • Window frames and sash, plastics
  • Window screening, plastics
  • Windows, louver: plastics
  • Windows, storm: plastics
  • Windshields plastics
  • Work gloves plastics

Plastic Goods Manufacturers Insurance - The Bottom Line

All plastic goods manufacturers insurance policies are not the same. You can discover if your manufacturing business has the best fit insurance policies by talking to an experienced commercial 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.

Manufacturing Insurance

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.

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