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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:

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.

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.

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.

Small Business Information

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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 PoliciesWhat 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 InsuranceWhat 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 BondWhat 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
Small Business Commercial Insurance

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.

Manufacturing Insurance

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.

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