Plastic And Rubber Toys Manufacturers Insurance

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Plastic And Rubber Toys Manufacturers Insurance Policy Information

Plastic And Rubber Toys Manufacturers Insurance

Plastic And Rubber Toys Manufacturers Insurance. Toys made of plastic and rubber, or toys that have components made with these materials, are ubiquitous in modern society. Plastic and rubber toys for children come in countless varieties, ranging from balls, frisbees, and blocks to animal figurines and ever-popular action figures and dollhouse components.

Plastic or rubber toy manufacturers produce various items for play, including action figures, animals, automobiles, baby items, balls, blocks, dolls, doll furnishings, games, masks, and toy novelties.

Raw plastic, which can be in powder, liquid, flakes, or pellets, is blended or mixed with additives, resins, colorings, or catalysts. It is heated, then molded, formed, or extruded into an end product which is buffed and finished with paint or lacquer.

Other pieces may be added to assemble the final product. As natural rubber contains latex, a substance that can cause severe allergic reactions, most rubber toys are now made of synthetic, petroleum-based materials.

When natural rubber is used, the latex is imported in prevulcanized sheets that can be shredded and heated into liquid or semi-liquid form, then turned into an end product by extrusion, injection molding, or compression molding.

This market caters to children of all ages, as infants use teething toys while even teenagers may do all they can to get the latest collectible action figures, and adults, too, may collect plastic or rubber toys.

As a plastic or rubber toy manufacturer, your business strives to bring joy and entertainment to your end customers. Like any other business, however, plastic and rubber toy manufacturers can also encounter any number of perils that threaten their financial health.

That is why established businesses within the toy industry and those who are only just considering business plans should never downplay the importance of excellent insurance coverage.

What kinds of plastic and rubber toys manufacturers insurance do companies in this industry need, and why? This brief guide explains.

Plastic and rubber toys 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 plastic toys manufacturing insurance questions:


How Much Does Plastic And Rubber Toys Manufacturers Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small plastic toys manufacturing businesses ranges from $97 to $139 per month based on location, size, revenue, claims history and more.


Why Do Plastic And Rubber Toys Manufacturers Need Insurance?

Insurance For Manufacturers

While nobody - private individuals and companies alike - relishes the thought of directing funds to something they hope they will never need, the harsh reality is that accidents and other unforeseen circumstances happen every day. They can strike your company, too, and that is why plastic and rubber toy manufacturers need to invest in the right insurance.

The risks plastic and rubber toy companies face include ones common to all businesses as well as some more specific to toy manufacture itself.

Acts of nature, which are as varied as earthquakes, hurricanes, wildfires, floods, tornadoes, storms, and lightning strikes, can cause severe damage to your manufacturing facility, while simultaneously interrupting your production process and leading to lost revenue. Theft and vandalism, too, can threaten any business.

Manufacturers who make rubber and plastic toys also have one unique risk to worry about - the risk that children who use their toys become injured as a result of a malfunction or production error on their part. This can lead to drawn-out and costly litigation.

Workers can become injured within any manufacturing industry, including the toy-producing field, and that is also true for third parties who enter your premises. Both can easily be associated with tremendous costs.

These and other perils are not always preventable, but a good plastic and rubber toys manufacturers insurance program can guard you from these and other threats.


What Type Of Insurance Do Plastic And Rubber Toys Manufacturers Need?

Your exact insurance needs - the kinds of coverage you require and the accompanying costs - are as unique as your toy company is. Variables like the jurisdiction within which your facility is based, your number of workers, the equipment you use in your manufacturing process, and the age group you market your toys to, all influence your insurance needs.

For this reason, companies should consult a reputable commercial insurance agent to discuss their circumstances. The most common types of plastic and rubber toys manufacturers insurance needed, however, are:

  • Commercial Property: Should unforeseen circumstances like acts of nature, theft, or vandalism damage or destroy your physical building as well as physical assets therein (including manufacturing equipment, raw materials, and inventory as well as furniture and computers), this type of insurance has you covered. Commercial property insurance can additionally help recover revenue lost to these types of damage.
  • General Liability: This "legal defense insurance" protects your company from financial losses in the case of third party property damage or injury claims. It covers attorney fees, settlement costs, and medical and repair bills.
  • Product Liability: Essential for manufacturers who make any product that could potentially harm end users, toy manufacturers should pay special attention to product liability insurance. Should a manufacturing error, or even unclear instructions, lead a person to become injured by a toy you made, product liability insurance will be invaluable. Like commercial general liability insurers, this form of insurance protects against financial losses caused by third party liability claims, but in this case directly relating to your product.
  • Workers' Compensation: This type of plastic and rubber toys manufacturers insurance covers medical bills and potential lost wages in the event an employee sustains injuries or occupational illnesses for which your company could be held responsible.


These essential kinds of coverage may not amount to a comprehensive plan for your company; your commercial insurance broker will be able to instruct you on additional types of plastic and rubber toys manufacturers you may require.

Plastic And Rubber Toys Manufacturing's Risks & Exposures

Manufacturing

Premises liability exposure is usually moderate to low, as access to the premises is limited. If there is a showroom, factory outlet, or retail operation, or if the company handles its own on-site testing using focus groups of children, visitors may be injured by slips, trips, or falls. Children may be injured by playing with defective products while on premises.

Fumes, dust, and noise from operations may affect neighbors. Chemicals used in processing may be corrosive and/or toxic. 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. There are significant off-premises exposures if the applicant attends toy shows and exhibitions to demonstrate products.

Products liability exposure is usually high as the end products are designed for and used by children. Toys may be designed for light recreational use or for more rigorous athletic use. Small parts in toys designed for young children can present a choking hazard.

Sharp edges can result in cuts and other injuries. Some children are highly allergic to natural rubber latex. Warnings and age-appropriate information regarding potential hazards are very important, as are product recall procedures. Governmental regulations, guidelines, and standards

Environmental impairment exposure is high due to possible contamination of ground, air, and water from chemicals and toxic lubricants, solvents and paints. Raw materials may be toxic and flammable. The catalysts may be caustic, and the final product is usually not biodegradable. Storage and disposal procedures must adhere to all EPA and other regulatory standards.

Workers compensation exposures can be very high. Injuries from production machinery are common, as are burns, cuts, puncture wounds, slips, trips, falls, foreign objects in the eye, hearing impairment from noise, back injuries from lifting, and repetitive motion injuries. Exposure to chemicals can cause skin and eye irritation, plus lung problems. Some employees may be allergic to natural latex.

Cutting operations can result in amputation. Should there be a fire, the molten plastic and 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. Employees should be provided with safety training and protective equipment.

Areas that generate dust require respiratory protection devices, as well as eye protection and eyewash stations. The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair. Workers must be made aware of the potential side effects of the ingredients they work with, including long-term occupational disease hazards, so they can recognize symptoms and obtain treatment as early as possible.

Property exposure consists of an office, shop, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, the 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.

Chemicals and fuel sources 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. Cutting, punching, and buffing operations generate dust which can catch on fire. This hazard increases in the absence of well 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.

Some expensive or hard-to-find toys may be targets for theft. 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.

There can be a significant business income and extra expense exposure, depending on the amount of time required to restore operations.

Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, 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 moderate to high for employee dishonesty and theft. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock, which may include brand names, limited edition sets, or popular "must have" Christmas items.

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), contractors' equipment for forklifts, exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information.

Raw stock and work in process may be transported between different buildings or locations. The primary causes of loss are fire, theft, collision, overturn, and water damage.

Commercial auto exposure may be high if the manufacturer transports 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 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

  • SIC CODE: 3942 Dolls And Stuffed Toys, 3944 Games, Toys, And Children's Vehicles, Except Dolls And Bicycles, 3949 Sporting And Athletic Goods, Not Elsewhere Classified
  • NAICS CODE: 339920 Sporting and Athletic Goods Manufacturing, 339930 Doll, Toy and Game Manufacturing
  • Suggested ISO General Liability Code(s): 59790
  • Suggested Workers Compensation Code(s): 4452, 4484, 4410

Description for 3942: Dolls And Stuffed Toys

Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 394: Dolls, Toys, Games And Sporting And Athletic

3942 Dolls And Stuffed Toys: Establishments primarily engaged in manufacturing dolls, doll parts, and doll clothing, except doll wigs. Establishments primarily engaged in manufacturing stuffed toys are also included in this industry. Doll Wigs are classified in Industry 3999.

  • Dolls, doll parts, and doll clothing: except wigs)
  • Dolls, miniature: collectors')
  • Stuffed toys (including animals)

Description for 3944: Games, Toys, And Children's Vehicles, Except Dolls And Bicycles

Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 394: Dolls, Toys, Games And Sporting And Athletic

3944 Games, Toys, And Children's Vehicles, Except Dolls And Bicycles: Establishments primarily engaged in manufacturing games and game sets for adults and children, and mechanical and nonmechanical toys. Important products of this industry include games; toy furniture; doll carriages and carts; construction sets; mechanical trains; toy guns and rifles; baby carriages and strollers; children's tricycles, coaster wagons, play cars, sleds, and other children's outdoor wheel goods and vehicles, except bicycles. Included are establishments primarily engaged in manufacturing electronic board games; electronic toys; and electronic game machines, except coin-operated. Establishments primarily engaged in manufacturing dolls and stuffed toys are classified in Industry 3942; those manufacturing bicycles are classified in Industry 3751; those manufacturing sporting and athletic goods for children and adults are classified in Industry 3949; those manufacturing coin-operated game machines are classified in Industry 3999; those manufacturing electronic video game cartridges are classified in Services, Industry 7372; and those manufacturing rubber toys, except dolls, are classified in Industry 3069.

  • Airplanes, toy
  • Automobiles and trucks, toy
  • Automobiles, children's pedal driven
  • Banks, toy
  • Baskets, toy
  • Bells, toy
  • Blocks, toy
  • Carriages, baby
  • Cars, play (children's vehicles)
  • Craft and hobby kits and sets
  • Cycles, sidewalk: children's
  • Darts and dart games
  • Dishes, toy
  • Doll carriages and carts
  • Drums, toy
  • Electronic game machines, except coin-operated
  • Electronic toys
  • Engines, miniature
  • Erector sets, toy
  • Games for children and adults: puzzles, bingo, marbles, poker chips,
  • Gocarts, children's
  • Guns, toy
  • Hobby horses
  • Horns, toy
  • Kites
  • Magic lanterns (toys)
  • Models, toy and hobby: e.g., airplane, boat, ship, railroad equipment
  • Musical instruments, toy
  • Paint sets, children's
  • Pistols, toy
  • Poker chips
  • Rifles, toy
  • Rocking horses
  • Science kits: microscopes, chemistry sets, and natural science sets
  • Scooters, children's
  • Sleds, children's
  • Strollers, baby (vehicles)
  • Structural toy sets
  • Sulkies, baby (vehicles)
  • Tenders, baby (vehicles)
  • Toys: except dolls, bicycles, rubber toys, and stuffed toys
  • Trains and equipment, toy: electric an mechanical
  • Tricycles, children's
  • Vehicles except bicycles, children's
  • Video game machines, except coin-operated
  • Wagons, children's: coaster, express, and play
  • Walkers, baby (vehicles)

Description for 3949: Sporting And Athletic Goods, Not Elsewhere Classified

Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 394: Dolls, Toys, Games And Sporting And Athletic

3949 Sporting And Athletic Goods, Not Elsewhere Classified: Establishments primarily engaged in manufacturing sporting and athletic goods, not elsewhere classified, such as fishing tackle; golf and tennis goods; baseball, football, basketball, and boxing equipment; roller skates and ice skates; gymnasium and playground equipment; billiard and pool tables; and bowling alleys and equipment. Establishments primarily engaged in manufacturing athletic apparel are classified in Major Group 23; those manufacturing athletic footwear are classified in Industries 3021 and 3149; those manufacturing small arms ammunition are classified in Industry 3482; and those manufacturing small arms are classified in Industry 3484.

  • Ammunition belts, sporting type: of all materials
  • Archery equipment
  • Arrows, archery
  • Athletic and sporting goods: except clothing, footwear, small arms,
  • Badminton equipment
  • Bait, fishing: artificial
  • Balls: baseball, basketball, football golf, tennis, pool, and bowling
  • Baseball equipment and supplies, except uniforms and footwear
  • Bases, baseball
  • Basketballs and basketball equipment and supplies, except uniforms
  • Baskets, fish and bait
  • Bats, game: e.g., baseball, softball, cricket
  • Billiard and pool balls, cues, cue tips and tables
  • Billiard chalk
  • Bobsleds
  • Boomerangs
  • Bowling alleys and accessories
  • Bowling pin machines, automatic
  • Bowling pins
  • Bows, archery
  • Boxing equipment
  • Bridges, billiard and pool
  • Buckets, fish and bait
  • Cartridge belts, sporting type
  • Cases, gun and rod (sporting equipment)
  • Creels, fish
  • Cricket equipment
  • Croquet sets
  • Decoys, duck and other game birds
  • Dumbbells
  • Exercise cycles
  • Exercising machines
  • Fencing equipment (sporting goods)
  • Fishing tackle (except lines, nets, and seines)
  • Flies, artificial: for fishing
  • Floats for fish lines
  • Footballs and football equipment and supplies, except uniforms and
  • Game calls
  • Gloves, sport and athletic: e.g., boxing, baseball, racketball, handball
  • Golf carts, hand
  • Golfing equipment: e.g., caddy cars and bags, clubs, tees, balls
  • Guards: e.g., football, basketball, soccer, lacrosse
  • Gymnasium and playground equipment
  • Helmets, athletic
  • Hockey equipment, except uniforms and footwear
  • Indian clubs
  • Jogging machines
  • Lacrosse equipment
  • Mallets, sports: e.g., polo, croquet
  • Masks, sports: e.g., baseball, fencing, hockey
  • Nets: e.g., badminton, basketball, tennis-not made in weaving mills
  • Pads, athletic: e.g., football, basketball, soccer, lacrosse
  • Pigeons, clay (targets)
  • Pin-setters for bowling, automatic
  • Playground equipment
  • Polo equipment, except apparel and footwear
  • Pool balls, pockets, tables, and equipment
  • Protectors, sports: e.g., baseball, basketball, hockey
  • Rackets and frames, sports: e.g., tennis, badminton, squash,
  • Rowing machines
  • Sailboards
  • Scoops, crab and fish
  • Scuba diving equipment, except clothing
  • Shafts, golf club
  • Sinkers (fishing tackle)
  • Skateboards
  • Skates and parts, ice and roller
  • Skin diving equipment, except clothing
  • Skis and skiing equipment, except apparel
  • Snowshoes
  • Soccer equipment, except apparel
  • Spearguns
  • Spears, fishing
  • Sporting goods: except clothing, footwear, small arms, and
  • Squash equipment, except apparel
  • Stand boards
  • Sticks, sports: e.g., hockey, lacrosse
  • Striking (punching) bags
  • Strings, tennis racket
  • Surfboards
  • Swimming pools, plastics
  • Tables: billiard pool, bagatelle, and ping pong
  • Target shooting equipment, except small arms and ammunition
  • Targets, archery and rifle shooting
  • Targets, clay
  • Tennis goods: e.g., balls, frames, rackets
  • Toboggans
  • Track and field athletic equipment, except apparel and footwear
  • Trap racks (clay targets)
  • Treadmills
  • Wading pools, plastics coated fabric
  • Windsurfing boards and equipment

Plastic And Rubber Toys Manufacturers Insurance - The Bottom Line

Plastic and rubber toys manufacturers insurance policies vary in coverages, premiums and exclusions. To see if your manufacturing business has the best fit insurance policies - chat with 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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