Plastics Manufacturers Insurance

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Plastics Manufacturers Insurance Policy Information

Plastics Manufacturers Insurance

Plastics Manufacturers Insurance. Plastics unquestionably play a vital role in today's world. From electrical appliances to computers, and from toys to plumbing applications, over 45 distinct types of plastic are used in a multitude of industrial and residential products.

Plastics manufacturers produce malleable pellets or sheets from raw materials and sell their products to fabricators who convert these into a wide variety of commercial and domestic goods.

The raw materials are chiefly ethylene and propane which are refined from crude oil, then heated and combined with a catalyst to create several types of polymer in liquid or powdered form. The polymers may be combined with each other or with additives before being formed into pellets or extruded into sheets and cooled by water or air.

Before companies that manufacture plastic end products are able to carry out their activities, plastics manufacturers produce malleable plastic pellets or sheets that can then be incorporated into a breathtaking variety of end products.

On an annual basis, these plastics manufacturers process over 300 million tons of plastic, making this industry an extremely profitable one. Like manufacturers within other branches of industry they are also, however, vulnerable to a broad spectrum of risks.

Any unforeseen event has the potential to wreak financial havoc that can, in the worst cases, lead to bankruptcy. What types of plastics manufacturers insurance might companies in this industry need to protect their business interests from major perils? Read on to learn more.

Plastics 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 plastics manufacturing insurance questions:


How Much Does Plastics Manufacturers Insurance Cost?

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


Why Do Plastics Manufacturers Need Insurance?

Insurance For Manufacturers

Companies that make plastic pellets and sheets will do everything they can to run a smooth and effective operation while mitigating the risks they face. Despite these efforts, accidents and other circumstances beyond a company's control may still impact their business.

Acts of nature - including, for instance, earthquakes, serious floods or storms, lightning strikes, and hurricanes - can strike any company. These events cannot be prevented and often hit with very little warning, after which they can severely damage not just a company's physical building but also everything inside it.

Theft and vandalism likewise have the potential to deal serious financial blows, and even the sudden breakdown of essential industrial equipment has to be considered. Plastics manufacturers additionally have a high fire risk.

Plastics manufacturers also face liability risks. Employees may become injured while operating heavy machinery, or suffer occupational illnesses resulting from numerous causes, including non-ergonomic working environments. Third parties might get into an accident on a company's premises, or an environmental leak or spill could lead to drawn-out litigation.

Firms in this industry need plastics manufacturers insurance coverage for the simple reason that these threats can never be completely prevented - and just one major peril can have devastating financial consequences.

When a manufacturer is properly insured, however, it will be much easier to recover from any loss.


What Type Of Insurance Do Plastics Manufacturers Need?

Because the right insurance coverage can easily make the difference between continued commercial success and bankruptcy, it is vital to carefully consider your insurance needs.

Consulting a reputable commercial insurance agent is the best way to do this, as they can guide you through the process of purchasing the coverage you need. The insurance a company will need to carry depends on factors such as the location of their facility, the raw materials they process, the value of their industrial equipment, and their number of workers.

They will, however, certainly require the following types of plastics manufacturers insurance:

  • Commercial Property: Intended to protect a company from financial losses in the event of property damage or loss caused by perils such as vandalism, theft, and acts of nature, this type of insurance covers your physical building as well as the assets inside.
  • Commercial General Liability: Should a third party file a claim alleging property damage or bodily injury, which either took place on your premises or resulted from your company's activities, commercial general liability insurance is likely to cover the legal costs that follow.
  • Product Liability: This type of plastics manufacturers insurance insurance covers bodily injury and property damage claims resulting directly from exposure to a product you manufactured. It helps cover attorney fees and settlement costs.
  • Workers Compensation: In case an employee suffers a work-related injury or illness, this kind of insurance coverage funds their medical costs. If the employee cannot return to work for a time, their lost wages are also reimbursed.
  • Commercial Auto: Any company that uses vehicles for commercial purposes will further require commercial auto insurance, which covers perils ranging from vehicle damage to driver injuries.


Bear in mind that these types of insurance are merely examples of the coverage a plastics manufacturer is going to need to protect their business from perils.

A commercial insurance broker who is familiar with the nature of your company is best suited to guide you through the process of obtaining the plastics manufacturers insurance that will allow your business to thrive in the face of any adversity.

Plastics Manufacturing's Risks & Exposures

Manufacturing

Premises liability exposures at the plant are 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. Raw materials and 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 plus 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 is low as the product is being shipped to manufacturers who produce the finished goods. Quality control is very important. If a customer orders a particular type of plastic, such as with fire retardant qualities, it must meet all specifications or the end product may not function as planned.

Environmental impairment exposure is high due to possible contamination of ground, air, and water from raw chemicals, solvents, and fuels. The raw materials are flammable and may be toxic.

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. 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.

The 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 exposure consists 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. 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 a severe loss, both direct and under time element.

Crime exposure comes from employee dishonesty. 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.

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 perils 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 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: 2821 Plastics Material, Synthetic And Resins, and Nonvulcanizable Elastomers
  • NAICS CODE: 325211 Plastics Material and Resin Manufacturing
  • Suggested ISO General Liability Code(s): 58057, 58058
  • Suggested Workers Compensation Code(s): 4459

Description for 2821: Plastics Material, Synthetic And Resins, and Nonvulcanizable Elastomers

Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 282: Plastics Materials And Synthetic Resins, Synthetic

2821 Plastics Material, Synthetic And Resins, and Nonvulcanizable Elastomers: Establishments primarily engaged in manufacturing synthetic resins, plastics materials, and nonvulcanizable elastomers. Important products of this industry include: cellulose plastics materials; phenolic and other tar acid resins; urea and melamine resins; vinyl resins; styrene resins; alkyd resins; acrylic resins; polyethylene resins; polypropylene resins; rosin modified resins; coumarone-indene and petroleum polymer resins; miscellaneous resins, including polyamide resins, silicones, polyisobutylenes, polyesters, polycarbonate resins, acetal resins, and fluorohydrocarbon resins; and casein plastics. Establishments primarily engaged in manufacturing fabricated plastics products or plastics film, sheet, rod, non-textile monofilaments and regenerated cellulose products, and vulcanized fiber are classified in Industry Group 308, whether from purchased resins or from resins produced in the same plant. Establishments primarily engaged in compounding purchased resins are classified in Industry 3087. Establishments primarily manufacturing adhesives are classified in Industry 2891.

  • Acetal resins
  • Acetate cellulose (plastics)
  • Acrylic resins
  • Acrylonitrile-butadiene-styrene resins
  • Alcohol resins, polyvinyl
  • Alkyd resins
  • Allyl resins
  • Butadiene copolymers, containing less than 50 percent butadiene
  • Carbohydrate plastics
  • Casein plastics
  • Cellulose nitrate resins
  • Cellulose propionate (plastics)
  • Coal tar resins
  • Condensation plastics
  • Coumarone-indene resins
  • Cresol resins
  • Cresol-furfural resins
  • Dicyandiamine resins
  • Diisocyanate resins
  • Elastomers, nonvulcanizable (plastics)
  • Epichlorohydrin bisphenol
  • Epichlorohydrin diphenol
  • Epoxy resins
  • Ester gum
  • Ethyl cellulose plastics
  • Ethylene-vinyl acetate resins
  • Fluorohydrocarbon resins
  • Ion exchange resins
  • Ionomer resins
  • Isobutylene polymers
  • Lignin plastics
  • Melamine resins
  • Methyl acrylate resins
  • Methyl cellulose plastics
  • Methyl methacrylate resins
  • Molding compounds, plastics
  • Nitrocellulose plastics (pyroxylin)
  • Nylon resins
  • Petroleum polymer resins
  • Phenol-furfural resins
  • Phenolic resins
  • Phenoxy resins
  • Phthalic alkyd resins
  • Phthalic anhydride resins
  • Polyacrylonitrile resins
  • Polyamide resins
  • Polycarbonate resins
  • Polyesters
  • Polyethylene resins
  • Polyhexamethylenediamine adipamide resins
  • Polyisobutylenes
  • Polymerization plastics, except fibers
  • Polypropylene resins
  • Polystyrene resins
  • Polyurethane resins
  • Polyvinyl chloride resins
  • Polyvinyl halide resins
  • Polyvinyl resins
  • Protein plastics
  • Pyroxylin
  • Resins, synthetic
  • Rosin modified resins
  • Silicone fluid solution (fluid for sonar transducers)
  • Silicone resins
  • Soybean plastics
  • Styrene resins
  • Styrene-acrylonitrile resins
  • Tar acid resins
  • Urea resins
  • Vinyl resins

Plastics Manufacturers Insurance - The Bottom Line

Plastics manufacturers insurance policies can be very different in coverage, costs and exclusions. To learn if your plastics manufacturing operation has the best fit insurance policies - talk 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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