Plastics Molding, Forming And Extruding Manufacturers Insurance Policy Information
Plastics Molding, Forming And Extruding Manufacturers Insurance. The PM&F industry - which covers the massive and extremely diverse field of companies that mold, form and extrude plastics using a variety of techniques - processes the raw materials that will become plastic goods used for both consumer and industrial markets.
Each technique, such as injection molding, extrusion molding, blow molding, and foam molding, is suited for the production of a different type of end product.
Plastics goods manufacturers produce a wide variety of products including component parts for domestic or industrial goods, films for photographic or X-ray use, foams, large sheets for general use in construction, transportation or insulation, light furniture, marine equipment, packaging materials, plumbing materials, sheathing, and sausage casings.
While they do not make the actual plastic, they use molding, forming, or extruding processes to turn raw plastic into finished goods. Raw plastic can be in powder, liquid, flake, or pellet form.
It is blended or mixed with a wide range of additives, resins, colorants, and catalysts, heated, then molded, formed, or extruded into an end product. The end use of the product determines the mixtures and composition of the blends.
As vital as the plastics molding and forming industry is to the global supply chain, companies within this branch of manufacture can never ignore the fact that their businesses are also vulnerable to a range of perils that could threaten their future.
Because of this, it is essential for companies within the field of PM&F to carefully consider their insurance needs. Here, we will discuss what types of plastics molding, forming and extruding manufacturers insurance companies in this industry may require.
Plastics molding, forming and extruding 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 molding, forming and extruding manufacturing insurance questions:
- What Is Plastics Molding, Forming And Extruding Manufacturers Insurance?
- How Much Does Plastics Molding, Forming And Extruding Manufacturers Insurance Cost?
- Why Do Plastics Molding, Forming And Extruding Manufacturers Need Insurance?
- What Type Of Insurance Do Plastics Molding, Forming And Extruding Manufacturers Need?
- What Does Plastics Molding, Forming And Extruding Manufacturers Insurance Cover & Pay For?
What Is Plastics Molding, Forming And Extruding Manufacturers Insurance?
Plastics molding, forming and extruding manufacturers insurance is a type of liability insurance that protects companies that produce plastic products through molding, forming, and extruding processes.
This insurance covers the financial losses a company may incur from lawsuits, accidents, and other damages that arise from the manufacturing and distribution of plastic products. This insurance can include coverage for product liability, property damage, and business interruption.
It is designed to protect the manufacturer from financial losses in the event of any legal or physical damages that may occur during the production process.
How Much Does Plastics Molding, Forming And Extruding Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small plastics molding, forming and extruding manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Plastics Molding, Forming And Extruding Manufacturers Need Insurance?
Business owners will always endeavor to run a successful business - and mitigating the risks you face in your field is an integral part of that. It will never be possible to avoid all accidents and other perils, however.
Both risks shared by all commercial ventures and hazards unique to the plastics industry always pose a threat to your company's financial health. Without the right insurance, any peril that impacts your business can set you back or even bankrupt your company.
Acts of nature as varied as wildfires, earthquakes, floods, hurricanes, and lightning strikes could simultaneously damage your facility and interrupt your production line, for example. Criminal acts like theft and vandalism have the same potential.
Within the plastics industry, it is additionally essential to consider occupational injuries employees may sustain. While hazardous substances do pose a threat, ordinary slips and falls are, in fact, one of the prime causes of occupational accidents in this field.
The possibility that wastewater, almost unavoidable in the plastics industry, contaminates the environment is another major risk within the PM&F field.
Should these perils, or others, impact your company, having the correct plastics molding, forming and extruding manufacturers insurance coverage will help you recover quickly.
What Type Of Insurance Do Plastics Molding, Forming And Extruding Manufacturers Need?
Numerous factors determine what types of insurance a company in the plastics industry needs for optimal protection. The location of your manufacturing plant, the techniques you use to mold and form plastics, the value of your industrial equipment, and the nature of the products you make are merely examples.
Obtaining the right insurance coverage can be a challenging process, and the best way to make sure your needs are met lies in partnering with a skilled and experienced commercial insurance agent.
Examples of essential plastics molding, forming and extruding manufacturers insurance types for companies within the this industry, however, include:
- General Liability: Should a third party file a bodily injury or property damage claim against your company, this can have a massive impact on your bottom line - even if the lawsuit is ultimately unsuccessful. This type of insurance covers your legal defense fees as well as any settlement payments.
- Product Liability: This type of insurance shields you from financial damage in the event that a third party alleges that they suffered harm, in the form of injury or property damage, as a result of exposure to a product you manufactured.
- Environmental: Designed to (partially) cover the costs associated with environmental pollution caused by your company, this type of plastics molding, forming and extruding manufacturers insurance coverage is also vital to companies within the plastics processing field.
- Workers Compensation: Should an employee sustain a workplace injury or occupational illness, workers' compensation insurance covers any medical bills they may have, alongside wages they may lose due to resulting absences from work. In doing so, this kind of coverage further protects your plastics company from related lawsuits.
- Commercial Property: Essential for any type of business, this type of insurance shields companies from the financial fallout of perils such as theft, vandalism, and acts of nature. It covers your manufacturing facility as well as the physical assets within it.
Because these types of plastics molding, forming and extruding manufacturers insurance may not fully meet your needs, it is imperative that you walk though your risk profile with a commercial insurance broker.
In crafting an individual insurance plan together with an expert, you are able to effectively protect your company from almost any peril.
Plastics Molding, Forming And Extruding Manufacturing's Risks & Exposures
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. 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 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 depends on the end product, which may be innocuous or dangerous. 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. 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 warehouse for storage of raw goods and finished products. 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. 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 the heat 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 a 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 clients' 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.
What Does Plastics Molding, Forming And Extruding Manufacturers Insurance Cover & Pay For?
Plastics molding, forming, and extruding manufacturers may be subjected to lawsuits for several reasons, including but not limited to product liability, workplace accidents, intellectual property disputes, environmental harm, and contractual issues. Insurance plays a vital role in protecting these manufacturers from the financial burden that may result from such lawsuits. Here's how:
Product Liability: This is one of the most common reasons for lawsuits in this industry. If a product manufactured by a company causes injury, damage, or loss due to a defect or failure, the company could be held liable. For example, a plastic part used in an automobile might fail, leading to an accident. In such cases, product liability insurance can help cover the costs associated with the lawsuit, including legal defense fees and any damages or settlements awarded to the plaintiff.
Workplace Accidents: The manufacturing process can be hazardous, and accidents can occur, leading to worker injuries. Should an injured worker decide to sue the manufacturer, the company could face significant financial consequences. Workers' compensation insurance can cover medical costs, rehabilitation expenses, and a portion of lost wages for injured workers, protecting the company from the brunt of these costs. Additionally, Employer's Liability insurance, usually part of the Workers' Comp policy, can help pay for legal defense costs and any potential settlements or judgments.
Intellectual Property Disputes: Manufacturers may face lawsuits alleging that they infringed upon another company's patents, trademarks, or copyrights. If a competitor claims that a particular method of molding plastic was their patented process, for instance, the manufacturer may face a lawsuit. Intellectual Property insurance can help cover the legal costs associated with such disputes, including defense costs, settlements, and any awarded damages.
Environmental Harm: The production process may result in pollution or environmental damage, and manufacturers could be sued by regulatory bodies, local communities, or environmental organizations. For example, if the disposal of waste from a plant contaminates local groundwater, the company could be held liable. Environmental or pollution liability insurance can help cover the costs associated with cleaning up the pollution and any legal costs associated with environmental lawsuits.
Contractual Issues: Disputes over contracts with suppliers, customers, or other parties can also lead to lawsuits. For instance, if a manufacturer fails to deliver products as per the terms agreed upon in a contract, they could face a lawsuit. Professional liability insurance, also known as Errors and Omissions insurance, can help cover the legal costs in such situations, including defense costs and any damages awarded.
It's important to note that the scope of coverage and the specific terms and conditions can vary significantly between insurance policies. Therefore, companies should work closely with their insurance providers or brokers to ensure they have adequate coverage for the risks specific to their operations.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3081 Unsupported Plastics Film And Sheet, 3082 Unsupported Plastics Profile Shapes, 3087 Custom Compounding Of Purchased Plastics Resins, 3089 Plastics Products, Not Elsewhere Classified
- NAICS CODE: 326113 Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing, 326121 Unlaminated Plastics Profile Shape Manufacturing, 325991 Custom Compounding of Purchased Resins
- Suggested Workers Compensation Code(s): 4452 Plastics Manufacturing - Fabricated Products NOC, 4459 Plastics Manufacturing - Sheets, Rods, or Tubes
Description for 3081: Unsupported Plastics Film And Sheet
Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 308: Miscellaneous Plastics Products
3081 Unsupported Plastics Film And Sheet: Establishments primarily engaged in manufacturing unsupported plastics film and sheet, from purchased resins or from resins produced in the same plant. Establishments primarily engaged in manufacturing plastics film and sheet for blister and bubble formed packaging are classified in Industry 3089.
- Cellulosic plastics film and sheet, unsupported
- Film, plastics: unsupported
- Photographic, micrographic, and X-ray plastics, sheet, and film:
- Polyester film and sheet, unsupported
- Polyethylene film and sheet, unsupported
- Polypropylene film and sheet, unsupported
- Polyvinyl film and sheet, unsupported
- Sheet, plastics: unsupported
- Vinyl and vinyl copolymer film and sheet, unsupported
Description for 3082: Unsupported Plastics Profile Shapes
Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 308: Miscellaneous Plastics Products
3082 Unsupported Plastics Profile Shapes: Establishments primarily engaged in manufacturing unsupported plastics profiles, rods, tubes, and other shapes. Establishments primarily engaged in manufacturing plastics hose are classified in Industry 3052.
- Profiles, unsupported plastics
- Rods, unsupported plastics
- Tubes, unsupported plastics
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 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
Plastics Molding, Forming And Extruding Manufacturers Insurance - The Bottom Line
Plastics molding, forming and extruding manufacturers insurance policies can differ widely in premiums, coverages and exclusions. You can learn if your manufacturing business has the best fit insurance policies by talking to an experienced commercial insurance broker.
Often they are able to save you on premiums and offer you better policy options than you currently have.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- 3D Printing
- Adhesives
- Alarms
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Boxes
- Bricks
- Brooms & Brushes
- Buttons
- Cabinets
- Camping Equipment
- Canned Fruit & Vegetables
- Cans
- Canvas Products
- Caskets
- CBD Oil And Hemp
- Cement
- Ceramics
- Chemical
- Clock & Watch
- Clothing
- Coffee
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Computers
- Condoms
- Construction Equipment
- Cork Products
- Cosmetics
- Cutlery
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Electroplating
- Elevators
- Engines
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fences
- Fertilizer
- Fireworks
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gears
- Glass
- Glasswear
- Gypsum Products
- Hosiery
- Ice Cream
- Industrial Equipment
- Ink
- Insecticides
- Iron & Steel Foundries
- Jewelry
- Lawn Mowers
- Leather Apparel
- Leather Goods
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Manufacturing
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Millwork
- Monuments
- Musical Instruments
- Nanotechnology
- Nonferrous Foundries
- Ornamental Metalwork
- Paint
- Paper & Allied Products
- Pesticides
- Pet Food
- Pharmaceuticals
- Plastic & Rubber Toys
- Plastic Goods
- Plastics
- Plastics Molding, Forming & Extruding
- Pottery
- Product Liability
- Prosthetics
- Psychedelic Drugs
- Pulp & Paper Mills
- Refractory
- Residential Air Conditioning & Heating
- Rubber Goods
- Rugs
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Shoes
- Small Electrical Appliances
- Sporting Goods
- Springs
- Stone Products
- Tanneries
- Textiles
- Textiles Finishing & Coating
- Tires
- Tobacco
- Tool & Die Shops
- Vegetable Juice
- Vending Machines
- Watercraft
- Wire
- Wire Rope
- Wood Furniture
- Woodworking
- Writing Instruments
- Yarn
- Specialty Manufacturing
- Specialty Product Liability
The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
