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:
- 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?
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.
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 ISO General Liability Code(s): 58057, 58058
- Suggested Workers Compensation Code(s): 4452, 4459
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
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.
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.
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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Policies||What 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 Insurance||What 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 Bond||What 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
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.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Psychedelic Drugs
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vending Machines
- Vegetable Juice
- Wire Rope
- Wood Furniture
- Writing Instruments
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.