Pottery Manufacturers Insurance Policy Information
Pottery Manufacturers Insurance. Pottery is among the most ancient skills, serving both decorative and functional purposes. Plates, bowls, cups, vases, and other everyday objects are made from clay or other ceramics. As people did long ago, pottery can still be produced in small workshops with rudimentary tools, mostly by hand.
Pottery manufacturers produce dinnerware, cookware, collectible and ornamental objects made of clay. The process involves mixing raw materials, predominantly clay, with pigments or other materials to achieve the desired color, texture, and strength.
This mixture is formed into products by a variety of methods, such as on roller head machines or in slip casting molds, shaped by hand or on a potter's wheel, and finally baked ("fired") in a kiln. The pottery may be glazed before the firing, or glazed afterwards and refired.
The raw materials may be purchased from others or mined at the manufacturer's own quarries. After mining, the raw materials are run through crushing, sorting and mixing operations to achieve the proper proportions of materials.
Industrial evolution has also, however, made the mass production of pottery products with large machines possible. Machines as varied as blungers, jiggering machines, kilns, and glazing equipment is employed in pottery factories on massive assembly lines.
If you own a company that manufactures pottery - whether it is a small workshop or a large pottery factory - you make products millions of people across the globe rely on for their daily needs. Companies within this industry are also, like any commercial venture, exposed to a broad range of hazards that could lead to serious financial losses.
That is why it is crucial to arrange for the right kind of pottery manufacturers insurance, and here, we will examine what forms of insurance might be required.
Pottery 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 pottery manufacturing insurance questions:
- How Much Does Pottery Manufacturers Insurance Cost?
- Why Do Pottery Manufacturers Need Insurance?
- What Type Of Insurance Do Pottery Manufacturers Need?
How Much Does Pottery Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small pottery manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Pottery Manufacturers Need Insurance?
"Circumstances beyond your control" - events that you could not have planned for or prevented - can strike any company, including those that make pottery. The potentially ruinous risks you have to take into account when looking at your insurance needs comprise both those seen in every field of business and those exclusive to your business.
Theft and vandalism, for example, might impact any company. The cost of replacing the lost or damaged equipment and commodities can stretch far beyond what a company is capable of handling on their own. Acts of nature, like hurricanes, earthquakes, and wildfires, but also serious floods, can be even more devastating.
Kilns or other equipment essential to your production line could break down, leading to repair or replacement costs as well as costly interruptions in production. Companies making pottery further have to consider the risk of workers becoming injured over the course of their jobs and then being held liable. Third parties, too, can suffer accidents on your premises.
This small glimpse into the things that can go wrong within a pottery factory or workshop does not cover all the risks you will face, but it does suffice to explain why the correct pottery manufacturers insurance coverage is so crucial.
What Type Of Insurance Do Pottery Manufacturers Need?
Each company is unique - and their insurance needs are, too. The size and scope of your business, the kinds of ceramics you work with, the location of your manufacturing facility, and your number of employees are just some of the factors that influence what kinds of insurance you will need.
A commercial insurance agent is best situated to walk you through the process. The kinds of pottery manufacturers insurance you cannot do without include, however:
- Commercial Property: This kind of insurance covers your physical assets from financial losses resulting from unforeseen circumstances that include theft, vandalism, and fire. Your physical building, manufacturing equipment, raw materials, inventory, and even furniture fall under this coverage.
- General Liability: Should third parties become injured within your manufacturing facility, or should your company's activities cause damage to third party property, this kind of pottery manufacturers insurance helps cover legal and settlement expenses (such as medical and repair bills).
- Workers Compensation: In every industry, workers can sustain work-related injuries. They vary from inhaling ceramic dust to being burned during the manufacturing process in your field, but companies can even be held liable for slips on wet floors. Workers' compensation insurance will help by covering injured workers' lost wages as well as medical bills.
- Product Liability: Any manufacturer that makes products that could, in case of malfunction or improper use, cause bodily harm or property damage, will further want to consider product liability insurance. In the pottery business, that might include the eventuality that end consumer are exposed to toxic compounds.
Remember that your insurance needs might differ from those of another manufacturer in the same field, as well as that the cost of the policies and the exact coverage they provide can vary significantly.
A competent commercial insurance broker is invaluable in helping you build the pottery manufacturers insurance plan you need, for the best price.
Pottery Manufacturing's Risks & Exposures
Premises liability exposures is normally low due to limited access by visitors. If tours are given or if outsiders are allowed on premises, visitors may be injured by slips, trips or falls. The storage of raw materials or recycled pottery outdoors can produce attractive nuisance hazards to trespassers, particularly children.
Fumes, dust, and noise from processing operations may affect neighbors. This can result in a high frequency of nuisance claims, but may also cause serious health problems due to the generation of silica dust.
Blasting poses high exposures as neighboring properties may be damaged, either directly or by shock waves.
Products liability exposures are generally low to moderate. There should be good quality control procedures in place, with checks conducted to detect cracks, blemishes or other defects.
Environmental impairment exposure is moderate to high due to the potential for air, land and water pollution from dust and fuel storage tanks. Most pottery manufacturers will have fuel tanks on premises and may require a UST policy. Vapors, fumes and air pollutants, wastewater and by-products disposal must be evaluated and controlled.
Disposal procedures must adhere to all EPA and other regulatory standards. Reclamation procedures should be in place to control the impact of the quarrying operation on the environment. There is the possibility of claims for cumulative structural damage to neighboring foundations from the heavy traffic of quarry operations.
Workers compensation exposure is serious even if there is no quarry. Injuries from production machinery are common, as are minor cuts, burns, slips, trips, falls, foreign objects in the eye, back injuries from lifting, hearing loss from noise, and repetitive motion losses. Workstations should be ergonomically designed.
Employees should be provided with safety training and protective equipment. Areas that generate dust require respiratory protection devices, as well as eye protection and eye wash stations. Maintenance and fueling of machinery and kilns may require workers to enter confined spaces.
Exposure to rock dust and silica may cause serious skin, eye and respiratory irritations, and lead to occupation diseases such as Silicosis or Shaver's Lung.
Property exposures consist of office, production plant and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, kilns, and the storage of large amounts of fuels to operate them. The kilns may burn continuously and must be monitored to prevent overheating.
Maintenance of equipment is critical to prevent wear and tear and overheating, which are potential fire hazards. In the absence of well maintained dust collection systems, cutting and buffing operations can generate dust which can catch on fire. Operating the kilns without adequate ventilation systems can build up flammable vapors and heat that can result in fire or explosion.
Fuels stored on premises should be separated from processing areas. Some types of pottery are extremely fragile and subject to breakage; neither the raw materials nor the finished goods are susceptible to fire, water or smoke damage. Explosives used in blasting operations may explode and are targets for theft.
Equipment breakdown exposures include malfunctioning production equipment for both the kiln and the hydraulic press used to compact the clay, dust collection and ventilation systems, electrical control panels, and other apparatus.
These should be properly maintained and records kept in a central location. A lengthy breakdown to production machinery could result in severe loss, both direct and under time element.
Crime exposure comes from employee dishonesty and theft as finished items may be 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 those handling bank statements. There should be security methods in place to prevent theft.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information.
Backup copies of all records should be made and stored off premises. Stock in transit may be highly susceptible to damage from breakage in a collision or overturn, and possibly theft. There will be a contractors' equipment exposure if there is a quarry.
Commercial auto exposure can be high if the manufacturer has a quarry, picks up raw materials or delivers finished goods to customers. 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: 3263 Fine Earthenware (Whiteware) Table And Kitchen Articles, 3269 Pottery Products, Not Elsewhere Classified
- NAICS CODE: 327110 Pottery, Ceramics, and Plumbing Fixtures Manufacturing
- Suggested ISO General Liability Code(s): 51869, 51877
- Suggested Workers Compensation Code(s): 4053, 4061, 4062
Description for 3263: Fine Earthenware (Whiteware) Table And Kitchen Articles
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 326: Pottery And Related Products
3263 Fine Earthenware (Whiteware) Table And Kitchen Articles: Establishments primarily engaged in manufacturing fine (semivitreous) earthenware table and kitchen articles for preparing, serving, or storing food or drink. Establishments primarily engaged in manufacturing vitreous china table and kitchen articles are classified in Industry 3262.
- Cooking ware, fine earthenware
- Earthenware: commercial and household-semivitreous
- Kitchenware, semivitreous earthenware
- Tableware: commercial and household-semivitreous
- Whiteware, fine type semivitreous tableware and kitchenware
Description for 3269: Pottery Products, Not Elsewhere Classified
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 326: Pottery And Related Products
3269 Pottery Products, Not Elsewhere Classified: Establishments primarily engaged in firing and decorating white china and earthenware for the trade and manufacturing art and ornamental pottery, industrial and laboratory pottery, stoneware and coarse earthenware table and kitchen articles, unglazed red earthenware florists' articles, and other pottery products, not elsewhere classified.
- Art and ornamental ware, pottery
- Ashtrays, pottery
- Ceramic articles for craft shops
- Chemical porcelain
- Chemical stoneware (pottery products)
- China firing and decorating, for the trade
- Cones, pyrometric: earthenware
- Cooking ware: stoneware, coarse earthenware, and pottery
- Decalcomania work on china and glass, for the trade
- Earthenware table and kitchen articles, coarse
- Encrusting gold, silver, or other metal on china, for the trade
- Figures, pottery: china, earthenware, and stoneware
- Filtering media, pottery
- Florists' articles, red earthenware
- Flower pots, red earthenware
- Forms for dipped rubber products, pottery
- Grinding media, pottery
- Heater parts, pottery
- Kitchen articles, coarse earthenware
- Lamp bases, pottery
- Pottery: art, garden, decorative, industrial, and laboratory
- Pyrometer tubes
- Rockingham earthenware
- Smokers' articles, pottery
- Stationery articles, pottery
- Textile guides, porcelain
- Vases, pottery (china, earthenware, and stoneware)
Pottery Manufacturers Insurance - The Bottom Line
Pottery manufacturers insurance policies can vary widely in cost, coverage and exclusions. To see if your pottery manufacturing operation has the best fit insurance policies - talk to an experienced business insurance agent.
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.
- Audio & Video Equipment
- Auto Parts
- 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
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fur Garment
- Garage Door
- Gypsum Products
- 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
- 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
- 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.