Refractory Insurance Policy Information
Refractory Insurance. Refractory materials are those - generally ceramic - materials that retain their characteristics despite extremely high temperatures, pressures, and even chemical attacks.
Refractories produce bricks, tiles, and mortar that retain their shape and integrity when subjected to high temperatures. The final products are used as liners for residential and industrial furnaces, hearths, kilns, incinerators, reactors and crucibles for melting glass and steel.
Manufacturing begins with raw materials such as aluminum oxide, clay, graphite, magnesium, or silica. These are often combined with pigment or other materials to achieve the desired color, texture, and strength.
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.
The mixture may be poured into molds, extruded, or pressed through a die and cut to size before passing into a kiln for firing. The brick or tile may be glazed before the firing, or glazed afterwards and refired.
Refractory products have been used for centuries, for instance by craftspeople making pottery. Today, however, refractory materials have a broad range of applications within industries such as the petrochemical industry, metallurgy, and mining.
Refractories can be categories by chemical composition, and include silica, zirconia, dolomite, and carbon graphite based materials. The manufacturing process will vary from one refractory to the next.
All companies engaged in the manufacture of refractory, share the fact that they not only enjoy numerous business opportunities but are also exposed to a multitude of risks in common.
This is why it is crucial for refractories to carefully examine what types of insurance they need to shield their businesses from the many perils that could impact them. To find out what kinds of refractory insurance coverage are essential, read on.
Refractory insurance protects your manufacturing business from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked refractory insurance questions:
- How Much Does Refractory Insurance Cost?
- Why Do Refractories Need Insurance?
- What Type Of Insurance Do Refractories Need?
How Much Does Refractory Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small refractories ranges from $87 to $129 per month based on location, size, revenue, claims history and more.
Why Do Refractories Need Insurance?
All commercial ventures face risks that could lead to ruinous financial outcomes. Within the field of refractory manufacture, companies have to take industry-specific risks into account alongside the same types of hazards that could impact any company, regardless of their branch of commerce.
While some companies will look to only obtain the types of insurance that may be required by local authorities or lenders, those who seek to secure their place in the market go above and beyond - for the simple reason that excellent insurance coverage can save your business from bankruptcy.
Acts of nature - as varied as earthquakes, storms, wildfires, and hurricanes - can strike any business, severely damaging their property and as such interrupting their production for the foreseeable future. Theft and vandalism are two more examples of major perils that no business can ever be completely safe from.
Refractories also have to consider the occupational hazards workers in this field are exposed to. Silica exposure can, over the long term, lead to serious respiratory conditions, for example, but even falls are a common source of workplace injury for refractory workers.
Companies are often financially held responsible for these occupational injuries. Should a third party suffer a bodily injury within your manufacturing facility, should your business cause property damage to someone else, or should you be accused of environmental contamination, the liability costs can again be massive.
The list of possible perils is almost endless, but the modern refractory insurance market can help protect you against almost all of them.
What Type Of Insurance Do Refractories Need?
Each refractory will have different insurance needs - they depend, among other variables, on the location of your facility, the nature of the refractory materials you produce, your manufacturing process and equipment, and even the number of workers you employ.
Because the best insurance plans are individualized, you are advised to consult a skilled commercial insurance agent to discuss your risk profile in detail.
With that in mind, some of the types of refractory insurance coverage firms in this industry will certainly need include:
- Commercial Property: In the event that your facility is impacted by perils like acts of nature, theft, or vandalism, extensive damage can be done. This type of insurance helps to cover the costs of such damage or loss, and it protects your physical building as well as industrial equipment, raw materials, and other physical assets.
- Liability: Multiple sub-categories of liability insurance exist. Refractory manufacturers will certainly want to carry commercial general liability insurance, which covers the costs of third party bodily injury or property damage claims in many cases. They may further want to carry product liability insurance, which covers allegations that a product you manufactured caused harm to a third party. Environmental insurance may also serve refractory manufacturers well. In all cases, both legal defense costs and settlement payouts are (partially) covered.
- Workers' Compensation: This type of refractory insurance protects both your company and your employees. In the event that an employee suffers a workplace injury or occupational illness for which your business could be held liable, it reimburses both their medical bills and any income they lose due to related work absences.
These types of refractory insurance are just examples of the types of coverage that refractories may want to consider to optimally protect their financial health. For further information specific to your individual business, contact a reputable commercial insurance specialist.
Refractories' 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. 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.
Hazards increase if the location is not fenced and monitored while not in use, as the edge of a quarry is commonly a cliff, presenting a significant fall hazard. The piles of stone waiting to be crushed or in a hopper and the equipment in the open present an attractive nuisance to trespassers and children.
Blasting poses high exposures as neighboring properties may be damaged, either directly or by shock waves.
Products liability exposure is very high due to the use of refractory products in residential and commercial structures. As these are designed to withstand high heat and insulate other items, even a small a crack can result in a fire escaping containment and causing extensive damage at the customer's location.
Inadequacy of anchoring systems can also result in product failure. There should be quality control procedures for products throughout the manufacturing process and of finished goods 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 brick 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 quarry on the environment.
There also is the possibility of claims for cumulative structural damage to neighboring foundations from the heavy traffic of quarry operations.
Workers compensation exposures are 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 irritation, and lead to occupational diseases such as Silicosis or Shaver's Lung.
Stone-cutting operations can result in injuries from flying chips and debris, or being crushed by falling stone.
Property exposures consist of an 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 fuel to run them.
The kilns burn continuously and must be monitored to prevent overheating. Wear and tear and overheating of machinery are potential fire hazards.
Electrical equipment must be maintained in good repair and adequate for the heavy-duty requirements. In the absence of well maintained dust collection systems, cutting and buffing operations can generate dust which can catch on fire.
Operating 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. 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. 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.
Backup copies of all records should be made and stored off premises. Stock in transit is 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.
Business auto exposure can be high if the manufacturer has a quarry, picks up raw materials or delivers finished goods to customers. The delivery of goods requires careful loading and tie down to prevent bricks from coming loose and toppling over during transport. Delivery to jobsites may involve travel on uneven terrain and temporary roads, increasing the risks of upset and overturn.
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: 3255 Clay Refractories, 3297 Nonclay Refractories
- NAICS CODE: 327120 Clay Building Material and Refractories Manufacturing
- Suggested ISO General Liability Code(s): 51600, 51877
- Suggested Workers Compensation Code(s): 4024
Description for 3255: Clay Refractories
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 325: Structural Clay Products
3255 Clay Refractories: Establishments primarily engaged in manufacturing clay firebrick and other heat resisting clay products. Establishments primarily engaged in manufacturing nonclay refractories and all graphite refractories, whether of carbon bond or ceramic bond, are classified in Industry 3297.
- Brick, clay refractory: fire clay and high alumina
- Castable refractories, clay
- Cement, clay refractory
- Clay refractories
- Crucibles, fire clay
- Fire clay blocks, bricks, tile, and special shapes
- Firebrick, clay
- Floaters, glasshouse: clay
- Foundry refractories, clay
- Glasshouse refractories
- Heater radiants, clay
- Hot top refractories, clay
- Insulating firebrick and shapes, clay
- Kiln furniture, clay
- Ladle brick, clay
- Melting pots, glasshouse: clay
- Mortars, clay refractory
- Plastics fire clay bricks
- Plastics refractories, clay
- Rings, glasshouse: clay
- Stoppers, glasshouse: clay
- Tank blocks, glasshouse: clay
- Tile, clay refractory
Description for 3297: Nonclay Refractories
Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 329: Abrasive, Asbestos, And Miscellaneous
3297 Nonclay Refractories: Establishments primarily engaged in manufacturing refractories and crucibles made of materials other than clay. This industry includes establishments primarily engaged in manufacturing all graphite refractories, whether of carbon bond or ceramic bond. Establishments primarily engaged in manufacturing clay refractories are classified in Industry 3255.
- Alumina fused refractories
- Brick, bauxite
- Brick, carbon
- Brick, refractory: chrome, magnesite, silica, and other nonclay
- Brick, silicon carbide
- Castable refractories, nonclay
- Cement, magnesia
- Cement: high temperature, refractory (nonclay)
- Crucibles: graphite, magnesite, chrome, silica, or other non-clay
- Dolomite and dolomite-magnesite brick
- Cunning mixes, nonclay
- High temperature mortar, nonclay
- Hot top refractories, nonclay
- Nonclay refractories
- Plastics refractories, nonclay
- Pyrolytic graphite
- Ramming mixes, nonclay
- Refractories, castable: nonclay
- Refractories, graphite: carbon bond or ceramic bond
- Refractory cement, nonclay
- Retorts, graphite
Refractory Insurance - The Bottom Line
Refractory insurance policies vary widely in coverage, premiums and exclusions. To find out if your 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.
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.