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:
- What Is Refractory Insurance?
- How Much Does Refractory Insurance Cost?
- Why Do Refractories Need Insurance?
- What Type Of Insurance Do Refractories Need?
- What Does Refractories Insurance Cover & Pay For?
What Is Refractory Insurance?
Refractory insurance is a type of insurance that protects businesses against damage to refractory materials, which are used in high-heat applications such as in furnaces and boilers. This insurance covers the cost of repairing or replacing refractory materials in case of damage caused by heat, corrosion, or other factors.
The purpose of refractory insurance is to help businesses reduce the financial risk of damage to refractory materials and to ensure their continued operation.
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.
What Does Refractories Insurance Cover & Pay For?
Refractories are heat-resistant materials that are used in processes requiring high temperatures. They are commonly used in industries like steel, glass, cement, and ceramics, among others. However, despite their essential role in these industries, they can be the subject of lawsuits for a variety of reasons. Proper insurance coverage can significantly help refractory companies to navigate these legal challenges. Here are a few examples:
1. Product Liability: If a refractory product fails and causes harm or damage, the company could face a product liability lawsuit. For instance, if a refractory material used in a steel mill fails prematurely and results in a furnace breakdown, the mill could sue the refractory company for the cost of the shutdown and repair.
Insurance can help here through a product liability insurance policy. This policy covers the legal costs associated with defending the claim, as well as any settlements or judgments against the company. It essentially protects the company's financial resources in the event of a product failure.
2. Environmental Damage: The production of refractories involves high-temperature processes that can potentially cause environmental damage, such as air or water pollution. If a refractory company does not comply with environmental regulations, it could be sued by regulatory bodies or individuals affected by the pollution.
An environmental liability insurance policy would help in such scenarios. It covers the costs associated with legal defense, fines, and clean-up operations. This can ensure that the company can afford to take the necessary corrective measures and pay any penalties without going bankrupt.
3. Workplace Accidents: Given the nature of their work, refractory companies face significant risks of workplace accidents. If an employee is injured on the job and believes that the company did not take adequate safety measures, they might sue the company for compensation.
Worker's compensation insurance can be beneficial in such situations. This type of insurance policy covers the medical expenses, rehabilitation costs, and a portion of lost wages for employees who get injured or sick because of their work. It also usually includes employer's liability insurance, which protects the company if the employee decides to sue.
4. Intellectual Property Disputes: In the refractory industry, as in many others, disputes over patents and other intellectual property rights can lead to lawsuits. For example, if a company is accused of infringing on another's patent, it could face a costly legal battle.
Intellectual property insurance can cover the costs associated with defending against an infringement claim, including legal fees and any required settlements or damages. This type of insurance can also help the company to enforce its own intellectual property rights by covering the costs of litigation.
In conclusion, refractory companies, like all businesses, face a range of potential legal challenges. By maintaining comprehensive insurance coverage tailored to their specific risks, they can protect themselves from the potentially devastating financial impacts of lawsuits.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3255 Clay Refractories, 3297 Nonclay Refractories
- NAICS CODE: 327120 Clay Building Material and Refractories Manufacturing
- Suggested Workers Compensation Code(s): 4024 Brick Manufacturing - Fire or Enameled & Drivers
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.
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.
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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.