Rubber Goods Manufacturers Insurance

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Rubber Goods Manufacturers Insurance Policy Information

Rubber Goods Manufacturers Insurance

Rubber Goods Manufacturers Insurance. Rubber can broadly be divided into two categories - natural rubber or latex comes from plants, while synthetic rubbers such as styrene butadiene and polyvinyl acetate are created artificially.

Rubber and rubber goods manufacturers produce a wide variety of products including balls, bands, bumpers, foam, gaskets, hose, sheets, and shields for noise, shock, or vibration control.

Bales of natural latex are chopped and mixed with additives, especially sulfur or peroxide for vulcanization, resins, colorants, and other catalysts. The material is then heated, pressed through rollers, and cut, molded, formed, or extruded into end products.

The use of the final product determines the mixtures and the stage of processing at which ingredients are added. While synthetic latex is made from petroleum by-product gasses processed with soapsuds, the other processes are the same as those used for natural latex.

Companies that make rubber or rubber products engage in activities like handling raw materials, mixing, milling, weighing, curing, and the manufacture of final products.

Products made from rubber materials are all around us - they range from bicycle tires to swimming caps, from balls and rubber bands to bumpers and hoses, and from sheets to shields designed to control noise and vibration.

As such, these products have applications in commercial as well as consumer fields.

Owners and operators of companies that manufacture will strive to run thriving businesses, but they do also have to be cognizant of the fact that every business is vulnerable to risk.

A solid rubber goods manufacturers insurance plan is essential in protecting you against the many hazards that can face companies within the rubber industry, and here, we will explore what types of insurance you will need.

Rubber goods 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 rubber goods manufacturing insurance questions:


How Much Does Rubber Goods Manufacturers Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small rubber goods manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.


Why Do Rubber Goods Manufacturers Need Insurance?

Insurance For Manufacturers

Companies that make rubber and rubber products face a multitude of potential hazards. Some are common to all businesses, while others are unique to the field of rubber manufacture. All can strike at virtually any time, often without warning, and all can have disastrous financial consequences. Arming yourself with a comprehensive insurance plan is one of the best ways to protect yourself.

Theft, vandalism (including the intentional setting of fires), and natural disasters such as earthquakes and wildfires are just some examples of unforeseen circumstances that could, in one fell swoop, not only rob you of valuable raw materials, inventory, and manufacturing equipment, but also damage your facility itself.

Machinery may also break down, leading to repair or replacement costs and costly business interruptions.

Within the rubber industry, occupational hazard is a particular risk to pay attention to; workers in this field are exposed to chemicals, fumes, and dusts routinely. Even with the correct health and safety measures, they continue to risk occupational illnesses including cancer.

Even the noisy work environment can pose a risk. When an employee suffers a work-related illnesses, companies can be held liable.

Although these examples of risks by no means represent an exhaustive list, they illustrate why it is important to have the right rubber goods manufacturers insurance program so that your company can recover from the financial damage much more easily.


What Type Of Insurance Do Rubber Goods Manufacturers Need?

The precise nature of your insurance needs is determined by factors like the type of rubber you manufacture, the location of your facility, the exact type of product you make, and how many employees you have hired.

Because each business is unique, it is important to walk through all the characteristics of your company with a commercial insurance agent.

With that in mind, companies that make rubber products will undeniably want to arm themselves with the following types of rubber goods manufacturers insurance:

  • Commercial Property: This type of insurance is your Plan B in the event that your physical building and the assets within are affected by circumstances beyond your control that include fire, theft, and vandalism. It may also cover revenue lost due to lost inventory or business interruptions.
  • General Liability: Lawsuits are another realistic threat. In the event that a third party files a bodily injury or property damage claim against your company, this type of rubber goods manufacturers insurance covers attorney costs as well as settlement fees such as medical or repair bills.
  • Product Liability: This kind of liability insurance covers third party property damage and bodily injury claims as they relate to your products. Should a manufacturing error cause a product to malfunction and injure a user, for example, this type of insurance protects you from the financial consequences.
  • Workers Compensation: Designed to cover workplace injuries and illnesses for which your company could be held liable, this kind of insurance provides the funds to pay for employees' medical bills. If an employee is unable to return to work due to their injury or illness, their lost wages are also reimbursed.


These types of insurance are important examples of the nature of the coverage companies in the rubber industry require.

Consult a trusted commercial insurance agent to find out whether you also benefit from additional forms of rubber goods manufacturers insurance such as vehicle insurance or environmental insurance.

Rubber Goods Manufacturing's Risks & Exposures

Manufacturing

Premises liability exposure at the plant is 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 vulcanization 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 and smoke 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 varies depending on the end usage of the product. Office supplies such as rubber bands pose minimal risks, while the failure of products used for medical supplies, food packaging, or gaskets for high-pressure piping present significant bodily injury or property damage loss potential.

Environment 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 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, as well as from work with heavy machinery that 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 exposures consist of an office, production plant, and a warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, and the storage of large amounts of chemicals and solvents.

While rubber does not ignite easily, the vulcanization chemicals and process can result in a fire that can be very difficult to extinguish due to the heavy black smoke which results in a great deal of smoke damage. 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. 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. The main causes of loss are collision, upset, fire, and theft. There may be contractors' equipment such as forklifts or heavier equipment used to move raw materials and finished goods.

Business auto exposure is high if the manufacturer assumes responsibility for the transport of raw materials or finished products. If vulcanization chemicals are transported, potential contamination due to overturn or spillage is high.

Hazards are substantially higher without proper controls, such as 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: 3052 Rubber And Plastics Hose And Belting, 3053 Gaskets, Packing, And Sealing Devices, 3061 Molded, Extruded, And Lathe-Cut Mechanical Rubber Goods, 3069 Fabricated Rubber Products, Not Elsewhere Classified
  • NAICS CODE: 326220 Rubber and Plastic Hoses and Belting Manufacturing, 326291 Rubber Product Manufacturing for Mechanical Use, 326299 All Other Rubber Product Manufacturing, 339991 Gasket, Packing and Sealing Device Manufacturing
  • Suggested ISO General Liability Code(s): 58756, 58757, 58759
  • Suggested Workers Compensation Code(s): 4410

Description for 3052: Rubber And Plastics Hose And Belting

Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 305: Gaskets, Packing, And Sealing Devices And Rubber

3052 Rubber And Plastics Hose And Belting: Establishments primarily engaged in manufacturing rubber and plastics hose and belting, including garden hose. Establishments primarily engaged in manufacturing rubber tubing are classified in Industry Group 306; those manufacturing plastics tubing are classified in Industry 3082; and those manufacturing flexible metallic hose are classified in Industry 3599.

  • Air brake and air line hose, rubber or rubberized fabric
  • Automobile hose, plastics or rubber
  • Belting, rubber e.g., conveyor, elevator, transmission
  • Firehose, rubber
  • Garden hose, plastics or rubber
  • Heater hose, plastics or rubber
  • Hose, plastics or rubber
  • Hose: cotton fabric, rubber lined
  • Pneumatic hose, rubber or rubberized fabric e.g., air brake and
  • Vacuum cleaner hose, plastics or rubber

Description for 3053: Gaskets, Packing, And Sealing Devices

Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 305: Gaskets, Packing, And Sealing Devices And Rubber

3053 Gaskets, Packing, And Sealing Devices: Establishments primarily engaged in manufacturing gaskets, gasketing materials, compression packings, mold packings, oil seals, and mechanical seals. Included are gaskets, packing, and sealing devices made of leather, rubber, metal, asbestos, and plastics.

  • Gaskets, regardless of material
  • Grease retainers, leather
  • Grease seals, asbestos
  • Oil seals, asbestos
  • Oil seals, leather
  • Oil seals, rubber
  • Packing for steam engines, pipe joints, air compressors, etc.
  • Packing, metallic
  • Packing, rubber
  • Packing cup, U-valve, etc. leather
  • Steam and other packing
  • Washers, leather

Description for 3061: Molded, Extruded, And Lathe-Cut Mechanical Rubber Goods

Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 306: Fabricated Rubber Products, Not Elsewhere Classified

3061 Molded, Extruded, And Lathe-Cut Mechanical Rubber Goods: Establishments primarily engaged in manufacturing molded, extruded, and lathe-cut mechanical rubber goods. The products are generally parts for machinery and equipment. Establishments primarily engaged in manufacturing other industrial rubber goods, rubberized fabric, and miscellaneous rubber specialties and sundries are classified in Industry 3069.

  • Appliance mechanical rubber goods molded, extruded, and lathe-cut
  • Automotive mechanical rubber goods molded, extruded, and lathe-cut
  • Mechanical rubber goods molded, extruded, and lathe-cut
  • Off-highway machinery and equipment mechanical rubber goods
  • Oil and gas field machinery and equipment mechanical rubber goods:
  • Rubber goods, mechanical molded, extruded, and lathe-cut
  • Surgical and medical tubing extruded and lathe-cut

Description for 3069: Fabricated Rubber Products, Not Elsewhere Classified

Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 306: Fabricated Rubber Products, Not Elsewhere Classified

3069 Fabricated Rubber Products, Not Elsewhere Classified: Establishments primarily engaged in manufacturing industrial rubber goods, rubberized fabrics, and vulcanized rubber clothing, and miscellaneous rubber specialties and sundries, not elsewhere classified. Included in this industry are establishments primarily engaged in reclaiming rubber and rubber articles. Establishments primarily engaged in the wholesale distribution of scrap rubber are classified in Wholesale Trade, Industry 5093. Establishments primarily engaged in rebuilding and retreading tires are classified in Services, Industry 7534; those manufacturing rubberized clothing from purchased materials are classified in Industry 2385; and those manufacturing gaskets and packing are Classified in Industry 3053.

  • Acid bottles, rubber
  • Air supported rubber structures
  • Aprons, vulcanized rubber and rubberized fabric
  • Bags, rubber or rubberized fabric
  • Balloons advertising and toy: rubber
  • Balloons metal foil laminated with rubber
  • Balls, rubber: except athletic equipment
  • Bath sprays, rubber
  • Bathing caps and suits, rubber
  • Battery boxes, jars, and parts: hard rubber
  • Bibs, vulcanized rubber and rubberized fabric
  • Bottles, rubber
  • Boxes, hard rubber
  • Brake lining, rubber
  • Brushes, rubber
  • Bulbs for medicine droppers, syringes, atomizers, and sprays: rubber
  • Bushings, rubber
  • Capes, vulcanized rubber and rubberized fabric
  • Caps, rubber
  • Castings, rubber
  • Chlorinated rubbers, natural
  • Cloaks, vulcanized rubber and rubberized fabric
  • Clothing, vulcanized rubber and rubberized fabric
  • Combs, hard rubber
  • Culture cups, rubber
  • Custom compounding of rubber materials
  • Cyclo rubbers, natural
  • Diaphragms, rubber: separate and in kits
  • Dress shields, vulcanized rubber and rubberized fabric
  • Druggists' sundries, rubber
  • Erasers: rubber, or rubber and abrasive combined
  • Fabrics, rubberized
  • Film, rubber
  • Finger cots, rubber
  • Flooring, rubber: tile or sheet
  • Foam rubber
  • Fountain syringes, rubber
  • Friction tape, rubber
  • Fuel cells, rubber
  • Fuel tanks, collapsible: rubberized fabric
  • Funnels, rubber
  • Gloves: e.g., surgeons', electricians', household-rubber
  • Grips and handles, rubber
  • Grommets, rubber
  • Gutta percha compounds
  • Hair curlers, rubber
  • Hairpins, rubber
  • Handles, rubber
  • Hard rubber products
  • Hard surface floor coverings: rubber
  • Heels, boot and shoe: rubber, composition, and fiber
  • Jar rings, rubber
  • Laboratory sundries: e.g., cases, covers, funnels, cups, bottles-rubber
  • Latex, foamed
  • Life jackets: inflatable rubberized fabric
  • Life rafts, rubber
  • Liner strips, rubber
  • Linings, vulcanizable elastomeric: rubber
  • Mallets, rubber
  • Mats and matting: e.g., bath, door-rubber
  • Mattress protectors, rubber
  • Mattresses, pneumatic: fabric coated with rubber
  • Medical sundries, rubber
  • Mittens, rubber
  • Mouthpieces for pipes and cigarette holders, rubber
  • Nipples, rubber
  • Orthopedic sundries, molded rubber
  • Pacifiers, rubber
  • Pads, kneeling: rubber
  • Pants, baby: vulcanized rubber and rubberized fabric
  • Pillows, sponge rubber
  • Pipe stems and bits, tobacco: hard rubber
  • Platens, except printers': solid or covered rubber
  • Plumbers' rubber goods
  • Pontoons, rubber
  • Printers' blankets, rubber
  • Printers' rolls rubber
  • Prophylactics rubber
  • Pump sleeves, rubber
  • Reclaimed rubber (reworked by manufacturing processes)
  • Rods, hard rubber
  • Roll coverings: rubber for papermill; industrial, steel mills, printers'
  • Roller covers, printers': rubber
  • Rolls, solid or covered rubber
  • Roofing, single ply membrane: rubber
  • Rubber heels, soles, and soling strips
  • Rubber-covered motor mounting rings (rubber bonded)
  • Rubberbands
  • Rug backing compounds, latex
  • Separators, battery: rubber
  • Sheeting, rubber or rubberized fabric
  • Sheets, hard rubber
  • Sleeves, pump: rubber
  • Soles, boot and shoe: rubber, composition, and fiber
  • Soling strips, boot and shoe: rubber, composition, and fiber
  • Spatulas, rubber
  • Sponge rubber and sponge rubber products
  • Stair treads, rubber
  • Stationers' sundries, rubber
  • Stoppers, rubber
  • Tape, pressure sensitive (including friction), rubber
  • Teething rings, rubber
  • Thermometer cases, rubber
  • Thread, rubber: except fabric covered
  • Tile, rubber
  • Top lift sheets, rubber
  • Top roll covering, for textile mill machinery: rubber
  • Toys, rubber: except dolls
  • Trays, rubber
  • Tubing, rubber: except extruded and lathe-cut
  • Type, rubber
  • Urinals, rubber
  • Valves, hard rubber
  • Wainscoting, rubber
  • Wallcoverings, rubber
  • Water bottles, rubber
  • Weather strip, sponge rubber
  • Wet suits, rubber

Rubber Goods Manufacturers Insurance - The Bottom Line

All rubber goods manufacturers insurance policies are not designed the same - they can be different in premiums and coverages offered. You can discover if your 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.

Small Business Information

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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 PoliciesWhat 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 InsuranceWhat 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 BondWhat 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
Small Business Commercial Insurance

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.


Manufacturing Insurance

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.


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