Rubber Goods Manufacturers Insurance Policy Information

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:

What Is Rubber Goods Manufacturers Insurance?
How Much Does Rubber Goods Manufacturers Insurance Cost?
Why Do Rubber Goods Manufacturers Need Insurance?
What Type Of Insurance Do Rubber Goods Manufacturers Need?
What Does Rubber Goods Manufacturers Insurance Cover & Pay For?

What Is Rubber Goods Manufacturers Insurance?

Rubber goods manufacturers insurance is a type of insurance coverage that provides financial protection to manufacturers of rubber products. This coverage typically includes protection against property damage, liability, and business interruption.

Some common types of rubber goods covered under this insurance include tires, hoses, seals, gaskets, and other rubber products. The insurance is designed to protect the manufacturer from financial losses in case of property damage, product liability claims, and other losses related to their business operations.

This coverage can help manufacturers minimize the financial impact of unexpected events, allowing them to continue producing high-quality rubber products and maintain their business operations.

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?

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

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.

What Does Rubber Goods Manufacturers Insurance Cover & Pay For?

Rubber Goods Manufacturers Insurance Claim Form

There are several reasons why rubber goods manufacturers might be sued. Here are a few examples:

1. Product Liability: If a rubber product fails, it can cause injuries or property damage. A consumer or a business can sue the rubber goods manufacturer for damages. In such cases, Product Liability Insurance can help cover the costs of the lawsuit. This insurance policy protects a company if a product it produces causes harm to a user or a user's property. It covers the manufacturer's financial responsibility for losses or injuries caused by a defect or malfunction of the product.

2. Breach of Contract: A manufacturer may be sued if they fail to deliver goods as promised in a contract, or if the goods delivered are not up to the specified quality or standard. Commercial General Liability Insurance typically includes coverage for personal injury or property damages, but it can also cover some types of contractual liabilities. In addition, some businesses may opt for specific Contract Dispute Insurance.

3. Worker Injuries: If an employee gets injured while working, they may sue the company for unsafe working conditions or negligence. Workers' Compensation Insurance can cover the costs of medical care for the injured employee, rehabilitation, and even salary replacement if they can't work for a certain period. It also typically includes employer's liability insurance, which can help pay for the legal defense if a worker or their family sues the business for the injury.

4. Environmental Damage: Rubber goods manufacturing can involve chemicals and processes that might harm the environment. If such damage occurs, the manufacturer could be sued by environmental agencies or affected parties. Environmental Impairment Liability Insurance can help cover the costs of cleanup, fines, penalties, and legal defense related to environmental damage claims.

5. Intellectual Property Infringement: If a rubber goods manufacturer is alleged to have infringed on another company's patent, trademark, or copyright, they might face a lawsuit. Intellectual Property Insurance can help cover the costs of defending against such claims, and any damages awarded in the case.

In all these cases, it's crucial to remember that insurance policies typically have deductibles and policy limits. Also, some types of claims may be excluded from coverage. Therefore, it's important for businesses to work closely with their insurance broker or agent to understand what their policies cover and where gaps might exist.

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 Workers Compensation Code(s): 4410 Boot or Shoe Manufacturing - Rubber

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.

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.

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.

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