Screw Machine Products Manufacturers Insurance Policy Information
Screw Machine Products Manufacturers Insurance. Screw machines, automated metal working lathes, have existed since the industrial revolution.
Screw machine manufacturers produce nuts, bolts, screws, washers and other similar items from various types of metal. Machine shops specializing in screw machine products generally handle high-volume mass production, but some may offer custom work to contract specifications.
For high-volume work, computerized (CNC) lathes are commonly used to thread screws, bolts, and similar items. Larger shops may provide expanded services to include such finish work as deburring, heat treating, or electroplating.
Although remotely similar mechanical lathes are still used in modern industry, many screw machines are now computer-guided, and called CNC lathes or turning tables. These machines are able to precisely and very quickly drill, turn, or perform other tasks after being programmed.
Screw machine products are extremely diverse - ranging from handles and precision shoulder screws to thumb screws and nuts, numerous different branches of industry rely on them. Because of the high demand for screw machine products, companies in this line of work have the potential to turn high profits.
However, like other businesses, they are also vulnerable to a number of perils. These risks cannot always be guarded against, but with the right screw machine products manufacturers insurance coverage on your side, they do not have to be ruinous.
Here, we will examine what kinds of insurance that companies that manufacture screw machine products should have on their radar.
Screw machine products 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 screw machine products manufacturing insurance questions:
- What Is Screw Machine Products Manufacturers Insurance?
- How Much Does Screw Machine Products Manufacturers Insurance Cost?
- Why Do Screw Machine Products Manufacturers Need Insurance?
- What Type Of Insurance Do Screw Machine Products Manufacturers Need?
- What Does Screw Machine Products Manufacturers Insurance Cover & Pay For?
What Is Screw Machine Products Manufacturers Insurance?
Screw machine products manufacturers insurance is a type of insurance coverage designed specifically for companies that manufacture products using screw machines.
This insurance coverage helps protect the manufacturer from financial losses that may result from various risks such as product defects, damage to machinery or equipment, liability claims, and more. The coverage can include general liability insurance, product liability insurance, property insurance, workers' compensation insurance, and other relevant insurance policies that provide protection for the screw machine products manufacturer.
The exact coverage will depend on the specific needs and risks associated with the manufacturer's operations.
How Much Does Screw Machine Products Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small screw machine products manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Screw Machine Products Manufacturers Need Insurance?
Like commercial ventures in any other field of commerce, companies that work in screw machining face a number of risks. Some of these risks are shared by all businesses, while others are unique to your own industry.
All can strike without warning, and though not all of them can be protected against, all major perils can threaten your company's future.
Acts of nature - like wildfires, hurricanes, or serious floods - cannot be prevented, for example. Within a short period of time, they can cause profound damage that renders your business inoperable.
While security systems and other measures help guard against criminal acts like theft and vandalism, no steps can completely defend you against them.
The sudden breakdown of crucial industrial equipment and allegations that your products caused bodily injury or property damage to third parties can also lead to massive costs.
Should an employee suffer a workplace injury, not unlikely in an industry with so many moving parts, your screw machine shop can again expect to be held financially responsible.
If a company that makes screw machine products falls victim to these or other disastrous and unforeseen circumstances, a serious financial hit is inevitable unless the business has armed itself with comprehensive screw machine products manufacturers insurance.
Thankfully, today's insurance market offers a multitude of options that can shield screw machining companies from financial losses caused by almost any peril.
What Type Of Insurance Do Screw Machine Products Manufacturers Need?
A number of factors influence your precise insurance needs. The location of your screw machine shop, the kinds of screw machine products you manufacture, the type of metal lathe you use (CNC vs mechanical), and your number of workers are just some examples.
To ensure that you obtain the screw machine products manufacturers insurance coverage that best serves your company's needs, it is imperative to consult to discuss your risk profile with a seasoned commercial insurance agent familiar with your field of industry.
Having said that, companies that make screw machine products should unquestionably carry:
- Commercial Property: This basic type of insurance is essential for all screw machine shops, as it protects your physical assets - your building, industrial equipment, finished inventory, and others - in case of perils such as theft, vandalism, and natural disasters. It can reimburse not only the costs of repairing or replacing damaged or lost assets, but may also cover some of the revenue you lose to business interruptions.
- General liability: Designed to protect you from the financial repercussions associated with third party property damage or bodily injury claims, this type of screw machine products manufacturers insurance essentially offers a legal defense fund. You would rely on it, for instance, in the event that a purchaser becomes injured on your premises.
- Product Liability: This type of insurance covers third party liability claims directly pertaining to screw machine products you manufactured. Should a manufacturing error cause your product to malfunction and it then leads to property damage, for instance, you can be held responsible even if your screw machine product was incorporated into another commodity.
- Workers Compensation: Another crucial form of insurance for any company with more than five employees, workers' comp covers the medical bills and any lost income for workers who suffer injuries or accidents on the job.
Keep in mind that your business is unique - and its insurance needs are, too. A commercial insurance broker can help you determine not only what types of screw machine products manufacturers insurance coverage you require, but also help you find the best deal.
Screw Machine Products Manufacturing's Risks & Exposures
Premises liability exposure is limited unless customers are permitted on premises to review the process and to evaluate the ability of the firm to deliver the product desired. If customers put their own employees on site for quality control purposes, these employees are subject to the same hazards as the manufacturer's employees. Fumes, dust, and noise from the metal work could affect neighboring properties.
Products liability exposure may be very high if the final product is a critical operating part or system (such as parts for autos, aircraft, watercraft, military uses, or industrial machinery). The manufacturer may be more concerned about their ability to handle the customer's specifications rather than evaluating the end use of the product and what could happen should a part fail.
It may be impossible to defend against questionable claims unless there is an aggressive quality control program including high standards for materials, testing and monitoring of components, and documentation of sources (often down to the individual item in a run). If the manufacturer is following specifications provided by the customer, the contract may limit the exposure.
Hazards may increase without contracts that clearly describe the responsibilities of the manufacturer and the quality standards that must be met for customer satisfaction. Older parts made before improved safety features were introduced may still be in use.
Environment liability impairment exposures may be significant due to possible contamination of ground, air, and water from the chemicals, paint, and solvents used. Disposal of wastes must adhere to all federal and state guidelines.
Workers compensation exposures are moderate to high. Workers on a production line with punch presses and cutting machines can suffer severe loss from cuts or amputations as they push to meet quotas. Eye injuries from metal shavings and skin irritations from chemicals are additional causes of loss.
Common injuries include slips, trips, falls, back injuries from lifting and material handling, hearing loss from noise, and repetitive motion injuries. Workstations should be ergonomically designed. Employees should be provided with safety training and protective equipment.
Jobs are bid and deadlines set with penalties if timeframes are not met. The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair to increase production.
Property exposures consist of an office, plant, and warehouse for storage of raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, and sparks from grinding or lathe operations. Many stages of the work have low fire potential since most machines are cutting and punching devices, and the parts are all metal.
Degreasers and solvents may be flammable and must be adequately controlled. Poor housekeeping may be a serious fire hazard. Unless disposed of properly, greasy, oily rags (such as those used to clean the machinery) can cause a fire without a separate ignition source.
Business income can be a significant exposure if the machines are special-ordered for a specific job.
Equipment breakdown exposures include malfunctioning production equipment, 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 exposures are chiefly from employee dishonesty, especially for high-tech parts or exotic metals. 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. The manufacturer should have security methods in place to prevent theft.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information. There may be a bailees exposure for items belonging to customers.
These are subject to the same causes of loss as property owned by the manufacturer, plus transit and the processing itself. The primary causes of loss are fire, theft, collision, and overturn.
Business auto exposure can be high if the manufacturer picks up raw materials or delivers finished parts to customers. Deadlines placed on drivers (such as just-in-time processing schedules) increase the hazard. 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 Screw Machine Products Manufacturers Insurance Cover & Pay For?
Screw machine products manufacturers can face several types of lawsuits, including those related to product liability, workplace accidents, intellectual property infringement, and environmental damage. Insurance can help these manufacturers cover the costs associated with lawsuits and protect their financial stability.
Product liability: A manufacturer may be sued if their screw machine products are found to be defective or cause injury or damage to the end-user. Product liability insurance can help cover the costs associated with such lawsuits, including legal fees, settlements, and judgments.
Workplace accidents: Accidents in the workplace can lead to lawsuits from injured employees seeking compensation for medical expenses, lost wages, and other damages. Workers' compensation insurance can help cover these costs, protecting the manufacturer from potentially significant financial losses.
Intellectual property infringement: If a manufacturer is accused of infringing on a competitor's patent, copyright, or trademark, they may face a lawsuit. Intellectual property insurance can help cover the legal costs associated with defending against these claims, as well as any settlements or judgments that may result.
Environmental damage: Manufacturers may be held liable for environmental damage caused by their operations, such as pollution or improper waste disposal. Environmental liability insurance can help cover the costs associated with cleanup, regulatory fines, and legal defense.
For each of these examples, the appropriate insurance coverage can help protect the screw machine products manufacturer by paying for legal fees, settlements, and judgments that may arise from these types of lawsuits. By having the right insurance in place, manufacturers can focus on their core business operations while mitigating financial risks associated with potential legal disputes.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3451 Screw Machine Products, 3452 Bolts, Nuts, Screws, Rivets, And Washers
- NAICS CODE: 332721 Precision Turned Product Manufacturing, 332722 Bolt, Nut, Screw, Rivet, and Washer Manufacturing
- Suggested Workers Compensation Code(s): 3132 Bolt or Nut Manufacturing, 3145 Screw Manufacturing
Description for 3451: Screw Machine Products
Division D: Manufacturing | Major Group 34: Fabricated Metal Products, Except Machinery And Transportation Equipment | Industry Group 345: Screw Machine Products, And Bolts, Nuts, Screws, Rivets, And Washers
3451 Screw Machine Products: Establishments primarily engaged in manufacturing automatic or hand screw machine products from rod, bar, or tube stock of metal, fiber, plastics or other material. The products of this industry consist of a wide variety of unassembled parts and are usually manufactured on a job or order basis. Establishments included in this industry may perform assembly of some parts manufactured in the same establishment, but establishments primarily engaged in producing assembled components are classified according to the nature of the components. Establishments primarily engaged in manufacturing standard bolts, nuts, rivets, screws, and other industrial fasteners on headers, threaders, and nut forming machines are classified in Industry 3452.
- Screw machine products: produced on a job or order basis
Description for 3452: Bolts, Nuts, Screws, Rivets, And Washers
Division D: Manufacturing | Major Group 34: Fabricated Metal Products, Except Machinery And Transportation Equipment | Industry Group 345: Screw Machine Products, And Bolts, Nuts, Screws, Rivets, And Washers
3452 Bolts, Nuts, Screws, Rivets, And Washers: Establishments primarily engaged in manufacturing metal bolts, nuts, screws, rivets, washers, formed and threaded wire goods, and special industrial fasteners. Rolling mills engaged in manufacturing similar products are classified in Major Group 33; establishments primarily engaged in manufacturing screw machine products are classified in Industry 3451; and those manufacturing plastics fasteners are classified in Industry 3089.
- Bolts, metal
- Cotter pins, metal
- Dowel pins, metal
- Gate hooks
- Lock washers
- Machine keys
- Nuts, metal
- Rivets, metal
- Screw eyes, metal
- Screw hooks
- Screws, metal
- Spring pins, metal
- Spring washers, metal
- Toggle bolts, metal
- Washers, metal
- Wood screws, metal
Screw Machine Products Manufacturers Insurance - The Bottom Line
All screw machine products manufacturers insurance policies are not the same - in fact they can have very different coverages and exclusions. You can see 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.
- 3D Printing
- Adhesives
- Alarms
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Boxes
- Bricks
- Brooms & Brushes
- Buttons
- Cabinets
- Camping Equipment
- Canned Fruit & Vegetables
- Cans
- Canvas Products
- Caskets
- CBD Oil And Hemp
- Cement
- Ceramics
- Chemical
- Clock & Watch
- Clothing
- Coffee
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Computers
- Condoms
- Construction Equipment
- Cork Products
- Cosmetics
- Cutlery
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Electroplating
- Elevators
- Engines
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fences
- Fertilizer
- Fireworks
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gears
- Glass
- Glasswear
- Gypsum Products
- Hosiery
- Ice Cream
- Industrial Equipment
- Ink
- Insecticides
- Iron & Steel Foundries
- Jewelry
- Lawn Mowers
- Leather Apparel
- Leather Goods
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Manufacturing
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Millwork
- Monuments
- Musical Instruments
- Nanotechnology
- Nonferrous Foundries
- Ornamental Metalwork
- Paint
- Paper & Allied Products
- Pesticides
- Pet Food
- Pharmaceuticals
- Plastic & Rubber Toys
- Plastic Goods
- Plastics
- Plastics Molding, Forming & Extruding
- Pottery
- Product Liability
- Prosthetics
- Psychedelic Drugs
- Pulp & Paper Mills
- Refractory
- Residential Air Conditioning & Heating
- Rubber Goods
- Rugs
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Shoes
- Small Electrical Appliances
- Sporting Goods
- Springs
- Stone Products
- Tanneries
- Textiles
- Textiles Finishing & Coating
- Tires
- Tobacco
- Tool & Die Shops
- Vegetable Juice
- Vending Machines
- Watercraft
- Wire
- Wire Rope
- Wood Furniture
- Woodworking
- Writing Instruments
- Yarn
- Specialty Manufacturing
- Specialty Product Liability
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.
