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:
- 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?
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.
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 ISO General Liability Code(s): 51500
- Suggested Workers Compensation Code(s): 3132, 3145
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.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- Audio & Video Equipment
- Auto Parts
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fur Garment
- Garage Door
- Gypsum Products
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.
Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.
The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.
Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.
In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.
What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.
Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.
Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.
The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.