Sheet Metal Fabrication Insurance Policy Information
Sheet Metal Fabrication Insurance. Galvanized steel, stainless steel, brass, and aluminum are most commonly used to produce sheet metal - thin metal sheets that can be flat or coiled, and which can then be formed, folded, sheared, punched, and cut, among other processes.
Manufacturers in this branch of industry rely on a range of steps, each requiring its own industrial equipment, and these include melting, pouring, pickling (chemical cleaning), and rolling until the metal has the intended thickness.
Sheet metal shops produce a variety of non-structural items from siding to duct work to metal panels or coverings on walls. Metal (usually steel or heavy aluminum) may be cut, punched, drilled, shaped, corrugated, or bent. Seams may be joined by crimping, with screws, or welding. Most sheet metal operations are performed using computerized (CNC) production machinery.
Sheet metal has numerous uses, primarily in the fields of construction, electronics, and automobile manufacture. In this continuously evolving industry, there is no question that the demand for sheet metal products will continue to increase and diversify.
Companies that manufacture sheet metal also, however, have to confront the reality that their business is vulnerable to major perils that could threaten their future. This is why it is crucial to consider what types of insurance a sheet metal manufacturer needs to shield against the financial consequences of these risks.
To find out what kinds of sheet metal fabrication insurance coverages are needed, read on.
Sheet metal fabrication 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 broom and brush manufacturing insurance questions:
- What Is Sheet Metal Fabrication Insurance?
- How Much Does Sheet Metal Fabrication Insurance Cost?
- Why Do Sheet Metal Fabrication Companies Need Insurance?
- What Type Of Insurance Do Sheet Metal Fabrication Firms Need?
- What Does Sheet Metal Fabrication Insurance Cover & Pay For?
What Is Sheet Metal Fabrication Insurance?
Sheet metal fabrication insurance is a type of insurance coverage designed to protect sheet metal fabrication businesses from financial losses due to unexpected events such as accidents, property damage, theft, and liability claims.
This type of insurance covers the costs associated with repairing or replacing damaged equipment, property, and materials. It also provides protection for the business owner in the event of a liability claim, such as a customer being injured on the job site.
Sheet metal fabrication insurance is essential for companies operating in the sheet metal fabrication industry as it helps protect their assets and finances, ensuring that their business can continue to operate and grow.
How Much Does Sheet Metal Fabrication Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small sheet metal manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Sheet Metal Fabrication Companies Need Insurance?
Companies that manufacture sheet metal, also called sheet metal shops, face some of the same risks that also apply to all other business owners. In addition, they are vulnerable to some threats that are specific to their own industry.
Without the right insurance, many perils have the potential to lead to such massive costs that the company may be forced to close its doors.
Both high temperatures and chemicals are used in the process of manufacturing sheet metal, for instance, and these industry-specific factors have the potential to cause both property damage and worker injury in the event of an accident, even if you strictly adhere to health and safety protocols. Third parties attending your facility could also suffer injuries, for which you may then be held liable.
Sheet metal manufacturers are additionally, like other companies, vulnerable to acts of nature such as wildfires, earthquakes, serious floods, or storms, though the risk of each is location dependent. Regardless of the mitigating steps you take, theft and vandalism always remain possibilities.
While your sheet metal shop can cover the cost of minor perils on its own, unforeseen circumstances such as these may bring costs so large that you may not recover. A solid sheet metal fabrication insurance insurance plan can offer protection in these situations.
What Type Of Insurance Do Sheet Metal Fabrication Firms Need?
Each sheet metal manufacturer is unique. The location of your sheet metal shop, the exact processes you engage in and the raw materials and equipment you use, as well as how many employees your company has all influence what types of insurance you may require, as well as the cost of your insurance policies.
A skilled commercial insurance broker is your best advocate as you seek to obtain the right coverage for the best possible cost. Some of the types of sheet metal fabrication insurance that are important include:
- Commercial Property: Sheet metal shops face an above-average fire risk, but other accidents and perils, such as theft and natural disasters, can also cause severe damage to your building and other physical assets. This type of insurance helps you recover by covering the cost of your losses in this case.
- Commercial General Liability: In the event that a third party sues your company alleging that you are responsible for property damage or bodily injury that happened on your premises or that was connected to your company's activities, this kind of sheet metal fabrication insurance covers your attorney fees. It can also help cover any settlement costs.
- Product Liability: A more focused type of liability coverage, product liability insurance shields you from the financial costs associated with claims that sheet metal you manufactured resulted in injury or property damage.
- Workers' Compensation: In any field of commerce, workers can suffer work-related injuries. This kind of insurance pays for the medical bills, but also any lost wages, an employee who sustains an occupational injury may incur.
Any company that uses commercial vehicles will further want to obtain commercial auto insurance. Your individual shop may have additional sheet metal fabrication insurance needs not covered here, and therefore, your next step should lie in consulting a commercial insurance broker.
Sheet Metal Fabrication's Risks & Exposures
Premises liability exposures are generally limited due to lack of public access to the premises. Stock stored in the yard may be an attractive nuisance hazard. The yard should be fenced to prevent unauthorized access, with proper lighting and warnings.
Fumes, dust, and noise from the metal work could affect neighboring properties. If the manufacturer performs installations, there may be frequent property damage claims.
Products liability exposures are normally limited if the use is primarily decorative. If the product is used for ductwork, roofing or other protective functions, failure may result in serious bodily injury or property damage.
Environmental 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. Cutting machines can cause severe loss by cuts and amputations as workers push to meet quotas. Common injuries include back injuries from lifting and material handling, cuts due to the sharp edges on sheet metal, slips, trips, falls, eye injuries from metal shavings, hearing loss from noise, and repetitive motion injuries.
Other hazards arise from welding, especially in the absence of the necessary protective coverings, including face and hand protection, chemical burns, and eye, skin, and lung irritants. 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.
Workstations should be ergonomically designed. Employees should be provided with safety training and protective equipment.
Property exposures consist of an office, shop, and yard or warehouse for storage of raw materials or finished goods. Ignition sources include electrical wiring, heating systems, production machinery, and sparks from welding, grinding, or lathe operations.
Metal dust from the cutting and sanding can cause fire and explosion unless there are properly maintained dust collection systems and adequate ventilation.
Lubricants, solvents, or degreasers may be flammable and must be adequately separated and stored away from combustibles. Spray-painting operations can cause a fire unless they are carried out in spray booths with explosion-proof electrical components. The use of dip tanks instead of spray booths may require special attention.
Welding should be done away from combustibles. 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.
Stock stored in the yard may be susceptible to damage by vandalism and the wind. Appropriate security controls should be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
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. 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 contractors' equipment such as forklifts, and installation exposures if work is done at customers' premises. For goods in transit, the primary causes of loss are collision and overturn. Large sheets of metal are vulnerable to damage during loading or unloading, especially in windy conditions.
Business auto exposure can be high if the manufacturer picks up raw materials or delivers final goods to customers. Large lightweight metal sheets can be hazardous to load or unload in windy conditions. 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 Sheet Metal Fabrication Insurance Cover & Pay For?
Sheet metal fabricators face a variety of risks that could potentially lead to lawsuits. Here are some examples and how insurance can help:
1. Personal Injury: Employees or third parties may get injured due to faulty equipment or accidents on the job site. These injuries can lead to lawsuits. Workers' compensation insurance and general liability insurance can help in these situations. Workers' compensation can cover medical bills and lost wages for employees injured on the job, while general liability insurance can cover claims from third parties who are injured.
2. Product Liability: If a product made by the sheet metal fabricator fails and causes damage or injury, the company could be sued. Product liability insurance can help in this situation. It can cover the cost of the lawsuit and any damages awarded to the plaintiff if the company is found to be at fault.
3. Property Damage: There could be situations where a sheet metal fabricator's work causes damage to a client's property. For instance, a piece of equipment could be improperly installed and cause a fire. Commercial general liability insurance can protect against these types of claims, covering the cost of repairing the damage and any legal fees associated with a lawsuit.
4. Professional Negligence: If a sheet metal fabricator fails to meet the industry standards or contractual obligations, they could be sued for professional negligence. Errors & omissions (E&O) insurance, also known as professional liability insurance, can help cover the costs associated with these kinds of claims, including defense costs and any resulting settlements or judgments.
5. Employment Practices: An employee could sue the company for wrongful termination, discrimination, or harassment. Employment Practices Liability Insurance (EPLI) can help cover legal fees, settlements, and judgements related to these types of lawsuits.
Insurance is a crucial part of risk management for sheet metal fabricators. It can help protect the company's financial stability and ensure that it can continue operating in the face of unexpected lawsuits.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3444 Sheet Metal Work/li>
- NAICS CODE: 33 2322 Sheet Metal Work Manufacturing
- Suggested Workers Compensation Code(s): 3076 Soda Water Fountain or Apparatus Manufacturing
Description for 3444: Sheet Metal Work
Division D: Manufacturing | Major Group 34: Fabricated Metal Products, Except Machinery And Transportation Equipment | Industry Group 344: Fabricated Structural Metal Products
3444 Sheet Metal Work: Establishments primarily engaged in manufacturing sheet metal work for buildings (not including fabrication work done by construction contractors at the place of construction), and manufacturing stovepipes, light tanks, and other products of sheet metal.
- Air cowls, scoops, or airports (ship ventilators), sheet metal
- Awnings, sheet metal
- Bins, prefabricated: sheet metal
- Booths, spray prefabricated sheet metal
- Canopies, sheet metal
- Casings, sheet metal
- Coal chutes, prefabricated sheet metal
- Cooling towers, sheet metal
- Cornices, sheet metal
- Culverts, sheet metal
- Dampers, sheet metal
- Door hoods, aluminum
- Downspouts, sheet metal
- Ducts, sheet metal
- Eaves, sheet metal
- Elbows for conductor pipe, hot air ducts, and stovepipe: sheet metal
- Flooring, cellular steel
- Flues, stove and furnace: sheet metal
- Flumes, sheet metal
- Forming machine work for the trade except stampings: sheet metal
- Forms for concrete, sheet metal
- Furnace casings, sheet metal
- Guardrails, highway: sheet metal
- Gutters, sheet metal
- Hoods, range sheet metal
- Hoppers, sheet metal
- Housings for business machines, sheet metal except stamped
- Irrigation pipe, sheet metal
- Joists, sheet metal
- Laundry hampers, sheet metal
- Louvers, sheet metal
- Machine guards, sheet metal
- Mail chutes, sheet metal
- Mail collection or storage boxes, sheet metal
- Pile shells, sheet metal
- Pipe, sheet metal
- Post office collection boxes
- Radiator shields and enclosures, sheet metal
- Restaurant sheet metal work
- Roof deck, sheet metal
- Sheet metal specialties, not stamped
- Siding, sheet metal
- Skylights, sheet metal
- Spouts, sheet metal
- Stove boards, sheet metal
- Stove pipe and flues, sheet metal
- Studs, sheet metal
- Troughs, elevator: sheet metal
- Vats, sheet metal
- Ventilators, sheet metal
- Wells, light: sheet metal
Sheet Metal Fabrication Insurance - The Bottom Line
Not all sheet metal fabrication insurance policies are the same - they can be very different in coverages and exclusions. You can discover if your manufacturing business has the best fit insurance policies by talking to an experienced commercial insurance agent.
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
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- 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
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Industrial Equipment
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Leather Goods
- 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
- Psychedelic Drugs
- 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
- Vegetable Juice
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
- 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.