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:
- 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?
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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3444 Sheet Metal Work/li>
- NAICS CODE: 332322 Sheet Metal Work Manufacturing
- Suggested ISO General Liability Code(s): 58922
- Suggested Workers Compensation Code(s): 3069, 3076
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.
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.