Small Electrical Appliances Manufacturers Insurance

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Small Electrical Appliances Manufacturers Insurance Policy Information

Small Electrical Appliances Manufacturers Insurance

Small Electrical Appliances Manufacturers Insurance. Small electrical appliances exist, in today's world, to meet an ever broadening range of residential and commercial everyday needs. These generally portable devices include ones used in the kitchen, from rice cookers and toasters to electronic can openers and coffee makers, to vacuum cleaners, irons, and portable fans and heaters.

In modern society, anyone would be hard-pressed to find a home or business - especially within the service industry - that does not heavily rely on small electrical appliances.

Manufacturers of small electrical appliances produce a wide range of products, including household kitchen appliances, portable fans, vacuum cleaners, and service industry machines. The manufacture of these items involves a variety of operations. The product's casing, housing, or cabinet can be constructed of plastic, wood or metal. The interior contains electrical wiring or electronic circuitry.

Other parts, such as a fan or blender blades, may be of metal or plastic. The different phases of manufacture may be carried out in different locations or different countries. Separate divisions or independent firms (subcontractors) may handle a single aspect of the process, such as producing circuit boards or making peripherals and accessories.

Some manufacturers may subcontract the separate operations and simply perform the final assembly.

This industry has exploded in recent decades, and consumer demand grows with each innovation. While a large market share is held by industry giants, smaller manufacturers of portable electrical appliances can be competitive as well.

The manufacture of small electrical appliances is an exciting field to work in, and if you own and operate a business in this field, your company will have a lot of potential. With that, however, also come numerous possible perils that could endanger your business. To protect against those risks, a company needs to be properly insured.

Small electrical appliances 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 small electrical appliances manufacturing insurance questions:


How Much Does Small Electrical Appliances Manufacturers Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small small electrical appliances manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.


Why Do Small Electrical Appliances Manufacturers Need Insurance?

Insurance For Manufacturers

As a business owner, you set out to do everything right - to run an effective operation and a company that thrives in all senses of that word. No matter how good you are at your job, however, things can always go wrong.

Risks common to all commercial ventures as well as perils more specifically related to the manufacture of electronics can threaten your company's future at any time.

Those risks have many faces. They can arrive in the form of acts of nature; events like earthquakes, floods, or wildfires that you cannot prevent nor truly prepare for. They can also look more like theft, or acts of vandalism such as arson, which can cause significant damage to your physical assets.

Instead, perhaps, an employee suffers a workplace injury, holding your company liable and causing costs, or a third party like a contractor servicing manufacturing equipment has an accident on your premises.

Within this field, it is also crucial to consider the possible implications of a manufacturing error. Should faulty wiring lead a small electrical appliance to malfunction, end users could suffer electrocution or a fire. The fallout could be unimaginable.

Although business owners will do everything they can to make sure these and other unforeseen circumstances will not come about, the fact remains that they can. Should the worst happen, the right small electrical appliances manufacturers insurance will help your company recover.


What Type Of Insurance Do Small Electrical Appliances Manufacturers Need?

The kinds of small electrical appliances manufacturers insurance needed depend on variables such as the types of products they make, the location of their manufacturing plant, and the number of workers they employ.

A seasoned commercial insurance agent is an invaluable guide as you explore your needs. Some of the more key types of insurance that you will certainly need, however, include:

  • General Liability: If a third party suffers an injury within your building, or your company accidentally caused damage to third party property, costly litigation can follow. This broad form of liability insurance is designed to cover your legal and settlement expenses.
  • Product Liability:This more specialized form of liability insurance financially protects your company if any of your appliances, or even components incorporated into other appliances, cause property damage or injury to third parties. Should any product need to be recalled, the resulting costs can also fall under product liability insurance.
  • Commercial Property:This type of small electrical appliances manufacturers insurance protects your company from financial losses resulting from acts of nature, theft, or vandalism. It covers your physical building - your manufacturing plant - as well as assets therein, such as equipment, components in storage, and finished inventory. Commercial property insurance covers revenue lost to unforeseen circumstances as well.
  • Workers Compensation: Should a worker suffer an occupational injury or illness, this type of insurance provides them with funds to cover their medical costs as well as lost wages caused by injury-related absences from work.


Although these forms of insurance coverage are going to be crucial for manufacturers of small electrical appliances, you may also have additional needs such as vehicle or inland marine insurance.

Discuss the details with a trusted agent specializing in commercial insurance to build the right small electrical appliances manufacturers insurance plan for your unique company.

Small Electrical Appliances Manufacturing's Risks & Exposures

Manufacturing

Premises liability exposure is usually low as access by visitors is limited. If the manufacturer conducts tours or has a showroom or retail outlet, visitors may be injured by slips, trips, or falls.

Fumes, dust, and noise from woodwork or metalwork could affect neighbors. There may be significant off-premises exposures at promotional events.

Products liability exposure varies depending on the type of equipment produced and the customer. Appliances for mixing, cutting, and fanning have sharp moving parts that can cause severe injuries. Heaters may overheat resulting in fire, tip over, or emit dangerous fumes, presenting a high potential for very serious bodily injury or property damage. A malfunction in the wiring could present a fire or electrocution hazard, such as products designed for use in kitchens and baths.

Small parts in electronics designed for children's use could present a choking hazard. Cords and cables represent a potential tripping hazard. Cumulative radiation from screens and monitors may result in claims. While warning labels regarding dangers of personal injury are important, they provide only limited defense, especially in the case of inherently dangerous household products.

Older appliances made before improved safety features were introduced may still be in use. Governmental regulations, guidelines, and standards, must be observed.

Environmental impairment liability exposure may be very high due to possible contamination of ground, air, and water from chemicals and toxic lubricants, solvents and paints. For plastics, the raw materials may be toxic and are flammable, the catalysts may be caustic, and the final product is usually not biodegradable.

For wood and metal, contaminants may come from the chemicals, paints, and solvents used. Storage and disposal procedures must adhere to all EPA and other regulatory standards.

Workers compensation exposure can be very high. Injuries from production machinery are common, as are minor cuts, puncture wounds, burns, foreign objects in the eye, hearing impairment from noise, slips, trips, falls, back injuries from lifting, and repetitive motion injuries. Working with electronics can result in electrocution.

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. The chemical exposures could result in skin and eye irritations, as well as respiratory problems.

Workers must be made aware of the potential side effects of the ingredients they work with, including long-term occupational disease hazards, so they can recognize symptoms and obtain treatment as early as possible. Production incentives can be a disincentive to safety if the only consideration is by piece production.

Property exposures consist of office, plant, and warehouse or yard for storage of raw materials and finished goods. Ignition sources include heating and cooling equipment, production machinery, electrical panels, and the build-up of dust from the cutting and sanding that can cause fire and explosion. The risk increases in the absence of proper dust collection systems, ventilation, and adequate disposal procedures.

Paints, lubricants, degreasers, and solvents can be flammable and must be adequately separated and stored away from other operations. Plastic work may include molding or extrusion. Welding and soldering must be done away from combustibles and flammable liquids.

Metal housing may require soldering, electroplating, or annealing. Wood and metal may be painted by spray or in dip tanks. Spray-painting operations can cause a fire unless carried out in spray booths with explosion-proof electrical components.

Testing may produce arcing. Chemicals used in the process may cause noxious fumes and corrosion. Without a sterile environment, circuitry may be contaminated by dust or damaged by static. Electronic circuitry is highly susceptible to smoke and other contamination. A very small fire can cause total damage if there is not adequate separation of the storage from the possible ignition sources.

Electronics may be targets for theft. 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. There can be a significant business income and extra expense exposure, depending on the amount of time required to restore operations.

Equipment breakdown exposures include breakdown losses to the building services systems, malfunctioning production equipment, electrical control panels and other apparatus. Breakdown and loss of use to the conveyor and other production machinery could result in a significant loss, both direct and under time element.

Crime exposure comes from employee dishonesty and theft of circuitry, precious metal plating in the fixtures, and some high-end products. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock. Background checks should be conducted on all employees.

There must be a separation of duties between persons handling deposits and disbursements and handling bank statements. 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), exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information.

Stock in transit is susceptible to damage from breakage, fire, water damage, collision or overturn, and theft.

Commercial auto exposure may be high if the manufacturer picks up raw materials or delivers finished goods to customers. Because the goods are high targets for theft, vehicles transporting the product should be unmarked and contain appropriate protective devices.

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: 3634 Electric Housewares And Fans, 3635 Household Vacuum Cleaners, 3639: Household Appliances, Not Elsewhere Classified, 3589 Service Industry Machinery, Not Elsewhere Classified
  • NAICS CODE: 335210 Small Electrical Appliance Manufacturing, 333318 Other Commercial and Service Industry Machinery Manufacturing
  • Suggested ISO General Liability Code(s): 51224, 51222
  • Suggested Workers Compensation Code(s): 3179

Description for 3634: Electric Housewares And Fans

Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 363: Household Appliances

3634 Electric Housewares And Fans: Establishments primarily engaged in manufacturing electric housewares for heating, cooking, and other purposes; and electric household fans, except attic fans. Important products of this industry include household-type ventilation and exhaust fans; portable household cooking appliances, except convection and microwave ovens; electric space heaters; electrically heated bedcoverings, electric scissors; and portable humidifiers and dehumidifiers. Establishments primarily engaged in manufacturing attic fans and industrial and commercial exhaust and ventilation fans are classified in Industry 3564; and those manufacturing room air-conditioners and humidifying and dehumidifying equipment, except portable, are classified in Industry 3585.

  • Bedcoverings, electric
  • Blankets, electric
  • Blenders, electric
  • Blowers, portable
  • Bottle warmers, household: electric
  • Broilers, electric
  • Can openers, electric
  • Casseroles, electric
  • Chafing dishes, electric
  • Cigar lighters, electric
  • Cigarette lighters, electric
  • Coffee makers, household: electric
  • Cooking appliances, household: electric, except convection and
  • Crock pots, electric
  • Curling irons, electric
  • Deep fat fryers, household: electric
  • Dehumidifiers, electric: portable
  • Desk fans, electric
  • Driers: hand, face, and hair-electric
  • Dry shavers (electric razors)
  • Egg cookers, electric
  • Fans, household: electric, except attic fans
  • Floor fans, electric
  • Food mixers, household: electric
  • Fryers, household: electric
  • Griddles and grills, household: electric
  • Hair curlers, electric
  • Hair driers, electric: except equipment designed for beauty parlor use
  • Hassock fans, electric
  • Heaters, immersion: household-electric
  • Heaters, space: electric
  • Heaters, tape
  • Heating pads, electric
  • Heating units for electric appliances
  • Heating units, baseboard or wall: electric (radiant heating element)
  • Hotplates, electric
  • Humidifiers, electric: portable
  • Ice crushers, electric
  • Irons, domestic: electric
  • Juice extractors, electric
  • Knives, electric
  • Massage machines, electric: except designed for beauty and
  • Ovens, household: portable: except microwave and convection ovens
  • Percolators, electric
  • Popcorn poppers for home use: electric
  • Propeller fans, window-type (household)
  • Radiators, electric
  • Razors, electric
  • Roasters, electric
  • Sandwich toasters and grills, household: electric
  • Sauna heaters, electric
  • Scissors, electric
  • Shoe polishers, electric
  • Tea kettles, electric
  • Toasters, household: electric
  • Toothbrushes, electric
  • Trays, warming: electric
  • Trouser pressers, electric
  • Unit heaters, household: electric
  • Urns, electric: household
  • Vaporizers, electric: household
  • Ventilating fans, electric: household-kitchen
  • Waffle irons, electric
  • Wall heaters, household: electric
  • Water pulsating devices, electric
  • Whippers, household: electric

Description for 3635: Household Vacuum Cleaners

Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 363: Household Appliances

3635 Household Vacuum Cleaners: Establishments primarily engaged in manufacturing vacuum cleaners for household use. Establishments primarily engaged in manufacturing vacuum cleaners for industrial use are classified in Industry 3589. Establishments primarily engaged in installation of central vacuum cleaner systems are classified in Construction, Industry 1796.

  • Vacuum cleaners and sweepers, electric: household

Description for 3639: Household Appliances, Not Elsewhere Classified

Division D: Manufacturing | Major Group 36: Electronic And Other Electrical Equipment And Components, Except Computer Equipment | Industry Group 363: Household Appliances

3639 Household Appliances, Not Elsewhere Classified: Establishments primarily engaged in manufacturing household appliances, not elsewhere classified, such as water heaters, dishwashers, food waste disposal units, and household sewing machines.

  • Buttonhole and eyelet machines and attachments, household
  • Dishwashing machines, household
  • Floor waxers and polishers, household: electric
  • Garbage disposal units, household
  • Sewing machines and attachments, household
  • Trash compactors, household
  • Water heaters, household: including nonelectric

Description for 3589: Service Industry Machinery, Not Elsewhere Classified

Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 358: Refrigeration And Service Industry Machinery

3589 Service Industry Machinery, Not Elsewhere Classified: Establishments primarily engaged in manufacturing machines and equipment, not elsewhere classified, for use in service industries, such as floor sanding machines, industrial vacuum cleaners, scrubbing machines, commercial cooking and food warming equipment, and commercial dishwashing machines. Establishments primarily engaged in manufacturing household electrical appliances are classified in Industry Group 363.

  • Cafeteria food warming equipment
  • Carpet sweepers, except household electric vacuum sweepers
  • Carwashing machinery, including coin-operated
  • Cookers, steam: restaurant type
  • Cooking equipment, commercial
  • Corn popping machines, commercial type
  • Dirt sweeping units, industrial
  • Dishwashing machines, commercial
  • Floor sanding, washing, and polishing machines: commercial type
  • Food warming equipment, commercial
  • Fryers, commercial
  • Garbage disposers, commercial
  • Janitors' carts
  • Mop wringers
  • Ovens, cafeteria food warming: portable
  • Ovens, microwave (cooking equipment) commercial
  • Pressure cookers, steam: commercial
  • Sanding machines, floor
  • Scrubbing machines
  • Servicing machines, coin-operated except drycleaning end laundry
  • Sewage treatment equipment
  • Sewer cleaning equipment, power
  • Sludge processing equipment
  • Vacuum cleaners and sweepers, electric: industrial and commercial
  • Water conditioners, for swimming pools
  • Water filters and softeners, household type
  • Water purification equipment, household type
  • Water treatment equipment, industrial

Small Electrical Appliances Manufacturers Insurance - The Bottom Line

All small electrical appliances manufacturers insurance policies are not the same. You can discover if your 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.

Small Business Information

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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 InsuranceWhat 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 PoliciesWhat 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 InsuranceWhat 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 BondWhat 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
Small Business Commercial Insurance

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.


Manufacturing Insurance

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.


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