Small Electrical Appliances Manufacturers Insurance Policy Information
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:
- What Is Small Electrical Appliances Manufacturers Insurance?
- How Much Does Small Electrical Appliances Manufacturers Insurance Cost?
- Why Do Small Electrical Appliances Manufacturers Need Insurance?
- What Type Of Insurance Do Small Electrical Appliances Manufacturers Need?
- What Does Small Electrical Appliances Manufacturers Insurance Cover & Pay For?
What Is Small Electrical Appliances Manufacturers Insurance?
Small Electrical Appliances Manufacturers Insurance is a type of insurance coverage specifically designed for manufacturers of small electrical appliances. This insurance provides protection against a variety of risks associated with the production, distribution, and sale of these appliances, including product liability, property damage, business interruption, and more..
The purpose of this insurance is to help small electrical appliance manufacturers mitigate the financial impact of losses and damages that may occur during the course of their business operations, ensuring their continued success and growth.
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?
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
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.
What Does Small Electrical Appliances Manufacturers Insurance Cover & Pay For?
Small electrical appliances manufacturers can be sued for various reasons, including product liability, breach of warranty, negligence, and intellectual property infringement. Insurance policies can help protect these manufacturers by providing coverage for the associated legal expenses, settlements, and judgments. Here are some examples of how insurance can help pay for lawsuits:
Product Liability: If a customer suffers injury or property damage due to a faulty small electrical appliance, the manufacturer may be sued for product liability. Product liability insurance can help cover the legal costs, settlements, or judgments associated with such lawsuits, protecting the manufacturer from financial loss.
Breach of Warranty: A manufacturer may be sued if they fail to honor a warranty or make misleading claims about the performance or safety of their products. Commercial general liability insurance can cover the legal expenses and potential settlements or judgments resulting from breach of warranty claims.
Negligence: If a manufacturer is found to have been negligent in the design, production, or testing of a small electrical appliance, they can be sued for damages. Professional liability insurance, also known as errors and omissions (E&O) insurance, can help cover the legal costs and potential settlements or judgments arising from negligence claims.
Intellectual Property Infringement: Manufacturers may be sued for infringing on another company's patents, trademarks, or copyrights. Intellectual property insurance can help pay for legal defense costs, settlements, and judgments related to intellectual property infringement lawsuits.
For each of these examples, having the appropriate insurance coverage in place can help protect small electrical appliance manufacturers from significant financial losses resulting from lawsuits. It is essential for manufacturers to work with experienced insurance agents or brokers to ensure they have the right coverage for their specific needs and risks.
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 Workers Compensation Code(s): 3179 Electrical Apparatus Manufacturing NOC
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.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- 3D Printing
- Adhesives
- Alarms
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Boxes
- Bricks
- Brooms & Brushes
- Buttons
- Cabinets
- Camping Equipment
- Canned Fruit & Vegetables
- Cans
- Canvas Products
- Caskets
- CBD Oil And Hemp
- Cement
- Ceramics
- Chemical
- Clock & Watch
- Clothing
- Coffee
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Computers
- Condoms
- Construction Equipment
- Cork Products
- Cosmetics
- Cutlery
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Electroplating
- Elevators
- Engines
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fences
- Fertilizer
- Fireworks
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gears
- Glass
- Glasswear
- Gypsum Products
- Hosiery
- Ice Cream
- Industrial Equipment
- Ink
- Insecticides
- Iron & Steel Foundries
- Jewelry
- Lawn Mowers
- Leather Apparel
- Leather Goods
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Manufacturing
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Millwork
- Monuments
- Musical Instruments
- Nanotechnology
- Nonferrous Foundries
- Ornamental Metalwork
- Paint
- Paper & Allied Products
- Pesticides
- Pet Food
- Pharmaceuticals
- Plastic & Rubber Toys
- Plastic Goods
- Plastics
- Plastics Molding, Forming & Extruding
- Pottery
- Product Liability
- Prosthetics
- Psychedelic Drugs
- Pulp & Paper Mills
- Refractory
- Residential Air Conditioning & Heating
- Rubber Goods
- Rugs
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Shoes
- Small Electrical Appliances
- Sporting Goods
- Springs
- Stone Products
- Tanneries
- Textiles
- Textiles Finishing & Coating
- Tires
- Tobacco
- Tool & Die Shops
- Vegetable Juice
- Vending Machines
- Watercraft
- Wire
- Wire Rope
- Wood Furniture
- Woodworking
- Writing Instruments
- Yarn
- Specialty Manufacturing
- Specialty Product Liability
The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
