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Soap And Detergent Manufacturers Insurance Policy Information

Soap And Detergent Manufacturers Insurance

Soap And Detergent Manufacturers Insurance. Soap and detergents - essentially, any product with cleansing properties, such as laundry or dish detergents - are so widely used in the modern world that it would quite literally impossible to imagine a society in which they did not exist.

Soap and detergent manufacturers produce liquid and bar soap used by individuals, laundry detergents, household and industrial cleaners. Soaps used by individuals are made from alkalis and animal or vegetable fats and oils which are processed with heat, blended with abrasives, fragrances, tints, and/or moisturizers, and finished into liquid or bar form.

Detergents are made from liquid, powdered, and granulated materials including surfactants and chemicals like phosphates, silicates, and carbonates that are mixed with water and alcohol. Fragrances, tints, bleaches, and softeners may be added. The mixture is spray dried to form small droplets that are packaged into cartons or cans, including aerosols.

Depending on the use of the product, soap and detergent manufacturers may be regulated by the Consumer Product Safety Commission (CPSC), Environmental Protection Agency (EPA), or Food and Drug Administration (FDA).

Companies that manufacture soap or detergent unquestionably make an important contribution to the global economy as well as public health, and they may range from industry giants that almost everyone is familiar with to small startups crafting artisanal products in much smaller facilities.

Over the course of the production of soap or detergent manufacture, a company inevitably faces a range of risks. Some of them will lead to nothing beyond minor financial inconveniences, but other unforeseen events can be of such a massive magnitude that a business is unlikely to be able to recover on their own.

What types of soap and detergent manufacturers insurance coverage are needed to protect businesses in this industry? Discover more in this brief guide.

Soap and detergent 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 soap and detergent manufacturing insurance questions:

How Much Does Soap And Detergent Manufacturers Insurance Cost?

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

Why Do Soap And Detergent Manufacturers Need Insurance?

Insurance For Manufacturers

All businesses - from the smallest family-owned companies to the largest household names - face risk and uncertainty. Companies that make soap and detergent have to consider both universal perils and hazards unique to their field as they decide how to protect their business interests.

Examples of common perils that could threaten any business are theft, vandalism, and acts of nature as varied as earthquakes and hurricanes, or lightning strikes and serious floods.

Any of these events could render your facility and the assets therein so damaged that you will be forced to halt production. In turn, your company would, without insurance, be left fighting costs on multiple fronts.

Liability risks can be just as devastating. Employees may become injured over the course of their jobs, and in the soap and detergent industry, they are exposed to a number of hazardous chemicals on a daily basis.

A third party who visits your facility may suffer an accident for which you could be held responsible. If your soap or detergent product causes serious allergies in end users, the costs associated with any lawsuit that may follow can again be catastrophic.

While soap and detergent manufacturers will strive to prevent these perils, no risk management plan is effective all of the time. Soap and detergent manufacturers insurance coverage is designed to catch you when the worst comes to pass.

What Type Of Insurance Do Soap And Detergent Manufacturers Need?

The types of insurance coverage that best protect your company from the major risks it is exposed to depends on factors that include, but are not limited to, the chemicals you work with, the location of your facility, the manufacturing equipment or tools you rely on, and how many workers you employ.

Consulting a commercial insurance agent offers you the opportunity to craft an insurance plan specifically tailored to your needs. Having said that, examples of soap and detergent manufacturers insurance always needed are:

  • Commercial Property: If your facility is hit by an act of nature, or by theft or vandalism, the resulting property damage can be severe. This type of insurance is designed to help you recover from the loss, and it covers your physical building as well as raw materials, machinery, computers, and finished inventory.
  • General Liability: This type of soap and detergent manufacturers insurance exists to protect your financial interests in the event that a third party files a property damage or bodily injury claim against your company. It will help you fund your legal defense team and cover settlement expenses.
  • Product Liability: Designed to cover liability claims pertaining specifically to products you manufacture, this type of insurance is essential if a third party alleges that a soap or detergent you made caused them harm.
  • Workers' Compensation: This type of coverage protects companies as well as their employees. In the event that an employee suffers a workplace injury, or comes down with an occupational illness resulting from exposure to hazardous chemicals, for instance, a company is responsible for the costs that follow. Workers' compensation insurance covers lost wages and medical bills in these cases.

Firms in this industry should bear in mind that these are merely examples of the types of soap and detergent manufacturers coverage they may need to protect their company from perils.

You may further require business interruption insurance, commercial auto insurance, or environmental insurance. Ask your commercial insurance agent to fill you in.

Soap And Detergent Manufacturing's Risks & Exposures


Premises liability exposure may be very high. The manufacturer may have a showroom for sales representatives from vendors, or may conduct tours. Visitors may be injured by slips, trips, or falls, or may be exposed to toxic or caustic chemicals.

Ingredients may be reactive or toxic, especially in concentrated form before they are diluted for sale to the public. Dust particles from dryers and fumes, fires, or spills or leaks from tanks may cause serious injuries to passersby or damage neighboring properties.

Products liability exposure is moderate to high. Use of the products may result in allergic reactions, chemical burns, contamination, eye damage, or skin rashes during use. Significant injuries or damage may result due to poor quality control, improper storage, transport or even inappropriate packaging and labeling.

Environmental impairment exposure is very high. Sudden or cumulative discharges of chemicals used as additives may contaminate air, surface or ground water, or soil. Disposal procedures must adhere to all EPA and other regulatory standards. Processing may cause thermal or noise pollution. There may be tanks on premises with the potential for spillage and contamination. If there are underground tanks, a UST policy may be required.

Workers compensation exposures may be high. Ingredients used to manufacture soaps and detergents may be toxic or caustic, with a high potential for injury to eyes, lungs, or skin, especially in concentrated form, and with repeated exposure. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, hearing loss from machinery noise, and back injuries from lifting.

Employees should be provided with safety training and protective equipment. Aerosol containers may explode and injure workers. Use of ergonomically designed workstations can prevent repetitive motion injury. Employees must be fully informed as to the potential effects of any hazardous ingredients, including long-term occupational disease hazards so that they can be aware of warning symptoms and obtain treatment as early as possible. Drivers of forklifts and vehicles may be injured in accidents.

Property exposures include offices, processing areas, and warehouses for raw materials and finished goods. Ignition sources include electrical wiring, heating and cooling equipment, dryers, overheated production machinery, buildup of static electricity, escape of fumes from storage tanks, and refueling of forklifts. The large draft spaces in storage warehouses can contribute to the spread of a fire.

While some chemicals may be inert, others are reactive (caustic, corrosive, or flammable) and require special handling. Some chemicals may be spoiled by temperature change, humidity, dust or other changes. Hazards increase without fire suppression devices or other controls.

Due to the potential use of some ingredients in making explosives, 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.

Business interruption exposure can be high as a large loss can result in lengthy downtime for repairing or replacing production equipment.

Equipment breakdown exposures include breakdown losses to production equipment, electrical control panels, and other apparatus. Breakdown and loss of use of the production machinery could result in a significant loss, both direct and indirect, notably, time element.

Crime exposures are chiefly from employee dishonesty and theft of money and securities. While this hazard may be very low for most ingredients used in making soaps, there may be a substantial risk for a simple ingredient such as bleach or hydrogen peroxide due to its potential use in explosives.

Employees may act alone or in collusion with outsiders in stealing money, raw materials, trade secrets, 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.

Inland marine exposures include accounts receivable if the manufacturer offers credit to customers, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information as well as quality control testing results and proprietary formulas used for products.

Goods in transit may be damaged by fire, theft, collision and overturn, spillage, contamination or aerosol explosion.

Business auto exposure may be very high if the manufacturer transports raw materials or finished products. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others. Each driver should have an appropriate license and an acceptable MVR.

All vehicles must be well maintained with documentation kept in a central location. Transport of aerosols is hazardous because the products need to be kept at cooler temperatures. Refrigerated trucks used for this purpose should be well maintained to prevent overheating and explosion.

Commercial Insurance And Business Industry Classification

Description for 2841: Soap And Other Detergents, Except Specialty Cleaners

Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 284: Soap, Detergents, And Cleaning Preparations; Perfumes, Cosmetics, and Other Toilet Preparations

2841 Soap And Other Detergents, Except Specialty Cleaners: Establishments primarily engaged in manufacturing soap, synthetic organic detergents, inorganic alkaline detergents, or any combination thereof, and establishments producing crude and refined glycerin from vegetable and animal fats and oils. Establishments primarily engaged in manufacturing shampoos or shaving products, whether from soap or synthetic detergents, are classified in Industry 2844; and those manufacturing synthetic glycerin are classified in Industry 2869.

  • Detergents, synthetic organic and inorganic alkaline
  • Dishwashing compounds
  • Dye removing cream, soap base
  • Glycerin, crude and refined: from fats except synthetic
  • Mechanics' paste
  • Presoaks
  • Scouring compounds
  • Soap: granulated, liquid, cake, flaked, and chip
  • Textile soap
  • Washing compounds

Soap And Detergent Manufacturers Insurance - The Bottom Line

Not every soap and detergent manufacturers insurance policy is the same. The can have very different coverages and premiums. You can learn 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.

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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