Sporting Goods Manufacturers Insurance Policy Information
Sporting Goods Manufacturers Insurance. Sporting goods can be defined as products specifically designed to be used in a wide range of different goods.
While the industry could be considered to include the manufacture of sporting apparel and shoes, here we focus on sporting goods such as fishing rods, darts, sleds, rackets, bats, clubs, skateboards, and goal posts.
Sporting goods manufacturers produce a wide variety of items for the pursuit of athletic activities, including archery, auto racing, baseball, basketball, bowling, boxing, camping, climbing, cycling, fencing, fishing, football, golf, gymnastics, hiking, hockey, horseback riding, hunting, martial arts, parachuting, racket sports, rugby, shooting, skateboarding, skating, skiing, snowboarding, soccer, track and field, and water sports.
They may produce exercise equipment or playground equipment, or protective safety items such as ear coverings, face guards, helmets, or life jackets.
Items produced may be made of cloth, metal, plastic, rubber or wood, or any combination of these materials. Operations for cloth items include cutting, sewing, and assembly. Metal items may be cast, drawn, extruded, punched, or cut from sheets, then joined with seams, rivets, hinges, or screws. There may be some soldering or spot welding.
Raw plastic, which can be in powder, liquid, flakes, or pellets, is blended or mixed with a wide range of additives, resins, colorings, and catalysts, heated, then molded, formed, or extruded into an end product which is buffed and finished with paint or lacquer.
As natural rubber contains latex, a substance that can cause severe allergic reactions, most rubber items are now made of synthetic, petroleum-based materials. When natural rubber is used, the latex is imported in prevulcanized sheets that can be shredded and heated into liquid or semi-liquid form, then processed using extrusion, injection molding, or compression molding into an end product.
Wood items are cut, sanded, painted or varnished, and assembled. Each process should be individually reviewed. Because of the varieties of materials and processes involved, the different phases of manufacture may be carried out in different locations or different countries.
As sports provide both a means to stay healthy, an important form of recreation, and an important outlet for the human competitive spirit, it is no stretch to say that manufacturers of sporting goods provide an important service to society.
As the global market is estimated to have a value of around $26 billion, the sporting goods industry is also a profitable one.
As in any field of industry, however, companies that produce sporting goods of all kinds face a number of significant risks that could endanger not only their short-term financial health, but even the very existence of their business.
Accidents and other circumstances are a realistic risk, however, and that is why is is so important to arm yourself with suitable sporting goods manufacturers insurance. What do you need to know? Read on to discover more.
Sporting goods 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 sporting goods manufacturing insurance questions:
- What Is Sporting Goods Manufacturers Insurance?
- How Much Does Sporting Goods Manufacturers Insurance Cost?
- Why Do Sporting Goods Manufacturers Need Insurance?
- What Type Of Insurance Do Sporting Goods Manufacturers Need?
- What Does Sporting Goods Manufacturers Insurance Cover & Pay For?
What Is Sporting Goods Manufacturers Insurance?
Sporting goods manufacturers insurance is a type of insurance coverage specifically designed for manufacturers of sports equipment and related products.
This insurance can provide protection against various risks associated with the production and sale of sporting goods, including liability claims from customers who are injured while using the products, losses from theft or damage to inventory, and the costs of product recalls and repairs.
The coverage may also include protection against lawsuits and damages related to intellectual property rights, such as trademark infringement or patent disputes. Additionally, sporting goods manufacturers insurance may cover the costs of business interruption, such as lost income and expenses incurred during a shutdown due to an insured event.
How Much Does Sporting Goods Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small sporting goods manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Sporting Goods Manufacturers Need Insurance?
Companies that make sporting goods need to be insured because, while you will do everything you can to minimize the risks your business faces, all situations can take a turn for the worse. Both the hazards common to all fields of industry and those exclusive to sporting goods manufacturers can lead to serious financial losses.
Imagine, for example, that an act of nature - a term that encompasses events like wildfires, earthquakes, lighting strikes, and serious storms - causes significant damage to your manufacturing facility and the assets within.
Both your present financial health and your future revenue would be affected without the right insurance. Theft and vandalism, which would include the intentional setting of a fire, could have a similar impact.
Within the sporting goods industry, you also have to confront the risk that a product malfunctions, due to a mistake in the manufacturing process or a problem with your raw materials, leading to property damage or even bodily injury on the part of an end user. Costly lawsuits may follow.
Workers, too, could become injured at work, something for which a sporting goods manufacturer may then be held liable.
With the proper sporting goods manufacturers insurance on your side, your company will be able to recover from these and numerous other perils.
What Type Of Insurance Do Sporting Goods Manufacturers Need?
As you explore your insurance options, you will discover that the kinds of coverage on the market offer protection against many different hazards.
A commercial insurance agent who understands your unique situation is best suited to guide you through the process of obtaining the kind of coverage your business needs
Having said that, essential sporting goods manufacturers insurance coverage is going to include the following:
- Commercial Property: In the event that your manufacturing facility is impacted by fire, flood, theft, vandalism, or a range of other circumstances beyond your control, this type of insurance covers your physical assets. That means it will help pay for property damage, lost inventory, loss of machinery, and even revenue lost to interruptions in production.
- Commercial General Liability: This type of sporting goods manufacturers insurance is essential if a third party visiting your premises becomes injured, or your company's activities accidentally cause damage to a property that does not belong to you. Legal fees and settlement fees are covered.
- Product Liability: This type of insurance is designed to protect your company in case a product you have manufactured causes harm - injury or property damage - to third parties, even long after it left your facility. Again, legal fees as well as costs like medical or repair bills fall under this kind of liability insurance.
- Workers' Compensation: Should an employee sustain workplace injuries, which may be acute or long-term, this kind of insurance has their medical costs as well as any lost income covered. Because workers comp insurance also releases you from much of the legal responsibility associated with occupational injury, it additionally protects your company.
Be advised that these examples may not amount to a comprehensive insurance plan for your company, as well as that costs will vary depending on the size of your company, among other factors..
Together with a commercial insurance agent, your company will be able build a sporting goods manufacturers insurance plan that meets your needs.
Sporting Goods Manufacturing's Risks & Exposures
Premises liability exposure is usually moderate to low due to limited access by visitors. If there is a showroom, factory outlet, or retail operation, visitors may be injured by slips, trips, or falls. Fire, fumes, dust, and noise from woodwork or metal work could pose a nuisance hazard to neighbors.
Products liability exposure varies by type of sporting equipment manufactured and its end use. Items such as balls or golf clubs present a lower exposure, while protective equipment such as face guards, helmets, or life jackets can result in severe injury or death if the product should fail. Sharp edges can result in cuts and other injuries.
Paints, lacquers, and some types of metal may be toxic. Some people are highly allergic to natural rubber latex. There should be adequate warnings and age-appropriate information regarding potential hazards, as well as product recall procedures. Products must comply with all governmental regulations, guidelines and standards.
Environmental impairment exposure is high due to possible contamination of ground, air and water from chemicals and toxic lubricants, solvents, and paints used in the manufacturing process. Raw materials may be toxic and flammable. Fumes and improper disposal of scrap can result in air, ground, or water contamination. Disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposures can be high. Skin and eye irritations are common, and continued exposure can result in serious lung and respiratory problems. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, foreign objects in the eye, hearing loss from machinery noise, overheating and exhaustion in high temperatures, and back injuries from lifting. Employees should be provided with safety training and protective equipment.
Woodworking can result in injury from cuts, amputations, exposure to dust, and respiratory problems from spray-painting. Should a fire occur, fumes and smoke from molten plastic or rubber are very dangerous.
Repetitive motion injuries can result from the ongoing use of machinery. Workstations should be ergonomically designed. The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair. 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.
Safety consciousness and commitment of management, especially in the form of ongoing enforcement and awareness programs, are important considerations.
Property exposure consists of an office, production area, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, and production machinery. Different hazards arise depending on the processes used for items made of cloth, metal, plastic, rubber and wood. Dust from textiles, fabric coatings, cutting, sanding, buffing, and polishing may present an explosion hazard.
Metalworking may include soldering or welding that may generate sparks. These operations should be conducted away from combustibles. Flammable liquids, glues, paints, and varnishes should be kept to a minimum in the processing area and stored in approved containers in isolated areas. Hazards increase in the absence of controls, such as dust collection systems or booths with UL-approved fixtures for spray painting.
Machinery needs proper maintenance to prevent overheating and wear. If plastics or rubbers catch fire, they will produce an oily black smoke that can be very difficult to extinguish. Poor housekeeping, such as failure to collect and dispose of scraps on a regular basis, could contribute significantly to a loss. Unless disposed of properly, greasy, oily rags (such as those used to clean the machinery) can cause a fire without a separate ignition source.
Sprinklers may be advisable. Appropriate security controls must 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, dust collection and ventilation systems, electrical control panels and other apparatus. These should be properly maintained. A lengthy breakdown to production machinery could result in a severe loss, both direct and under time element.
Crime exposures are from employee dishonesty or theft of higher-valued stock. 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. There should be 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.
Backup copies of all records should be made and stored off premises. Goods in transit may be damaged by fire, collision, overturn, theft, and water damage.
Business auto exposure may be 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. Drivers should have an appropriate license and an acceptable MVR.
All vehicles must be well maintained with documentation kept in a central location. If the chemicals used to finish and coat fabrics are transported by the manufacturer in tanker trucks, drivers of these vehicles must have a Hazardous Material Endorsement on his or her Commercial Driver Licenses and be trained to contain spills.
What Does Sporting Goods Manufacturers Insurance Cover & Pay For?
Sporting goods manufacturers can face a range of legal issues that may lead to lawsuits. Several common reasons for these lawsuits include product liability claims, intellectual property disputes, breach of contract, and employment-related issues. In many cases, the right insurance policies can provide critical financial protection against these legal challenges.
Product Liability Claims: If a sporting good is found to be defective or cause injury, manufacturers can be sued for damages. For example, if a bicycle breaks apart during use leading to severe injuries, the victim may sue the manufacturer for compensation. This is where Product Liability Insurance comes in. This insurance can help cover the cost of legal defense, any settlement or judgment amounts, and other court-related costs.
Intellectual Property Disputes: Sporting goods manufacturers often innovate with new product designs, technologies, or branding. This can lead to disputes over patents, trademarks, or copyrights. An aggrieved party may sue alleging that the manufacturer has infringed upon their intellectual property rights. Intellectual Property Insurance can help protect against these types of claims, covering legal costs and any damages awarded.
Breach of Contract: Manufacturers often have contracts with suppliers, distributors, and retailers. If a manufacturer is accused of not fulfilling their contractual obligations, they may be sued for breach of contract. Commercial General Liability Insurance typically includes coverage for personal and advertising injury, which can include certain types of contractual liability. Additionally, a specialized policy like Contractual Liability Insurance can provide more comprehensive protection.
Employment-Related Issues: Like any business, sporting goods manufacturers can face lawsuits related to their employment practices. This can include allegations of wrongful termination, discrimination, or harassment. Employment Practices Liability Insurance (EPLI) can help cover the costs of defending against these types of claims and any judgments or settlements that result.
In all these cases, insurance doesn't just help pay for a judgment or settlement if the lawsuit is lost. It can also cover legal defense costs, which can be substantial even if the manufacturer ultimately wins the lawsuit. It's important for businesses to work with a knowledgeable insurance agent or broker to ensure they have the appropriate coverage for their specific risks.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3949 Sporting And Athletic Goods, Not Elsewhere Classified
- NAICS CODE: 339920 Sporting Goods and Athletic Goods Manufacturing
- Suggested Workers Compensation Code(s): 2501 Umbrella Manufacturing, 2670 Glove Manufacturing - Leather or Textile, 2688 Leather Goods Manufacturing NOC, 2841 Wood Turned Products Manufacturing NOC, 3146 Hardware Manufacturing NOC, 4410 Boot or Shoe Manufacturing - Rubber, 4420 Rubber Tire Manufacturing, 4771 Explosives or Ammunition Manufacturing NOC & Drivers, 4902 Sporting Goods Manufacturing NOC
Description for 3949: Sporting And Athletic Goods, Not Elsewhere Classified
Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 394: Dolls, Toys, Games And Sporting And Athletic
3949 Sporting And Athletic Goods, Not Elsewhere Classified: Establishments primarily engaged in manufacturing sporting and athletic goods, not elsewhere classified, such as fishing tackle; golf and tennis goods; baseball, football, basketball, and boxing equipment; roller skates and ice skates; gymnasium and playground equipment; billiard and pool tables; and bowling alleys and equipment. Establishments primarily engaged in manufacturing athletic apparel are classified in Major Group 23; those manufacturing athletic footwear are classified in Industries 3021 and 3149; those manufacturing small arms ammunition are classified in Industry 3482; and those manufacturing small arms are classified in Industry 3484.
- Ammunition belts, sporting type: of all materials
- Archery equipment
- Arrows, archery
- Athletic and sporting goods: except clothing, footwear, small arms,
- Badminton equipment
- Bait, fishing: artificial
- Balls: baseball, basketball, football golf, tennis, pool, and bowling
- Baseball equipment and supplies, except uniforms and footwear
- Bases, baseball
- Basketballs and basketball equipment and supplies, except uniforms
- Baskets, fish and bait
- Bats, game: e.g., baseball, softball, cricket
- Billiard and pool balls, cues, cue tips and tables
- Billiard chalk
- Bowling alleys and accessories
- Bowling pin machines, automatic
- Bowling pins
- Bows, archery
- Boxing equipment
- Bridges, billiard and pool
- Buckets, fish and bait
- Cartridge belts, sporting type
- Cases, gun and rod (sporting equipment)
- Creels, fish
- Cricket equipment
- Croquet sets
- Decoys, duck and other game birds
- Exercise cycles
- Exercising machines
- Fencing equipment (sporting goods)
- Fishing tackle (except lines, nets, and seines)
- Flies, artificial: for fishing
- Floats for fish lines
- Footballs and football equipment and supplies, except uniforms and
- Game calls
- Gloves, sport and athletic: e.g., boxing, baseball, racketball, handball
- Golf carts, hand
- Golfing equipment: e.g., caddy cars and bags, clubs, tees, balls
- Guards: e.g., football, basketball, soccer, lacrosse
- Gymnasium and playground equipment
- Helmets, athletic
- Hockey equipment, except uniforms and footwear
- Indian clubs
- Jogging machines
- Lacrosse equipment
- Mallets, sports: e.g., polo, croquet
- Masks, sports: e.g., baseball, fencing, hockey
- Nets: e.g., badminton, basketball, tennis-not made in weaving mills
- Pads, athletic: e.g., football, basketball, soccer, lacrosse
- Pigeons, clay (targets)
- Pin-setters for bowling, automatic
- Playground equipment
- Polo equipment, except apparel and footwear
- Pool balls, pockets, tables, and equipment
- Protectors, sports: e.g., baseball, basketball, hockey
- Rackets and frames, sports: e.g., tennis, badminton, squash,
- Rowing machines
- Scoops, crab and fish
- Scuba diving equipment, except clothing
- Shafts, golf club
- Sinkers (fishing tackle)
- Skates and parts, ice and roller
- Skin diving equipment, except clothing
- Skis and skiing equipment, except apparel
- Soccer equipment, except apparel
- Spears, fishing
- Sporting goods: except clothing, footwear, small arms, and
- Squash equipment, except apparel
- Stand boards
- Sticks, sports: e.g., hockey, lacrosse
- Striking (punching) bags
- Strings, tennis racket
- Swimming pools, plastics
- Tables: billiard pool, bagatelle, and ping pong
- Target shooting equipment, except small arms and ammunition
- Targets, archery and rifle shooting
- Targets, clay
- Tennis goods: e.g., balls, frames, rackets
- Track and field athletic equipment, except apparel and footwear
- Trap racks (clay targets)
- Wading pools, plastics coated fabric
- Windsurfing boards and equipment
Sporting Goods Manufacturers Insurance - The Bottom Line
Sporting goods manufacturers insurance policies can be different in premium, coverage and exclusions. You can learn if your company has the best fit insurance policies by talking to an experienced business insurance broker.
Often they are able to save you on premiums and offer you better policy options than you currently have.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Industrial Equipment
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Leather Goods
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Psychedelic Drugs
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vegetable Juice
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
- Specialty Manufacturing
- Specialty Product Liability
The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.