Tannery Insurance

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Tannery Insurance Policy Information

Tannery Insurance

Tannery Insurance. Tanneries process animal skins and hides to produce leather that can then be used to manufacture goods as varied as leather jackets, upholstery, bags, and sporting goods like balls and gloves.

Tanneries receive unprocessed animal skins, hides and furs from slaughterers, and process them into leather of various types for sales to manufacturers. After curing for up to a month, hides are cleaned and softened by soaking.

Fat and hair are removed chemically and mechanically. The hides are then tanned with chromium (mineral tanning) or more traditionally with tannin from tree bark (vegetable tanning), in a multi-step process taking several weeks.

After a series of cleaning and softening washes to remove all unwanted chemicals, the hides are finished, by splitting, waxing, rolling, or injection with softening agents. They may also be dyed to meet the requirements of the customer.

Skins and hides are dehaired, degreased, desalted and soaked before the tanning process begins. This crucial step, after which tanneries are named, changes the leather's chemical structure to make it stronger and more durable.

Very often, tanneries also dye hides and skins, which may originate from cattle, sheep, pigs, and even fish and reptiles.

While the processing of hides and skins has evolved over the years, the basic principles remain unchanged. Modern tanneries utilize chemicals such as formaldehyde, trivalent chromium, heavy oils, and vegetable tannins in the production of leather.

If you own and run a tannery, you have found a place within one of the oldest trades in existence. Knowing that there will always be a demand for durable and beautiful leather goods, you are aware that there are plenty of opportunities to grow your business.

Are you also protected against the perils your business may face with comprehensive tannery insurance coverage? Read on to discover more.

Tannery 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 brick manufacturing insurance questions:


How Much Does Tannery Insurance Cost?

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


Why Do Tanneries Need Insurance?

Insurance For Manufacturers

While tannery owners will strive to maintain and expand their companies, they are also subject to a number of risks - each with the potential to do devastating damage and lead to massive costs. Some of these risks are universal, and as such familiar to any business owner, while others are unique to tanneries.

Within this industry, occupational hazard is one of the primary concerns. The chemicals and dyes tannery workers are exposed to on a daily basis could easily lead to occupational injuries, with respiratory problems and skin irritation being the most common hazards.

An injured worker could hold your company responsible, leading to significant financial losses.

As in other branches of industry, you also have to contend with the possibility that your company could fall victim to natural disasters like serious floods, wildfires, or hurricanes. Theft and vandalism, including arson, offer two more reasons to be well-insured.

All these perils can, after all, damage your physical building and the equipment and raw materials within it, while simultaneously forcing you to interrupt production. Without the right insurance, any of these events could seriously threaten the future of your business.

Uninsured or under-insured businesses who are hit by major perils are likely to find themselves unable to weather the costs, and may be forced to declare bankruptcy. Although tannery insurance will never cover all expenses arising from unforeseen circumstances, it is a vital way to protect your company.


What Type Of Insurance Do Tanneries Need?

The precise types of insurance tanneries need to carry will vary - your insurance needs are as unique as your company, after all.

The kinds of chemicals you use to process skins and hides, the location and size of your manufacturing facility, and even your number of employees all help determine what coverage best protects your company.

The types of tannery insurance needed, however, include:

  • Commercial Property: If your manufacturing facility is struck by an act of nature, theft, vandalism, or another serious accident, the damage could be catastrophic. This essential form of insurance helps you replace your lost or damaged assets, and may further cover some of the revenue you lose to unforeseen circumstances.
  • General Liability: Anyone may file a lawsuit against your company, for almost any reason. If a third party is injured within your facility or chemical spills and leaks cause environmental damage, such claims may succeed. This type of tannery insurance is designed to cover the associated legal costs and, in the event of a successful lawsuit, settlement fees.
  • Product Liability: This type of liability coverage is designed to protect you in the event that a third party files a bodily injury or property damage claim directly relating to a product you manufactured.
  • Workers Compensation: Colloquially known as "workers' comp", this type of insurance protects your employees as well as your business. Covering acute work-related injuries as well as long-term illnesses that may arise from exposure to chemicals, it takes care of employees' medical expenses and the income an employee loses if they cannot return to work due to an occupational injury.


Investing in the right tannery insurance offers tanneries the peace of mind they need to focus on what they do best.

Be aware, however, that these important kinds of insurance may not amount to a comprehensive plan. Ask your commercial insurance agent about commercial auto and environmental insurance as well.

Tanneries' Risks & Exposures

Manufacturing

Premises liability exposure is normally low due to limited access by visitors. If the manufacturer has a showroom or offers tours, visitors may be injured by slips, trips, or falls. Chemicals used in the tanning and finishing process may be corrosive and/or toxic. Fumes, spills or leaks may cause serious injury or property damage to neighboring premises.

Products liability exposure is limited because all final processing is done by the customers of the tannery.

Environmental impairment exposure is moderate to high due to chemicals used in processing (such as chromium, tannin, and waxes), solvents and lubricants for the machinery, the waste waters for washings, and the scrap and debris.

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 moderate to high. Injuries from production machinery are common, as are puncture wounds, burns, cuts, slips, trips, falls, foreign objects in the eye, hearing loss from machinery noise, and back injuries from lifting. Employees should be provided with safety training and protective equipment.

Areas that generate dust require respiratory protection devices, as well as eye protection and eye wash stations. Flammable liquids and chemicals used in tanning and finishing can cause skin irritation, eye irritation, and possible long-term occupational disease.

The high volume required for production schedules may lead workers to remove guards from the machinery, or to postpone maintenance and repair. Repetitive motion injuries can result from the ongoing use of machinery. Workstations should be ergonomically designed.

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 plant, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, and production machinery. Chemicals and oils used in treating, softening, washing, dyeing and finishing are often flammable and should be properly labeled, separated, and stored in approved containers.

Hair, dust, and scrap generated during the initial and final processing steps generate dust which can catch on fire. This hazard increases in the absence of well-maintained dust collection systems. Hides and finished leather are susceptible to damage by fire, smoke, water and humidity.

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 machinery) can cause a fire without a separate ignition source.

In some areas, there may be a vandalism exposure from protesters. 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 and records kept in a central location.

Crime exposure comes from employee dishonesty and theft due to the relatively high street value of processed leather. 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 automobile 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.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 3111 Leather Tanning And Finishing
  • NAICS CODE: 316110 Leather and Hide Tanning and Finishing
  • Suggested ISO General Liability Code(s): 59693
  • Suggested Workers Compensation Code(s): 2623, 2600

Description for 3111: Leather Tanning And Finishing

Division D: Manufacturing | Major Group 31: Leather And Leather Products | Industry Group 311: Leather Tanning And Finishing

3111 Leather Tanning And Finishing: Establishments primarily engaged in tanning, currying, and finishing hides and skins into leather. This industry also includes leather converters, who buy hides and skins and have them processed into leather on a contract basis by others.

  • Bag leather
  • Belting butts, curried or rough
  • Belting leather
  • Bookbinders' leather
  • Bridle leather
  • Buffings, russet
  • Case leather
  • Chamois leather
  • Collar leather
  • Coloring of leather
  • Cutting of leather
  • Die-cutting of leather
  • Embossing of leather
  • Exotic leathers
  • Fancy leathers
  • Fleshers, leather (flesh side of split leather)
  • Garment leather
  • Glove leather
  • Handbag leather
  • Harness leather
  • Japanning of leather
  • Lace leather
  • Latigo leather
  • Leather coloring, cutting, embossing, japanning, and welting
  • Leather converters
  • Leather: tanning, currying, and finishing
  • Lining leather
  • Mechanical leather
  • Parchment leather
  • Patent leather
  • Rawhide
  • Roller leather
  • Saddlery leather
  • Shearling (prepared sheepskin)
  • Skirting leather
  • Skivers, leather
  • Sole leather
  • Specialty leathers
  • Splits, leather
  • Strap leather
  • Sweatband leather
  • Tanneries, leather
  • Upholstery leather
  • Upper leather
  • Vellum leather
  • Welting leather
  • Wet blues

Tannery Insurance - The Bottom Line

Tannery insurance policies can be different in coverage, costs and exclusions. To find out if your tannery operation has the best fit insurance policies - talk to an experienced commercial insurance broker.

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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