Tannery Insurance Policy Information
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:
- What Is Tannery Insurance?
- How Much Does Tannery Insurance Cost?
- Why Do Tanneries Need Insurance?
- What Type Of Insurance Do Tanneries Need?
- What Does Tannery Insurance Cover & Pay For?
What Is Tannery Insurance?
Tannery insurance is a type of insurance policy designed specifically for companies in the leather tanning industry.
It covers various risks faced by tanneries such as damage to raw materials, machinery, property, and liability for third-party injury or property damage. This insurance typically includes coverage for product liability, property damage, business interruption, and workers' compensation.
The purpose of tannery insurance is to protect the financial stability of tanneries by compensating them for any losses or damages incurred during their operations.
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?
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
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.
What Does Tannery Insurance Cover & Pay For?
Tanneries, like any other businesses, can be sued for a number of reasons. Some of these reasons include environmental pollution, workplace injuries, and product liability. Insurance can be a lifeline in such instances, helping to cover the legal fees, settlement costs, and other related expenses. Let's delve into these scenarios:
1. Environmental Pollution: Tanneries use various chemicals in the leather processing procedure, which may end up contaminating the environment. If a tannery is sued for causing environmental damage, this can result in substantial legal fees and potentially large fines or settlements. Here, a pollution liability insurance policy can help. This type of insurance is designed to cover costs associated with pollution-related incidents, including the legal, cleanup, and remediation costs that could arise from a lawsuit.
2. Workplace Injuries: Tanneries are environments where accidents can happen, leading to employee injuries. If an employee gets injured on the job and decides to sue the company, a workers' compensation insurance policy can be a critical asset. This type of insurance can cover medical expenses, lost wages, and even the legal costs if the injured employee decides to sue. In some regions, having workers' compensation insurance is mandatory for businesses.
3. Product Liability: If a tannery produces a faulty product that causes harm or damage, the business could be sued. In this case, product liability insurance can come to the rescue. Product liability insurance can help cover the costs of a lawsuit stemming from damage or injury caused by a company's product. This can include legal defense fees, settlements, and any awards for damages.
4. Property Damage: Tanneries may also face lawsuits if their operations lead to damage to another person's property. For example, a fire or explosion at a tannery could damage nearby properties. A commercial property insurance policy would typically cover the business's own property, but a general liability insurance policy can cover the costs if a business is found legally responsible for damage to someone else's property.
In conclusion, insurance plays a vital role in risk management for businesses like tanneries. It can provide financial protection against a range of potential lawsuits and other liabilities. However, it's important for tanneries to work with knowledgeable insurance brokers to ensure they have the right types and amounts of coverage for their specific risks.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3111 Leather Tanning And Finishing
- NAICS CODE: 316110 Leather and Hide Tanning and Finishing
- Suggested Workers Compensation Code(s): 2623 Leather Manufacturing - Including Tanning, Leather Embossing, and Wool Pulling, 2600 Fur Processing - Preparing Skins
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
- 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.
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.