Tire Manufacturers Insurance Policy Information
Tire Manufacturers Insurance. The manufacture of tires is a much more complex and multifaceted process than people outside of this industry might imagine, and numerous different raw materials are used to make tires. Various kinds of rubber, silica, oils, pigments, carbon black, and antioxidants form the foundation of the tires, while polyester and steel components are also used.
Tire manufacturers produce rubber tires that are mounted on the wheels of aircraft landing gear, baby carriages, bicycles, shopping carts, wheelchairs, and most types of land motor vehicles, including automobiles, buses, construction equipment, farm tractors, forklifts, motorcycles, and trucks.
Materials used include natural or synthetic rubber, natural or synthetic fabric, additives such as carbon black, oils, or curing accelerators, and steel cable. Bales of natural latex are chopped and mixed with additives, especially sulfur or peroxide for vulcanization, then heated, pressed through rollers, and formed into tire components.
The main components and structure of a tire are the inner liner of sheet rubber, body layers or plies made of polyester cord, Kevlar, or similar fabric, steel belts, rubber sidewall, and tread.
After assembly, the tire is heated to complete the vulcanization process. The number of layers and the types of materials are determined by the tires end usage.
Equipment including banbury mixers, vulcanizers, and presses is essential in the manufacture of tires. A thorough quality assurance testing procedure is also part of today's tire industry, and x-ray machines are employed during the process.
Companies that manufacture tires of various types and intended for a wide range of different vehicles operate in a highly profitable industry, but like commercial ventures in all other fields, they are also exposed to a number of risks on a daily basis.
To protect their financial health, investing in tire manufacturers insurance coverage is essential - but what kinds of insurance might be needed? To discover more, keep reading.
Tire manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked tire manufacturing insurance questions:
- How Much Does Tire Manufacturers Insurance Cost?
- Why Do Tire Manufacturers Need Insurance?
- What Type Of Insurance Do Tire Manufacturers Need?
How Much Does Tire Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small tire manufacturing businesses ranges from $97 to $149 per month based on location, size, revenue, claims history and more.
Why Do Tire Manufacturers Need Insurance?
Investing in top-quality commercial insurance may, at first glance, appear to be a financial burden. You are, after all, protecting yourself against risks that may never materialize.
As a tire manufacturer, you have to be aware that any of the threats - those universal to any business owner as well as those unique to companies producing tires - could result in financial losses of a catastrophic magnitude.
Should your manufacturing facility be struck by an act of nature such as a wildfire or a flood, you will be grateful to have your insurance coverage on your side. The same holds true for theft or vandalism, which could cause significant damage to your production facility.
Likewise, the possibility that a manufacturing malfunction, or even, for instance, poorly-worded instruction manuals that result in misleading ideas about the circumstances in which particular tires can be used, might lead to accidents and injuries on the part of end users.
A costly lawsuit is then bound to follow. Occupational hazard for workers in the tire industry is another threat to consider; tire and rubber workers have an increased risk of certain cancers, for example.
When circumstances beyond your control do arise, the right tire manufacturers insurance will protect your company's financial health. This is why it is so important to consider your needs carefully.
What Type Of Insurance Do Tire Manufacturers Need?
The types of insurance your company is required to carry, alongside non-compulsory insurance that will benefit your business, will vary not just from one industry to the next, but also from one company to another.
Discuss the size, location, and number of workers as well as the raw materials you work with and the equipment used in your production line with a competent commercial insurance agent, who will be able to help you make the insurance plan that protects your financial interests.
Among the types of tire manufacturers insurance needed are:
- Commercial Property: Your physical building and assets on your property, ranging from manufacturing equipment to raw materials and inventory, are covered in the event of perils such as theft, vandalism, and acts of nature under this type of insurance. Furthermore, commercial property insurance can help you recover faster by partially compensating you for revenue lost due to these circumstances.
- General Liability: This type of tire manufacturers insurance protects you, succinctly said, against financial losses resulting from accidents that cause bodily injury or property damage to third parties, and for which you could be held legally responsible. Should a lawsuit be filed, it helps cover legal fees as well as settlement costs.
- Product Liability: Product defects sometimes have the potential to lead to serious physical harm or property damage, and that is certainly true for tires. Should anybody suffer injuries after road traffic accidents associated with a production error on your part, product liability insurance helps cover the financial fallout. It can also protect against economic loss if a product has to be recalled due to manufacturing errors or problems with raw materials.
- Workers' Compensation: This kind of insurance protects both you and your employees; should a worker sustain workplace injury or suffer occupational illness, it compensates for medical costs and lost wages that may arise.
These essential kinds of insurance are examples of the needs of firms in this industry. You may also need to carry additional kinds of insurance, such as vehicle insurance and inland marine insurance.
To learn what tire manufacturers insurance plan will protect your company from the many perils it faces, partner with a commercial insurance agent, who can also help you find the best deal.
Tire Manufacturing's Risks & Exposures
Premises liability exposure at the plant is normally low as access by visitors is limited. If tours are given or if outsiders are allowed on premises, visitors may be injured by slips, trips, or falls. Chemicals used in vulcanization may be corrosive and/or toxic.
Fumes, dust, and noise from production could affect neighbors. Should a fire occur, the difficulty in extinguishing it could result in the release of toxins and smoke damage to neighboring properties.
Evacuation plans should be on file with the fire department. Road testing and the storage of raw materials or finished tires outdoors can produce attractive nuisance hazards.
Products liability exposure is high because the failure or bursting of a tire on any type of aircraft or motorized vehicle can cause serious bodily injury and property damage. A tire may fail to perform under warranted conditions or be the proximate cause in a vehicular accident.
A quality control procedure should be in place with inspections done throughout the manufacturing process. Governmental regulations, guidelines, and standards must be observed. Warning labels and warranties are important but provide only limited defense as courts may apply strict liability standards to tire failure.
Environmental impairment exposure is high due to possible contamination of ground, air, and water from raw chemicals, solvents, and fuels. The catalysts may be caustic, and the final product is usually not biodegradable. Disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposures are high. Injuries from production machinery are common, as are minor cuts, puncture wounds, burns, slips, trips, falls, foreign objects in the eye, back injuries from lifting, hearing loss from noise, and repetitive motion losses.
More serious hazards come from chemical usage that can cause injury to eyes, skin, and lungs, as well as from work with heavy machinery that can cause major cuts and amputations. Employees should be provided with safety training and protective equipment. Workstations should be ergonomically designed.
Areas that generate dust require respiratory protection devices, as well as eye protection and eye wash stations. The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair.
If there is a fire on premises, the fumes in the smoke are very dangerous and can cause severe respiratory distress. Dense smoke makes egress from the premises difficult. Ventilation systems are needed to prevent the buildup of toxic vapors. Test drivers could be seriously injured in automobile accidents should a tire fail.
Property exposures consist of an office, production plant, and a warehouse or yard for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, and the storage of large amounts of chemicals and solvents.
While rubber does not ignite easily, the vulcanization chemicals and process can result in a fire that can be very difficult to extinguish due to the heavy black smoke which results in a great deal of smoke damage. The chemicals must be adequately controlled, separated, and stored.
Nearly all aspects of the operation present fire hazards that can only be minimized by separation and fire suppression systems. Machinery needs proper maintenance to prevent overheating and wear. Fuel sources to run machinery and the heat plant must be adequately controlled.
Cutting, punching, and buffing operations generate dust which can catch on fire. This hazard increases in the absence of properly maintained dust collection systems. Poor housekeeping 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.
Equipment breakdown exposures include malfunctioning production equipment and electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in a severe loss, both direct and under time element.
Crime exposure comes from employee dishonesty and theft as finished items may be high in demand. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock. Background checks should be conducted on all employees.
There must be a separation of duties between persons handling deposits and disbursements and handling bank statements. The manufacturer should have security methods in place to prevent theft.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information.
The main causes of loss are collision, upset, fire, or theft. There may be contractors' equipment such as forklifts or heavier equipment used to move raw materials and finished goods.
Commercial auto exposure is high if the manufacturer assumes responsibility for the transport of raw materials or finished products. If vulcanization chemicals are transported, potential contamination due to overturn or spillage is high. Hazards are substantially higher without proper controls, such as any required Hazardous Material licenses and spill containment procedures and equipment.
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: 3011 Tires And Inner Tubes
- NAICS CODE: 326211 Tire Manufacturing (except Retreading)
- Suggested ISO General Liability Code(s): 59750 Tire Manufacturing - Auto, Bus or Truck, 59751 Tire Manufacturing - Not Auto, Bus or Truck, 55597 Inner Tubes Manufacturing
- Suggested Workers Compensation Code(s): 4420 Rubber Tire Manufacturing
Description for 3011: Tires And Inner Tubes
Division D: Manufacturing | Major Group 30: Rubber And Miscellaneous Plastics Products | Industry Group 301: Tires And Inner Tubes
3011 Tires And Inner Tubes: Establishments primarily engaged in manufacturing pneumatic casings, inner tubes, and solid and cushion tires for all types of vehicles, airplanes, farm equipment, and children's vehicles; tiring; camelback; and tire repair and retreading materials. Establishments primarily engaged in retreading tires are classified in services, Industry 7534.
- Camelback for tire retreading
- Inner tubes: airplane, automobile, bicycle, motorcycle, and tractor
- Pneumatic casings (rubber tires)
- Tire sundries and tire repair materials, rubber
- Tires, cushion or solid rubber
- Tiring, continuous lengths: rubber, with or without metal core
Tire Manufacturers Insurance - The Bottom Line
Not every tire manufacturers insurance policy is the same. In fact, they can vary in coverage, costs and exclusions. To discover if your tire manufacturing 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.
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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Policies||What 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 Insurance||What 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 Bond||What 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
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.
- 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
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- 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
- Vending Machines
- Vegetable Juice
- Wire Rope
- Wood Furniture
- Writing Instruments
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.