Writing Instruments Manufacturers Insurance Policy Information
Writing Instruments Manufacturers Insurance. Pencils, brushes, and even crayons can all technically be considered writing implements, but the pen is the most popular writing tool. Over two billion pens are manufactured in the United States alone every year. Popular types of pens include ballpoint, rollerball, and fountain pens. Gel pens and felt-tip pens are likewise common in today's world.
Writing instrument manufacturers produce materials for marking on paper and other surfaces, including crayons, highlighters and markers, pens, and pencils. Crayons are made of paraffin (wax), powdered pigments, and sometimes glitter or scents. The liquid mixture is pumped into molds and cooled, then wrapped.
Highlighters and markers, or felt-tip pens, are molded plastic cylinders that hold an ink reservoir inside. A felt tip is added after the reservoir is filled, along with a removable cap. Pen types include fountain and cartridge pens containing liquid ink and ballpoint and roller ball pens with viscous ink. A variety of raw materials are used for making the components of a pen, including metals, plastics, and other chemicals.
Precious metals such as gold, silver, or platinum may be plated onto more expensive pens. The component parts and inks may be made by the manufacturer or purchased from others. The parts may be carved, extruded, molded, or stamped. Once assembled, an injector fills the ink reservoir, then the cap and ends are added.
Pencils are no longer made of lead, but from powdered graphite and clay which are mixed, formed, and baked in a kiln, then dipped in wax or oil.
This is glued inside a wooden casing. A metal end is generally glued on the end, often including a rubber eraser. The cores of colored pencils do not contain graphite, but a mixture of clay, gum, and pigments.
Although writing instruments are generally inexpensive, fine pens may contain precious metals and can be very costly. Because of the varieties of materials and processes involved, the different phases of manufacture may be carried out in different locations or different countries.
Whether you own and run a company that mass produces plastic pens, perhaps with advertising logos, or make high-end luxury fountain pens with precious metals, you will do your best to serve your chosen market and grow your company.
Like businesses in other fields, pen manufacturers will, however, be vulnerable to a range of risks that have the potential to put their future in peril.
This is why solid insurance coverage, which protects your company from catastrophic financial losses in the case of unforeseen circumstances, is absolutely essential. What kind of writing instruments manufacturers insurance is needed, and what kinds of threats should you be aware of? This quick guide will help you get started.
Writing instruments manufacturers insurance protects your pencils, pens, markers, highlighters and more 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 writing instruments manufacturing insurance questions:
- How Much Does Writing Instruments Manufacturers Insurance Cost?
- Why Do Writing Instruments Manufacturers Need Insurance?
- What Type Of Insurance Do Writing Instruments Manufacturers Need?
How Much Does Writing Instruments Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small writing instruments manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Writing Instruments Manufacturers Need Insurance?
Companies that produce writing instruments, including all types of pens, should actively welcome the opportunity to investigate the best insurance coverage possible. This is not just because manufacturers are legally obliged to carry certain kinds of insurance, but also because you face a range of threats.
From accidents to criminal acts, and from natural disasters to sudden equipment breakdown, these circumstances beyond your control can strike at virtually any time. When - and for companies that have been in business for significant periods of time, it really is "when" and not "if" - that happens, you don't want to be solely responsible for shouldering the associated costs.
Companies that make pens and other writing implements need insurance because theft and vandalism can affect any company, and because no matter your location, acts of nature can, in one form another, always damage your manufacturing facility and your other physical assets.
A lightning strike can lead to a fire, for example, and floods can render your facility unusable at least for some time.
You will also have to contend with the prospect that an employee becomes injured in the workplace, and that the company is held liable for their medical bills. Third parties, too, can sustain bodily injuries on your premises and proceed to file a lawsuit.
The right writing instruments manufacturers insurance for your risk profile can keep your company safe, making the difference between massive costs and burdens that represent only a temporary setback.
That is why pen manufacturers should not only tolerate insurance as a necessary obligation, but welcome their insurer as a partner essential to their financial success.
What Type Of Insurance Do Writing Instruments Manufacturers Need?
The manufacture of writing instruments is a diverse field; you may be a small company that crafts smaller quantities of luxury pens, or one that produces large numbers of everyday pens. The number of workers a company employs, the materials they use to make their pens, and the kinds of machines and tools used in the production line will all vary.
Your writing instruments manufacturers insurance needs depend on all these factors, and more. That is why it is important to consult with a commercial insurance broker who understands what you require.
Having said that, companies that make writing implements cannot do without these types of insurance:
- Commercial Property: This type of writing instruments manufacturers insurance is essential for any business with physical assets, including pen manufacturers. It shields you from financial loss if your manufacturing facility, meaning the building and its contents, is damaged by circumstances such as theft and fire. Commercial property insurance can also compensate you for revenue lost to manufacturing interruptions that can result from these same events.
- General Liability: Should third parties - meaning anybody who does not work for you - sustain injuries on your premises, or should your company's activities cause accidental damage to third party properties, a lawsuit can follow. General liability insurance helps cover your legal expenses as well as medical or repair costs in this case.
- Workers Compensation: While pen manufacturing is not among the most hazardous industries, employees can still become injured in the workplace; you can even be held liable for something as simple as a fall occurring because of a slippery floor. Medical bills and lost wages alike are covered by workers comp.
- Product Liability: Nobody would see a pen as a dangerous object, but keep in mind that small parts inhaled by children, for instance, can pose a serious health hazard. This is why pen manufacturers may also need product liability insurance, which offers protection against third party injury claims specifically relating to your product.
To make sure you have the top-quality insurance coverage your company deserves, partner with a seasoned commercial insurance agent. Explore all possible writing instruments manufacturers insurance options.
Writing Instruments Manufacturing's Risks & Exposures
Premises liabilities exposure is moderate as access to the premises is limited. If tours are given or there is a showroom or on-site field-testing, visitors may be injured by slips, trips, or falls 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. The storage of raw materials or finished goods outdoors can create an attractive nuisance.
Products liability exposure is generally low with the exception of markers and crayons manufactured predominately for use by young children. These must be nontoxic and well labeled with adequate warnings. Child safety laws must be followed.
Environmental impairment exposure can be low if the entire operation is assembly-only, with no component manufacturing and no chemicals used or waste produced. Plastic and rubber manufacturing increase the exposure due to the possible contamination of ground, air, and water from raw chemicals, which may be both toxic and flammable.
As federal regulations prohibit the disposal of colored substances, these must be mixed with an absorbent material and disposed of as solids. Disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposure can be high. Common hazards include injuries from production machinery, burns, minor cuts, puncture wounds, slips, trips, falls, foreign objects in the eye, hearing loss from noise, back injuries from lifting, and repetitive motion injuries. Workstations must be ergonomically designed.
Employees should be provided with safety training, protective equipment, and guarding of machines. Areas that generate dust from metal or woodworking, or use spray-painting, should provide respiratory protection devices, as well as eye protection and eye wash stations.
Cumulative exposure to inks, chemicals, dyes, and graphite dust can result in occupational diseases. 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.
Property exposures consist of an office, plant, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, and the storage of large amounts of waxes, chemicals, and solvents. Waxes used in making pencil "lead" and crayons are highly flammable in their liquid form.
The painting of pencils adds another hazard. Inks may contain flammable solvents to speed drying time. Flammable liquids must be kept to a minimum in the processing area and stored in isolated areas. Dust from metal working, plastics, and wood can increase fire potential unless there are well maintained dust collection systems and proper ventilation. Machinery needs proper maintenance to prevent overheating and wear.
Fuel sources to run machinery and the heat plant must be adequately controlled. 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. Once on fire, plastics and rubber produce a thick, dense smoke that makes firefighting difficult.
Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, 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 exposures are chiefly from employee dishonesty and theft of money and securities. Gold and platinum used to produce high-end fountain pens, nibs, or as trim in gift pens may be target items for theft. 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.
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.
Raw stock and work in process may be transported between different buildings or locations. If precious metals are used in the process, a separate jewelers block policy will be needed since coverage for theft of precious metals in standard property forms is limited. The primary causes of loss are from fire, theft, overturn, and water damage.
Commercial auto exposure may be high if the manufacturer transports raw materials or finished products. Manufacturers generally have private passenger fleets used by sales representatives. 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: 3951 Pens, Mechanical Pencils, And Parts, 3952 Lead Pencils, Crayons, And Artists' Materials
- NAICS CODE: 339940 Office Supplies (except Paper) Manufacturing
- Suggested ISO General Liability Code(s): 57871
- Suggested Workers Compensation Code(s): 4432, 3119, 2942
Description for 3951: Pens, Mechanical Pencils, And Parts
Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 395: Pens, Pencils, And Other Artists Materials
3951 Pens, Mechanical Pencils, And Parts: Establishments primarily engaged in manufacturing pens (including ballpoint pens), refill cartridges, mechanical pencils, fine and broad tipped markers, and parts.
- Cartridges, refill: for ballpoint pens
- Fountain pens and fountain pen desk sets
- Markers, soft tip: e.g., felt, fabric, plastics
- Meter pens
- Nibs (pen points): gold, steel, or other metal
- Pencils and pencil parts, mechanical
- Penholders and parts
- Pen points: gold, steel, or other metal
- Pens and pen parts: fountain, stylographic, and ballpoint
Description for 3952: Lead Pencils, Crayons, And Artists' Materials
Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 395: Pens, Pencils, And Other Artists Materials
3952 Lead Pencils, Crayons, And Artists' Materials: Establishments primarily engaged in manufacturing lead pencils, pencil leads, and crayons; and materials and equipment for artwork, such as air-brushes, drawing tables and boards, palettes, sketch boxes, pantographs, artists' colors and waxes, pyrography goods, drawing inks, and drafting materials. Establishments primarily engaged in manufacturing mechanical pencils are classified in Industry 3951, and those manufacturing drafting instruments are classified in Industry 3829.
- Artists' materials, except drafting instruments
- Boards, drawing: artists'
- Boxes, sketching and paint
- Brushes, air: artists'
- Burnishers and cushions, gilders'
- Canvas board, artists'
- Canvas, artists': prepared on frames
- Chalk: e.g., carpenters', blackboard, marking, artists', tailors'
- Colors, artists': water and oxide ceramic glass
- Crayons: chalk, gypsum, charcoal, fusains, pastel, and wax
- Drafting materials, except instruments
- Drawing tables and boards, artists'
- Easels, artists'
- Enamels, china painting
- Eraser guides and shields
- Frames for artists' canvases
- Frisket paper (artists' material)
- Gold or bronze mixtures, powders paints, and sizes: artists'
- India ink
- Ink, drawing: black and colored
- Lettering instruments, artists'
- Maulsticks, artists'
- Modeling clay
- Paints for burnt wood or leather work, platinum
- Paints for china painting
- Paints, artists'
- Palettes, artists'
- Pantographs for drafting
- Pastels, artists'
- Pencil holders
- Pencil lead: black, indelible, or colored
- Pencils, except mechanical
- Pyrography materials
- Sizes, artists': gold and bronze
- Sketching boxes, artists'
- Tracing cloth (drafting material)
- Walnut oil, artists'
- Water colors, artists'
- Wax, artists'
Writing Instruments Manufacturers Insurance - The Bottom Line
Writing instruments manufacturers insurance policies differ in exclusions and coverages well as premium. You can discover if your business has the best fit insurance policies by talking to an experienced commercial insurance agent.
Often they are able to save you on premiums and offer you better policy options than you currently have.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
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.