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:
- What Is Writing Instruments Manufacturers Insurance?
- How Much Does Writing Instruments Manufacturers Insurance Cost?
- Why Do Writing Instruments Manufacturers Need Insurance?
- What Type Of Insurance Do Writing Instruments Manufacturers Need?
- What Does Writing Instruments Manufacturers Insurance Cover & Pay For?
What Is Writing Instruments Manufacturers Insurance?
Writing Instruments Manufacturers insurance is a type of insurance policy designed for manufacturers of writing instruments, such as pens, pencils, and markers. This insurance coverage typically protects the manufacturer against potential risks and liabilities associated with the production and distribution of writing instruments, such as product liability claims, property damage, and loss of income.
The exact coverage provided by a Writing Instruments Manufacturers insurance policy can vary, but it is generally designed to help the manufacturer manage and mitigate financial losses in the event of unexpected incidents or accidents during the course of their business operations.
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.
What Does Writing Instruments Manufacturers Insurance Cover & Pay For?
Writing instrument manufacturers can face lawsuits for a variety of reasons. While insurance can't prevent a lawsuit, it can help companies financially manage the costs associated with legal defense and potential settlements or judgements. Here are some examples:
1. Product Liability: This is perhaps the most common cause of lawsuits in manufacturing. If a pen, pencil, or other writing instrument malfunctions in a way that causes injury or damage to a user or their property, the manufacturer may be held liable. For example, a pen could explode, spilling ink that ruins an expensive piece of artwork or a business contract. The manufacturer might be sued for the cost of the damage.
Insurance Solution: Product Liability Insurance would help in this situation. This type of insurance covers the cost of defending against such lawsuits, as well as any settlements or judgements that may result. It also typically covers the cost of recalling the defective product, if necessary.
2. Intellectual Property Infringement: Writing instrument manufacturers can also be sued if they're accused of infringing on another company's patent, trademark, or design. For instance, if a manufacturer produces pens that are similar in design to a patented pen by another company, they might face a lawsuit.
Insurance Solution: Intellectual Property Insurance is designed to cover the costs of defending against these kinds of lawsuits, as well as any resulting judgement or settlement. It can also cover the cost of licensing the infringed upon property, if that becomes necessary as part of the settlement.
3. Breach of Contract: Manufacturers often enter into contracts with suppliers, distributors, and other partners. If the manufacturer fails to uphold their part of the contract, they could be sued. For example, if a manufacturer promises exclusive distribution rights to a certain retailer but then allows another retailer to sell their product, the first retailer might sue.
Insurance Solution: Commercial General Liability Insurance often includes coverage for such lawsuits. This insurance would cover the cost of defending against the lawsuit, as well as any resulting judgement or settlement. Additionally, having Professional Indemnity Insurance might also be beneficial in some cases as it covers claims arising from professional advice or services provided.
4. Employment Practices Liability: Employees could sue the manufacturer for a variety of reasons, including discrimination, wrongful termination, harassment, or other employment-related issues.
Insurance Solution: Employment Practices Liability Insurance (EPLI) can help cover the costs of defending against these types of lawsuits, as well as any settlements or judgements. This insurance is designed to help companies deal with the complexities of employee rights and labor laws.
These are just a few examples of the types of lawsuits that writing instrument manufacturers might face, and how various types of insurance can help protect them. The specific needs and risks of a company can vary greatly depending on their size, the nature of their products, and many other factors, so it's important for each manufacturer to work with an experienced insurance agent or broker to ensure they have the appropriate coverage.
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 Workers Compensation Code(s): 4432 Pen Manufacturing, 3119 Needle Manufacturing
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.
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.
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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.