The Specialty Manufacturing Insurance Guide
Manufacturing Insurance. This guide provides information on excess, surplus and specialty lines small business insurance policies and risks.
Here you can find basic descriptions of the specific industry risks or specialty coverage types available for Manufacturing Insurance.
For certain types of small businesses, particularly new ones - it is often very hard to know what types of commercial insurance is needed, what the risks are that should be covered - and where to find coverage.
We wanted to provide reference for specialty commercial insurance to help our readers get a better understanding of Manufacturing Insurance policies they might need to do business.
Learn about Specialty Manufacturing Insurance to better understand common risks, exposures and the types of commercial insurance coverage available to protect your small business and it's operations.
Manufacturing Insurance Types
Click on the links below to learn more about Specialty Manufacturing Insurance types and coverages:
- Aircraft Spare Parts Insurance
- Bicycle Manufacturers Insurance
- Boat Manufacturers Insurance
- Chemical Manufacturers Insurance
- Coatings And Adhesives Manufacturers Insurance
- Cosmetic Manufacturers Insurance
- Durable Medical Equipment Manufacturers Insurance
- Fertilizer Manufacturers Insurance
- Foundries Insurance
- Medical Device Manufacturers Insurance
- Medical Marijuana Crop Insurance
- Motorcycle Custom Manufacturers And Fabricators Insurance
- Nanomaterial Manufacturers Insurance
- Nutriceuticals Manufacturers Insurance
- Paint Manufacturers Insurance
- Slaughterhouses Insurance
- Space Industry Insurance
- Sporting Goods And Equipment Manufacturers Insurance
- Terrorism Insurance
- Toy Manufacturers Insurance
- Woodworking And Lumber Operations Insurance
What Is Aircraft Spare Parts Insurance?
Aircraft hull policies exclude aircraft spare parts. If a part, such as an engine, is removed from the aircraft to be repaired, and in order for the aircraft to be used, a loaner is attached to the aircraft, the part removed is not covered. Coverage for that spare part must be purchased separately from the aircraft hull policy. Insurance purchased covers aircraft engines, spare parts, and equipment that are on the ground, or that are being carried as cargo by air, land, or water conveyances. Coverage ends when the equipment is fitted to the aircraft. This coverage does not cover engine loss or damage while the part is running or being tested. It also excludes mechanical or electrical failure loss or damage to detached property once it is refitted to the aircraft or to property carried on the aircraft as a spare parts kit. Each loss that results from one event is adjusted separately.
What Type Of Insurance Do Bicycle Manufacturers Need?
Bicycle and bicycle parts manufacturers have significant product liability exposures which most standard markets will not write. In addition, bicycle wholesale and retail operations that import bicycles directly from foreign manufacturers are usually underwritten as manufacturers when that foreign manufacturer does not have a U.S. insurance policy.
What Type Of Insurance Do Boat Manufacturers Need?
Boat manufacturers' most difficult exposure is products liability. This coverage is usually written on a claims-made basis and in a specialty market. The property exposure is also significant because of the types of materials used and the flammable adhesives and paints that are required in the manufacturing process. Coverage for the stock may need to cover boats while on sale at dealerships.
What Type Of Insurance Do Chemical Manufacturers Need?
Chemical manufacturers require significant liability insurance limits to protect them from lawsuits related to the hazardous nature of some of their products. In addition, there are significant environmental impairment exposures. Property and business income exposures are also challenging because of the caustic nature of various base elements and the explosive potential when they are combined. The workers compensation exposure can be very high and require extensive loss prevention activities and programs. Auto and inland marine exposures vary based on the way the chemical and base elements are transported.
What Type Of Insurance Do Coatings And Adhesives Manufacturers Need?
Paints, coatings, and adhesives manufacturers are classes of business in the chemical industry that specialize in producing paints, inks, plastics, adhesives, aerosol containers, lubricants, and resins. Coverages available include general, products, and professional liability, pollution and remediation liability, auto liability, umbrella liability, and workers compensation. Distributors that handle these commodities are also eligible.
What Type Of Insurance Do Cosmetic Manufacturers Need?
Insurance coverage for general liability, including products and vendors as additional insured liability, is available for cosmetics manufacturers. The products liability exposure is particularly hazardous due to the potential harmful effects of cosmetics on the skin and in the eyes. There is a significant property and business income exposure based on the types of cosmetics manufactured. Many of the base chemicals used in manufacturing are caustic and explosive.
What Type Of Insurance Do Durable Medical Equipment Manufacturers Need?
Durable Medical Equipment (DME) is equipment to aid a medical condition that patients can use multiple times. Examples are wheelchairs, walkers, crutches, oxygen equipment, canes, patient lifts and CPACs. The products exposure is extremely high because of the potential harm to any equipment-dependent patient if the product should fail.
What Type Of Insurance Do Fertilizer Manufacturers Need?
Explosion potential is the catastrophic hazard for fertilizer manufacturers. Property, general liability, and workers compensation are the mandatory coverages. Excess/umbrella limits must be high enough to respond to property damage and bodily injury to the surrounding community if there is a major explosion. Automobile liability with high limits is also necessary if the manufacturer transports product.
What Type Of Insurance Do Foundries Need?
Tight market conditions occasionally create a need for a special market for foundries. The intense heat used in the casting process creates hazards that many standard insurers find unacceptable. In addition, many underwriters see relatively few risks in this class and conclude that they are more hazardous than they actually are. Other than the fire hazard, workers compensation has a high frequency of losses due to exposure to silicosis and other occupational diseases. There is a products liability exposure due to the products cast in a foundry being used in automobiles, locomotives, aircraft, or heavy machinery and equipment.
What Type Of Insurance Do Medical Device Manufacturers Need?
A medical device is any type of item that is used to aid patients that are not pharmaceutical. Many of the devices require FDA approval but others are over the counter items with sometimes questionable claims of efficacy. A tongue depressor is a medical device as is a pacemaker. Items can be external or inserted inside the body. Durable Medical Equipment (DME) is a defined subset of this category.
What Is Medical Marijuana Crop Insurance?
A medical marijuana dispensary must have a marijuana crop to sell. This unique crop is subject to the same hazards as any other crop in the specific area where it grows. This crop's potential value adds a significant theft exposure. The crops' value varies because some growers provide a generic crop while others use research and development techniques to produce disease- or symptom-specific crops.
What Type Of Insurance Do Motorcycle Custom Manufacturers And Fabricators Need?
Many motorcycle purchasers want a unique product. As a result many businesses cater to those clients who want custom paint schemes, special detailing, and even frame and engine modifications. Custom motorcycle designers, manufacturers, fabricators, service and repair shops, and parts dealers are some of the classes of business affected. Coverages provided include general liability, products and completed operations, garagekeepers legal liability, and business personal property coverage, including theft.
What Type Of Insurance Do Nanomaterial Manufacturers Need?
Nanomaterials are extremely small units of material. They are used in various industries including health-related and many other industries. One benefit of such very small units is that they can be directed and designed for specific purposes. One of the safety issues is that due to the very small size units can escape labs resulting in potential environmental issues. The other issues deal with it being a new type of product with a limited track record in which to access side effects and other potential problems.
What Type Of Insurance Do Nutriceuticals Manufacturers Need?
Health foods are becoming increasingly popular as the nation grows more concerned about potential problems with foods grown using a variety of pesticides, herbicides, and other chemical compounds. In addition, foods preserved with chemicals are thought to be (or may be) linked to cancer. Property and casualty insurance programs, including important products liability coverage with high limits, are available to manufacturers, distributors, wholesalers, and retailers involved with a wide range of health products, including natural foods, organic foods, food supplements, and personal care products.
What Type Of Insurance Do Paint Manufacturers Need?
It can be difficult to place commercial general liability and products liability coverage for paint, coatings, inks, and adhesive manufacturers. Like chemical manufacturers, these risks are more hazardous than most manufacturing operations due to exposures to toxic substances and the potential of accidental emissions. Loss control is a very important service that should be provided.
What Type Of Insurance Do Slaughterhouses Need?
These operations can be very large and generic or small and customized. All are labor intensive and involve significant workers compensation exposures from cuts, carpel tunnel, and disease. The slaughterhouse may own the meat it produces or others may own the meat and the slaughterhouse only processes it. Housekeeping, sanitation, and regularly testing the meat are primary underwriting considerations.
What Is Space Industry Insurance?
This coverage is primarily about satellites. As a rocket has multiple stages, so does the insurance. There is pre-launch, launch, and in-orbit coverage for physical damage to the satellite. There is also third party and re-launch guarantee coverage. Pre-launch insurance covers the satellite until it is launched. This includes transporting it from the manufacturer plus any storage or assembly at the launch site. Launch insurance covers the satellite for physical loss or damage during the launch sequence and also for the satellite failing to achieve its designated orbit. The launch stage also covers the satellite failing to perform as specified once it reaches orbit. In-orbit insurance is protection against the satellite failing to operate successfully when it achieves its required orbit. Third-party insurance protects the insured against third-party claims that arise from an occurrence associated with the mission including damage to various earth stations and transmission towers and equipment. Re-launch guarantee coverage provides a free re-launch to a customer when an error by the insured causes a launch failure.
What Type Of Insurance Do Sporting Goods And Equipment Manufacturers Need?
Liability coverage for sporting goods and equipment manufacturers is difficult to place. Lawsuits are high-valued and high profile because children and athletes are injured when equipment such as helmets, padding, exercise equipment, or bicycles fails. Coverage may be written on a combined commercial general liability and products/completed operations liability package or with products liability written separately.
What Is Terrorism Insurance
The market for terrorism coverage changed dramatically on September 11, 2001. Coverage availability and pricing varies significantly, based on geographic location and type of industry.
What Type Of Insurance Do Toy Manufacturers Need?
There are many types of toy manufacturers, but all share the desire to produce a product that is engaging to their target audience. The underwriting of the exposure depends on the selected market segment. Every segment has its own difficult aspect mainly because what is the intended use of the product and method of play can be radically altered by the user.
What Type Of Insurance Do Woodworking And Lumber Operations Need?
Property coverage on woodworking and lumber risks is a problem because of the high potential for fire due to the extreme flammability of wood, wood scraps, and sawdust. The danger of explosion and total conflagration is correspondingly high. Adequate safeguards such as dust collection systems, fire cut-offs, and restrictions on the use of highly volatile lacquers and paints by some operations make such risks much more appealing. Even with these and other protective safeguards, many woodworking and lumber risks are still written in specialty markets. The broad classification of lumber risks encompasses all activities connected with this industry, from logging trees in the forest to operations that process crude logs into finished boards, paneling, or pulp.
Manufacturing Insurance - The Bottom Line
We hope that the Manufacturing Insurance helps you to better understand the some of the specialty small business commercial insurance policies available for your business. To find out what types of coverage your unique business needs, speak to a professional commercial broker with experience in insuring businesses like yours.
Specialty Small Business Insurance Guide By Industry, Risk Or Policy Type
- Accident And Sickness / AD&D
- Aircraft And Airports
- Amusement Parks And Rides
- Animals And Birds
- Arts And Antiques
- Auctions And Farmers Markets
- Automobiles, Trucks And Recreational Vehicles
- Business Risks
- Clubs And Leisure Time Activities
- Community Service Organizations
- Dealers And Distributors
- Directors And Officers Liability
- Drugs And Alcohol
- Employee Protection
- Environmental Risks
- Errors And Omissions
- Farm Risks
- Financial Institutions And Services
- Firearm And Shooting
- Food And Restaurants
- Hazardous Materials
- Health Risks
- Hotels And Motels
- Inland Marine
- Insurance Services
- Machinery And Tools
- Medical Centers And Clinics
- Medical Malpractice
- Mobile And Modular Homes
- Motorcycle Risks
- Natural Disasters
- Nonprofit Agencies
- Oil And Chemical
- Physical Damage
- Prize Indemnification
- Product Liability
- Real Estate
- Retail Stores
- Schools And Education
- Security Risks And Equipment
- Service Businesses
- Sports And Hobbies
- Substandard Risks
- Weather Related
- Workers Comp
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.