Category: Manufacturers Insurance
Usually, in the manufacturing sector, profits come at the margins. To make money, then, companies must reduce expenses at every stage of the manufacturing chain. They also must successfully manage a litany of business risks and legal challenges. By purchasing comprehensive Orlando manufacturers insurance, smart business owners address risk throughout the production process.
Manufacturers can spend a fortune on buildings, warehouses, equipment, and personnel even before they produce a single item. To protect business interests during the first phases of production, manufacturers opt for the following types of insurance protection:
- Property Insurance
- General Liability Coverage
- Workers Compensation Protection
While these forms of coverage are essential at the inception of the manufacturing process, savvy business owners recognize the need to carry adequate coverage throughout the business venture.
Once production hits peak performance, business risks change somewhat. Rather than focusing exclusively on company assets and property, business owners must protect raw materials and post-production inventory. To do so, manufacturing managers often purchase the following coverage:
- Pollution Liability
- Product Liability
- Product Recall
By purchasing manufacturing process coverage and errors and omissions coverage, manufacturers manage risk and ensure business continuity.
For complete Orlando manufacturers insurance coverage, business owners must protect their products from post-production but pre-sale damage. To do so, they often opt to purchase Manufacturers Selling Price coverage. With this insurance, insurers reimburse loss at sales value rather than manufacturing cost. By adopting a comprehensive risk management strategy, then, manufacturers get the protection they need at each phase of the manufacturing process.
The plastics industry employs over 1.1 million workers in the U.S. Plastic, glass and paper products are three major industries that provide packaging for a variety of products sold in stores and businesses across the nation. There are, however, safety concerns when it comes to the plastics industry. These are due to the raw materials being used and the actual processing of the plastics, known to create harmful fumes when exposed to intense heat. Because of these health hazards, manufacturers insurance is needed to ensure that any illness arising from working with these materials will be covered.
Health hazards from constant exposure
Plastic, when heated in the manufacturing process, produces fumes, which may severely irritate the lungs, eyes and nasal mucosa of workers exposed to them. In some cases, over time the effects may become chronic and irreversible. There are many safety measures that need to be taken to ensure that accidental exposure to these toxic fumes does not occur. Measures to reduce risks include scheduling regular maintenance of the processing plant and adhering to the recommended temperatures for working with plastics.
Fire prevention is equally important
Some of the materials used in the plastics industry are highly flammable and can therefore present a fire hazard. Expandable polystyrene (EPS) bead, for example, contains an extremely flammable gas. A fire could be the direct result of the accidental ignition of leaking gases. Certain safety precautions, not smoking anywhere near where the substance is being stored or used, and ensuring that any heaters used are inspected thoroughly because they may pose a risk of igniting the EPS bead.
For these reasons, its important that any business owner engaging in the manufacturing of plastic products have proper manufacturers insurance coverage to protect their workers, as well as their business. Costly raw materials, innovative equipment, uninterrupted production cycles, pollution, product liability, and shipment issues should all be considered as well as they pose a serious threat to the success of these types of operations.
Look into the type of risks and exposures associated with this type of manufacturing and find suitable coverage for the type of concerns raised in this article. Speak to an agent, one that specializes in the plastics industry that can provide the best answers and solutions.
Distribution of goods takes place by means of various channels, and its the intermediaries that are generally the independent groups (or organizations) within these channels that make it possible for products to be made readily available for consumption. Occasionally this results in some items experiencing loss or damage, and loss or damage of goods needs protection through supply chain insurance programs.
Intermediaries are the reason why companies are able to deliver their products to the end user without the need to own the whole supply chain. They also serve the vital functions of reducing transaction costs, and pooling and diversifying any risk involved.
Transit risks can include all types of incidents
Insurance for cargo and freight covers a variety of hazards, including rough handling of goods, theft or non-delivery, jettison (the act of casting goods from a vessel or aircraft to lighten or stabilize it), collision, and natural disasters, to name a few. Having proper coverage is essential in order to offset losses and keep clients satisfied.
There are four main types of intermediary: agents, wholesalers, distributors, and retailers.
A firm may have as many intermediaries in its distribution channels it chooses, or it can have no intermediaries at all, through direct marketing. Agents or brokers act as an extension of the manufacturing company whose main job is to represent the producer to the final user in selling a product. Unlike agents, wholesalers take title to the goods and services when they act as intermediaries. They’re independently owned, and own the products they sell.
The difference between distributors and wholesalers is that distributors align themselves to complementary products. For example, distributors of one name-brand product will not distribute a competitors products. This way they can maintain a close relationship with their suppliers.
Finally, retailers can be small independent operators, such as mom and pop stores, or large chains like Walmart. Whatever their size, retailers purchase products from market intermediaries and sell them directly to the end user for a profit. For those intermediaries who fail to deliver on time, or experience an incident that results in a loss of cargo, your client needs supply chain insurance programs to help cover such losses.
There’s no doubt about it those who are in the manufacturing business are doing brisk business (to the tune of more than $239 billion in 2013) and helping to fuel California’s economy. According to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau, such firms in the state represent slightly more than 10 percent of California’s total output, and 8 percent of the states labor force with more than 1.25 million employees in the sector based on 2014 reports. These numbers all point to the growing need for manufacturers insurance in Long Beach to keep pace with the growth of the industry and the variety of risks and sources of liability to which these companies are exposed in the course of their daily operations.
Core coverage includes the basics
Most companies that fabricate and manufacture (especially small firms) will have programs that include policies that cover the essentials business liability, business property, and business income in many cases, bundled into a business owners policy that can offer savings by combining the protection into a single instrument. From there, a firms program can be rounded out with one or more other coverages based on addressing the risks that the company faces, such as equipment breakdown; workers compensation; commercial automobile; manufacturers errors and omissions; executive liability; or even foreign liability, kidnap and ransom.
A la carte, anyone?
You can add these standalone coverages as needed. The question of whether you need them or not, though, may not be obvious. That’s why it is a good idea to work with a professional insurance agent who is skilled in comprehending the often complex language that is often found in these policies, because he or she can analyze the terminology to help you recognize where gaps in your coverage exist between one policy and another, and close them handily. The agent can also identify duplications in coverage, and obtain quotes from top-rated providers to make certain that not only are you getting what you paid for, you are paying a reasonable amount for it and the company from which you’re buying it has the strength and ability to make good on any claims that may arise. Talk to a professional agent today to learn more about manufacturers insurance in Long Beach.
Manufacturing carries with it some unique risks in the world of business. It is important that you stay safe with a manufacturing insurance policy that will cover all your bases. Whether you already have an insurance policy, or are just getting started, it might be a good idea to review what you can protect against with the right coverage.
Employee injuries can be paid for through insurance. In manufacturing, there could be a lot of ways your employees could get hurt while on the job. To try and avoid a lawsuit, and to show your workers that you value them, be sure to include workers compensation in your policy.
Whether you travel to pick up goods or deliver them, your policy could protect against automobile incidents. This could include accidents, vandalism or theft of a pickup truck, gooseneck trailer, van or other company vehicle.
Manufacturing or factory insurance can also protect you against the typical things that go on. Slips and falls, errors and omissions, or machinery breakdowns can put a halt on business, but they don’t have to. Your insurance can step in to take care of the costs so you can continue on as usual.
Proper insurance is important to maintaining a smooth flowing business. Contact an agent today to learn more about manufacturing insurance and what it will protect you against.
Insurance is an integral part of any business, and accounts for the success of companies’ worldwide. Without insurance, many businesses would be forced to close their doors due to lawsuits, which would eventually lead to their bankruptcy. But beyond insurance is a need for a solid risk management plan that reduces the risks and exposures associated with claims for faulty products, negligence, and other areas where litigation results.
Here in Southern California, the manufacturing industry is both large and diverse. While the need for insurance for manufacturers is evident because of the enormous amount of issues associated with running these types of enterprises, it is in risk management that problems can be viewed and discussed, and solutions to problems be formulated.
Safety training and risk management go hand in hand
Working in a factory certainly poses some inherent risks, along with dangerous situations that may spring up unexpectedly, which are why having proper precautions and safety procedures in place can ensure a safer workplace. For example, in order to reduce manufacturing workers’ compensation claims, make safety a priority. Having a safety manager, weekly meetings, and allowing workers to chime in with their own concerns and observations can go a long way towards creating a safer, and happier work environment.
Providing safer working conditions
Every manufacturing facility is different, and therefore workplace conditions will likely vary. Depending on the type of facility that you own or operate, specific rules should be in place regarding the safe handling of material and safe practices in general. Instruct workers about the dangers of loose clothing and hair, the wearing of jewelry (that could potentially get stuck in machinery and cause them injury), and open-toed shoes. The proper gear, clothing, and safety wear must be required to be worn at all times in order to reduce worker injury.
Having insurance for manufacturers in place, along with a commitment to sound risk management and a deeper awareness of the changing risk landscape will help ease many of your concerns and put you in a better position to deal with new and growing concerns, both locally and globally, as well as seize opportunities as they emerge.