Learn how exercise equipment manufacturers insurance helps exercise equipment & pottery industry manufacturing businesses protect themselves against the many complex risks they face every day. Whether your business is large or small, or you make one or many products – you need the right commercial insurance program to protect you.
Exercise Equipment Manufacturers Insurance. Exercise equipment manufacturers make stationary items, such as weight machines, treadmills, or bicycles used in gyms, plus portable items that can be used at home, such as exercise balls, hand-held weights, or stretch bands. Some devices may use electricity or be monitored by a computer. Items produced may be made of metal, plastic, rubber or wood, or any combination of these materials.
Metal items may be cast, drawn, extruded, punched, or cut from sheets, then joined with seams, rivets, hinges, or screws. There may be some soldering or spot welding. Raw plastic, which can be in powder, liquid, flakes, or pellets, is blended or mixed with a wide range of additives, resins, colorings, and catalysts, heated, then molded, formed, or extruded into an end product which is buffed and finished with paint or lacquer. As natural rubber contains latex, a substance that can cause severe allergic reactions, most rubber items are now made of synthetic, petroleum-based materials.
When natural rubber is used, the latex is imported in prevulcanized sheets that can be shredded and heated into liquid or semi-liquid form, then processed using extrusion, injection molding, or compression molding into an end product. Wood items are cut, sanded, painted or varnished, and assembled. Each process should be individually reviewed. Component parts may be manufactured in different locations or different countries. While some manufacturers of exercise equipment sell directly to gyms, most sell through distributors, catalogs or the Internet.
Are you thinking about starting up an exercise equipment manufacturing business? Are you already in the process of purchasing a business in the exercise equipment manufacturing industry? Either way, you know that there is a lot that you need to attend to in order to ensure that your business is a success. Creating contracts with suppliers and potential clients, selecting the best machinery, employing the most knowledgeable and skilled workers; these are just some of the items that have to be taken care of to set your business up for success. While all of these elements are crucial to the success of your exercise equipment manufacturing business, there’s another element that’s just as important – if not more so: business insurance.
Having the right type of exercise equipment manufacturers insurance coverage for your exercise equipment manufacturing company is essential for your success. But why is it so important and what type of policies should you invest in? Below, you’ll find the answers to these questions so you can ensure that you, your employees, your clients, and your entire business are well protected.
The Importance OF Exercise Equipment Manufacturing Insurance
Owning a business in any industry comes with a number of risks, including the exercise equipment manufacturing industry. Accidents can happen, injuries can occur, lawsuits can be filed, and property can be damaged. For example, someone who has purchased a piece of equipment that you have manufactured could file a lawsuit against your business, claiming that it malfunctioned, resulting in an injury or damaged property. Or, a tree could topple down on top of your factory, damaging the roof and the expensive machinery inside.
These are examples of just some of the incidents that could occur. As the owner of the company, you are liable for any damages, medical costs, and legal claims, which means that you are financially responsible. These types of costs can be extremely expensive, which could put you in serious danger of financial devastation. But, if you have the right type of insurance coverage, instead of paying for these expenses out of your own pocket, your insurance carrier will cover the costs.
In short, insurance is one of the best investments that you can make for your exercise equipment manufacturing business.
Types Of Insurance For Exercise Equipment Manufacturers
As the owner of an exercise equipment manufacturing company, there are several different types of insurance policies that you should carry. Some of the essential forms of exercise equipment manufacturers insurance coverage include:
- General Liability – If a third-party, such as a vendor, a contractor, or a client, suffers an injury on your commercial property or files a claim stating that you or one of your employees damaged their property, general liability insurance will protect you. These type of coverage covers the cost of medical expenses that are associated with third-party injuries and any resulting lawsuits, as well as property damage claims.
- Commercial Property – Whether you own the space that you operate your business out of or you rent it, commercial property insurance is a must. This policy protects the physical structure of your business, as well as the contents within it, such as your machinery, supplies, and inventory. Typically, vandalism and theft are covered, as well as some acts of nature; fires, falling trees, etc. However, you might need to purchase additional coverage for catastrophic acts of nature, such as floods and earthquakes.
- Products Liability – Regardless of how hard you work to ensure that you are producing the highest quality exercise equipment, there is always a chance that something could go wrong. For instance, a treadmill could malfunction while someone is using it, resulting in a serious injury. If that happens, you could be facing serious legal trouble. Products liability insurance will cover any claims that may be filed against you if a product you manufacture malfunctions, including legal defense fees and damages that may be awarded.
- Workers Compensation – In most states, workers’ comp insurance is required for businesses that employ a staff. This policy will cover your employees’ medical care if they sustain an injury while they are on the job. If will also help to pay for lost wages while the employee recovers.
The above are just some of the exercise equipment manufacturers insurance policies that exercise equipment manufacturing businesses should invest in.
Exercise Equipment Products Manufacturing’s Perils And Risks
Property exposures consist of an office, plant, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, and production machinery. Different hazards arise depending on the processes used for items made of metal, plastic, rubber, and wood. Metalworking may include soldering or welding that may generate sparks. These operations should be conducted away from combustibles.
Flammable liquids, glues, paints, and varnishes should be kept to a minimum in the processing area and stored in approved containers in isolated areas. Hazards increase in the absence of controls, such as dust collection systems or booths with UL-approved fixtures for spray painting. Machinery needs proper maintenance to prevent overheating and wear. If plastics or rubbers catch fire, they will produce an oily black smoke that can be very difficult to extinguish.
Poor housekeeping, such as failure to collect and dispose of scraps on a regular basis, could contribute significantly to a loss. Unless disposed of properly, greasy, oily rags (such as those used to clean the machinery) can cause a fire without a separate ignition source. Sprinklers may be advisable. Appropriate security controls must be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
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. 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. There should be security methods in place to prevent theft. Appropriate security controls must be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
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 large equipment is sold directly to health clubs, there may be an installation exposure. Exercise equipment may be damaged by fire, theft, collision, overturn, and water damage while in transit, or from theft or vandalism while on exhibition.
Premises liability exposure is normally low as access by visitors is limited. If there is a showroom, visitors may be injured by slips, trips, or falls. Fire, fumes, dust, and noise from operations could pose a nuisance hazard to neighbors. Exhibitions and demonstrations may substantially increase off-premises hazards because exercise equipment may be an attractive nuisance to novices and unsupervised children.
Products liability exposure varies by the type of equipment manufactured. Portable items such as exercise balls present a lower exposure, while equipment using weights or electronic monitoring can result in severe injury or death if the product should fail or be misused. Free weights pose an extremely high risk of injury as they can fall onto users or bystanders. Automated devices can overheat or malfunction, or springs, metal rods or bars under tension may fail.
Resistance devices pose less potential for harm because the device ceases to operate once the user stops. Sharp edges can result in cuts and other injuries. Assembly instructions should be clear so the customer can assemble the equipment correctly. Since most exercise regimens involve repetitive motion, cumulative trauma injuries may arise from improper use or from poor design. Devices must carry warning labels and instruction information. Diagrams and videos showing proper use are helpful.
Professional liability exposure may arise if the manufacturer claims health benefits and warranties, real or implied, regarding the appropriateness of the product to remedy particular health conditions. Exercise machines that monitor heart rate or blood pressure and recommend a particular course of action may increase this exposure unless warnings are prominent and sources well documented.
Environmental impairment exposure is high due to possible contamination of ground, air, and water from chemicals and toxic lubricants, solvents, and paints used in the manufacturing process. Raw materials may be toxic and flammable. Fumes and improper disposal of scrap can result in air, ground, or water contamination. Disposal procedures must adhere to all EPA and other regulatory standards.
Business auto exposure may be may be high if the manufacturer transports raw materials or finished products. 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.
Workers compensation exposures can be high. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, foreign objects in the eye, hearing loss from machinery noise, back injuries from lifting, and repetitive motion injuries. Workstations must be ergonomically designed.
Areas that generate dust from metal or woodwork, or use spray-painting, require respiratory protection devices, as well as eye protection and eye wash stations. Flammable liquids and chemicals can cause skin irritation, eye irritation, and possible long-term occupational disease.
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.
Exercise Equipment Manufacturers Insurance – The Bottom Line
We hope this article on exercise equipment manufacturers insurance has been informative. To find out if there are any other policies you require and how much coverage you should carry, reach out to an experienced insurance broker.