Learn how glass manufacturers insurance helps glass 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.
Glass Manufacturers Insurance
Glass Manufacturers Insurance. Glass manufacturers produce glass blocks, plate glass, or tinted glass panes. Glassmaking is a highly automated process. Silica (quartz sand) is combined with soda and lime, plus colorants and other additives to affect its appearance and qualities. The mixture is melted, released into a float bath tank, cooled, and conveyed onto a cutting area. Because of the size of the float tanks and the cost of heating and processing, the operation is continual and not shut down until absolutely necessary. Plate glass may be tinted, coated, tempered, or laminated, and cut to dimension. Glass block may be used in structural load-bearing applications, specialized tinted glass is used to filter out harmful rays from the sun, and non-silica glass is used extensively in fiber optics.
Glassware manufacturers produce bottles, stemware, and dinnerware, collectible and ornamental objects. Glassmaking is a highly automated process. Silica (quartz sand) is combined with soda and lime, plus colorants and other additives to affect its appearance and qualities. The mixture is formed into a paste or dough-like substance, melted, then forced or pressed into a mold. Once removed from the mold, it is carefully cooled, then trimmed or sanded to remove any seams. Because of the size of the furnaces and the cost of heating and processing, the operation is continuous and not shut down until absolutely necessary. There may be mechanized glass-blowing operations.
Whether you produce windows for automobiles, mirrors, plate glass windows, or any other type of glass, there's no doubt that you provide your clients with an invaluable service. Glass is a major commodity that is required throughout all industries, and therefore, your position as a glass manufacturer is in high demand. However, just like any other business, there are inherent risks associated with the glass manufacturing industry.
Your business - along with the products and machinery within - could be damaged in an act of vandalism, a fire, or a storm. A client could file a lawsuit against you claiming negligence as a result of an employee oversight. An accident could occur in a company vehicle. A vendor could be injured while making a delivery on your property. These are just some of the examples of the situations that could arise. In the event that any of these types of situations do arise, you could be facing serious financial devastation; but, if you have the right glass manufacturers insurance coverage, you can avoid devastating losses.
Business Insurance For Glass Manufacturers
Business owners throughout all industries should carry the right type of glass manufacturers insurance coverage to safeguard them from financial losses that can be associated with the myriad of liabilities that they face; including glass manufacturers. However, many entrepreneurs aren't truly aware of the importance of business insurance.
Business insurance provides a wide range of coverage options that includes various types of protections, such as liability issues, property damage and loss, commercial vehicles, and workers' compensation. You can purchase individual commercial policies for your glass manufacturing business; however, some carriers offer specialized policies that lump together several of the protections that are of particular importance for glass manufacturers.
While the coverages that are provided by a policy will differ from carrier to carrier, some of the basic forms of coverage that are included with glass manufacturers insurance include:
- Professional Liability: We live in a very litigious society. In the event that you or an employee makes a mistake, a client may decide to take legal action and file a lawsuit against you claiming negligence, or stating that you failed to deliver the work that was promised. Professional liability insurance, also known as errors and omissions insurance, safeguards you from these types of claims. It helps to cover the cost of legal defense, court fees, and any compensation that you may be required to pay.
- Commercial Property: Whether you own or lease the space that you operate your glass manufacturing business out of, commercial property insurance is highly recommended. This type of insurance covers the building that you operate your business out of, as well as the contents within it, from thins like storm damage, fire, theft, and vandalism. For example, if a fire breaks out in your commercial space, your commercial property insurance would help to cover the cost of the necessary repairs and replacements.
- Workers' Compensation: Whether you hire 4 or 400 employees, workers' compensation coverage is a must. In the event that a staff member suffers an on-the-job injury or a work-related illness, workers' comp will cover the cost of medical bills, lost wages, and even any legal action that the employee may take.
- Product Liability: As a glass manufacturer, product liability insurance is also vital. While you certainly make every effort to ensure your products are as safe as possible, incidents can arise and a client could sue you claiming that the glass you produced was faulty. Product liability coverage will help to cover the costs that are associated with this type of situation.
These are just some of the coverage options that glass manufacturer insurance can provide. Of course, every business is different, which means that your needs may differ.
Glass Products Manufacturing's Perils And Risks
Property exposures consist of office, production plant and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, high-temperature production machinery, storage of large amounts of fuels to operate them, and molten materials. Maintenance of equipment is critical to prevent wear and tear and overheating, which are potential fire hazards. In the absence of well-maintained dust collection systems, cutting and buffing operations can generate dust which can catch on fire.
Finished glass may be damaged by accidental breakage or by vandalism, but the raw materials are not susceptible to fire, water or smoke damage. Interruption of utility services is a major concern because of the continual operation of the float baths. Business income loss exposure is high, because once a system is shut down, it is a major operation to start it up again.
Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. These should be properly maintained. Breakdown and loss of use to the float baths, conveyors and other production machinery could result in significant loss, both direct and under time element. Production equipment may include CNC (computer-controlled) and custom-made machinery.
Crime exposure comes from employee dishonesty. 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.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information. Backup copies of all records should be made and stored off premises. Stock in transit may be highly susceptible to damage from breakage in a collision or overturn and possibly theft.
Premises liability exposures are normally low due to limited access by visitors. If tours are given or if outsiders are allowed on premises, visitors may be injured by slips, trips, or falls. The storage of large quantities of raw materials such as silica, plus recycled salvage, can produce attractive nuisance hazards to trespassers, particularly children. Fumes, dust, and noise from processing operations may affect neighbors. This can result in a high frequency of nuisance claims, but may also cause serious health problems due to the generation of silica dust.
Products liability exposure is low to moderate. There should be quality control procedures in place, with checks conducted to detect cracks, blemishes or other defects. The manufacture of bulletproof glass, structural (load-bearing) block, and similar special purpose glass increase the exposure due to the potential bodily injury or property damage loss should a product fail.
Environmental impairment exposure is moderate to high due to the potential for air, land and water pollution from dust and fuel storage tanks. Both the vapors and pollutants that can be released into the air are noxious and hazardous, as are the waste materials. These chemicals should be handled by qualified, licensed material waste handlers. Disposal procedures must adhere to all EPA and other regulatory standards.
Business auto exposure may be high if the manufacturer picks up raw materials, especially large shipments of sand, or delivers finished goods to customers. The delivery of goods requires careful loading and tie-down to prevent glass products from shifting and toppling over. 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 are serious. Injuries from production machinery are common, as are minor cuts from flying and broken glass, burns from high-temperature processing and molten glass, slips, trips, falls, foreign objects in the eye, back injuries from lifting, hearing loss from noise, and repetitive motion losses. Workstations should be ergonomically designed. Employees should be provided with safety training and protective equipment.
Areas that generate dust require respiratory protection devices, as well as eye protection and eye wash stations. Exposure to silica may cause serious skin, eye, and respiratory irritations, and lead to occupational diseases such as Silicosis or Shaver's Lung
Glass Manufacturers Insurance - The Bottom Line
We hope this article on glass manufacturers insurance has been informative. Speak to a reputable insurance broker to find out what type of insurance you should have, how much coverage you should carry, and whether or not you can bundle all of the coverage that you need under one single business insurance policy.
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