Learn how screw machine manufacturers insurance helps screw machine & 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.
Screw Machine Manufacturers Insurance
Screw Machine Manufacturers Insurance.Screw machine manufacturers produce nuts, bolts, screws, washers and other similar items from various types of metal. Machine shops specializing in screw machine products generally handle high-volume mass production, but some may offer custom work to contract specifications.
For high-volume work, computerized (CNC) lathes are commonly used to thread screws, bolts, and similar items. Larger shops may provide expanded services to include such finish work as deburring, heat treating, or electroplating.
Are you thinking about starting up your own screw machine manufacturing business? Have you recently invested in this type of business venture? Either way, before you get things up and running, there are a lot of things that you need to attend to; and one of those things is insurance.
Why is insurance coverage so important for a screw machine manufacturing business? What type of screw machine manufacturers insurance coverage should you invest in? Below, you will find the answers to these questions so you can make the best choices for your organization and ensure that you are properly protected.
Why Screw Machine Manufacturing Insurance Is Important
As a screw machine manufacturer, you can produce a limited amount of products or a wide-range of items. Examples of the products that you might be manufacturing might include metal knobs, fasteners, tire gauges, tools for the healthcare industry, and a variety of other metal parts that require expert precision.
However, despite your expertise in this industry and regardless of the effort that you put into creating the products that you manufacture, there's still a chance that mishaps may arise. For example, machinery could malfunction and seriously injure an employee; or, a product that you produce could end up being defective, resulting in a client taking legal action against you. If these types of situations arise, you will be held liable for the expenses that are associated with them.
The costs of medical care, replacing damaged or stolen items, or legal fees can be astronomical. Without insurance coverage, you would be responsible for paying these expenses out of pocket, which could put you in a financially crippling situation.
Unless you want to run the risk of going bankrupt and potentially losing everything, it's absolutely essential to invest in the right type of screw machine manufacturers insurance.
Types Of Insurance For Screw Machine Manufacturers
Proprietors of screw machine manufacturing businesses should invest in a number of insurance policies. The specific type of coverage you should carry depends on the specifics of your organization; however, some of the most basic types of screw machine manufacturers insurance policies you should purchase include the following:
- Commercial General Liability - If a client, vendor or any other third-party sustains an injury on the property of your business, or files a claim against your organization citing that you or an employee damaged their property, you would be held responsible for the damages. Commercial general liability insurance would help to cover the cost of these damages.
- Commercial Property - As a screw machine manufacturer, you rely on a lot of heavy equipment and machinery to create the products you make. You want to keep those items protected, as well as your inventory, and the physical structure of your business. Commercial property insurance covers the cost of physical damages to your property, including the building your business operates out of and the contents within it. Weather-related damages, vandalism, and theft will be covered by your policy.
- Product Liability - Though you make every effort to produce the best quality products, errors can happen. Should a product malfunction and a client files a lawsuit against you, product liability insurance will cover the cost of legal fees, as well as any damages that occurred as a result of the faulty product.
- Workers Compensation - Whether you employ a staff of 10 people or 1,000, you'll need to carry workers' compensation insurance. In the event that an employee sustains a work-related injury or illness, this type of insurance will cover the cost of any related medical fees and lost wages, as well as legal fees, should an employee file a lawsuit against you.
How Much Insurance Coverage Should You Carry?
The above are just some of the screw machine manufacturers insurance policies that screw machine products manufacturers should invest in. The amount of coverage you should carry, however, will depend on a variety of factors; the size of your operation, the number of people you employee, the type of products you create, and so forth.
Screw Machine Products Manufacturing's Perils And Risks
Property exposures consist of an office, plant, and warehouse for storage of raw materials and finished goods. Ignition sources include electrical wiring, heating systems, production machinery, and sparks from grinding or lathe operations. Many stages of the work have low fire potential since most machines are cutting and punching devices, and the parts are all metal. Degreasers and solvents may be flammable and must be adequately controlled.
Poor housekeeping may be a serious fire hazard. Unless disposed of properly, greasy, oily rags (such as those used to clean the machinery) can cause a fire without a separate ignition source. Business income can be a significant exposure if the machines are special-ordered for a specific job.
Equipment breakdown exposures include malfunctioning production equipment, 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, especially for high-tech parts or exotic metals. 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. The manufacturer should have 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. There may be a bailees exposure for items belonging to customers. These are subject to the same causes of loss as property owned by the manufacturer, plus transit and the processing itself. The primary causes of loss are fire, theft, collision, and overturn.
Premises liability exposure is limited unless customers are permitted on premises to review the process and to evaluate the ability of the firm to deliver the product desired. If customers put their own employees on site for quality control purposes, these employees are subject to the same hazards as the manufacturer's employees. Fumes, dust, and noise from the metal work could affect neighboring properties.
Products liability exposure may be very high if the final product is a critical operating part or system (such as parts for autos, aircraft, watercraft, military uses, or industrial machinery). The manufacturer may be more concerned about their ability to handle the customer's specifications rather than evaluating the end use of the product and what could happen should a part fail.
It may be impossible to defend against questionable claims unless there is an aggressive quality control program including high standards for materials, testing and monitoring of components, and documentation of sources (often down to the individual item in a run). If the manufacturer is following specifications provided by the customer, the contract may limit the exposure.
Hazards may increase without contracts that clearly describe the responsibilities of the manufacturer and the quality standards that must be met for customer satisfaction. Older parts made before improved safety features were introduced may still be in use.
Environment liability impairment exposures may be significant due to possible contamination of ground, air, and water from the chemicals, paint, and solvents used. Disposal of wastes must adhere to all federal and state guidelines.
Commercial auto exposure can be high if the manufacturer picks up raw materials or delivers finished parts to customers. Deadlines placed on drivers (such as just-in-time processing schedules) increase the hazard. 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 moderate to high. Workers on a production line with punch presses and cutting machines can suffer severe loss from cuts or amputations as they push to meet quotas. Eye injuries from metal shavings and skin irritations from chemicals are additional causes of loss.
Common injuries include slips, trips, falls, back injuries from lifting and material handling, hearing loss from noise, and repetitive motion injuries. Workstations should be ergonomically designed. Employees should be provided with safety training and protective equipment. Jobs are bid and deadlines set with penalties if timeframes are not met.
The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair to increase production.
Screw Machine Manufacturers Insurance - The Bottom Line
We hope this article on screw machine manufacturers insurance has been informative. To find out how much coverage you should purchase - and to learn about any other insurance you would be wise to invest in, speak to a reputable business insurance agent.
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