Learn how prosthetics manufacturers insurance helps prosthetics & 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.
Prosthetics Manufacturers Insurance
Prosthetics Manufacturers Insurance. Prosthetic manufacturers produce replacements for amputated, disfigured, or missing body parts, including breasts, craniofacial, neck, upper or lower joints and limbs. The process includes making casts of the patient’s body part to which the prosthesis will be attached, producing individual component parts, and then assembling these into the final product.
Refinements are often needed to increase the attractiveness, comfort, fit, or functionality of the prosthesis. The component parts can be made of acrylics, aluminum, carbon fiber, fiberglass, polymers (plastic, rubber, or silicone), stainless steel, titanium, or wood. The finished prosthesis can be cosmetic, mechanical, myoelectrical, or robotic. Many manufacturers have significant investments in research and development of these parts.
While prosthetics have been generally limited to human use, more are being developed for animals.
As the owner of a prosthetics manufacturing business, you provide invaluable services to clients that you work with. Depending on the prosthetics that you manufacture, you make it possible for people who have lost or were born without limbs to regain their ability to walk, drive, write, run, and so! You love that you are able to help so many people, and for the most part, your clients are forever grateful for the work that you do.
However, there are certain risks that are associated with owning and operating a prosthetics manufacturing business. In the event that someone sustains an injury on your commercial property, your inventory or equipment is stolen or damaged in a fire, or a prosthetic that you created malfunctions and causes an injury, you could be facing serious financial trouble. By carrying the right type of prosthetics manufacturers insurance coverage, you can ensure that you are protected from financial losses.
The Need For Insurance For Prosthetics Manufacturing
Even though you make every effort to ensure that your prosthetics manufacturing business is running smoothly and that the products you create are made with the highest standards of quality, there are still issues that can happen. For example, a client could file a lawsuit against you, claiming that a prosthetic you manufactured malfunctioned and caused an injury, your property could be damaged in a storm, or a member of your staff could sustain a work-related injury.
The above are just some of the different types of issues that can occur. As the proprietor of your prosthetics manufacturing business, you would be held accountable for any of these types of issues; in other words, you would be responsible for paying any damages and legal fees, the costs of which can be exorbitant. To avoid paying for these types of unexpected expenses and potentially going into financial ruin, it’s crucial that you invest in the right type of prosthetics manufacturers insurance protection.
Recommended Insurance Policies For Prosthetics Manufacturers
As with any business, there are certain types of insurance policies that are highly recommended for prosthetics manufacturers. Some of these policies are a legal requirement, and while others might not be mandated, it’s still a wise idea to invest in them. Examples of the coverage prosthetics manufacturers should carry include:
- Commercial Property – If the factory where you make your products or the warehouse where you store them is damaged in a fire, a storm, or an act of vandalism, commercial property insurance will help to pay for the losses and damages. For instance, this type of policy will help to replace equipment that’s damaged in a fire or property that is vandalized.
- Product Liability – Because of the nature of the products you make, if something malfunctions – a prosthetic leg, for example – significant injuries could occur. Product liability insurance will help to cover the cost of any damages that a client suffers if a prosthetic causes an injury. It will also assist with legal fees should the client file a lawsuit against you.
- Commercial General Liability – Accidents happen all the time. If a third-party is injured on your property or claims that you caused any physical damages to their property, you could be held liable. Commercial liability insurance covers the cost of damages, as well as any legal fees that may arise.
- Workers Compensation – It doesn’t matter if you employ a staff of 5 or 500; workers’ comp insurance is a must. In fact, in most states, employers are legally required to carry this type of coverage. Workers’ comp will cover the expenses that arise if an employee suffers a work-related injury or illness, including medical fees and lost wages.
- Commercial Auto – If you use vehicles for business-related reasons, you’ll also need to carry commercial auto insurance. This type of coverage protects your vehicles, the drivers, and the passengers from any accidents that might occur.
The above are just some of the types of prosthetics manufacturers insurance coverage options that prosthetics manufacturing firms should invest in.
Prosthetics 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 and cooling equipment, overheating of production machinery, and buildup of static electricity. Heat-producing activities such as welding and soldering should be conducted away from combustibles.
Flammable lubricants and cleaning agents may be stored on premises. Unless there are properly maintained dust collection systems, dust from plastics, metals, and wood can ignite, resulting in explosion. Nearly all materials used are susceptible to damage by fire, and some are easily damaged by water.
Devices that have electronic circuitry can be damaged by smoke or similar sources of contamination. Plastic and polymer devices will warp if exposed to intense heat.
Equipment breakdown exposures include malfunctioning production equipment and electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in severe loss, both direct and indirect, notably time element.
Crime exposure comes from employee dishonesty and theft as the metals used can be very valuable. Employees may act alone or in collusion with outsiders in stealing money, raw materials, finished stock, or proprietary information such as new product research or emerging technological solutions. 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.
Inland marine exposures are from accounts receivable, computers (which can include CAD programs or computer-run production equipment), goods in transit, and valuable papers and records for customers’ specifications, research and development notes, patent applications, and suppliers’ information.
Accounts receivable are often paid by insurance companies and foundations. Documentation can be time consuming, and if destroyed, the receivable may become uncollectible. Finished goods are normally shipped by common or contract carrier; liability depends on the terms of the contracts or shipping agreements. The primary perils are fire, theft, overturn, and water damage.
Premises liability exposures depend on the extent of testing at the facility. Visitors may be injured by slips, trips, or falls. If testing is significant, visitors may aid in assessing new product usefulness. As they may have limited mobility, they must be provided with medical oversight and assistance during the process. Their records must be stored in a manner that complies with the Health Insurance Privacy and Portability Act (HIPPA). Any on-site fitting or custom work can also increase the hazards.
Products liability exposures are significant due to the potential harm that could be caused by malfunction of the prosthetic. In the event that a prosthetic device supporting the weight of a patient fails, the patient can fall and injure him or herself, exacerbating the original condition. Should a prosthetic arm fail, a patient can drop what they were lifting, causing injury to another person or property.
Cosmetic prostheses may cause skin irritation. All prosthetic devices must carry warning labels, instructions, and information. Communication with the client is critical in gauging the effectiveness of the device. Because prostheses are made to client specifications, the manufacturer may try to limit exposure contractually. Nevertheless, quality standards, research documentation, and the training given to the prosthetist will likely be held by courts to a high degree of care.
Some prostheses have a longer period of use than others do. Older items made before improved safety features were introduced may still be in use.
Professional liability exposure arises from the design work. While some work is done to specifications provided by others, a high degree of expertise is involved in taking measurements and recommending appropriate materials and design elements.
Environmental impairment exposures can be light to high, depending on the materials and processes used and the potential for contamination of air, surface or ground water, or soil. For plastics, the raw materials may be toxic and are flammable, the catalysts may be caustic, and the final product is usually not biodegradable. For wood and metal, contaminants may come from the chemicals, paints, and solvents used. Adherence to federal and state guidelines in disposing of wastes is critical.
Business auto exposures are moderate. Finished goods are often shipped by contract carriers. Delivery of finished goods, particularly special orders or deliveries on demand, may increase the exposure. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others. Each driver 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 vary depending on the processes used to manufacture the prostheses. Common hazards involve injuries from production machinery, minor cuts, slips, trips, falls, foreign objects in the eye, hearing loss from noise, repetitive motion injuries, and back injuries from lifting. Areas that generate dust require respiratory protection devices, eye protection, and eye wash stations.
Flammable liquids and chemicals can cause skin and eye irritation as well as long-term occupational disease hazards. Workers should be made aware of early warning signs of damage. The testing staff may sustain injuries when lifting or aiding clients being fitted for a prosthetic.
Prosthetics Manufacturers Insurance – The Bottom Line
We hope this article on prosthetics manufacturers insurance has been informative. To find out if there are any additional policies that you should purchase and to learn about the amount of coverage you should have, speak to a reliable insurance broker.