Metal manufacturers and metal workers perform potentially dangerous jobs each day while welding, casting, and using industrial equipment. Owners of these businesses should know the importance of protecting their company, and its employees, from legal or financial exposure in the event of an accident, property damage, or financial loss. In case an employee get burned while using a plasma torch, or a metal stamping machine malfunctions, causing a substantial loss of inventory, companies need metal manufacturing commercial insurance coverage. A local independent insurance agent will assist owners of these businesses in finding a policy suited to the unique needs of their operation.
Whether or not they are associated with the Fabricators and Manufacturers Association International, metal manufacturers may build auto parts, equipment for use in other industries, or components for generating wind and solar power. In each of these niche fields, metal fabricators are subject to a number of risks. They can protect their operations, products, and employees with a business insurance policy purchased through an independent insurance agent.
In working with an independent insurance agent, metal manufacturing companies and metal workers should expect that he will want to know about the machinery used at their facilities, along with other equipment employed, such as computers and mechanical apparatuses. He will ask about the raw materials they have on hand, including plate metal, expanded metal, castings, fittings, and welding wire, and will want to know the extent to which a fabrication company performs burning of those materials, along with their methods to ventilate any resulting fumes. An independent insurance agent will also want to know whether an organization is engaged in any foundry operations, heat processing work, pallet manufacturing, or other activities that may exclude the organization from being covered by some commercial insurers.
An experienced independent business insurance agent will discuss the various options for commercial general liability policies, building insurance coverage, and business property insurance available to metal manufacturers from a number of different insurance companies. He might suggest that a metal fabrication company buy boiler and machinery coverage, because of the processing equipment used by most manufacturers, and may ask whether any employees travel overseas, or if a business imports or exports goods or products. If so, an independent agent might recommend that the organization buy additional insurance, including ocean and marine coverage, and inland, or even global insurance. He may also mention business interruption insurance, which can allow a metal working company to restart its operations with coverage for any losses, as soon as possible.
An independent insurance agent will likely mention that metal manufacturers should purchase manufacturers’ product liability insurance, in case of loss of use of property because of a defect, or quality issue. He might also suggest they purchase coverage for product recall expense, which can reimburse a metal working company in case a product must be removed or withdrawn from the market.
In the event of a claim, an independent insurance agent will guide metal manufacturers through the claims process, and ensure that they understand each step. Whether their business forges metal, does metal drawing and rolling, or performs metal machining, stamping, or casting, these business owners know that with commercial insurance coverage purchased through an independent insurance agent, in the event of a claim against their company, or an unexpected financial loss, their organization, its administrators, and employees can avoid liability exposure.
Commercial Insurance for Metal Shops
Metal shops may spin, shear, forge, or braze metal. Punching, powder coating, extrusion, and hydroforming are also common processes that are included in a metal shop owner and employees’ expertise. In the course of providing various metal working services for individual or corporate clients, metal shops need commercial insurance coverage in case a worker is injured using a piece of equipment, a product they developed is subject to a recall, or a fire starts while a worker is welding.
An independent business insurance agent, familiar with metal fabrication outfits and owners’ concerns when it comes to buying adequate commercial insurance coverage, will guide them in finding a policy suited to their shop. She can discuss available options for general and excess liability insurance, including coverage for contractual liability, additional insureds, and hard to place products exposures, along with coverage for aircraft products, or other specialty components built by a particular shop. An independent agent will also describe various kinds of property coverage, including insurance for personal property, business income, and building coverage, and probably make note of manufacturers’ selling price coverage, utility service interruption insurance, and coverage for floods and earthquakes, depending on the location of a metal shop.
In working with an experienced independent insurance agent, metal shop owners can learn about transportation insurance if they engage in commerce outside of their state or the country. They can find out about coverage for goods shipped, limits for coverage of products being transported, and how values are reported to their insurer. Based on their needs, metal shop owners can also discuss coverage for international exposures, including general liability coverage, auto insurance, employers’ liability insurance, and coverage for kidnap or extortion.
In assessing a business’s insurance needs, an experienced independent commercial insurance agent will want to know about the equipment used at a metal fabrication shop, along with whether a shop itself is in a building listed on a local or national historic register, or located in a high crime area. She will ask about the raw materials used at a shop, including expanded metal like square or tube stock, welding wire, plate metal, and fittings and castings; and she may want to know about the typical tasks of employees, including whether they use band saws to shear metal, hydraulic brake presses to form it, or machining and welding equipment, like lathes, mills, and welders.
In working with a seasoned independent business insurance agent, metal shop owners can gain an understanding of the importance of having various kinds of commercial insurance coverage for their organization. They can evaluate the available options for insurance, and learn about policy limits, and how many insurers allow businesses to combine their property and commercial general liability coverage into one policy. They can also get answers to their questions about the claims process. Buying a commercial insurance policy through an independent insurance agent means that metal shops can protect their assets, and continue to operate, in the event of something unexpected, like equipment failure, loss of inventory, or an employee injury.
Metal Manufacturers’ Product Liability Insurance
Metal fabricators cut, bend, and assemble products and distribute them to wholesalers, and corporate, or individual clients. Metal might be forged, cast, or welded, depending on its ultimate intended use, and metal parts may become part of a building, a piece of art, or a component of an airplane or windmill. Owners of metal manufacturing companies may know that they need basic commercial insurance coverage for the building that houses their plant or workshop, business property and business income insurance, and a commercial general liability insurance policy. But, as an independent insurance agent with experience insuring those in the metal fabrication industry can explain, they also need product liability insurance coverage.
An independent agent will assist metal fabrication business owners in finding the appropriate product liability insurance for their organization. Sometimes referred to as products-completed operations insurance, product liability coverage can help metal manufacturers shield their business and its employees from financial or legal liability in the event of a claim relating to a product they produced.
Whether they make cutlery, industrial valves, car bodies, or air and gas compressors, metal manufacturers need product liability insurance coverage. With adequate coverage, metal fabrication businesses can continue to function, and safeguard their assets, in the event of a claim stemming from the sale or manufacture of metal goods. A licensed independent insurance professional has access to policies available from a number of different commercial insurance providers, and can suggest product liability insurance suited to a particular fabrication business.
If a buyer, user, or bystander claims that a metal part malfunctioned, that it had a defect in its design, or that a manufacturer failed to warn them about a safety hazard related to the product, the manufacturer can be protected against an alleged financial loss, or physical injury with the proper product liability insurance coverage. Consumers may claim that a metal product carried a flaw, or that it had an unsafe design. They might also suggest that a product was not sufficiently labeled for its intended use, creating a choking hazard, or another kind of risk. An independent business insurance agent will assist metal manufactures in evaluating the risks associated with their products, in order to recommend product liability insurance that fits their company’s needs.
A product liability lawsuit can result in damages awarded to a plaintiff for medical expenses, and financial harm. In some cases, a plaintiff might even receive attorney’s fees, or punitive damages. An independent commercial insurance agent will discuss this with metal manufacturers to make sure they understand the importance of having comprehensive product liability insurance coverage. Without it, they could lose their business, or as least suffer a substantial economic loss.
An independent business insurance agent can explain how, in most states, product liability insurance coverage can be included in a standard commercial general liability insurance policy, or business owners’ insurance policy. He will probably also mention, though, that coverage, and exclusions and limitations, can vary, depending on the insurance company providing the policy. He will also discuss how product liability insurance may afford different coverage for metal manufacturers based on the kinds of products they create, the volume of their sales, where their goods are transported and sold, and other factors. And, an independent insurance agent will likely caution metal manufacturers against underinsuring their products, which can affect policy premiums, or result in assessment of a penalty.
By working with an independent commercial insurance agent, metal fabrication company owners can find the appropriate product liability insurance. Then, if a consumer claims that a metal chair, pump, vending machine, or fixture was defective, or otherwise caused them harm, they know they will have coverage in place for their metal manufacturing business.
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