Insurance for Plastics Manufacturers
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What Insurance Do Plastics Manufacturers Need?
Professional Liability Insurance (or E&O Insurance), protects your small business from claims of mistakes, negligence or malpractice made when providing your services that caused somebody financial loss. PLI covers your legal defense costs, damages and settlements.
Business Interruption Insurance protects your small business if impacted by a covered risk. It'll cover the costs in replacing lost income and paying for additional expenditures. Also known as Business Interruption Coverage, this policy is usually part of your BOP (Business Owners Policy).
Equipment Breakdown Insurance protects your equipment from breakdowns caused by motor burnout, power surges, boiler malfunction, and operating error. It covers you for the costs to replace or repair your damaged equipment, and other related expenses.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Frequently Asked Questions
Why do Plastic Manufacturers need insurance?
In this industry, companies specialize in the production and sale of goods made from biodegradable and nonbiodegradable plastics, rubber, and adhesives. Products may include cushions, carpets, rugs, sausage casings, rubber goods, film, plastic sheets for later manufacturing purposes, packaging materials, rubber cement, and balloons.
manufacturers need insurance because it protects the business from the many known and unknown risks. The most common is defending a lawsuit. The insurance will cover the defense and court costs and all that's required is a monthly payment.
What risks do Plastic Manufacturers face?
Below are some of the risks plastic manufacturers could face:
- The equipment your business uses for manufacturing plastics suddenly malfunctions. This forces your business to stop production for a day.
- The client claims that the services you offered are not satisfactory and that they have lost money as a result. Because of this, the client sues your business.
How much does insurance for Plastics Manufacturers cost?
There is no fixed cost of insurance for plastic manufacturers as there are several factors that identify the cost of your insurance, like the type of business, the coverage required, and the number of employees. Without taking these into account, below are the average costs of insurance policies for your business:
- General Liability insurance costs $500 in annual premiums.
- Professional Liability insurance costs $1000 in annual premiums.
- Business Interruption insurance costs $700 in annual premiums.