Protecting yourself and your business from liability is a very valid concern
After all, your clients rely on your advice and the products that you manufacture. That is why owners of sheet metal companies can be sued for fraud and negligence in performance of duties.
What would you do if you were hit with a liability suit for more than your current insurance covered?
Thankfully, here at InsuranceHub, we have understand the risks that come with having a sheet metal shop:
Whether you are building custom duct work or metal panels, we're here to help. Regardless of your profession as a sheet metal worker, maintenance, or installation sheet metal worker, we look forward to talking with you.
Types of exposure that sheet metal shops need protection from:
Property exposures: Your concerns come from fires tarted at your operation. Your office, shop, yard or warehouse has plenty of raw materials and finished goods. Now think of all of the potential things that could ignite a fire.
- production machinery
- electrical panels
- sparks from welding, grinding or lathes.
- Metal dust
- Spray painting
What can you do? First and foremost your oil, Lubricants, solvents, and degreasers may be flammable and so must be separated and stored away from the sparks that could ignite them. Dispose of all greasy oily rags to prevent a fire. Be sure to use spray booths that contain explosion-proof electrical components.
Equipment breakdown exposures: You have special equipment equipment to do your work. Many of them may be computerized to do your laser scroll cutting of sheets of metal. If your production equipment is down you can't fulfill your customer orders. Talk to your agent about the equipment that you use in your operations.
Crime exposures: Employee dishonesty can cost you hundreds of thousands of dollars. Set up a system to do background screening BEFORE you hire employees. It also makes sense to separate the duties of receiving payments, making bank deposits and disbursing of funds. It makes sense to install video cameras and an alarm system.
Inland marine exposures:
- Accounts receivable for credit extended to your clients.
- Computers: This includes computers that bill and maintain inventory. It also includes any computer run machinery.
- Contractors' equipment and installation exposures if work is done at your clients location.
- Goods in transit: This includes any large sheets of metal that can be damaged during loading or unloading, especially in windy weather.
- Valuable papers and records.
Premises liability exposures: Do not permit clients to enter your work area to prevent customer injuries. Do you install the products you manufacture? Then you risk property damage claims. Stock stored in the yard could attract kids to want to climb the fence to play. Your neighbors may complain about any fumes, dust, and noise from the metal work.
Products liability exposures: This depends on what kind of products you are manufacturing. If the product is used for roofing or other protective function, failure may result in a law suit.
Environmental impairment exposures: If you are using chemicals, paint, and solvents then they can contaminate the earth, air, and water. Stick to the federal and state guidelines in waste disposal.
Automobile liability exposure: Do you have trucks that pick up raw materials and then deliver finished products to your customers.
Do you have sales people that use company vehicles? Do regular back ground checks on all drivers. Have a written procedures for using these vehicles by after hours and by family members.
Workers compensation exposures: This can be quite high. Employees are tempted to remove safety guards on machinery. Accidents happen when workers rush to meet deadlines. People can lose a finger or a hand on a cutting machine. It is also easy to get cuts from sharp metal edges. Your employees can receive eye injuries due to metal shavings and skin irritations due to chemicals.
Teach your employees safe lifting habits to prevent back injuries. We encourage workers to wear safety glasses and must not wear jewelry or loose-fitting clothes that could easily get caught in a machine. Finally to avoid repetitive strain injuries, we encourage your workers to rotate through different production stations.
Here is the minimum recommended sheet metal companies insurance coverage:
- Business Personal Property
- Business Income with Extra Expense
- Equipment Breakdown
- Employee Dishonesty
- Accounts Receivable
- Goods in Transit
- Valuable Papers and Records
- General Liability
- Employee Benefits Liability
- Environmental Impairment Liability
- Umbrella Liability
- Hired and Nonownership Auto Liability
- Workers Compensation
Other sheet metal contractors insurance coverage to consider:
- Contractors' Equipment and Tool Floaters
- Installation Floater
- Employment-related Practices Liability
- Business Auto Liability and Physical Damage
- Stop Gap Liability