A lathe is a type of tool used in a machine shop. Many machine shops offer lathing services in order to build a wide variety of products and parts.
Lathing services face numerous business risks, from lawsuits to property damage.
If you own a lathing service, you need a comprehensive business insurance program designed to address your unique needs. An independent insurance agent can help you get the tailored coverage you need.
Why Do You Need Lathing Service Insurance?
Machinists who work in machine shops use machine tools and cutting tools to make metal or plastic parts usually to be used in other products or industries, such as machines, cars, or aircraft. Work in a machine shop involves cutting, shaping, drilling, finishing, and lathing.
A lathe is a type of machine tool that rotates a raw material (metal, wood, plastic, etc.) around an axis to perform various operations such as cutting, sanding, drilling, facing, and turning. Lathing services are used for woodturning, metalworking, metal spinning, thermal spraying, and glass working. Lathes can also be used to shape pottery, plane surfaces, screw threads, and produce complex three-dimensional solids such as screws, candlesticks, gun barrels, cue sticks, table legs, baseball bats, musical instruments, and more.
As a business owner, you need to understand all of your business risks, and how to protect your business and your employees from devastating injuries, property damage, and financial loss.
Every day, lathing services face risks from employee injury, equipment breakdown, product defects, fire, weather, and other types of interruptions, including:
- Employee safety concerns (burns, machinery dangers, slips and falls, etc.)
- Equipment and building damage due to accidents, fire, theft, weather, and other natural disasters
- Machinery and equipment breakdown
- Business interruption due to accidents, fire, natural disasters, machinery breakdown, utility interruption, and more
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What Does Commercial Property Insurance Cover?
Lathing services may have numerous flammable raw materials on the premises, as well as highly valuable machines and equipment.
Your buildings and equipment are susceptible to fire, theft, vandalism, and natural disasters. You need commercial property insurance to protect your building and other property in the event of a covered loss.
Commercial property insurance: This protects your business if a fire, vandalism, smoke, theft, or another covered peril (cause of loss) damages your property. It provides coverage for lost inventory, industrial equipment and machinery, warehouses and office space, office equipment, computers, valuable papers, and more. It may also provide coverage for neighboring facilities and completed products housed on your premises.
Business interruption coverage: Commercial property insurance policies usually include business interruption, or business income coverage, which protects your earnings and helps to pay expenses if your business is unable to operate because of damage caused by some type of covered disruption (fire, hail, wind, equipment breakdown). And you can expand your business income policy to include coverage for breakdowns in utility services (water, electrical) that force you to temporarily close your doors.
Determining how to best to cover all of your commercial property is essential. You need to work with an experienced independent insurance agent who can help you evaluate and calculate appropriate valuations for your machine shop and equipment and determine the right policy limits. An agent with experience writing lathing service and machine shop insurance can help you properly differentiate coverage for your building, heavy equipment, and other contents.
Another potentially devastating property risk for furniture manufacturers is damage to or breakdown of equipment. Without your specialized lathes and other machine tools, your business would be unable to operate, pay for expenses, and earn revenue.
Equipment breakdown insurance: This is often referred to as boiler and machinery coverage, and it supplements your business property insurance. It covers certain costs associated with accidental breakdown of machinery or equipment and the resulting property damage or loss.
Equipment breakdown coverage typically covers breakdowns due to power surges, motor burnout, boiler malfunction, and even operator error. You can obtain coverage for mechanical and electrical equipment, computers and computer systems, boilers, and other types of pressure equipment.
Boiler and machinery insurance covers repair and replacement costs as well as business interruption costs related to a breakdown of covered machinery or equipment.
Why Do You Need Workers’ Compensation Insurance?
The safety of employees in a machine shop environment is of utmost importance. While you probably place a great deal of importance on worker safety, injuries can still happen. Your workers may come into contact with complex machine tools, cutting tools, heavy machinery, and numerous dangers to fingers, toes, eyes, and other appendages. Employees who regularly work with hand tools are particularly vulnerable to repetitive motion injuries.
Keeping your employees safe from work-related injuries and illnesses is important for your employees’ long-term health and satisfaction, as well as your company’s financial viability. Excessive employee injuries and illnesses can be financially devastating for your business.
Workers’ compensation insurance: This provides insurance coverage when accidents happen at the workplace. It ensures that the injured worker gets medical care and income protection while unable to work.
Workers’ compensation insurance provides benefits to injured workers regardless of who is at fault for their injury. And it will provide death benefits for a worker’s dependents if the worker is killed.
Your insurance agent can help you navigate your state’s workers’ compensation laws and requirements. Each state has different rules for the amount of benefits injured employees are entitled to, what impairments or injuries are covered, how impairments will be evaluated, and how medical care will be delivered.
Almost every state requires employers to carry workers’ compensation insurance — with a few exceptions. It is a complex type of insurance that is essential to the long-term survival of your business. And purchasing workers’ compensation insurance is not enough. Implementing safety programs and insisting on worker compliance is the only way to keep your workers’ compensation claims and costs under control.
What Does Commercial Liability Insurance Cover?
Lathing services and machine shops are susceptible to a variety of liability risks. You can protect your operations, products, and customers with a variety of business liability policies designed for lathing services and machine shops.
You may not typically have customers or the general public on your premises, but you still need general liability insurance for occasions in which your business is negligent and causes bodily injury or property damage to a third party. Your commercial general liability (CGL) policy protects you in the event of third-party lawsuits, with coverage for attorney fees, court costs, settlements, and judgments up to the limits of your policy.
Like any company that manufacturers a product, you may also have product liability exposures. Claims for product-related damage are usually related to manufacturing or production flaws, design defects, or defective warnings or instructions. If you are sued for some type of product negligence, you may be required to pay for medical costs, compensatory damages, economic damage, attorney fees, court costs, and more.
Product liability insurance: This covers your financial responsibility for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of your product. Some product liability coverage is usually included in standard commercial general liability (CGL) policies, but this coverage may not be sufficient for your needs. You need an experienced agent to help you determine how much product liability exposure you have, and how much and what type of coverage you need.
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Additional Liability Policies for Lathing Services
If you own trucks or other vehicles, commercial auto insurance covers your vehicle fleet and drivers in the event of an accident or other vehicle damage that occurs. Commercial auto insurance provides coverage for property damage and bodily injury liability claims, vehicle damage, and medical bills, as well as any costs related to lawsuits due to auto accidents involving your vehicle fleet.
It’s also important to talk to your independent insurance agent about your need for commercial umbrella insurance. Commercial umbrella insurance provides an extra layer of liability protection to any of several other policies you might have, including commercial general liability and commercial auto insurance. By purchasing one commercial umbrella policy, you essentially get higher limits on all of those policies, rather than having to raise the limits on each policy individually.
Commercial umbrella insurance kicks in when the limits of your other applicable insurance policies have been exhausted, protecting you in the event that a claim exceeds the amount of coverage available from any other applicable policy.
How Much Does Lathing Service Insurance Cost?
There are many different variables that determine the cost of a lathing service insurance policy.
Your costs for business insurance will vary depending on the unique characteristics of your business, such as the location, the number of employees, the value of your commercial property (building plus contents), whether or not you own your building, and the types and volume of the parts and products that you produce.
The amount of coverage you need and the deductibles you choose also impact your insurance costs.
Find and Compare Quotes
An independent insurance agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right lathing service insurance. They’ll walk you through the handpicked policy options and explain the details and options.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get — but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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