by Aya Musa, Illinois Machine Shops Insurance Specialist in Chicago

Machine shops include several classes of businesses that deal with the manufacturing of metal products. These manufacturing workshops can be classified in to two broad classifications. Low risk machine shops and medium and high risk machine shops. Risk, in this analysis, represents the degree to which a business may incur property loss, liability loss, or both. The classification here is arbitrary, meaning what is low risk to a particular company may be a medium risk to another. However, the classification seems to be general and more acceptable to many insurance companies.

Lower Risk Machine Shops Insurance.These shops include fabricated metal products such as:
  • metal shipping barrels drums, and kegs
  • Cutlery
  • Hand and edge tools
  • Hardware
  • Enameled items and metal sanitary ware
  • Plumbing fixtures, fitting and trim
  • Sheet metal work
  • Architectural and ornamental metal work
  • Prefabricated metal buildings and components
  • Miscellaneous metal work
  • Screw machine products
  • Bolts, nuts, screws, rivets, and washers
  • Iron and steel, as well as other nonferrous forging
  • Metal stamping
  • Steel springs except wires
  • Valves and pipe fittings
  • Miscellaneous fabricated wire products
  • Fabricated pipes, pipe fitting, and metal products

Certain industrial and commercial machinery are also included in this low risk classification. They include:
  • Machine tools, metal cattery and forming types
  • Industrial patterns
  • Special dies and tools, dies sets, jigs, and molds
  • Machine tools accessories and measuring devices
  • Pumps and plumbing equipment
  • Packaging  Machinery
  • Scales and balances except those made for labs
  • Office machines

Medium to high risk workshops that may not fit for business owner policies, but may qualify for commercial insurance packages include:
  • Foundries
  • Frames construction workshop
  • Unprotected properties
  • Rubber
  • Electroplating
  • Any product involving asbestos
  • Metal extrusion
  • Forging
  • Casting (Foundries melting metal)
  • Rolling & wire mills
  • Sintering operations
  • Scrap metal processing
  • Chemical reduction (Smelting or refining operations)

Also, manufacturing certain products may make any workshop high risk. These products include any products involving nuclear, chemical or aerospace industry; critical automotive parts, building products, firearms and ammunition, food processing, heavy industrial machine. machine guards, medical products, pollution control, pressure vessels, sport equipment, tanks and toys.

Insurance Coverage For Machine Shops

These businesses need the following Insurance coverages:

Property coverage for their buildings, tools, and equipment. Properties have to meet certain safety and health standards such as ventilations, fire suppression, UL spray booths, and other safety measures.

Liability coverage may include certain requirements for quality control on production processes.

Commercial auto insurance. Issuing a business auto policy for machine shops is based on MVRs of drivers and radius of operations.

Workers compensation insurance for machine shops maybe limited to the those businesses that maintain acceptable safety measures for employees, proper hiring and training practice, and other OSHA compliant measures.


Get your immediate Insurance Coverage For machine shops at Insurance Navy. For immediate considertaion call: (708) 233-4848
Posted 1:38 AM  View Comments

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