UNDERWRITING GUIDELINES FOR PLASTIC & RUBBER PRODUCTS MANUFACTURERS SEGMENT Local exceptions to these underwriting guidelines may apply. Please consult with your underwriter or sales executive for details and to discuss risks which exceed the following guidelines. Manufacturers Pac Plus SM risks will typically have: Up to $7.5 million Total Insured Values ( Building and Business Personal Property) at each location and Up to $10 million Total Annual Sales. Underwriting Guidelines for Manufacturers Pac Plus Business Personal Property and General Liability coverage is required. If applicable and eligible, coverage is required for all owned buildings. One hundred percent insuranceto-value is required. Eligible operations are businesses specifically listed in the Classification section. Years in Business: Three years in business is preferred for all risks. Loss Experience: The business must have favorable loss experience for Property and General Liability. For each $10,000 in premium size, favorable loss experience can be generally defined as no more than two claims (Property and General Liability) and no loss greater than $10,000 in the last three years. Prior Carrier: The business should have had continuous insurance coverage for the last three years, with no cancellations by the insurer(s) or non-renewals (for other than market withdrawals or transfers within an insurer company group). Internet: Revenue generated by transactional Web sites must be less than 50 percent of the total revenues. Transactional Web sites are defined as Web sites that allow for the transfer of private consumer/ business information in exchange for goods/services or information. Web sites should have system security certification. Property Underwriting Guidelines: No cited violations of fire or life safety codes. Businesses should have adequate protective measures to detect fires and thefts. Central station fire alarms are required. Risks with sprinkler systems are preferred. MP T3 08- Protective Safeguards Endorsement must be attached describing the system. All owned buildings should be fully occupied, with no seasonal occupancies. Seasonal is defined as any occupancies open less than 8 months of the year. All tenants must meet underwriting requirements. Please see the appropriate underwriting guidelines based on the tenant occupancies. For both tenants and building owners, the plumbing, HVAC, wiring and roof should have been updated in the past 30 years. Goods susceptible to water damage should be palletized. Safety cans or fire-proof storage cabinets must be used for the storing and handling of flammable or combustible liquids. The combustible material storage area may not exceed 25 percent of the total area. Combustible materials must not exceed a height of 12 feet or must have the presence of 1
automatic in-rack sprinklers. Please consult with your underwriter regarding coverage for premises used solely for storage of inventory. Liability Underwriting Guidelines: Businesses should have a comprehensive quality control program. Please consult with your underwriter if armed security guards are present. Supplemental Application: Completion of the Manufacturers Supplemental Application is required. This application is available in Agent HQ SM / Reference Library/Worksheets and Applications. General Liability Rating: General Liability premiums are based on sales. Sales means the gross amount of money charged by the insured, the concessionaires of the insured or by others trading under the insured's name for: Goods or products sold or distributed, Operations performed including parts and labor, Commissions and fees for services provided, Rentals, and Dues and fees. Refer to CLM General Rules 24. D. for specific inclusions and exclusions. Sales are subject to annual premium audit. Coverages for Plastic & Rubber Products Manufacturers The following applies to all Plastic & Rubber Products Manufacturers: Values should be included for the following types of Business Personal Property: Machinery and Equipment (not permanently attached to the building), Stock - raw, in process and finished, Furniture and Fixtures, Personal Property of Others, and Electronic Data Processing Equipment. Business Income and Extra Expense coverage is optional. When selected, the coverage may be written with a policy or location level dollar limit. The dollar limit is based on 50 percent of annual receipts and may be modified. MP T1 59 Amendatory Provisions Manufacturers Pac Plus is mandatory and includes the following: Brands and Labels coverage is granted for up to $25,000, Sales Representative s Samples and property at exhibitions are covered for up to $25,000, Business Personal Property Off Premises coverage is automatically provided, including while in transit (excluding stock in transit), Manufacturer s Consequential Loss is covered for up to $25,000, and Theft of Patterns, Molds and Dies is covered for up to $50,000. MP T1 62 Amendatory Provisions Manufacturers Pac Plus including Business Income Ordinary Payroll Limitation, is an optional replacement to MP T1 59, includes the same coverages, and contains a 90-day ordinary payroll limitation. CG T3 23 Exclusion-Aircraft Products and Grounding is mandatory. MP T1 60 Selling Price valuation on finished stock is available. CG D1 87 Manufacturers/Wholesalers XTEND Endorsement is available. CM T1 14 Transportation Special Form is available. 2
Classifications for Plastic & Rubber Products Manufacturers The Exposure Group is based on the product(s) made and the likely manufacturing process used to make the product(s). To determine which Exposure Group to select in IENet SM, please see the following list of products and select the Exposure Group associated with the product that generates the majority of annual revenues. Classification Pac Plus Exposure Program Code Group Job Shops 236 N/A Job Shops include shops that manufacture, modify or process products according to customer specifications. No design of products without customer sign-off. Plastic & Rubber Products Manufacturers 233 Low 234 Medium 235 High Description Pac Plus Eligible Exposure Air mattresses 235 3089 High Appliances, mechanical rubber goods 233 3061 Low Aprons, household 233 3069 Low Aquarium accessories 233 3089 Low Audio range tapes, blank 233 3695 Low Bags 234 3069 Medium Bands 234 3089 Medium Bath sprays 234 3069 Medium Bathing caps 234 3069 Medium Bathroom fixtures and bathware 234 3088 Medium 3089 Battery boxes, plastics 233 3069 Low Battery separators 233 3089 Low 3069 Billfold inserts 233 3089 Low Bolts 234 3089 Medium Boots, shoes, and overshoes 234 3021 Medium Bowl covers 233 3089 Low Boxes 234 3089 Medium Brush handles 233 3089 Low Brushes 234 3069 Medium Bubble formed packaging 233 3089 Low Bushing 233 3069 Low Caps 233 3069 Low Carafes 235 3089 High Casein products 235 3089 High 3
Description Pac Plus Eligible Exposure Cases 234 3089 Medium Castings 234 3089 Medium Ceiling tile 235 3089 High Celluloid products fabricators 234 3089 Medium Closure 235 3089 High Clothes hangers 233 3089 Low Clothes pins 233 3089 Low Combs 233 3069 Low Compact disc, computer 233 3652 Low Compact disc, prerecorded (except video) 233 3652 Low Containers, other than chemical 234 3089 Medium Corrugated panels 235 3089 High Counter coverings 234 3089 Medium Dishes 235 3089 High Doors 234 3089 Medium Dress shields 234 3069 Medium Erasers 233 3069 Low Film 233 3069 Low Flat panels 234 3089 Medium Flower pots 233 3089 Low Flush tanks 233 3088 Low Folding doors 235 3089 High Food bottles 235 3089 High Food casting 235 3089 High Foot hold 235 3021 High Friction tape 234 3069 Medium Funnels 233 3069 Low Gate hooks 235 3089 High Grommets 233 3069 Low Grower pots 233 3089 Low Gutters and downspouts 233 3089 Low Hair curlers/pins 233 3069 Low Household products 234 3069 Medium Instrumentation-type tape, blank 233 3695 Low Jar rings 235 3069 High Kitchen ware 235 3089 High Lamp bases 233 3089 Low Lamp shades 233 3089 Low Laundry tubes 233 3088 Low 4
Description Pac Plus Eligible Exposure Lenses 235 3089 High Linder strips 233 3069 Low Magnetic recording tape (blank, reels, cassettes, and disks) 233 3695 Low Mats and matting 233 3069 Low Mattress protectors 233 3069 Low Microwave ware 235 3089 High Netting 235 3089 High Optical disks and tape, blank 233 3695 Low Organizers for closets, drawers and shelves 234 3089 Medium Ovenware 235 3089 High Pails and buckets 233 3089 Low Paper towel, grocery bag, broom and dust pan holders 233 3089 Low Phonograph records 233 3652 Low Photographic, micro-graphic, and X- ray plastic film and sheets 233 3081 Low Picnic jugs 235 3089 High Planters 233 3089 Low Plastic and rubber soles 233 3069 Low 3089 Plumbing fixtures 234 3088 Medium Pre-recorded audio magnetic tape 233 3652 Low Pressure sensitive tape 234 3069 Medium Printers acoustic covers 234 3089 Medium Printers blankets and rolls 234 3069 Medium Recorders, tape (for computer) 233 3651 Low Rods, plates and sheets 233 3069 Low Rubber balls 233 3069 Low Rubber bands 233 3069 Low Rubber boxes 233 3069 Low Rubber flooring 234 3069 Medium Rubber stoppers 233 3069 Low Scrubbing pads 233 3089 Low Shutters 234 3089 Medium Siding 234 3089 Medium Sinks 234 3088 Medium Skirts, siding 234 3089 Medium Soffit 234 3089 Medium Stationers sundries 234 3069 Medium Storm windows 234 3089 Medium Suitcase shells 234 3089 Medium Tableware 235 3089 High 5
Description Pac Plus Eligible Exposure Tanks, photographic developing, fixing and washing 234 3089 Medium Thread 233 3069 Low Tissue dispenser 233 3089 Low Toggle bolts 234 3089 Medium Toilet fixtures 234 3088 Medium Tool handles 234 3089 Medium Tops 234 3089 Medium Trash containers 234 3089 Medium Trays 234 3089 Medium Trays, photographic printing and processing 233 3069 Low Tumblers 235 3089 High Type, print 233 3069 Low Urinals 234 3069 Medium 3088 Utility containers 234 3089 Medium Vials, non-medical 234 3089 Medium Video recording tape, blank 233 3695 Low Vinyl and vinyl copolymer film and sheets 233 3081 Low Wainscoating 233 3069 Low Water bottles 235 3069 High Water pots 233 3089 Low Window frames and sashes 234 3089 Medium Window louvers 234 3089 Medium 6
Ineligible Operations, Products or Services for Plastic & Rubber Products Manufacturers Risks with the following exposures, products and operations should not be written as Manufacturers Pac Plus accounts: INELIGIBLE OPERATIONS Asbestos processing (brake lining, oil, and grease seals) Design specifications without customer sign-off Design work for other manufacturers Fiberglass operations Foam processing, including: Foamed rubber or foamed plastic processing Expanded polystyrene foam processing Polyurethane foam processing Thermoplastic structural foam processing Hand lay-up processing Polyurethane foam molding Reaction injection molding Products directly imported or manufactured in foreign countries Primary manufacturing operations in frame buildings, and/or secondary manufacturing operations (storage and maintenance facilities) in unsprinklered frame buildings located in protection classes 8, 9, or 10 Products that are inaccessible or difficult to access when installed (such as building products that are buried underground, in foundations, or are structural components) Reclaiming of plastic or rubber compounds Risks with total receipts for the following types of services exceeding 25 percent of their total sales: Assembly of products for customers Installation work Leasing Rentals Repackaging, re-labeling, assembly or alteration of products Repair work Service work or repair Sales of discontinued products Spray-up processing INELIGIBLE SIC CODES 301X Tires and inner tubes (any SIC) 305X Hose and belting and gaskets and packaging (any SIC) 3082 Unsupported plastic profile shapes 3083 Laminated plastics plate and sheet 3084 Plastic pipe 3086 Plastics foam products 3087 Custom compound purchased resins INELIGIBLE PRODUCTS Air supported rubber structures Aircraft products Balloons Boats Childproof closures Fuel cells Fuel tanks Hot tubs Ladders Life rafts Lifejackets Medical or medical related product regulated by the Food and Drug Administration (examples include, but are not limited to, sterile dressings and bandages, feminine hygiene products and tapes) Pacifiers Polymers or polymerization of plastic or rubber from monomers Roofing materials Solvent casting Swimming pool covers and blankets The Travelers Indemnity Company and its property casualty affiliates One Tower Square Hartford, CT 06183 travelers.com This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverage referenced in this document can depend on underwriting qualifications and state regulations. 2007 The Travelers Companies, Inc. All rights reserved. CP-55549 Rev. 05-07