Cosmetic manufacturing is a major industry in Canada. Products in this category are not limited to makeup, but also include all types of hair products from shampoo to colouring; skin products from sunscreens to moisture creams; dental products from toothpaste to denture products; nail products including nail polishes; deodorants and antiperspirants; to shaving products for both men and women.
Here is a risk summary of various exposures cosmetics manufacturers can be exposed to:
Property exposure will be high due to welding, plastics and spray-painting. Controls must be in place for each operation along with separation of exposures such as welding and painting. Storage of parts and flammable liquids is an extremely important consideration.
Occupiers’ Liability is normally low to moderate. Visitors are usually limited. If tours are given or if outsiders are allowed on premises, exposure increases.
Products liability is very high so quality control must be just as high. There are several federal guidelines that must be followed and completely documented. Contractors will handle the manufacture of many parts. Some will be local while others are foreign. The applicant must have contracts that clearly describe the responsibilities plus there must be a strong certificate of insurance monitoring system to ensure adherence to the contract.
Environmental impairment depends on the operations involved and can range from moderate to high. Underground storage tanks are a normal part of this operation so the UST policy must be considered. Disposal of plastics, chemicals and flammable liquids must adhere to federal and province guidelines.
Automobile exposure is high, from the delivery of finished automobiles, as well as any exposure to pickup of materials and parts. Additional automobile exposure may arise if a fleet of vehicles is used for sales. Training and prior record of drivers, as well as condition and maintenance of vehicles, are the main items to consider.
Workers compensation exposure is varied and difficult. Repetitive motion, heavy listing, exposure to chemicals, cuts, and burns are all possible claim producers. There must be a strong safety program in place that involves substantial monitoring and training.
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Download a copy of our “Risk Summary - Automobile Manufacturing” guide to learn more about how you can mitigate business losses as a result of risks and exposures:
