Tire--Retreading or Recapping

What Does GL Code 49239 Cover?

ISO GL class code 49239 specifically covers businesses engaged in the retreading or recapping of tires. This classification applies to operations that recondition used tire casings by applying new tread rubber, extending the life and utility of tires for various vehicles. It encompasses the entire process from inspection and buffing to vulcanization and finishing, classifying the inherent general liability exposures associated with these specialized manufacturing and service activities.

Who Uses This Class Code?

This code is primarily used by dedicated tire retreading plants, tire recapping services, and commercial tire shops that perform significant retreading operations in-house. Businesses specializing in the re-manufacturing of truck, bus, or aircraft tires, as well as those providing retreaded tires to fleets and commercial clients, fall under this classification.

Common GL Claims for This Class

Common claims include product liability lawsuits stemming from the failure of a retreaded tire causing an accident, property damage to customer vehicles during the retreading process, and slip-and-fall incidents on the business premises.

Coverage Tips for Code 49239

• Ensure your General Liability policy includes robust Product-Completed Operations coverage, as claims often arise from tire failures after they have been retreaded and put into service.
• Regularly review your gross receipts reporting to avoid audit discrepancies, as this class code is typically rated on a gross receipts basis, and underreporting can lead to significant premium adjustments.
• Implement strict quality control procedures and maintain detailed records for each retreaded tire, as this documentation is crucial for defending against product liability claims.
• Verify compliance with all Florida Department of Transportation (FDOT) regulations and federal safety standards for retreaded tires, as non-compliance can lead to severe penalties and increased liability exposure.