Manufacturers insurance is designed to help protect manufacturing businesses from the unique threats they can face. A comprehensive manufacturers insurance package can help protect manufacturing companies, support their ongoing viability, and give them the peace of mind to focus on what they do best.
What types of insurance do manufacturers need?
Depending on a business’s industry and unique needs, manufacturers should consider the following coverages:
Commercial property insurance
Manufacturing businesses may invest heavily in their facilities, which can include specialized custom equipment and machinery. A manufacturing facility may also house tools, inventory, and supplies, along with furniture and technology. Commercial property insurance can help protect a manufacturing business against fire, theft, vandalism, and some natural disasters.
Given the essential nature of buildings and their contents to manufacturing operations, manufacturers insurance that covers property can play an essential role in a company’s risk management plan.
Commercial general liability insurance
General liability insurance can help protect manufacturing businesses against third-party claims of physical injury or property damage. For example, if a visitor to an auto plant stepped into a pool of oil, causing them to fall and break a limb, this type of insurance can help cover the cost of legal fees and settlements if the visitor decides to pursue legal action.
Product liability insurance
If a third-party claims that one of the manufacturer’s products caused harm or property damage, this type of insurance may help with the associated costs, including court costs and settlements.
Commercial vehicle insurance
Commercial vehicle insurance can cover cars, vans, and trucks that are used to carry out business operations such as delivering goods, picking up supplies or equipment, visiting customers, or attending meetings. If the vehicle is stolen, vandalized, or causes an accident, this type of insurance can help mitigate the costs associated with the event.
Equipment breakdown insurance
Manufacturing businesses could be forced to shutter operations temporarily if key equipment has to be taken offline. Equipment breakdown insurance can help with the cost of repairing or replacing essential equipment. This can be a constant and persistent threat for manufacturers, making it an essential insurance coverage.
Business interruption insurance
The purpose of this type of insurance is to protect the business financially after a catastrophic event such as a fire, flood, or a devastating storm that causes the business to scale back its operations, or even close temporarily. Whereas commercial property insurance can help to replace structures and their contents, business interruption insurance may help replace the income that the business would otherwise have earned.
Business interruption insurance may also help with employee wages, moving expenses – if the business is able to relocate, and any essential expenses that the business still has to cover.
Pollution and environmental insurance
Many manufacturing businesses use hazardous substances in their manufacturing processes and could be harmful if not properly packaged and contained.
This insurance can help cover the costs associated with clean-up and environmental remediation, third-party claims if a third party’s property is damaged or contaminated.
Cyber insurance
Cyber insurance can help protect manufacturing businesses from the financial losses of a cyber-attack. Cyber-attacks present an increasing risk to manufacturers for two reasons:
- These events are becoming more common, and cybercriminals are becoming increasingly sophisticated when it comes to bypassing cyber-security measures
- Manufacturing businesses are relying more heavily on technology, for everything from communications to the manufacturing process itself. As a result, a cyber-attack can be enormously consequential.
Cyber insurance can help with expenses like recovering and repairing data files, consulting fees for cyber security specialists, investigating the data breach, ransomware payments, and the expense of notifying individuals and entities whose data may have been compromised.
Ensure you’re protected with manufacturers insurance
There is an enormous amount of variability between manufacturing businesses and their operations. Having the sound guidance of an insurance specialist can play an important role in getting the right coverage for your business. It’s important to consider insurance coverages for risks specific to your industry, your manufacturing processes, your products, your supply chains, and the size of your business. Visit our manufacturers insurance page to learn more today.
This blog is provided for information only and is not a substitute for professional advice. We make no representations or warranties regarding the accuracy or completeness of the information and will not be responsible for any loss arising out of reliance on the information.
