Manufacturing encompasses a broad range of businesses that vary in size, organization, and especially in what they make and who they make it for. Regardless of the end product, a manufacturer of any size needs to protect its assets from the costs of fires, employee injuries, lost inventory, auto accidents, equipment breakdowns, and lawsuits that can be related to any of these events, and more.
You need manufacturing insurance to help mitigate your risks. Manufacturers insurance covers you with a combination of insurance policies that are most suitable for your business.
Your employees probably work with a variety of heavy, expensive, and dangerous industrial equipment. Your facility may contain flammable or dangerous materials. Perhaps your business is located in an area that is prone to tornadoes or other damaging weather events. If you, your employees, or your products cause injuries or property damage to other parties, you can be sued.
One of the biggest threats you face as a manufacturer is fire. According to the National Fire Protection Association:
You also face a variety of other threats, such as:
You need to protect your property, your employees, and any other persons or property that come into contact with your business or products, with tailored manufacturing insurance solutions.
No matter what you manufacture—metals, plastics, clothing, furniture—you need a comprehensive manufacturers insurance program to protect your business from risks. Your manufacturing facility probably contains various materials used to manufacture your products. Perhaps you have flammables such as fabrics, plastics, or wood on hand. You may use paints, lacquers, or other toxic chemicals.
All of these materials, in addition to your buildings, equipment, and other inventory, can be damaged by fire, theft, vandalism, and weather or other natural disasters. No matter what type of unforeseen event occurs, you need manufacturers property insurance to protect your business.
If your equipment broke down, would you be able to operate, pay for expenses, and earn revenue? Some manufacturing equipment is so specialized that it may take months to replace. What would happen to your business while you waited?
Manufacturing insurance should also provide coverage for any products or materials that are on the move. Inland marine insurance is designed to protect you from financial losses when cargo of any kind is damaged in transit. Your Trusted Choice® insurance agent can help you find inland marine insurance that is customized for the type of manufacturing that you do.
Manufacturers can be sued for just about any reason. Whether you make shoes or straws, at some point your business could be accused of negligence and causing harm to a person or another business. While you may not often have members of the general public on your business property, your business can still pose a threat to others in a variety of ways.
You need manufacturers liability insurance that is tailored to how your business operates and the products that you make. Liability insurance protects manufacturers from third-party claims of negligence and the costs associated with lawsuits.
Some small- to medium- sized manufacturers may qualify for a business owners policy, or BOP. A BOP provides basic property, liability, and business interruption coverage in one convenient and affordable package policy designed for smaller businesses.
Any BOP can be customized to cover your specific risks. In addition, you can purchase more comprehensive insurance for manufacturers by adding endorsements to your BOP as well as purchasing other standalone manufacturing insurance policies.
Your independent agent can help you determine if a business owners policy is the right solution for your manufacturing business.
Most manufacturing companies need commercial auto insurance. This typically covers cars, trucks, trailers, vans and other vehicles designed for use on public roads. Only a business auto policy can provide proper protection for vehicles being driven for business purposes.
You can customize your policy to cover:
You can list each vehicle on your policy and carry different coverage for each depending on the vehicle’s characteristics and the coverage you need for it.
Your manufacturing facility presents many potential dangers for your employees. They may come into contact with heat or dangerous chemicals, sharp or dangerous tools, heavy machinery, and a variety of other dangers. Employees are at risk for lost or crushed hands or limbs, eye injuries, burns, lung irritation, and other potential injuries or illnesses. Even employees who simply perform repetitive tasks every day are at risk for a variety of injuries.
Safety is important not only for your employees, but also for your long-term financial stability. Unfortunately, no matter how safe your manufacturing facility is, accidents happen. You need workers’ compensation insurance to protect your employees and your business from the costs of workplace accidents and injuries.
Workers’ compensation insurance is required for most employers. Each state has its own statutes that govern its workers’ compensation insurance program. Those statutes determine the amount of benefits an injured employee is entitled to, what types of injuries are covered, and how medical care will be delivered. In general, workers’ compensation insurance covers the costs of medical care for the injured worker, as well as income replacement if they cannot return to work for a while. Workers’ compensation insurance may also provide death benefits if a worker is killed at your facility.
Whether you are a multi-location manufacturing conglomerate, or a small, specialty manufacturer, you need tailored manufacturer insurance that is customized for your size, the products you make, and the number of employees that you have. Any of your property or liability policies can and should be specifically designed to cover what is unique about your business. And with the advice of your Trusted Choice® independent agent, you may find that you need additional insurance policies designed specifically for your type of manufacturing business.
Local agents can access multiple manufacturers insurance companies, compare many policies, and find the one that fits your operation. Simply contact an agent in your area to learn more about manufacturers insurance.