Manufacturing companies in the U.S. are the most productive in the world. The National Association of Manufacturers reports that businesses within this industry contributed more than $2 trillion to the U.S. economy in 2012, an amazing 12.5 percent of the total gross domestic product (GDP). This very important industry is responsible for employing about 9 percent of the total American workforce and supports an estimated 17.4 million U.S. jobs.
The manufacturing industry includes a number of very different businesses, each with varying inherent risks and coverage needs. Whether you own a textile mill or the corner bakery, you need a business insurance policy designed specifically to cover your business and the items it manufactures.
What Types of Businesses Fall within the Manufacturing Sector?
All businesses in the United States are categorized within a specific industry sector by the National American Industry Classification System, or NAICS. This system was created for the purpose of data collection, analysis and economic reporting. There are currently 666,849 businesses categorized under the NAICS Manufacturing Industry Sector. These encompass a very broad range of business types, including, but not limited to:
- Food Processing and Manufacturing, including
- Confectionery Manufacturing
- Cookie, Cake, Pie and Pastry Manufacturing
- Milk and other Dairy Products Manufacturing
- Fruit, Vegetable and Specialty Canning
- Seafood Product Preparation and Packaging
- Animal Slaughtering and Meat Processing
- Commercial and Retail Bakeries
- Coffee and Tea Manufacturing
- Soft Drink and Bottled Water Manufacturing
- Breweries, Wineries and Distilleries
- Shoes, Handbags and other Leather Goods Manufacturing
- Wood Preservation Companies
- Wood Manufacturing Companies, including:
- Engineered Wood
- Cut Stock, Resawing Lumber and Planing
- Mills, including
- Pulp Mills
- Paper and Newsprint Mills
- Paperboard Mills
- Box and Container Manufacturing
- Petrochemical, Industrial Gas and Chemical Manufacturing
- Plastics, Resins and Rubber Manufacturing
- Pharmaceutical, Medicinal and Botanical Manufacturing
- Iron, Steel, Aluminum and Other Metal Foundries
- Parts and Tools Manufacturing
- Vehicle and Boat Manufacturing
Protect Your Manufacturing Company with the Right Business Insurance Policy
When you are running a manufacturing business of any type, you run the risk of employee injuries, liability lawsuits, property damage and losses caused by equipment breakdowns and malfunctions. Fortunately, when you have a business insurance policy that is tailored specifically for the manufacturing industry, your company is likely to avoid undue financial losses.
There are several different coverage options that you can add to your manufacturing sector business insurance plan. For example, you may want to consider the following:
- Product liability insurance: Whether your business is producing automobiles or doughnuts, if there is a problem with its design or production that causes other to become sick or injured, you may be sued for liability charges. This coverage is designed to cover you against lawsuits brought on by product malfunctions.
- Inland marine insurance: This is designed to cover your finished product while it is in transit to distribution centers.
- Equipment breakdown coverage: When vital manufacturing machinery or equipment breaks down, it can lead to large financial losses. This insurance provides coverage for maintenance and repairs, as well as rental equipment, in the event that extensive repair times are necessary.
- Business income interruption insurance: If a covered event, such as a tornado or fire, forces you to temporarily halt production, your business stands to lose a lot in income. This coverage is designed to provide your company with continued income for up to 12 months while repairs and replacements are made.
These are just a few of the many coverage possibilities that are available with this type of business insurance plan. The coverage options that are right for your manufacturing company will vary according to your particular risks and assets. Because deciding on coverage types and appropriate amounts can often be confusing, it may be to your advantage to discuss your insurance options with an independent agent before purchasing a policy.
An Independent Insurance Agent Can Help You Find a Policy for Your Manufacturing Firm
Business insurance policies can be confusing, and when it comes to the manufacturing services industry, the large number of different business types and hazards can make choosing the right coverage options even more complex. Fortunately, independent insurance agents in the Trusted Choice® network can make shopping for a policy much easier.
These agents can help you assess your coverage needs and can work with a number of different highly-rated insurance companies to help you build a competitively-priced policy that is customized to meet your distinctive business coverage needs. Contact a Trusted Choice agent near you to get more information and you can start comparing quotes for manufacturing sector business insurance in no time.