Mattress

The Complete Mattress Manufacturer Business Insurance Guide

Mattress manufacturers produce a variety of mattress sizes and types in a dangerous and highly flammable environment. You may handle a wide range of products and materials in your facility – such as fabrics, foams and wires – using large, expensive and dangerous equipment to cut, sew and fashion your product.

Your plant and the items inside are highly susceptible to fire and other perils, while your employees may be in harm’s way on a daily basis.

Mattress Manufacturers Face Unique Business Risks

Mattress manufacturers need a comprehensive manufacturing insurance program designed to address their unique needs. While your employees face work-related injuries and illnesses, you are also susceptible to equipment breakdown, product defects, fire, weather and other types of interruptions, such as the following:

  • Employee safety concerns (burns, machinery dangers, slips and falls, etc.)
  • Equipment and building damage due to accidents, fire, theft, weather and other natural disasters
  • Machinery and equipment breakdown
  • Business interruption due to accidents, fire, natural disasters, machinery breakdown, utility interruption and more
  • Damage to products in transit
  • Product defects and recalls

Property Insurance Protects Your Plant and Equipment 

Mattress manufacturers have numerous flammable materials on hand as well valuable parts and inventory. Your buildings, equipment and inventory are susceptible to fire, theft, vandalism and natural disasters.

  • Commercial property insurance protects your building and other property in the event of a covered loss, such as fire, vandalism, smoke or theft. It provides coverage for lost inventory, industrial equipment and machinery, warehouses and office space, office equipment, computers, and more. It may also provide coverage for neighboring facilities and completed products housed on your premises.
  • Business interruption coverage, or business income coverage, protects your earnings and helps to pay expenses if your business is unable to operate because of damage caused by some type of covered disruption (fire, hail, wind, equipment breakdown). You can even include coverage for breakdowns in utility services (water, electrical) that force you to temporarily close your doors.

You need to work with an experienced independent insurance agent who can help you evaluate and calculate how much and what type of coverage you need for your plant, equipment and inventory. While evaluating your business for property insurance, your agent will likely pay close attention to how you handle the flammables on your property. Taking appropriate fire precautions will help you secure better coverage and lower rates.

You may need additional coverage for your product as it is being transported from place to place.

  • Inland marine insurance protects you from losses when cargo is damaged in transit. Any piece of property that is moved from one location to another can be covered with an inland marine policy.

Another potentially devastating property risk for furniture manufacturers is damage to or breakdown of equipment. Without your specialized equipment, your business would be unable to operate, pay for expenses and earn revenue.

  • Equipment breakdown insurance, often referred to as boiler and machinery coverage, supplements your business property insurance. It covers certain costs associated with accidental breakdown of machinery or equipment and the resulting property damage or loss. 

Workers’ Compensation Insurance Protects Your Employees

Your mattress plant can be a dangerous place for your employees, as they work with cutting and sewing equipment as well as hand tools and other specialized equipment. Your employees might be susceptible to cuts, pokes, crushed fingers or limbs, and repetitive motion injuries.

Excessive employee injuries and illnesses can be financially devastating for your business.

  • Workers’ compensation insurance provides insurance coverage when accidents happen at the workplace. It ensures that the injured worker gets medical care and income protection while unable to work.

Workers’ compensation insurance provides benefits to injured workers regardless of who is at fault for their injury. And it will provide death benefits for a worker’s dependents if the worker is killed.

Your insurance agent can help you navigate your state’s workers’ compensation laws and requirements. Each state has different rules for:

  • the amount of benefits injured employees are entitled to.
  • the impairments or injuries that are covered.
  • the evaluation of impairments. 
  • the medical care to be delivered.

In addition to purchasing workers’ compensation insurance, you need robust safety programs that encourage worker compliance in order to keep your workers’ compensation claims and costs under control. Your independent agent can help you develop and implement safety programs as well as finding appropriate workers’ compensation insurance.

Don’t Forget Coverage for Liability Claims

You can protect your operations, products and customers with a variety of business liability policies designed for mattress manufacturers.

  • Commercial general liability (CGL) insurance is necessary for occasions in which your business is negligent and causes bodily injury or property damage to a third party. Your CGL policy protects you in the event of third-party lawsuits, with coverage for attorney fees, court costs, settlements and judgments up to the limits of your policy.
  • Product liability insurance covers your financial responsibility for losses or injuries to a user, buyer or bystander caused by a defect or malfunction of your product. Claims for product-related damages are usually related to manufacturing or production flaws, design defects, or defective warnings or instructions. If you are sued for some type of product negligence, you may be required to pay for medical costs, compensatory damages, economic damages, attorney fees, court costs and more.

Some product liability coverage is usually included in standard commercial general liability (CGL) policies, but this coverage may not be sufficient for your needs. You need an experienced agent to help you determine how much product liability exposure you have and how much and what type of coverage you need.

  • Commercial auto insurance covers your vehicle fleet and drivers in the event of an accident or other vehicle damage that occurs. Commercial auto insurance provides coverage for property damage and bodily injury liability claims, vehicle damage and medical bills as well as any costs related to lawsuits due to auto accidents involving your vehicle fleet as they transport your products from place to place.
  • Commercial umbrella insurance, or excess liability coverage, provides an extra layer of liability protection to any of several other policies you might have. Commercial umbrella insurance kicks in when the limits of your other applicable insurance policies have been exhausted, protecting you in the event that a claim exceeds the amount of coverage available from any other applicable policy.

Find Mattress Manufacturer Insurance Tailored to Your Business

Mattress manufacturers need tailored manufacturing insurance to protect their long-term financial viability. Find an independent insurance agent who can obtain quotes from numerous highly rated insurance companies that specialize in manufacturing insurance. Don’t spend time chasing down quotes on your own – your agent can advise you on the coverage you need and find the experienced insurance companies that know how to work with businesses like yours.

Now, who's ready to get their insurance problems solved?