To keep things running smoothly, it’s important to understand your potential exposures and coverage options. In this article, we’ll answer common questions about manufacturing insurance, the risks involved, and the policies that can help protect your business.
Manufacturing businesses operate in a fast-paced, complex environment where even minor disruptions can lead to significant financial losses. From supply chain interruptions to equipment breakdowns, manufacturers must navigate a range of potential threats. Here are some of the most common manufacturing risks:
From machinery and products to employees and customers, manufacturing involves many moving parts. That’s why we work with you to customize a policy that fits the specific needs of your business. Depending on your operations, a well-rounded policy should address key manufacturing risks and may include:
Manufacturing liability insurance helps cover financial losses related to lawsuits and claims arising from bodily injuries or property damage caused by your business operations. General liability claims can range from a customer slipping and falling on your premises to someone at your company unknowingly using copyrighted material in your advertising. General liability insurance may cover legal fees, settlements, and other related expenses.
General liability insurance covers risks related to your operations, such as property damage or bodily injury caused by your business activities. In contrast, product liability insurance specifically covers claims related to a product you made, sold, or contributed to that caused bodily harm or property damage. For example, if a part you manufactured for an appliance malfunctioned and caused a fire, product liability insurance may help cover the resulting claims, including legal fees, medical costs, and compensatory damages.
We highly recommend business interruption insurance for manufacturers. Also known as business income coverage, it helps offset lost income and ongoing expenses if a covered event, such as fire, wind, or hail damage forces a temporary closure. This coverage can help keep your business financially stable until you can resume operations.
Commercial property insurance protects your business’s physical assets, including buildings, equipment, and inventory, within your facility. On the other hand, inland marine insurance covers goods, equipment, and inventory while they are in transit over land or temporarily stored off-site, such as at a warehouse or distribution center. Both typically cover damage caused by fire, theft, vandalism, and weather events.
Regular maintenance and routine care are essential to minimizing the risk of equipment breakdowns. By conducting scheduled inspections, performing preventive maintenance, and addressing minor issues immediately, manufacturers can extend the life of their machinery and prevent unexpected failures. Additionally, having equipment breakdown coverage can provide added peace of mind.
While robotic technology can improve workplace safety and efficiency, it also introduces new risks, such as potential malfunctions. It’s important to keep your insurance provider informed about any equipment updates or changes, as they may impact your coverage and premiums. In some cases, upgrades that enhance safety features could even help lower your insurance costs.
Manufacturing insurance companies consider many factors when determining the cost of your coverage, including:
The easiest way to determine what your insurance premium will be is to get a quote an agent.
Manufacturers may be able to lower their insurance premiums by implementing safety training, risk control programs, and loss prevention devices. Insurance providers and underwriters are also attracted to businesses with a stable financial history, favorable loss history, well-maintained facilities, and sound regulatory compliance.
When selecting a manufacturing insurance company, it’s important to consider their industry expertise, financial stability, risk control programs, and ability to customize coverage.
At Westfield, we don’t take a one-size-fits-all approach to manufacturing insurance. Instead, we work with you to understand the specific challenges of your business, allowing us to tailor our coverage to fit your unique needs. Contact an agent today to get started with a customized manufacturing insurance quote.
