The manufacturing industry is massive and spans numerous industries. The manufacturing process is also expansive and plant owners face a variety of risks. Their staff can get injured on the job, a customer may get injured or fall ill, or one of your delivery drivers could get in an accident. Each industry comes with various risks—which is why you need a business insurance policy tailored to the manufacturing industry. In this article, we cover some of the options available to you.
Who Needs Manufacturers Insurance?
This is not an exhaustive list, but simply a few examples of the industries that need that coverage:
- Bottling Plants
- Canning Facilities
- Clothing & Apparel Manufacturers
- Leather goods manufacturing
- Computer & Electronics Manufacturers
- Breweries, wineries, and distilleries
- Food and Beverage manufacturers
- Furniture Manufacturers
- Meat Processing and Packing Plants
- Mobile Home Manufacturers
- Plastics, Resins, and Rubber Manufacturing
- Fabric & Textile Mills
- Tobacco manufacturing
- Tool & Die Manufacturers
- Box and Container Manufacturing
- Petrochemical, Industrial Gas, and Chemical Manufacturing
- Pharmaceutical, Medicinal, and Botanical Manufacturing
- Iron, Steel, Aluminum, and Other Metal Foundries
- Parts and Tools Manufacturing
- Vehicle and Boat Manufacturing
- Any manufacturing business
What Does Manufacturers Insurance Cover?
Insurance policies for manufacturing businesses should consist of a variety of coverage options, including but not limited to:
Business Owners’ Policy
A business owners’ policy (BOP) is a specialized package usually available to small and medium-sized businesses at a discounted rate. It can help a manufacturing business save money rather than purchasing the coverage separately. Most business owners policies include:
- General Liability Insurance: General liability insurance protects any customers you may have inside your plant. If they were to slip and fall, this insurance policy can cover their medical expenses and any damage to their personal property. If there were claims of negligence and they sue you, it will also cover legal expenses and settlements.
- Commercial Property Insurance: If your manufacturing plant is damaged in a fire, natural disaster, or by theft or vandalism, property insurance steps in to repair the damaged building and replace damaged contents. Equipment Breakdown Coverage can be added as an endorsement to cover mechanical breakdown due to electrical surges.
- Business Income Insurance: Also commonly referred to as business interruption insurance, this coverage can help cover your operating expenses, lost profits, payroll, etc. while you are unable to operate your business in its normal location.
- Cyber Liability Insurance: If you store customer information online (such as company name, address, payment information, etc.) then your business is at risk of a cyber-attack. If you are the subject of a breach, cyber liability steps in to help cover credit monitoring for clients and can even pay the ransom if necessary.
Completed Operations: Product Recall and Replacement
No matter what type of product(s) you produce in your plant, you need product liability insurance. Product liability insurance is “Business insurance that will protect a business from claims brought against them which may be related to the manufacture, sale, or use of products by the general public that causes personal injury or property damage.”
If there’s a problem in production and your product is faulty and causes damage or illness to third parties, you could be held liable. If you’re sued for liability, this insurance is designed to cover court costs and settlements. Any manufacturer needs this coverage as part of their insurance package.
Product recall and replacement coverage can step in to help cover all associated costs to recall products that were determined to be faulty or causes illness to your customers.
Protect Your Employees With These Insurance Options
There are a few insurance options we suggest to protect your workers.
- Workers Compensation Insurance: Workers’ compensation insurance is required in almost every state. It protects your employees if they become ill at work or get injured on the job. It can help cover a portion of their lost wages as well as medical expenses.
- Employment Practices Liability Insurance: Also referred to as EPLI, this insurance protects managers, owners, etc. if they are accused of—but not guilty of—discrimination, sexual harassment, wrongful termination, etc. It will cover claims if one employee harasses another.
- Commercial Auto Insurance: If you have employees who use company vehicles (such as box trucks) to deliver product(s) you need to obtain commercial auto insurance. Personal auto insurance will not provide coverage if a personal auto is being used in the course of business.
There are numerous other insurance policies available that may fit your business needs. We recommend speaking with an agent to help determine the best business insurance for your business.
How Much Does Manufacturing Insurance Cost?
Business insurance for manufacturing companies varies depending on a variety of factors:
- The type of equipment and machinery used
- The risk profile of the work environment
- The number of employees you have
- Whether or not you have company vehicles
- Deductibles and policy limits you choose
- The type of coverages you choose
The cost varies from insurance company to insurance company. An agent will likely request further information to help determine the right insurance package for your manufacturing business.
Get a Free Manufacturers Insurance Quote
At CommercialInsurance.Net, we strive to help our customers get the right coverage with the right insurance company. We want to help you save money while helping you protect your manufacturing business with the right coverages. To get more information online, complete the form at the top of the page and an agent will call you. Or, you can give us a call to learn more at 877-907-5267.
Related Articles: Product Liablity Insurance, Product Recall Insurance, Equipment Breakdown Coverage