Manufacturing Insurance

Manufacturing Insurance: Everything You Need to Know

As a manufacturer, you understand the importance of quality and reliability to deliver a product that will build customer loyalty and grow your business. Whether you are manufacturing for the food, aviation, medical device, or maybe automotive industry, you help people with your product. That’s why manufacturing comes with a lot of potential liability risks. 

With a smart insurance program, you can stay focused on your business operations, knowing you have a strong insurance partner at your side. Here’s everything you should know about manufacturing insurance. 

An employee working at a factory.

What is Manufacturing Insurance?

Manufacturing insurance protects manufacturing companies from many risks related to their business, including coverage for legal claims, business interruptions, workers’ compensation, and commercial vehicles.

Manufacturing business insurance is especially helpful because the work itself can be very dangerous. In many cases, manufacturing involves heavy machinery, which might increase the frequency of accidents and their severity. 

How Much Does Manufacturing Insurance Cost?

On average, manufacturers pay a median premium of less than $45 per month or $530 per year. Several factors impact the cost of manufacturers insurance, including:

  • The types of machines
  • Workplace environment
  • Vehicles
  • Claims history
  • Number of employees

What Does Manufacturing Insurance Cover?

Manufacturing business insurance is a commercial insurance package made of several coverage sections, including:

  • Commercial General Liability Insurance: Covers lawsuit and alleged claims costs that may arise from bodily harm or property damage.
  • Business Property Insurance: Protects the building, contents, machinery and it can be extended to include tools. This insurance will cover the costs of repair and replacement of your fixed assets. 
  • Business Income Insurance: Covers you in case of lost income that may result from a property damage claim. 
  • Professional Liability Insurance: Covers you in case the plans that you rely upon in the manufacturing process have an integral error and make your product unusable. In this case, professional liability covers the loss. 

Who Needs Manufacturing Insurance?

If your business produces a product, you might want to consider having business insurance for manufacturers. 

Here are some of the examples of manufacturers who need this insurance policy: 

  • Canning facilities
  • Clothing manufacturers
  • Computer manufacturers
  • Food mills
  • Furniture manufacturers
  • Meatpacking plants
  • Plastic manufacturers
  • Printers
  • Publishers
  • Textile Mills
  • Tobacco plants

We insure small and regional manufacturers, including:

  • Food Product Manufacturers
  • Metal Goods Manufacturers
  • Paper Manufacturers
  • Plastics Manufacturers
  • Textile Manufacturers
  • Wineries
  • Wood Manufacturers

Choose any of the coverages shown below to tailor your insurance program for your business:

General Manufacturing:

  • Property insurance, including coverage for:
    • Product stock at market value
    • Spoilage
    • Equipment Breakdown
    • Accidental Pollution
    • Business Income and Extra Expense as a result of a covered loss to a supplier
  • General Liability, including:
    • Limited coverage for product withdrawal from the market

Wineries & Vineyards:

  • Property insurance, including coverage for:
    • Maintenance and Farm Equipment
    • Product stock at market value
    • Wine contamination
    • Wine leakage
    • Equipment Breakdown
    • Accidental pollution & clean up
    • Business Income and Extra Expense as a result of a covered loss to a supplier
  • General Liability, including coverage for:
    • Travel abroad
    • Bodily Injury or Property Damage as a result of Pesticide, Herbicide or Fertilizer Application or Storage
    • Worldwide product liability
    • Limited coverage for product withdrawal from market
  • Workers’ Compensation
  • Business Auto, including
    • Coverage for valet or fee-based parking
  • Umbrella Insurance

What Insurance Do You Need to Start a Business?

Suppose you want to start a small manufacturing business in your area. For instance, the business may deal with food products, metal goods, paper, plastic, textile, or wood-based products. In this case, you need to protect the business from fire, theft, crime, etc. On the other hand, if you have a large business, you will need to look for specific needs.

For instance, if you are dealing with a general manufacturing business, the protection should cover aspects like spoilage, equipment breakdown, accidental pollution, and changes in the product value. Similarly, if your business is making wines, you will need protection against leakage and contamination of the wine. Farm-equipment maintenance would also come in the same category.

Finally, no matter what you make, manufacturing carries certain risk levels that can put your business in danger. That’s why having a good manufacturing insurance policy might be a smart idea to consider. 

Are you still confused about manufacturing insurance or you need some help with getting a quote for your business? Contact us today and get all the information you need fast and for free!

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