Insurance Policies for Manufacturing Companies: Protecting Your Business from Risks

As a manufacturing company, you're likely no stranger to risk. Equipment breakdowns, product liability, and worker injuries can all take a toll on your bottom line.

In fact, according to the article, manufacturing companies face a 25% higher risk of property damage compared to other industries. This is likely due to the use of heavy machinery and hazardous materials.

To mitigate these risks, having the right insurance policies in place is crucial.

Manufacturing companies can benefit from a variety of insurance policies, including equipment breakdown insurance, product liability insurance, and workers' compensation insurance.

General liability insurance is a must-have for manufacturers, as it helps protect businesses from losses caused by their services, operations, or employees.

Our manufacturers coverage options also include workers' compensation, which provides a variety of policy options to help when an employee gets sick or injured on the job.

Business income insurance is another essential policy, covering payroll and operating expenses when a business is forced to temporarily close due to a property loss.

Equipment breakdown coverage protects against mechanical equipment breakdowns, including engines, fans, and conveyers, as well as electrical equipment like computers and generators.

Cyber liability insurance is crucial in today's digital age, covering losses if confidential data is compromised at a company.

Here are the types of insurance policies we offer:

Our manufacturing insurance policies offer a range of coverage options to protect your business from various risks. General liability insurance helps protect your business from losses caused by your services, operations, or employees.

We also offer workers' compensation coverage, which can help cover medical costs and lost wages for injured employees. This can help fortify your workforce's morale and your company's legal standing.

Some of our policies can also help cover business income lost due to suspension of operations, including property damage repair, system outages, and more. This can help you cover expenses like payroll and operating costs while your business is interrupted.

Here are some of the key policy coverage options we offer:

A manufacturing insurance policy covers a range of risks, from property damage to equipment breakdowns. This includes protection against natural disasters, fires, theft, and equipment malfunctions.

General liability insurance helps protect businesses from losses caused by their services, operations, or employees. This can include accidents, injuries, or property damage.

Workers' compensation insurance is designed to help businesses when an employee gets sick or injured on the job. This can include a variety of policy options, including large or small deductible plans and self-insured workers' compensation.

Business income insurance can help cover payroll and operating expenses if a business is forced to temporarily close due to a property loss. This can be a huge relief for businesses that rely on a steady income stream.

Equipment breakdown coverage can help protect against breakdowns for mechanical equipment, electrical equipment, and traditional boilers and machinery. This can help restore operational capacity without leaving businesses with unbearable out-of-pocket expenses.

Cyber liability insurance can help cover businesses if confidential data is compromised. This can be a major concern for businesses that handle sensitive information.

Here are some key coverage options to consider:

Protecting your business is crucial, and that includes your company vehicles. Property in transit is a type of coverage that shields your manufactured goods and other contents being transported.

Accidents can happen even with the best safety measures in place. Workers' compensation covers medical costs and lost wages for injured employees.

Your company vehicles are not just a means of transportation, but also a valuable asset that requires protection. Property in transit coverage can help safeguard your goods and contents during transportation.

In the event of an accident, workers' compensation ensures that your injured employees receive the medical attention they need and are financially supported while they recover.

Our manufacturers coverage options are designed to meet your unique needs, helping minimize risk to your operations, employees, products, and equipment when the unexpected happens.

General liability insurance helps protect your business from losses caused by your services, operations, or employees.

We offer protection against breakdowns for mechanical equipment like engines, fans, and conveyers, as well as electrical equipment like computers, generators, and motors.

Cyber liability insurance will help cover you if confidential data is compromised at your company, which can be just as devastating as physical property loss.

Here are some specialized coverage options to consider:

Commercial Auto insurance is a must-have for businesses that use vehicles for their operations. This type of insurance protects the contents of the vehicles, such as equipment and inventory.

Protecting your business assets is crucial, and Commercial Auto insurance helps you do just that. It's essential to consider this coverage if you have vehicles that transport goods or equipment.

Commercial Auto insurance can also provide liability coverage in case of accidents or damages to other people or property. This can help prevent costly lawsuits and protect your business's reputation.

Manufacturers' E&O is a critical aspect of specialized coverage for manufacturers. Engineers in the manufacturing industry can obtain professional liability insurance, which protects against errors and omissions.

This type of insurance can cover claims of mistakes or oversights in their work, resulting in financial losses. It also covers instances of negligence, such as failing to meet industry standards in designs or consultations.

The insurance helps cover legal defense costs, including court fees and settlements. This is especially important in case an engineer is sued over their professional services.

For example, if an engineering error results in product failure, causing severe bodily injury or property damage, the insurance can cover compensation payments.

Risk management is a crucial aspect of running a manufacturing company, and having the right insurance policies in place can help mitigate potential risks. A detailed risk assessment should be conducted to identify areas of vulnerability.

Manufacturers should inventory their assets, including physical and digital assets, and evaluate their processes to understand both manual and automated aspects of production. Identifying regulatory exposures is also essential, particularly with regards to OSHA and other regulatory bodies.

To stay ahead, manufacturers can use quality assurance advisors and risk management specialists to consult with experts and review past incidents to identify frequent or severe issues. This proactive approach allows businesses to adjust their insurance coverage to match their evolving risk profile, ensuring they are always adequately protected.

Here are some key areas to consider for risk management and protection:

Cyber threats are a significant risk for manufacturers, with the potential to devastate finances and reputation. The manufacturing industry's digital transformation has brought about increased efficiencies and capabilities, but also new risks, especially cyber threats.

Cyber liability insurance is becoming essential to defend against data breaches and ransomware. This coverage supports everything from forensic investigation to customer notifications and recovery measures.

Losing sensitive data can be just as devastating as physical property loss. Our cyber liability insurance will help cover you if confidential data is compromised at your company.

Here are some key things to consider when it comes to cyber liability insurance:

Cyber attacks can have serious consequences, including financial loss, damage to reputation, and even business interruption. It's essential to have a plan in place to mitigate these risks.

Business interruption coverage can help cushion against lost business income during downtimes, ensuring payroll and bills are met without disruption. However, this may not be enough to protect against cyber attacks, which can have a significant impact on a company's finances and reputation.

Contingent business interruption coverage can provide expense reimbursement if one of your vendors experiences a covered cause of loss and cannot provide the needed products. This insurance can be customized for your operations and can reimburse lost sales or extra expenses incurred when normal operations are disrupted.

Loss control services and risk management are crucial for businesses to mitigate potential losses and ensure they're adequately protected. Nationwide offers loss control tools and resources, including a Loss Control Services team that reviews operations, procedures, and programs.

Conducting a risk assessment is a proactive approach to risk management. Manufacturers, in particular, should use a simple checklist to evaluate their risk landscape. This includes inventorying assets, evaluating processes, identifying regulatory exposures, consulting with experts, and reviewing past incidents.

A detailed risk assessment helps businesses adjust their insurance coverage to match their evolving risk profile. This ensures they're always adequately protected against potential losses. The checklist provided by Nationwide is a great starting point for manufacturers to evaluate their risk landscape.

Here's a simple checklist to guide you in evaluating your risk landscape:

Conducting a thorough risk assessment is crucial to protecting your business from potential threats. Manufacturers should start by inventorying all physical and digital assets.

To evaluate your processes, understand both manual and automated aspects of production. This will help you identify potential vulnerabilities and areas for improvement.

Identifying regulatory exposures is also essential, as manufacturers must stay updated on OSHA and other regulatory bodies. This will help you stay compliant and avoid costly fines.

Consulting with experts, such as quality assurance advisors and risk management specialists, can provide valuable insights and help you develop a comprehensive risk management plan.

Reviewing past incidents, including analyzing past claims, can help you identify frequent or severe issues and adjust your insurance coverage accordingly.

Here's a simple checklist to guide you in evaluating your risk landscape:

Choosing the right policy for your manufacturing company can be a daunting task, especially with the many options available. You need to consider the unique needs of your business, including the type of products you produce, the number of employees, and the equipment used.

To get started, it's essential to understand what your policy should cover. SECURA Insurance offers various options, including general liability, workers' compensation, business income insurance, equipment breakdown coverage, and cyber liability. Each of these coverages can help protect your business from different types of risks.

Here are some key factors to consider when choosing a policy:

Ultimately, the right policy for your manufacturing company will depend on your specific needs and risks. Be sure to discuss your options with an independent insurance agent to determine the best coverages for your business.

Manufacturing insurance policies are not a one-size-fits-all solution. Each business has unique needs and risks, and a tailored approach is necessary to ensure adequate coverage.

Manufacturers coverage options are designed to meet your unique needs, helping minimize risk to your operations, employees, products, and equipment when the unexpected happens.

No two manufacturing operations are the same, and neither are their risks. That's why every company should perform a thorough risk assessment to understand specific vulnerabilities, whether related to the type of materials used, the manufacturing processes or the end products.

Here are some examples of unique manufacturing operations that require specialized insurance:

These industries have distinct risks and challenges that require customized insurance solutions. For instance, a metalworking business may need equipment breakdown coverage for machinery like engines and conveyers, while a food processing company may require specialized insurance for food contamination and spoilage.

Any business that produces a consumable product needs insurance to protect their manufacturing business.

You should have a conversation with your independent insurance agent to learn what your business specifically needs, as one size does not fit all.

Depending on the product, staff, and other business details, your independent insurance agent will recommend the right manufacturing coverages for your business.

A Manufacturing insurance policy may include coverages for general liability claims, workers' compensation, property damage, product recalls, and business auto claims.

You should consider the size of your business, types of products you produce, amount of staff, and the type of work they do when determining the right manufacturing coverages for your business.