Insurance for Machinery Manufacturers
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What Insurance Do Machinery Manufacturers Need?
Professional Liability Insurance (or E&O Insurance), protects your small business from claims of mistakes, negligence or malpractice made when providing your services that caused sobody financial loss. PLI covers your legal defense costs, damages and settlements.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Business Interruption Insurance protects your small business if impacted by a covered risk. It'll cover the costs in replacing lost income and paying for additional expenditures. Also known as Business Interruption Coverage, this policy is usually part of your BOP (Business Owners Policy).
Equipment Breakdown Insurance protects your equipment from breakdowns caused by motor burnout, power surges, boiler malfunction, and operating error. It covers you for the costs to replace or repair your damaged equipment, and other related expenses.
Frequently Asked Questions
Why do Machinery Manufacturers need insurance?
Establishments in this industry specialize in the manufacturing of machinery and equipment. This includes the manufacturing of turbines, generators, telephony equipment such as fax machines, local area network (LAN) communications equipment, and toll switching equipment, small arms and ammunition, farm equipment, food production equipment and many other types of large and small-scale machinery. Establishments involved in this industry include those that specialize in mining equipment, metalworking, and plastic working equipment as well as various other commercial and industrial tools.
Machinery manufacturers need insurance to protect the business from the unique risks it might face. These risks could end up placing a dent in your business and even personal assets, so insurance is needed. Insurance will pay for the covered risks so you don’t have to, and all it takes is a small monthly fee.
What risks do Machinery Manufacturers face?
The most costly risk machine manufacturers face is a product recall. When most of the products you manufacture are defective, you’ll have to pay for the expense of recalling these products. Below are some more:
- A piece of equipment that aids in machinery manufacturing has malfunctioned. This reduces your production level, reducing the number of machinery that can be produced on that day.
- The specifications of the machinery you provided to your clients have caused them financial harm because the measurement differed from what was expected. You’ll risk facing a trial if your client sues your business.
How much does Machinery Manufacturer insurance cost?
There is no fixed cost of insurance for machinery manufacturers. However, most insurance carriers will rely mostly on the size of your business and the coverage required to determine the cost of your insurance policy. To find out the cost of insurance for your business, apply online to get a free quote or contact our insurance experts.