Why Other Manufacturers Need Insurance
Establishments in this industry manufacture a very large variety of consumer, commercial and industrial goods and products. Businesses in this industry include those that create household items such as brooms or glassware, industrial items such as ampere meters and circuit testers or commercial business items such as pens, easels, and drafting materials. Products can include those that are metal, plastic or chemical-based.
Manufacturers provide more than a million jobs and produce a vast number of products that consumers rely on you to produce. Products range from houseware items to apparel to equipment or tools and even office supplies. As a manufacturer, you often face tight deadlines and high standards for the products you make. It’s easy to push insurance to the bottom of your list, but it is too critical to protecting your business, reputations, assets, and employees to ignore.
Risks That Other Manufacturers Could Face
The types of risks you face daily are critical. One wrong move and your business can crumble. Here are some of your unique risks:
- Product Defects: Even with quality assurance checkpoints in place, some products don’t show their defects until they are in the consumers’ hands. If those defects cause injury or illness, you can be held responsible for damages and end up in the midst of a class action lawsuit.
- Employee Injury: You rely on your employees to produce your products. If somebody falls and breaks a leg on the plant floor, you are responsible for their time off work and medical payments.
- Business Interruption: Manufacturers rely on a number of elements to product quality products. When something goes wrong like a fire, theft, or a delayed delivery, your manufacturing processes can be interrupted. If you’re not producing products, you are not getting paid which makes it difficult to stay afloat.
- Broken Equipment: You rely heavily on equipment to efficiently manufacturer products. With today’s technology like robots and dependence on computers, repairing broken equipment is expensive.
- Broken Promises: It is common to enter into contracts with vendors and new customers. If you can’t keep up with demand or maintain expectations, they can hold you liable for lost revenue and sales.
What Types of Insurance do Other Manufacturers Need?
You can see that manufacturers face a number of risks every day. To properly protect your business you need general liability insurance. Some manufacturers may benefit from a business owner’s policy that covers both liability and property risks. It is also wise to buy product liability insurance too.
- General Liability: Pays costs that stem from third-party claims including injury, property damage, or slander and libel.
- Worker’s Comp: Nearly 4% of employees reported work-related injuries or illness in 2015. When these scenarios occur, you are responsible for covering all ongoing medical expenses and paying the employee’s lost wages while off of work. Work comp pays these costs for you.
- Commercial Property: Covers your business property and building when they are damaged or destroyed by a covered scenario like fires, explosions, or theft.
- Product Liability: Pays damages and defense costs that occur due to product defects.
- Equipment Breakdown: Covers costs associated with broker equipment including repair and rental of temporary equipment.
Cost of Other Manufacturers Insurance
Insurance costs for manufacturers vary among carriers. They each have a unique set of guidelines they use to calculate premiums. Most will want to know your experience, claims history, manufacturing process, and safety procedures to determine a cost. Request a quote today by completing the manufacturer insurance form below.