Manufacturing

What Insurance Do Manufacturers Need?

The kind of insurance you need will vary depending on the type of manufacturing you do as well as the structure of your business. The following are some of the most common forms of insurance for the industry:

General Liability

General Liability offers basic protection for a variety of areas in the business including:

• Property Damage: This protects the business in the case that your property or the customer's property is damaged by anyone working for your company.

• Bodily Injury: This covers the business in the case that injury or death of a third party is caused by any employee under work-related circumstances. This insurance will cover all of the medical care as well as legal fees.

When Should You Get General Liability Insurance?

As soon as possible. General Liability offers protection for the business which would otherwise go uncovered.

For Example...

If you have employees working in your space, and someone who does not work for you is injured by a machine, General Liability Insurance would provide coverage for any medical bills and legal fees in case of any legal recourse.

Workers Compensation

Workers Compensation is required for your business to have in most states. It provides protection for both the company as well as for your employees. The protection it provides for employees includes coverage of lost wages as well as coverage for any medical treatment for any injury that is sustained while working on the job. As an employer, it prevents you from being exposed to potential lawsuits.

When Should You Get a Workers Compensation Plan?

• If your state requires you to have a Workers Compensation policy, you will need to have one as soon as you open the business, even if you are not employing anyone but yourself.
• If your state does not require you to have a Workers Compensation policy for the business, it is a great idea to get one as soon as you hire your first employee. A lawsuit from a work-related injury could result in the business shutting down.

For Example...

If an employee is working in your warehouse and they are injured by a piece of machinery, your Workers Compensation policy would pay for all medical bills as well as any lost time for the employee. It would also prevent the employee from suing you later.

Inland Marine

Inland Marine Insurance provides coverage for goods shipped locally or cross the country. This insurance also provides coverage for the property of others that your business may be housing on your property or transporting. Inland Marine Insurance is primarily concerned with one area:

• Damaged Goods: If one of your vehicles carrying manufactured goods is in an accident, the vehicle may be covered by Commercial Vehicle Insurance. However, Inland Marine Insurance will cover the value of the goods that were in transit.

When Should You Get Inland Marine Insurance?

Although Inland Marine Insurance is fairly limited, it is extremely valuable for businesses that rely heavily on the value of their produced goods. Even one accident that results in lost or damaged goods could be costly to a business.

For Example…

If a truck carrying your manufactured products tips over and spills the product on a busy highway, chances are the entire load could be lost. In many cases, this could be tens of thousands of dollars worth, if not more. Inland Marine Insurance covers this type of situation.

Commercial Property

Commercial Property Insurance insures all valuable property owned by a business. This can include furniture, equipment or buildings. It is intended to provide compensation should a valuable and necessary piece of property get damaged or stolen. Key coverage for Commercial Property Insurance includes:

• Stolen Property: This insurance helps recover the cost insured of stolen property. It will not pay for the recovery of the specific items, but will cover the cost of replacing those items.
• Damaged Property: In the case of a fire or an accident, this type of insurance will help cover the cost of repairs.
• Data Loss: Should computer housing important data get damaged, stolen or destroyed, this type of insurance will provide coverage.
• Lost Income: Commercial Property Insurance can help cover income loss due to the loss of property.

When Should You Get Commercial Property Insurance?

Any business that owns property necessary to make the business more efficient should purchase Commercial Property Insurance.

For Example…

If a sign used to direct customers toward your business is vandalized, this insurance will cover the cost of replacement or repair, as long as the sign is covered under the policy. If the sign’s vandalism results in a loss of business, you may receive coverage for the income loss.

Other Insurance Types to Consider...

Commercial Auto Insurance: There are varying types of vehicle insurance. If you use vehicles in your business, then you should consider protecting them as part of your business insurance policy.