If you run a manufacturing business, how do you know if you have all the insurance you need to fully protect your business? The broad term "manufacturing" encompasses many types of companies. Since this is not an industry that suits everyone, there are ways to customize business insurance for manufacturers and build an insurance with the right coverage.
A standard policy should include coverage for your corporate property (which includes your building, equipment and warehousing) and liability insurance for bodily injury and property damage. General liability insurance can help cover claims up to the coverage limits in your insurance. However, it is worth noting that general liability insurance does not cover all types of claims.
Depending on the structure of your manufacturing business, reviewing these types of additional insurance coverage may help your business prepare for the unexpected:
- Equipment Distribution Coverage. Your general policy will cover equipment damage or loss caused by external forces (fire, storm, etc.). But what if a sudden power transmission or interruption puts the entire plant out of operation? Or does a key machine go down in the middle of an important production? In these scenarios, equipment coverage can pay for both lost business revenue and repair or replacement of damaged machinery.
- Coverage for professional responsibility. Also called fault and omission coverage, professional liability is additional insurance that is designed to protect your business from the costs of improper workmanship, materials, design or product. For example, if a delivery of parts to a customer is faulty in any way, professional liability protection would cover the cost of manufacturing a new kit for that customer.
- Coverage for cyber and data. These days, computers and tablets are everywhere – not just on office desks. Computerized manufacturing equipment can also be hacked, just like your computer. While a standard business insurance policy covers computer hardware, it usually does not cover software or costs that result from a cyberattack. For that, you need cyber and data coverage. This protection can help your business respond to hacking, ransomware attacks, hacking and more.
These are not the only additions to consider. For example, if your company uses a work car or van, you may want to add a commercial car policy. And workers' compensation insurance can help employees who become injured or ill at work to cover health care costs and return to work.
Corporate insurance for manufacturers should be taken out to suit your unique business needs. If you are unsure about which coverage is right for your business, an independent agent can help.
Bonus Read: If you run your manufacturing business from home, check out, Insure Yourself Employee business owners should consider.