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Resources for Manufacturers

4 Ways to Protect Your Manufacturing Business from Potential Hazards

Manufacturing is a tough trade. As an owner or sole proprietor of a manufacturing business, you know there are dozens of

6 Costly Myths that Hurt Manufacturers

As a manufacturer, you're not in the business of wasting precious time—you're in the business of keeping your livelihood...

4 Things to Know Before Insuring Your Manufacturing Business

If you're just getting your manufacturing business up and running, you know that there are a ton of different factors to

Liability Insurance for Manufacturers

  • Your success as a manufacturer depends on your ability to consistently produce a high volume of goods on tight margins, no matter what happens in the outside world. Unfortunately, much of what affects your work is beyond your control. So what would happen to your business if one of your associates, suppliers, or clients was temporarily out of commission? Do you have a backup system (or an adequate cash cushion) to maintain operations, pay your employees, and otherwise keep your business going in the event of an unexpected interruption?
  • If you have the¬ proper business insurance in place, the answer is yes. Depending on the specific needs of your business, you can purchase business insurance that covers losses from storms, fires, theft, disruptions in your partners’ businesses, and other potentially damaging business events.
  • At insureon, we have a team of agents familiar with the insurance needs of manufacturing businesses. When you talk to your agent, you’ll enjoy expert advice on how to protect your business from the unique risks you face and be able to compare insurance quotes from some of the country’s top-rated carriers.

Manufacturers Insurance / Shop Insurance

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Manufacturers: Coverage Types

Ask your insureon agent about which of the following types of insurance can help protect your business.

General Liability Insurance for Manufacturers

General Liability Insurance protects manufacturers from claims that their operations caused physical injury or property damage to a third party—that is, to someone not directly involved with the business’s operations.

When a third party brings a lawsuit against your manufacturing business claiming that it caused him or her financial loss or personal injury, your General Liability Insurance benefits kick in to cover the cost of defending yourself against the claims and any costs you are found liable to pay, up to the limits of your policy.

This protection is invaluable for many manufacturers, because even frivolous or unfounded lawsuits require you to mount a legal defense to protect yourself. Between the cost of attorney’s fees and court expenses, such a defense can be costly even if you are not ultimately responsible for paying out any damages.

Property Insurance Coverage for Manufacturers

Insuring the materials you need to produce your products is an excellent way to protect yourself from the financial losses that can result from theft or damage of those materials. Property Insurance offers financial coverage to your premises and other business assets.

Investing in adequate Property Insurance can make a significant difference to the overall financial health of your business. With appropriate Property coverage in place, you can avoid costly interruptions in service that would otherwise result from a supply chain interruption and / or a weather event that hurts your stock. When you file a claim on your Property policy, your insurer provides you with the funds necessary to replace or repair any of your covered equipment, up to the policy’s limits.

Workers’ Compensation Insurance for Manufacturers

Workers’ Compensation Insurance covers the costs that arise when one of your employees is made sick or injured during the course of performing his or her work. Today, most states require business owners to carry at least some form of Workers’ Compensation Insurance, though the specifics vary greatly from one jurisdiction to another and from one type of business to another.

It works like this: when an employee gets injured or sick at work and sues your business for the costs associated with medical treatments, your Workers’ Compensation coverage kicks in. In addition to paying any medical costs and other damages for which your business is found liable, your insurance pays for the cost of defending yourself in court.

In addition, your Workers’ Compensation Insurance might pay for any wages your employee is unable to earn during the time he or she is ill or injured. Depending on your state’s laws and the structure of your business, you may be able to exclude yourself from your Workers’ Compensation coverage to save money on your premiums. Before doing that, though, be sure to consult with your insureon agent to determine whether that’s a wise decision for your business.

Another question you may want to ask your manufacturer insurance agent is whether you are required to cover 1099 contractors in addition to full- and part-time W2 employees.

Tips for Manufacturers

Keep excellent records.

In the event that you have to submit a claim on your Property Insurance, you will be able to receive coverage more quickly when you’re able to provide excellent documentation of your property and what happened to it. This might involve taking pictures, updating inventory files regularly, or otherwise monitoring exactly what you have in stock and what condition your assets are in.

Maintain secondary business channels.

An interruption in the business of one of your main suppliers or customers can lead to a backup in your business’s cash flow. To minimize the impact any such interruptions have, maintain relationships with secondary partners even if you prefer your primaries. This will make securing raw materials and unloading your products easier in the event of a disaster.

Manufacturing Coverage Areas

insureon provides customized coverage for many types of manufacturing businesses, including…

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