The Importance of Manufacturing Insurance Programs
Business insurance requirements for manufacturing businesses can vary by industry. You’ll need the right insurance coverage whether your business specializes in:
- Working with metals and plastics
Every manufacturing business faces unique risks. For example, if you work with band saws or drill presses, your employees face a high level of risk, because these tools can be dangerous and need years of experience to operate.
On top of the unique risks, your business also has some of the more common risks that all businesses face. These can include property damage from unexpected events, or the loss of important records or files.
Manufacturing Insurance Programs
Most fabricating and manufacturing businesses have a Business Owner’s Policy (BOP). It helps improve the quality of your insurance coverage by protecting your manufacturing business like a homeowners policy protects your home.
By combining three coverages in one, a BOP helps save you money on insurance rates, while safeguarding the manufacturing business you’ve worked so hard to build. Comprehensive manufacturer’s insurance is typically made up of:
General Liability insurance, which helps cover lawsuits resulting from an injury or property damage caused by your business. For example, say a customer gets injured by a machine in your shop. General liability can help cover the associated medical costs. This coverage even helps cover claims alleging slander and libel. However, it does not help cover claims tied to the professional services you provide. For those, you’d need professional liability coverage.
Commercial Property insurance to help protect your place of business and the tools you use, such as plastics, injectors and molds. Commercial property insurance can help protect these tools whether you own them or lease them.
Business Income insurance, which helps cover your lost income if you can’t run your manufacturing business due to covered property damage or loss, like a fire or storm.
Popular Business Insurance Solutions to Meet Your Needs
- Social Security numbers
- Credit or debit card numbers
- Notifying affected individuals
- Managing public relations
- Running good faith advertising
Product Recall and Replacement Coverage
Business Income From Dependent Properties
Employment Practices Liability Insurance
- Wrongful termination
- Workplace harassment
- False prosecution
Tenant Legal Liability
Additional Manufacturers Insurance Solutions
Other Important Insurance for Manufacturing Companies
Workers’ Compensation Insurance
- The costs of medical care
- Wages from lost work time
Commercial Auto Insurance
- Meet customers?
- Attend business conferences?
- Pick up tools and supplies?
Home-Based Business Solutions
If you run your business out of your home, a BOP provides coverage that is not generally available with a homeowners policy. If you have customers who come to your home to pick up finished projects, or if you have employees who work at your home, you should speak with an agent or representative from The Hartford. They can help you select the right coverage to protect your manufacturing business.