Manufacturer Business Insurance

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:

  • Forming
  • Forging
  • Casting
  • Injecting
  • Engraving
  • 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

Business insurance, also known as commercial insurance, helps protect business owners from unexpected losses.

Easily Add Optional Insurance Coverages to a Business Owner’s Policy

Data Breach

Manufacturing businesses, like yours, often store information about employees, contractors and customers. This likely includes:
  • Social Security numbers
  • Credit or debit card numbers
Protecting yourself against data breaches is important. If sensitive information is ever lost or stolen, data breach coverage helps your business pay for the costs of:
  • Notifying affected individuals
  • Managing public relations
  • Running good faith advertising

Product Recall and Replacement Coverage

Does your current manufacturer’s insurance policy cover product recalls? Let’s say you sell products in glass bottles. During shipment, these bottles get chipped, and you have to issue a recall. Product recall and replacement coverage can help cover the costs associated with recalls like this one.

Business Income From Dependent Properties

If a vendor’s property gets damaged, they may not be able to get you the supplies you need to run your business. Business income from dependent properties coverage can help pay for your lost income when a supplier suffers a loss that impacts you.

Employment Practices Liability Insurance

Manufacturing businesses may face claims and lawsuits over issues like:
  • Wrongful termination
  • Discrimination
  • Workplace harassment
  • Retaliation
For example, say your manufacturing business fires an employee after they’re charged with a felony. However, the charges get dismissed at trial. In this case, the employee could sue you for:
  • False prosecution
  • Defamation
  • Libel
  • Slander
Employment practices liability coverage can help pay legal costs associated with your defense.

Tenant Legal Liability

If you operate your business on rented property, you may need tenant legal liability coverage. This helps protect you if you’re sued for causing damage at a rented location. For example, if you shut off the heat before leaving for an extended time and a pipe bursts, tenant legal liability insurance can help cover the repairs.

Additional Manufacturers Insurance Solutions

If you have employees, if you use a car for work, or if you work from home, we offer other important coverages that may help protect your manufacturing business.

Other Important Insurance for Manufacturing Companies

Workers’ Compensation Insurance

Apart from manufacturer’s insurance, most states require workers’ compensation insurance. Workers’ comp helps provide benefits to employees for a work-related injury or illness. Some of these benefits include paying:
  • The costs of medical care
  • Wages from lost work time
If your employee’s family sues you for their injury or illness, this coverage can also help cover your related legal fees. Businesses have been turning to The Hartford for workers’ comp for more than two centuries. We also offer loss control services that can help your small business create a safer work environment and avoid injuries or illnesses before they happen.

Commercial Auto Insurance

Do you or your employees use personal vehicles to:
  • Meet customers?
  • Attend business conferences?
  • Pick up tools and supplies?
If you do, you may want to consider commercial auto insurance. A business auto policy can help provide coverage that’s not usually included in a personal auto policy. This can help cover you or an employee if there’s an accident involving an owned vehicle that’s used for work.

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.

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