The right insurance coverage for manufacturers varies depending on the size of the company and the types of products they produce. If you have a manufacturing company, you’ll want to customize your standard business insurance policy with additional coverages to suit your company’s unique needs.
A standard policy should include coverage for your business property (which includes your building, equipment, and inventory) and general liability protection for claims due to bodily injury and property damage. Frankenmuth Insurance offers policies designed specifically for manufacturers that you can customize for your business.
Here are four additional insurance coverages for manufacturers you might want to add on to your policy to give your company the best protection, depending on your needs.
- Workers’ Compensation: If a manufacturing business has one or more full-time employees, most states require it to carry workers’ compensation insurance (consult the laws for your state to be sure). Workers’ compensation coverage protects your employees by covering their medical expenses and lost wages if they are injured. And because these costs are covered, your company can afford to hire a replacement worker while the injured team member recovers. Most policies also include employee liability coverage, which helps cover legal expenses like attorney fees and court costs in the event of a lawsuit.
Learn more about the benefits of workers’ compensation coverage.
- Commercial Auto: If your manufacturing business uses work trucks, delivery vans, or other company vehicles, you can protect that investment with commercial auto insurance. When vehicles are critical to the operation of a business, collision damage can lead to both repair costs and lost income. Having a reliable auto insurance carrier with responsive claims service can help you get your company back on the road ASAP.
- Professional Liability Coverage:Also called errors and omissions coverage, professional liability is additional insurance designed to protect your business from the costs of faulty workmanship, materials, design, or product. For instance, if a shipment of parts to a customer is defective, professional liability coverage would pay for the costs of manufacturing a new batch for that customer.
- Commercial Umbrella: A commercial umbrella policy extends the general liability coverage provided in your standard policy to a higher amount, giving you an extra layer of protection. For example, suppose a product manufactured by your business caused injury to a customer who was then hospitalized, and your company was found negligent. Your general liability would cover the settlement up to its limit, and then your commercial umbrella coverage would take over (up to its limit).
These aren’t the only add-ons to consider. There’s also equipment breakdown coverage, which helps pay for repairs and loss of income when equipment fails, and employment practices liability insurance (EPLI), which covers settlements and legal expenses for claims made by employees (such as discrimination or wrongful termination).
Not sure which additional coverages your manufacturing business needs? Talk to a local, independent agent for guidance. After assembling the right mix of coverages, you can rest easy knowing that your company is protected.
This content was developed for general informational purposes only. While we strive to keep the information relevant and up to date, we make no guarantees or warranties regarding the completeness, accuracy, or reliability of the information, products, services, or graphics contained within the blog. The blog content is not intended to serve as professional or expert advice for your insurance needs. Contact your local, independent insurance agent for coverage advice and policy services.
