Insurance for manufacturing businesses is a given in light of the many potential hazards in various industries. If you're searching for insurance for manufacturing, though, you'll want to obtain the most coverage possible for your dollar. To do that, you should know the types so you can be sure your operation will have enough coverage.
Property
Damage to the plant itself can be costly. You will want to have a policy that covers weather events like floods and storms. It is also a good idea to carry coverage for accidents and even deliberate actions.
Product Liability
People often sue manufacturers for product defects. You should request general liability coverage to ensure you'll be protected if there's a problem with any of your products. Even if your company supplies components to another business, consumers may try to hold you liable if something happens. For example, a law firm might pursue a class action against the manufacturer of an automotive seat belt buckle rather than going after the company that made the car.
Workers' Compensation
Especially in the manufacturing business, workers can get hurt on the job. Always carry sufficient workers' compensation coverage to pay for medical bills and other expenses following such injuries. If you employ contractors or other types of third parties, as a lawyer for guidance regarding whether they should be classified as employees. Otherwise, you might be stuck with the bill if a court or your insurer says the person was an employee.
Premises Liability
You should also insure against possible injuries to third parties who might visit your location. For example, a shipping company might send someone to collect a package. If that person suffers an injury on your premises, they might demand compensation and hold you liable. Premises liability coverage should extend to members of the public who might walk onto your property, too.
Commercial Vehicle Insurance
If your company operates any vehicles, it's wise to carry coverage. Even if these are cars for salespeople, they create liability exposure whenever you put them on the road. Likewise, you may need a policy that extends the coverage to work-time activities that your employees engage in while using their vehicles.
Errors and Omissions
Especially if your manufacturing operation provides services to others under contracts, you should have coverage for errors and omissions. For example, a company might provide specifications for the fabrication of a part. If your team omits something contractually included in the specifications, it could lead to liability.
Learn more about insurance for manufacturing companies.
Share5 August 2022
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