Manufacturing

The world is becoming increasingly interconnected. Trade relationships that were once unthinkable are now part of everyday life. At first glance, this is good news for manufacturing companies. However, it can mean they are exposed to new risks, and having the right manufacturing insurance is more important than ever. By considering these exposures in advance, you can help protect your livelihood.

Cyber liability is certainly one of the significant concerns of our modern age. While general liability, product liability, and product recalls were always part of day-to-day manufacturing business, cyber threats go beyond protecting these core coverages. Hackers and data breaches can permanently damage your reputation and put operations at risk. Cyber liability insurance helps to protect you from the consequences of those incidents.

Manufacturers will still encounter an array of claims and risks that could affect their business. In most cases, combining coverages like commercial property insurance, workers’ compensation, general liability, and commercial auto insurance is best to complete a manufacturing insurance package. Depending on your location and climate, it’s also worth looking at flood insurance.

Your risk exposure depends on your risk management and the value of your special equipment. Our manufacturing specialists can discuss the most common risks within your industry and those specific to your operations.

As a rule of thumb, business owners’ policies (BOPs) aim to provide basic coverage for small to mid-sized businesses in low-risk industries. Manufacturing operations typically involve higher risks than retail or office-type operations. BOPs probably won’t provide coverage for most manufacturing businesses.

While most BOPs will include property insurance coverage, they often exclude risks and liabilities that every manufacturing organization needs to consider for their manufacturing insurance. For instance, flood insurance, cyber loss, or pollution are often not covered to the extent needed, or not covered at all.

Therefore, having a partner that provides manufacturing insurance coverage including commercial property, product liability, business interruption, and workers’ compensation is essential. Our risk management consultants can assess your specific needs for coverage and help tailor an insurance program to meet your needs.