Your manufacturing or distribution business is the lifeblood of the community, an important employer, and a vital cog in the American economy. However, managing your business can be difficult, especially given all the responsibilities you undertake on a daily basis. At times, manufacturing & distribution insurance becomes an afterthought, but you, your employees, and your business deserve a certain level of protection.
Use these tips to learn what manufacturing & distribution coverage offers and how to get value for the money.
Who Can Use Manufacturer’s Insurance?
Every business needs proper insurance coverage. According to the National Association of Manufacturers, most outfits are rather small, meaning you likely can’t afford to operate without the appropriate policy.
If you work in any of the following areas, you need proper manufacturer’s or distribution insurance:
- Metals or plastics
What Types of Manufacturing Insurance Programs Are Available?
As you work with an agent on your manufacturer’s policy, there are several types of coverage you need. Remember, you are looking after your business, your employees, and your property at the same time. While most of these coverages can be looped into a singular policy, ask your agent how they would structure your coverage so that it is both affordable and effective.
General liability—or GL—insurance is a business liability policy that protects your business from claims brought after injuries or illnesses that occur on your property or as a result of your operations.
A GL policy generally pays for:
- Bodily injury
- Property damage
- Personal injury
- Advertising injury
- Medical costs
- Damage to the premises
Whether you rent or own your facility, you must take out a commercial business policy that will replace equipment, electronics, documents, and/or inventory.
Because you create items for sale or distribution, you need product liability insurance. If these products cause injury or death, this policy will pay for legal assistance, settlements, or judgments.
Loss of Business
If your business must shut down for any period of time, you are losing income. Loss of business coverage replaces the revenue you should have collected while your facility was shuttered.
If you use vehicles as part of your operation, they must be insured for business use. From small vehicles used by technicians to large trucks and heavy-duty vehicles, you should purchase a unique policy for each vehicle.
Workers’ compensation insurance is required by law when you meet certain requirements. Purchase quality workers’ comp insurance that protects your employees, offers the best care, safeguards your bottom line, and ensures that you are covered under Ohio law.
If you are a licensed professional (or employee licensed professionals,) you must carry professional liability insurance. Additionally, a customer may claim an error in your professional services that caused injury or death.
A policy such as this protects your license, your employees’ licenses, and pays for judgments levied against your business for professional misconduct.
Employment Practices Liability
Employment practices liability insurance protects your business from claims by your employees. If employees allege a hostile work environment, discrimination, wrongful termination, etc., the policy will pay for legal assistance, settlements, or judgments.
Commercial Inland Marine
Commercial inland marine insurance protects your products while they are transported to a new location. For example, your business manufactures custom steel trusses for a commercial facility in Utah. The parts will be transported by truck or train to that location, and you must insure those items until they are delivered to the customer.
Commercial Crime Coverage
Commercial crime coverage protects your business from employee malfeasance, including:
- Wire fraud
- Kidnap and ransom or extortion
- Money and securities fraud
Surety bonds are often required for specialized manufacturing work. Your clients want assurances that you will complete the work and in a timely manner. Additionally, local governments may require bonds for certain types of projects. Speak to your agent about a surety bond, how much coverage you need, and when the bond should mature.
Contact Us About Your Commercial Insurance Needs
You can read more about our manufacturing & distribution insurance plans here, looking into all the aspects of your operation that we can cover. Request a quote or speak with a knowledgeable and experienced insurance broker. We have a 24/7 call center to serve you.
CATEGORY: Commercial Insurance | January 6th, 2022 | BY: Neal Pettinelli