Essential Insurance Coverages for Manufacturing Facilities
Running a manufacturing facility comes with unique risks and challenges. From equipment breakdowns to employee injuries, the right insurance coverage is crucial to protect your business, your employees, and your bottom line. If you’re a facility owner or manager, understanding the types of insurance you need is the first step toward peace of mind.
Key Insurance Policies for Manufacturers
1. Property Insurance
This covers your building, equipment, inventory, and other physical assets against losses from fire, theft, vandalism, and certain natural disasters. For manufacturers, property insurance is a must-have, as even a small incident can halt production and lead to significant losses.
2. General Liability Insurance
This protects your business from third-party claims of bodily injury, property damage, or personal injury. If a visitor is injured on your premises or your product causes harm, general liability insurance helps cover legal fees and settlements.
3. Workers’ Compensation Insurance
Manufacturing environments can be hazardous. Workers’ compensation insurance is not only required by law in most states, but it also ensures that your employees are protected if they’re injured on the job, covering medical expenses and lost wages.
4. Product Liability Insurance
If your products are found to be defective or cause harm, product liability insurance can protect your business from costly lawsuits and claims. This is especially important for manufacturers whose products reach a wide market.
5. Equipment Breakdown Insurance
Also known as boiler and machinery insurance, this policy covers the repair or replacement of essential equipment that breaks down due to mechanical or electrical failure. It can also help cover lost income during downtime.
6. Business Interruption Insurance
If a covered event forces you to temporarily shut down operations, business interruption insurance can help replace lost income and cover ongoing expenses, helping your business stay afloat during tough times.
7. Commercial Auto Insurance
If your facility owns or operates vehicles for deliveries, transporting goods, or employee travel, commercial auto insurance is essential to protect against accidents, theft, and liability.
Is Your Facility Properly Protected?
Every manufacturing operation is unique, and your insurance needs may vary based on your products, processes, and workforce. That’s why it’s important to regularly review your coverage to ensure you’re not exposed to unnecessary risks.
Ready for an Insurance Audit?
At TWIG Insurance Group, we specialize in helping manufacturers like you identify coverage gaps and optimize your insurance program. Contact us today for a complimentary insurance audit of your current policy. Let’s work together to protect what you’ve built and keep your business running smoothly—no matter what comes your way.
