Operating a manufacturing facility is a highly risky business. You need special insurance to safeguard yourself from potential liabilities and damage. Furthermore, you also have employees that rely on you and that need to be adequately protected. Every good manufacturer’s insurance should cover the following basics.
1. General Liability and Property
These two policies are the foundation of every manufacturer’s insurance. Standard liability insurance protects you from lawsuits against you that are based on people sustaining bodily injury or damage to their property. Additionally, property insurance pays for damage to your buildings and personal property. You can also add equipment breakdown to these policies.
2. Workers’ Compensation
Even with proper training and safe equipment chances are high that your workers can still injure themselves, get sick, or even die at your manufacturing facility. This insurance pays for medical bills and wage replacement for these employees. It’s important to note that workers’ compensation is mandatory in most states.
3. Product Liability
Product recalls and product-related illness, injury and death, are quite common. As a manufacturer, you can be held liable for defective or dangerous products that cause harm to people. These lawsuits could cost you a lot of money, ruin your business and even force you into bankruptcy.
If you are a manufacturer, these main components of manufacturers insurance are a must. An experienced insurance specialist can help you find the coverage you need.