What is Manufacturers Insurance?
If you’re a business owner, you probably have several types of insurance. From property insurance to workers’ compensation, there are several types of standard coverage most businesses have in common. Manufacturers are unique in that they deal with unusual risks on a daily basis so they require more specialized types of coverage. Let’s take a look at several of these unique considerations and how they might work for your manufacturing business:
Product Liability. Any product being sold to or used by the public is subject to liability lawsuits. From food to toys to basic goods, most products have the ability to injure or cause damage. Even if the injury or damage is caused by misuse, manufacturers can be targeted. Product Liability insurance is tailored to protect you from unforeseen costs that arise from such lawsuits, including legal fees and potential damages.
Equipment Breakdown Coverage. Referred to as “Boiler & Machinery Insurance” during the industrial revolution, equipment breakdown insurance is becoming a more common policy for all businesses that use basic technology like computers. This not only covers direct damage to your machinery but also collateral damage. For instance, if you manufacture food products and a power surge causes your refrigerators to fail, this would cover your refrigerator repairs as well as your lost inventory.
Patent Infringement Insurance. When a business is accused of infringing on a patent, they will inevitably face legal costs. Most businesses typically find themselves in this position unintentionally since patents cover so much territory. Despite your intentions, you can still be sued. This policy can cover you if you are infringing on someone else’s patent or if you are suing someone else for their patent infringement.
Pollution & Environmental Liability Insurance. Any business that manufactures is subject to potential unforeseen environmental restrictions and consequences. There are two main types of coverage.
- First-party Coverage – Provides funds in the event of an accident in your facility that requires cleanup. For instance, if hazardous chemicals need to be contained or removed, this would cover the fees associated with this process.
- Third-party Coverage – Let’s say your facility experiences an unforeseen leak that is adversely affecting the surrounding area and now you’re facing legal action from the community. Third-party coverage would pay for the cleanup and any resulting damages.
Looking to learn about the different coverage options available for your manufacturing business? ERM Insurance Brokers in Irvine, California has what you’re looking for!
Call (949) 222-0444 to learn more.