Manufacturers play a vital role in keeping industries and communities moving — creating, assembling, and distributing products of all kinds. With every operation comes specific risks, from supply chain disruptions and equipment breakdowns to product liability and transportation exposures. Manufacturer insurance can help address these risks by providing coverage specific to the needs of your business.
Why Manufacturers Need Specialized Coverage
General business insurance may not fully address the exposures that come with producing and distributing goods. Manufacturer insurance brings together a range of coverage options designed for the complexities of production, inventory, and shipment.
Common Coverage Options for Manufacturers
While every operation is different, there are several coverage types that many manufacturers consider, depending on their needs and industry:
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Product Recall: May help with costs related to recalling and disposing of defective products.
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Business Auto: For vehicles used in operations, deliveries, or logistics.
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Workers’ Compensation: For employee injuries or illnesses arising from the job.
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Commercial Property: May include coverage for buildings, equipment, and inventory.
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Manufacturers’ Selling Price: May provide reimbursement based on the selling price of goods lost to a covered event, rather than just raw material value.
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Errors and Omissions (E&O): May address financial loss claims from customers related to design or manufacturing errors.
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Motor Truck Cargo / Ocean Cargo: For goods transported over land or sea.
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Business Interruption: May help with income loss during a covered production shutdown.
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Employers Liability: For certain claims related to employee injuries not covered by workers’ compensation.
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General Liability: For third-party injury or property damage claims.
Key Considerations
Manufacturers’ Selling Price Clause:
This clause may allow reimbursement for finished goods at their anticipated selling price instead of just the cost of materials — a valuable distinction for businesses holding large inventories.
Errors and Omissions Coverage:
E&O coverage can address claims of financial loss due to a manufacturing defect or design issue, beyond the standard property damage or bodily injury claims typically covered by general liability insurance.
Product Recall Coverage:
This coverage may help with recall-related expenses, including retrieval, disposal, and in some cases, public relations efforts or legal fees associated with managing the recall.
Explore Coverage Options with Atlas Insurance
From small-scale operations to complex production facilities, manufacturing businesses face a wide range of exposures. The Atlas Insurance team can help you review available coverage options and determine which may best align with your company’s operations and risk management goals.
Interested in learning more about manufacturing insurance?
Contact Atlas Insurance to discuss available coverage options and how they may apply to your business.
