The manufacturing industry is one of the major sources of income in the United States. The main products manufactured are steel, chemicals, pharmaceuticals, automobiles, and so on.
There are many things that can be insured but manufacturing insurance stands to protect companies from any losses due to accidents or natural disasters. It can also help reduce downtime if anything goes wrong while production is underway. Here are some top facts about manufacturing insurance:
1) What Is Manufacturing Insurance?
The manufacturing process includes all activities that take place between initial client contact and shipment of the finished product to customers. This process involves multiple parties including suppliers, manufacturers, and carriers who need not just a liability policy but customized package insurance for manufacturing companies and their specific situations and operations. Any party involved with this process should consider obtaining liability, property, crime, and workers’ compensation coverage for their protection.
Manufacturing insurance is a package designed specifically to protect the manufacturers from any loss of revenue or physical damage that may incur due to business activities like: – Design and research departments
The manufacturing industry employs around 12 million people in the country. And can help bring new jobs into local economies, stimulate regional development and improve international competitiveness. On average, manufactured goods used to be more expensive than agricultural products but now they are cheaper by 40%. They also last longer (3-4 years) than agricultural products (1 year). This has resulted in savings for consumers while promoting industrial growth at the same time.
2) Who Is Eligible To Apply For Manufacturing Insurance?
Any company that is involved in the manufacturing process whether directly or indirectly can apply for this type of insurance. Industries such as food, chemical, and steel are especially advised to get their own set of policies customized for their business activities.
3) How Much Does Manufacturing Insurance Cost?
Manufacturing insurance is beneficial but it should be affordable at the same time. If you compare the cost with other specific types like E&O (Errors and Omissions Insurance), an average manufacturer will spend around $1,500-$2,000 per year while a small company may end up paying around $15,000-$20,000 annually. This might not be compared to other forms of insurance like industrial and construction liability but it is important to note that this package covers physical damage, crime, and even workers’ compensation.
A good way to reduce the cost of manufacturing insurance is by taking a business insurance policy that includes multiple coverages in one plan. You can add items such as public indemnity (compensation for third party claims), intellectual property protection, cyber liability, and more.
4) Manufacturing Insurance Coverage Types: Product Liability, Factory Burner Gas Explosion & Fire Loss
Manufacturing insurance coverage can be broken into two types; firstly property or content coverage which pays for the actual replacement costs of either completed products, raw materials, or component supplies used in production. The second type is called business interruption insurance which pays for losses suffered by a manufacturing business that is forced to close its doors due to fire or some other type of disaster.
If we start with the most common types of claims made, factory burner gas explosion and fire loss will be most prevalent. This includes fires, electric shocks, and explosions. The next would be product liability cases in which the policy covers compensation claims brought upon by defective products including bodily injury or property damage (some manufacturers might even need an umbrella policy).
5) Manufacturing Insurance Claims: 4 Key Considerations To Make When Filing A Claim
Whenever you file a claim with your insurance company after an accident that results in any kind of physical damage, consider these four things:
- First, your claim will be denied if you don’t follow the steps stated in the policy. Most companies will need you to send a notice of loss and give an explanation as to how and when it happened.
- Second, make sure that all the names and personal information of those affected are correct – both on paper and electronically – to ensure quick reactions from insurance adjusters
- Third, follow up with your insurance company as soon as possible because some cases require immediate resolution such as product liability cases where injured parties may seek legal action otherwise.
- And fourth, review your insurance contract carefully before making any claims so that you know exactly what is covered. When it comes time to file a formal claim against manufacturing insurance, be sure to have your paperwork in order so that you can quickly provide the details.
If all else fails, talk to a claims adjuster with your insurance company about your options and they may help you out as best as they can.
Manufacturing companies are vital to the economy, but they face many unique risks compared with other sectors. These risks often require specialized policies, but the financial impact can be enormous if an accident occurs. It is important to ensure that you understand the types of manufacturing insurance policies available and what requirements they place on your business before getting one. The stability and future of your manufacturing business will depend on the quality of the insurance.