Manufacturing Insurance
Insurance for Metal Fabrication Shops, Welding Shops, Pressure Vessel Manufacturers, Electroplating, Industrial Coating Technology, Modular Skid Packages, Pipeline Structures, Casting, Machining, Bending & Welding.
Manufacturing Insurance requirements are extremely varied, due to the diverse nature of products and processes. While there are some commonalities across the board, the intended end use, industry, and type of manufacturing, will determine the different lines of coverage put in place.
Manufacturing industries include companies using forming, bending, forging, flame & plasma cutting, metal turning, casting & welding. It includes welding piping structures, pressure vessels, oil tanks, assembling Oil & Gas Modular Skid packages, Modular Compressor Skid packages, Process Skid packages, Storage tanks. It also includes companies involved in electroplating, coating contractors, metal forming, welding shops, and a variety of other manufacturing processes, including working with wood, plastics, and other materials.
Manufacturing companies quickly outgrow the small business BOP insurance placed at inception. As their products and processes expand, so do their risk profile and exposures. This could result in gaps in coverage. Insurance requirements for contract compliance also dictate how policies will respond in the event of a claim.
Key points of coverage from a Products Coverage perspective include Product and Completed Operations Liability, Manufacturers Professional Liability (even if product designs are done by a third party), Personal and Advertising Liability, Pollution Liability, Product Recall Insurance.
From a business owner’s Property and Employee well being perspective, coverage includes Property – all perils, including fire, flood, windstorm. Equipment Breakdown, Inland Marine, Installation Floater, Business Interruption and Loss of Income coverage, Workman’s Compensation Insurance, Automobile Insurance, including Hired & Non Owned, Cyber Hack and Breach, Defense and Disaster Recovery Insurance.
As expected, providing adequate coverage is a comprehensive task, and requires a well established strategy to put in place. Insurance policies, even broad form, still only provide coverage for specific risks. A well rounded insurance risk program will take into account each client’s specific risk profile. This will including reviewing prior claims, and cause of claims, safety inspections, training and risk mitigation methods, risk transfer methodology, including contracts with clients, and sub-contractors.
Carriers do offer programs for specific industries. However, there is no “one size fits all insurance policy”. A reputable insurance agency will take the time to know your business, and review policy forms, to ensure there aren’t gaps in coverage. The insuring agreement and endorsements need to be tailored to the client’s business. Our team of experts understand manufacturing, and work closely with underwriters to go beyond the obvious for risk assessment. Our in-house attorneys review existing contracts and make recommendations to adequately protect our client by contractual risk transfer methods. Our loss control team works for the client, and visits job sites and makes recommendations for change.
But, beyond the obvious, there are ancillary lines of coverage, which are just as important to protect the business. For example, cyber attacks are increasing in frequency. A cyber breach can have a catastrophic impact on a business. A well placed cyber policy, which includes data recovery, ransomware, emergency protocols to get your business up and running, is a must for every business.
Similarly, an equipment breakdown policy protects against unexpected repair or replacement costs. The cost of product failure is important to consider while debating the value of a product recall policy. Similarly, the environmental and pollution impact of a product malfunction will determine the insurance limits to carry.
The following commercial insurance policies may apply to varying elements of the manufacturing industry:
- Property Insurance
- General Liability
- Products & Completed Operations Liability
- Professional Liability
- Personal and Advertising Liability
- Business Interruption Insurance
- Automobile Liability
- Hired and Non Owned Automobile Liability
- Worker’s Compensation
- Inland Marine & Cargo Insurance
- Umbrella Insurance
- Manufacturers Errors & Omissions
- Environmental & Pollution Insurance
- Directors and Officers Insurance
- Employment Practices Liability Insurance
- Crime Insurance
- Boiler & Machinery Insurance
- Product Recall Expense
- Computer Equipment including media
Our team of experts know insurance, and the specifics of manufacturing insurance, and we look forward to serving our clients.
