If you make and distribute products, standard business insurance might not be enough. A dedicated manufacturer insurance policy covers the specific risks you face, leaving you free to concentrate on your business.
Losses and lawsuits are quite common in the manufacturing business, and settlements can be substantial. If your business is found to be responsible for damage or injury, you could be facing a large liability loss that exceeds the basic limits of your standard policy.
You should consider purchasing a commercial umbrella insurance policy which provides higher limits, typically between $2,000,000 and $10,000,000, and often broadened coverages. Coverage is extended over various policies, including general liability insurance, business auto, and directors and officers liability insurance.
Note: Actual policies must be consulted for specific terms and conditions.
When a product you manufacture is found to be defective and causes bodily injury or property damage to others, you may be held financially liable. Product recalls can be involuntary (required by a regulatory agency or the government) or voluntary (the manufacturer notices a defect that is unlikely to force an involuntary recall), and can be costly.
Product recall insurance covers expenses associated with recalling a product from the market. Coverage can include customer notification costs, shipping costs, and disposal costs. Coverage generally applies to the manufacturing business itself, though additional coverage can be purchased to cover the costs of third parties.
Note: Actual policies must be consulted for specific terms and conditions.
As a manufacturer, you’re constantly shipping your cargo around the world either by land, air, or sea, which exposes your business to risk as a result of product loss, theft, or damage.
You can purchase ocean marine insurance for your products while your shipments of goods are in transit, whether it's by truck, rail, air, ship, or boat, and until they reach their final destination.
Note: Actual policies must be consulted for specific terms and conditions.
When a gas tank explosion causes an uncontrollable fire, your commercial property and everything within it can suffer a significant loss. This can have a detrimental effect on your manufacturing business.
Commercial property insurance can help protect the property your business owns or leases, including things like equipment, inventory, furniture, and fixtures. Whether you own your building or lease your workspace, commercial property insurance can be purchased separately or can be combined with other necessary coverage to protect your business’ physical assets.
Note: Actual policies must be consulted for specific terms and conditions.
As a manufacturing business, you have many exposures associated with your business vehicles–owned or leased. With a fleet of cars, trucks, vans, or other types of vehicles used in the course of business, a single accident can potentially put your business in financial jeopardy.
Business auto insurance provides coverage for vehicles owned or leased by your manufacturing business and provides coverage for bodily injury, property damage, and other exposures, and could include comprehensive and collision coverage as well.
Note: Actual policies must be consulted for specific terms and conditions.
What would you do if a fire impacted the operation of your production line and prevented you from serving clients for a day or more? Or what if a pipe leak caused a system outage or extended downtime, leaving your production line inoperable? These and other events can destroy your ability to serve clients and bring in revenue, which can have a major long-term impact on the viability of your business.
Business interruption insurance compensates you for lost income if your manufacturing facility cannot operate as normal due to damage that is covered under your commercial property insurance policy, such as fire or water damage. Business interruption insurance covers the revenue you would have earned, based on your financial records, had the incident not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.
Note: Actual policies must be consulted for specific terms and conditions.
The manufacturing business is unique and comes with many exposures, which can lead to a potential lawsuit. What if a fire breaks out and damages the building and halts production, causing you to default on your delivery contracts? Would your business survive?
Commercial general liability insurance is an absolute necessity for a manufacturing business. This type of protection provides broad coverage for premises, operations, completed operations and advertising, and personal injury. It will also pay to defend any covered lawsuit or action regardless of its merit. Coverage can be purchased as a separate policy and can be tailored to your specific needs.
Note: Actual policies must be consulted for specific terms and conditions.
If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper coverage in place.
Workers' compensation protects your employees should a job-related injury or sickness occur during the course of employment. This coverage is required by law and may vary by area, so be sure that you understand your obligations for all physical locations where your business operates in and all physical locations where you hire your employees.
Note: Actual policies must be consulted for specific terms and conditions.
Sarah had worked hard to build her manufacturing company from the ground up. She had invested years of hard work, dedication, and passion into developing and refining her product line. As a result, the business had increased, and she was proud of what she had accomplished.
However, with growth came new challenges and risks. Sarah quickly realized she needed to protect her business from potential liabilities, damages, and accidents. She knew that any unforeseen event could quickly derail her business and undo all her progress.
That’s when she learned about manufacturer insurance. This type of insurance is specifically designed to protect manufacturers from various risks and liabilities associated with their business operations. It covers everything from property damage, product liability, and worker injuries to equipment breakdowns and business interruptions.
Sarah knew that with the right manufacturer insurance, she could protect her business and continue to grow with peace of mind. So she contacted an insurance agent specializing in manufacturer insurance and worked with them to develop a customized insurance plan that suited her needs.
A few months later, Sarah’s company faced a crisis. A shipment of faulty products had caused injuries to some customers, and Sarah was facing a lawsuit. However, with her manufacturer’s insurance, she could file a claim and receive the necessary funds to cover the legal expenses and compensation for the injured customers.
Thanks to her foresight in getting manufacturer insurance, Sarah navigated this crisis without going bankrupt or closing her business. Instead, she continued to grow her company, knowing that she had the proper protection to handle any unforeseen challenges.
We’re an independent insurance agency offering a comprehensive suite of insurance solutions to protect you from the unexpected.
We don’t just sell insurance. We work closely with clients to help them make important and informed decisions every day when it comes to protection and their future.
We offer comprehensive insurance solutions throughout Texas, as well as surrounding areas including, Helotes, Schertz, New Braunfels, Cibolo and Bexar County.
At SOGO Insurance, we strive to provide a true, concierge client experience which is unique in the insurance industry. We give clients the power of choice from top-rated national and regional insurance carriers.
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