Manufacturing and Fabrication Insurance Overview
Manufacturing businesses maintain a unique set of circumstances. Business owners must protect employees as well as customers. Therefore, they must maintain a specific Manufacturing and Fabrication Insurance coverage. Cordova Insurance understands this need and works to help manufacturing companies protect all their assets with optimal insurance coverage as available.
Business owners have many risks, including the loss of business income, personal injury on the business property, theft of property, employment-related issues, product recalls, and more. Manufacturing businesses hold the risks of many companies, along with the increased risk of products creating problems for customers, malfunctioning, or requiring recalls. The proper manufacturing and fabrication coverage can mean the difference between a manufacturer’s continuing operations as usual and closing due to bankruptcy.
Why Manufacturing and Fabrication Insurance is Important
As mentioned above, manufacturing companies have a higher risk than many other businesses. Of course, the typical business risks include general business liability, such as a slip and falls on the property, damage to your business property and machinery, and income loss. They also include employee issues, such as discrimination, sexual harassment, and wrongful termination claims.
However, manufacturing companies must worry about other issues, more so than any other type of company.
- Manufacturing has a higher risk of theft of products and parts than other businesses. Many manufacturing companies maintain parts that have a high street value. As a result, they are a huge target for theft regularly.
- These companies have a higher risk of injury on the job. Worker’s compensation claims are high with manufacturing companies because they work with heavy machinery. Heavy machinery can malfunction. In the same vein, employees can have off days. Either way, the risk of injury to employees is high on the job.
- Manufacturing companies are capable of error. Therefore, they must protect their vulnerabilities. The right coverage can protect your company from bankruptcy by protecting your financial assets in the event of a malfunction or recall.
Manufacturing and Fabrication Insurance Coverage
Most Manufacturing and Fabrication Insurance companies recommend companies maintain a Business Owner’s Policy (BOP) at the very minimum. BOP policies provide the three most needed coverages for a manufacturing business at a lower cost. BOP coverage includes the following:
- General Liability Coverage: General Liability Insurance covers most damages sustained on your property to visitors or their property. If a person is injured when visiting your plant, your general liability coverage could help cover their medical expenses. If their car is damaged in your plant’s parking lot, general liability could help cover their repair expenses.
- Commercial Property Insurance: Commercial Property Insurance covers your business property. The policy protects your business machinery, warehouse or plant, and any real or physical property owned, leased, or rented by your manufacturing company. If damages occur to your property, your BOP policy’s commercial liability coverage can help cover the cost of repair or replacing the property.
- Business Income Coverage: Business Income Coverage helps replace your lost income if your manufacturing business suffers a shutdown due to a covered loss. Covered losses typically include fires, floods, theft, and other issues causing a business to close permanently or temporarily.
BOP coverage is necessary for most manufacturing businesses to obtain a license to conduct business in Wisconsin. However, other available coverages may help your manufacturing company stay in business through the worst scenarios.
- Product Recall and Replacement Coverage: This coverage is a huge need for manufacturing and fabrication companies. Many companies, at one point or another, experience a recall or a malfunction. This coverage helps cover the costs of the recall and replacements.
- Data Breach Coverage: All businesses, including manufacturing businesses, are now online. When a business stores data of their clients and payment information online, they risk a data breach. A data breach occurs when a person or company hacks your computer system and steals company or more importantly, customer information. A data breach can cost your company millions of dollars in notifications and fines. Data breach coverage helps cover the costs associated with a data breach.
- Business Income from Dependent Properties: Business income coverage typically covers loss in business operations if a covered reason damages your property. However, manufacturing companies usually rely on certain product deliveries to continue operations. If a vendor has a business loss, your business can suffer immensely. Business income from dependent properties coverage helps you recoup a business loss when a vendor cannot provide needed products to run your business. It buys you time to find another vendor or wait for the original vendor to reopen.
- Employment Practices Liability Coverage. This coverage protects you in the event of employment discrimination, sexual harassment, or wrongful termination lawsuit. It also covers defamation and slander. The policy provides limits for payout and prevents your company from being stuck with the bill.
- Tenant Legal Liability. In some leasing contracts, a property’s landlord may not cover all injuries endured on a rented property. Therefore, if you rent your manufacturing and fabrication property, tenant legal liability can fill in the missing gaps.
Related Policies
Manufacturing and Fabrication Insurance is more than just covering your products and business assets. It is about covering all aspects of running a business, from commercial bonding to Worker’s Compensation, commercial auto policies, and more. Our Commercial Insurance policies and coverages can help you protect all areas of your business, well beyond the manufacturing and fabrication coverages specific to your industry.
Areas We Serve
Cordova Insurance Agency provides Manufacturing and Fabrication Insurance to companies within the central Wisconsin vicinity. Located in Merrill, Wisconsin, we provide coverages to manufacturing companies in neighboring cities, including Wausau, Tomahawk, Minocqua, Woodruff and surrounding areas.
Our goal is to offer coverages to help cover losses whenever possible. Our friendly and courteous insurance agents do not believe in a one-size-fits-all approach. We are proud of our customer service and ability to tailor your coverage to your business needs. We listen to your needs, your budgets, and your business goals. Then we work to match you with the coverage likely to fit your business and budget. Our friendly staff will help when you need to process a claim in the same courteous, and friendly manner as we present when looking for your quote.
Final Thoughts
Cordova Insurance Agency believes in providing needed coverage to manufacturing businesses through a professional and friendly approach. We understand your business is unique. We strive to meet your business needs by listening and working with you as a partner instead of a distant insurance provider.
To learn more about Manufacturing and Fabrication Insurance, contact Cordova Insurance Agency at (715) 536-9576. Our licensed agents will be happy to answer any questions you have.
