Manufacturers Insurance

Manufacturers insurance programs have many elements in common with typical business insurance programs, particularly in terms of workers’ compensation and property insurance. A primary aspect of insurance for manufacturing companies is the need for product liability insurance. 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.

A key policy point to look for is a manufacturer’s selling price clause. This means that if your stock is damaged or destroyed by a covered event, you get a payout reflecting the price you would have sold the items for—not the price you paid for the raw materials.

You should also look for errors & omissions coverage. This goes beyond the usual business insurance that protects you against claims of property damage and injury caused by your products. It adds coverage for claims of financial losses. For example, if your customers say their business was hurt by a fault in your product.

Also consider product recall insurance, which kicks in if you’re forced to recall a product because it might cause harm. This insurance covers not only the costs of getting the product back to you, but also safely disposing of the stock. Some policies even cover legal costs or public relations expenses.