Manufacturing Insurance Overview 

Employers in the manufacturing industry often need to navigate dangerous conditions while trying to meet demanding quotas and keep up with strict deadlines. These inherently risky situations require even the most responsible businesses and skilled laborers to be covered with robust insurance coverage. Assessing essential policies and purchasing suitable manufacturing insurance is a non-negotiable priority.

What Is Manufacturing Insurance?

Factories and other manufacturing operations may require multifaceted insurance packages. This combination of coverages and policies can form a sufficient manufacturing insurance portfolio, potentially accounting for many risks and exposures, and retaining financial protection against possible incidents.

What Types of Insurance Should Manufacturers Have?

Although the manufacturing industry in general may require robust insurance solutions, exact coverage needs can vary significantly. Still, several types of insurance may be relevant for most in this sector. Specifically, many businesses should prioritize the following:

• Workers’ compensation insurance—Legally required for many businesses, these policies can help manage losses and expenses in response to workplace injuries and illnesses.
• General liability insurance—This form of insurance can help manage third-party claims of bodily injury or property damage, such as if a guest is injured while visiting a factory.
• Commercial property insurance—Also known as business property insurance, this type of policy can assist with repair, rebuild and replacement costs for tangible assets, such as a manufacturer’s buildings, machinery, equipment and inventory.
• Business interruption insurance—This type of coverage can compensate manufacturers for lost revenue and continuing costs if a covered incident, such as a fire, forces a temporary closure.
• Commercial auto insurance—If a business uses motor vehicles for commercial purposes, this type of insurance is legally required and can offset costs arising from related incidents.
• Equipment breakdown insurance—These policies can help manage losses arising from machinery malfunctions or breakdowns.
• Commercial umbrella insurance—In the event that other policies’ liability limits are reached, this type of policy can offer additional financial aid.

How Much Does Coverage Cost?

Manufacturing insurance rates can be influenced by many factors, including the following:

• Location
• Business square-footage
• Workforce size
• Operational details (e.g., products and methods)
• Estimated annual revenue
• Value of insured assets
• Claims history
• Coverage details (e.g., types of insurance needed, limits and deductibles)

We’re Here to Help

At Thornburg Insurance Agency, we can help manufacturers in Huntington, WV identify and address their coverage needs. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.