A Comprehensive Guide to Manufacturers Insurance: What You Need to Know

Hoffman Hanono
September 20, 2023

Manufacturing businesses face unique vulnerabilities, from equipment breakdowns to supply chain disruptions and product liability issues. These are only a few factors that come into play and why you must have the best insurance coverage possible.

Whether you're a seasoned industry expert or a newcomer just launching your manufacturing venture, this guide will help you confidently navigate the intricacies of manufacturers insurance.

Key Insurance Policies Every Manufacturer Should Have

Manufacturers often require a wide range of insurance types to protect their business. The most common and recommended manufacturers insurance policies include:

General Liability Insurance

Think of general liability insurance as a broad safety net that protects your manufacturing business from property damage or injuries that occur on the premises.

Property Insurance

Property insurance protects all your assets, including buildings, machinery, inventory, and materials. Property insurance ensures you recover, rebuild, and mitigate setbacks if any of these assets are damaged by fire, theft, vandalism, or natural disasters.

Business Interruption Insurance

Did a fire, flood, or unforeseen disaster force you to shutter your business temporarily? Business interruption insurance will kick in to cover lost income, help with ongoing expenses, and ensure you (quite literally!) weather the storm.

Product Liability Insurance

This insurance protects you from claims that may arise if someone gets hurt or their property is damaged due to a problem with your products. It's crucial in product-related lawsuits.

Workers’ Compensation Insurance

Workers' comp insurance is usually required by law and has two primary purposes:

  1. It helps injured or ill employees by paying for their medical costs and replacing lost wages while they recover.
  2. It protects your business from legal issues arising from workplace injuries.

Equipment Breakdown Insurance

Manufacturing businesses often rely on heavy machinery. If these machines unexpectedly break down due to mechanical failures, electrical problems, or other covered events, equipment breakdown insurance helps pay for repairs or replacements.

Cyber Liability Insurance

Cyber liability insurance protects your manufacturing business from the financial and reputation damage resulting from data breaches and cyber-attacks. It covers expenses related to responding to data breaches, legal fees, and other potential liabilities.

Product Recall Insurance

If you need to recall a product due to safety concerns or defects, product recall insurance will come in handy. It helps cover several expenses, including notifying customers, disposing of products, and managing the recall process.

Protect Your Business With Hoffman Hanono

At Hoffman Hanono, our knowledgeable agents will review policies with you to ensure you get the coverage you need. Since 1959, we’ve proudly served businesses in San Diego and surrounding areas. Whether you need manufacturers insurance or any other type of insurance to protect your business, we can help!

Reach out to us to connect with an agent today.