In the manufacturing industry, the usage of specialized equipment is the heart of your production. A structured process and on-point employees are also key to run things smoothly. Even if one of these goes sideways, your entire production could crumble. 

Manufacturing insurance should be tailor-made for your distinctive business. It should protect you against slip-ups that could put you in financial distress. It should not just cover your equipment but also your workforce. Only then will your business get enough time to rebound and recover without suffering an immense loss.

If you are completely new to the topic, here are some major coverage areas that every manufacturing insurance should have. They cover various aspects of your business and protect them from damage and loss. 

1. Errors and Omissions (E&O)

Production mistakes are common across all industries, but they do come with a hefty price tag attached to them for repairs. Fixing the errors and problems in your manufactured units could cost you a lot and they often come unannounced. 

In some cases, a small error or omission in a tiny component could render the rest of them useless. E&O coverage is crucial to cover the damages of production errors and to save you and your client from suffering a major loss. 

2. Installation Floater

Most products that your manufacture would require installation where you or your employees might have to work in unfamiliar spaces. They usually come with several unexpected risks such as theft and fire. 

It does not matter if it happens on-site, during transit, or during storage. General insurances would only cover damages that occur inside your premises. This makes it even more important to consider getting an Installation floater.  

3. Motor Truck Cargo

With no regard to the products that you manufacture, the risks that you could encounter triples if your business depends on vehicles. Everything from traffic accidents, unloading accidents to vehicle breakdowns, could completely cause your operations to halt. 

But thanks to motor truck cargo coverage, you can now prepare for the worse. This distinctive coverage would protect you against any loss that you may endure due to transport mis happenings. This includes accidents, spillage, theft, spoilage, etc.,

4. Negative Publicity

Most businessmen never realize the aftermath of a major manufacturing mistake. Which usually is negative publicity. Every small negative news about your business could not just hit you financially but also reduces the credibility of your brand. 

Assume you run a food manufacturing company and one of your employees happens to have a deadly infection. If the press gets a hang of it, all your current orders along with the future ones might even completely get canceled. A negative publicity coverage will help you cover the losses. 

5. Equipment Breakdown

Equipment breakdowns in manufacturing are more common than you may think. Anything from a power surge ripping through your assembly line to breakage would fall under this category.

An equipment breakdown coverage is a blessing that will help you cover the costs of repairs and replacements. It will also help you manage the losses that you endure until your machines and equipment are back online.  

6. Damage to Molds and Patterns

Molds, patterns, dies, and forms are valuable tools that your client entrusts you with. These are crucial to producing components with precise dimensions and measurements. 

Auto part makers and mechanical good manufacturers are most likely to be familiar with this topic. A fire or mishandling could easily damage them. But with Molds and Patterns coverage, you can extend your insurance to cover the expenses.

Final Thoughts: Tracking Your Insurance Is Equally Important

Expired insurance is just as bad as having no insurance which can never save you on legal grounds. The job of tracking expiry dates and coverages is not easy for a company that houses several employees. A Certificate of Insurance Tracker is the only practical approach to manage them efficiently. 

If you’d like to know more about it, consider reading this: How Tracking Your Manufacturing Insurance Will Help You Eliminate These 3 Critical Risks. An authentic COI tracker is an essential tool that every business should have in its arsenal. Connect with our COI tracking experts and Schedule Your Free Demonstration.