All about manufacturing insurance
While every type of business has certain risks manufacturing poses an even higher risk. The many components to the manufacturing process expose the employees and the management of any manufacturing company to much higher liability. This means that you will need some significant insurance in order to protect your workers and your company. While Workers Compensation will help you provide for your workers should they be injured on site, it will not be enough to take care of your entire liability. You will need to investigate the various types of manufacturing insurance in order to find the insurance that takes care of the specific needs of your business. Here is what you need to know about manufacturing insurance-
- Know your risk-The key to making sure that you have the right manufacturing insurance is to know the specific risks that your manufacturing business entails. When you have a clear idea of the type of risk for your manufacturing business you will be able to get the right kind and amount of insurance.
- Not all manufacturing insurance is the same-There is no one size fits all type of manufacturing insurance. There are very different types of manufacturing insurance. While some types of manufacturing insurance will be able to be bought from a standard insurance provider, there will be other types that you will need to look to a specialized insurance agent for. These specialized agents will be able to guide you in what your specific risks are and what insurance your type of manufacturing business will need. They most likely will offer certain percentages in your insurance plan that will help to correspond with the risk that your type of manufacturing needs.
- Understand the different types of insurance-You may be approached by a insurance salesman about manufacturing insurance but a umbrella policy may not be enough for you. There are specific policies that will take care of different aspects of your manufacturing business. It is important to know the difference between these types of manufacturing insurance. The different types of manufacturing insurance are-
1. Building Insurance-This type of insurance will take care of the risk that are posed to your building or physical location. Manufacturing companies run a high risk of fires and other types of damages so it is imperative to have enough insurance to cover your building and other physical assets. Keep in mind that while most manufacturing companies rent their building that does not mean that you have sufficient insurance coverage even if your landlord says that he has insurance. You want to make sure that you have enough manufacturing insurance to cover not just your building but everything inside it as well. You will also need enough manufacturing insurance to be able to provide compensation for your employees in case a disaster occurs at your manufacturing plant.
2. Contents Insurance-This type of manufacturing insurance will protect the contents of your company. You will use this type of manufacturing insurance to protect new equipment and anything that can be damaged within your company. This type of insurance will not only protect against accidents that are happening but if anything is vandalized or intentionally damaged within your company.
3. Liability Insurance-Keep in mind that your liability extends not only to your workers but to your customers as well. You want to make sure that you can protect your entire company from any liability. This can protect you against lawsuits and protect your assets. It is important to understand that this type of manufacturing insurance will not pay for your damages, but will pay damages to any injured party that holds you responsible for their injuries.