Types of insurance you will need for your manufacturing business
If you are a manufacturing business owner then it is imperative that you understand that your industry is full of risks. Because of the complex nature of manufacturing there is a great deal more risk then other industries. The use of raw materials coupled with the amount of machinery, deliveries, and employee involvement make manufacturing a breeding ground for lawsuits. This is why it is crucial that if you own a manufacturing business that you have the right type of insurance. While Workers Compensation is required by law and will give your employees some money if they are injured while at work it will not protect you and your liability. This means that you will need additional types of insurance for your manufacturing business, as well.
Manufacturing experts stress that there are several different types of insurance that you will need. You will be able to find some types of insurance for your manufacturing business through a standard carrier while others may require finding an industry related insurance carrier. You should look for a carrier that will specialize in providing insurance to manufacturing businesses in your industry. This is important since they will understand better the products that you make and the risks that are involved with that type of production. These specialized insurance companies will also offer more options to choose from. This will make it easier for you to have the right amount of protection for your employees, your business, and its contents.
There are some basic types of insurance that virtually all manufacturing businesses will need to carry. However, if you are unsure as to what you should be carrying you should consult with an insurance expert and the financial professionals that work for you. They will be able to help you to determine where your manufacturing business has risk and what type of insurance will help to reduce that risk. Here are some of the types of insurance you will need for your manufacturing business-
- Insurance for your physical space-The number one kind of insurance that most manufacturing businesses must have is the insurance that protects their physical space. Most manufacturing companies run a high risk for fire and other damage. This makes it crucial that you have the right insurance to protect your building. Keep in mind that often times your building insurance won't cover the contents of your business so you may need additional insurance for that.
- Insurance for your contents-If your building insurance won't cover what is inside your business you will need additional insurance to cover the contents of your business. This will be the insurance that will help to pay for machinery and other needs in order for your business to get up and running again after a disaster. This insurance will not only pay for accidental damage but also if the damage is intentional such as vandalism or theft.
- Insurance for your liability-Insurance for liability is a must for most manufacturing businesses. You will need to have this type of insurance if someone is injured in the workplace or if your product causes harm outside of your business. While this type of insurance won't pay you anything it will take care of the necessary costs if you are accused of causing harm or contributing to damage of person or property.
Finally, no matter what type of insurance that you determine that you need for your manufacturing business all insurance experts recommend that you take your time and shop around in order to get the best deal possible. Also, you will need to consult an insurance professional for recommendations for specific types of insurance that your manufacturing business will need.