What kind of liability insurance do you need in manufacturing?

What kind of liability insurance do you need in manufacturing? Liability insurance is a very important factor involved with the ownership of a manufacturing company. There are so many different events that could happen, liability insurance is a necessary thing to have.

Starting with the basic commercial liability insurance. There are some great packages that bundle the general liability insurance with property liability insurance. You will see these packages are often times referred to as BOP.

Depending on the size of your business, you will see that the BOP will cover most of what you will need. You can talk to your insurance representative to have a package planned with details.

It is more important than ever to have good liability insurance because more than ever law suit numbers are increasing every year. The fact that people want to sue more is just inevitable. Without the proper coverage you would be open for not only a financial loss, but also eve a loss that could end up being your company.

Here is a brief explanation of what this insurance is and what it can do for you.

General liability insurance:

This will generally provide protection against claims of bodily injury and property damage. This claims are most often what comes up in a manufacturing business. These types of lawsuits are the most common for the manufacturing business owner.

Here are some of the entities that the general liability insurance would cover.

1. If you have a business that is a joint venture or partnership, then the policy would cover all owners involved. This usually also covers the spouses of those owners. However, it will only cover those persons at the time they are doing something that is directly related to the business.
2. In the case you are running a corporation or association, then the executive officers, directors and stockholders would be covered under this type of insurance. That is while they are acting directly for the business.
3. There is also protection of your employees. This is while they are acting in the capacity of the company.
4. There is usually also a newly insured coverage that takes place within the first 90 days.
5. There is also usually protection for your volunteers as long as they are working under your scope of direction.
6. You legal representatives also have some protection under this type of general liability insurance.
7. Vendors are usually also covered if you have a written agreement with them.
8. Finally there is usually coverage for subsidiaries depending on the amount of stock involved.

Overall the fact that you need general liability insurance for a manufacturing company is well known. You will want to make sure that your company is protected. Also, that the people working within your company are protected. This is why this insurance is so detrimental for the success of a manufacturing company.

Here are some of the things that would be covered:

Physical damage to the property
Loss of use of business property
Care costs for physical injuries
Restitution for death
Loss of services
Court costs
Attorney fees
Judgments
Medical expenses
Premiums

There are many other types of coverage that your liability insurance would cover. Be sure to talk to your insurance representative to get a clear picture of what you can expect for coverage. This is some of the basic information for what kind of liability insurance you need in manufacturing.