Risk management can be extraordinarily challenging for manufacturers. Commercial property and general liability insurance policies provide a foundation for these businesses, and these products cover a broad range of uncertainties. Nonetheless, unique risks need specialized manufacturing insurance coverage.
The Case for Equipment Breakdown Coverage
In manufacturing, equipment downtime equals a revenue downturn. Commercial property insurance covers accidental harm to machinery, but this coverage will not pay for damage due to electrical or mechanical failure. Equipment breakdown coverage fills this critical gap. Useful for manufacturers from machine shops to multinationals, EB coverage pays for the repairs and equipment rentals necessary to resume production.
The Case for Manufacturers E&O Coverage
Standard errors and omissions liability coverage pays damages if a third party – usually a customer – suffers bodily injury or property damage due to a manufacturer’s negligence. If a manufacturer’s errors result in only a financial loss for the customer, typical E&O coverage leaves the business fully exposed to a lawsuit. Manufacturers E&O insurance covers this vulnerability. By helping to reimburse customer losses, this specialized E&O coverage may enable a manufacturer to preserve a business relationship and remain financially viable.
Manufacturers stay competitive by keeping a close eye on customer needs. The same vigilance is necessary with their insurance coverage. Partnering with a manufacturers insurance specialist can help keep production moving and profits flowing.