You’re constantly on the lookout for leading-edge tools, materials, processes, technologies and supply chains. As a manufacturer, you need to design and build your innovative products faster and cheaper to compete with companies from around the world. Or you manufacture building materials, signs and graphic prints, or farm and food products and face the same challenges.
Regardless of industry, manufacturing in today’s economy means getting bigger, faster, and stronger, just to keep up. But survival is also about getting smarter. With rapid change comes increased risk – and not just from your competitors.
Manage Your Risks with Comprehensive Manufacturing Industry Insurance
Whether foreseeable or completely unexpected, these risks need to be addressed as they too threaten your business’s survival. Staff make mistakes, equipment breaks down and extreme weather events are a fact of life. You need custom-made insurance solutions to suit your manufacturing firm and address the unique challenges you face.
Manufacturing industry insurance brokered through ALIGNED is a suite of coverages designed to address the various risks faced by manufacturers, written with your business in mind. There are standard coverages that are generally needed by all manufacturers and we review the basics of them in this post. Click on each for more information.
Manufacturing Industry Insurance – The Basics
Commercial General Liability Insurance (CGL)
This is the foundation of every commercial insurance package and is vital to the manufacturing industry. CGL insurance provides coverage that can protect your manufacturing firm from lawsuits alleging that your products or business operations caused bodily harm or property damage and from ‘slip and fall’ claims on your property. It can also kick in if the lawsuit brought against you accuses your firm of false advertising, libel and/or slander.
As part of a Manufacturing Insurance package, CGL can cover legal and defence costs, settlements and awards for damages.
Commercial Property Insurance
Another of the standard coverages in a Manufacturing Insurance package, Commercial Property Insurance can provide cover for your building and the contents inside in case of perils such as fires, floods, sewage backups, windstorms, gas leaks, etc. For manufacturing companies, we also highly recommend Business Interruption insurance coverage to help you manage your operating costs while your manufacturing activities are offline and Extra Expense cover to help you move to a temporary location and get back to manufacturing as quickly as possible.
Crime Insurance
This is a coverage that is especially relevant to the manufacturing industry as manufacturing firms are vulnerable to theft on several different fronts. With Crime insurance coverage in your plan, you can be protected from:
- Employee theft of money, inventory and other property
- Theft of property from a third party
- Property being stolen while in transit
- Credit card fraud
- Forgery & Counterfeit currency fraud
- Client losses due to employee theft, fraud or dishonesty
- Investigation costs related to theft or fraud
Equipment Breakdown
As the owner/operator of a manufacturing firm, you’re all too familiar with the importance of moving parts. Something as simple as an internal thermometer breaking down can cause a catastrophic chain of events that leads to crushing losses. No manufacturing industry insurance is complete without Equipment Breakdown insurance coverage. It can cover the costs to repair or replace manufacturing equipment and other production machinery – including office equipment – and cover the losses caused by the equipment breakdown. Depending on the specifics of your plan, those losses covered can include lost profits and extra expenses related to equipment breaking down.
Cyber Insurance
In an increasingly digital world, every business in every industry is a target for cyber-crime. If any part of your manufacturing business requires the use of digital devices and/or the internet, you’re exposed to any number of online threats. According to the latest data available from the Government of Canada, 1 in 5 Canadian businesses fell victim to cybercrime with 60% of them being small- and medium-sized businesses. Fraudsters are targeting businesses large and small with ransomware and malware designed to take over data and systems and/or steal valuable personal information.
Cyber Insurance in your plan can cover you for ransom costs, costs to replace data and repair systems, notification costs and other expenses that result from a cyber event.
Specialized Coverages You Can Include in Your Manufacturing Industry Insurance Plan
- Product Recall Expense
- Moulds and Patterns coverage
- Brands and Labels
- Stock Spoilage protection
- Crane and Hoist Operator’s Liability Insurance
- Hoist, Elevator, Escalator and Lift Collision
- Coverage for selling in the United States
- Coverage for US locations under your Canadian insurance program
ALIGN Your Manufacturing Industry Insurance with Your Specific Risk Management Needs
At ALIGNED, we only deal in commercial insurance products. Your expertise is in manufacturing. Ours is a comprehensive insurance solutions that are designed to protect your business when circumstances threaten its survival. Contact an ALIGNED advocate for a free quote on for your firm in minutes.
