What are the 3 Types of Material Handling Equipment Supplier Insurance That You May Want to Consider?
As a material handling equipment supplier you’re not just another company. You’re the business that other industrial establishments rely on to manage their manufacturing processes, help move their goods from point A to point B and ultimately get their products out the door.
But that’s not all. On top of all the usual issues that businesses have to contend with like payroll management, staff, inventory, and operational procedures, you also have to handle the logistics of shipping highly-specialized equipment.
Between the expensive inventory and the final manufactured product that you don’t have much control over, there are a lot of potential liability exposures that your business has to watch out for. To that end, having the right business insurance package can go a long way towards helping you protect your business.
1. Commercial General Liability Insurance
If you have an office or a warehouse that you operate out of, it may be in your best interests to consider commercial general liability insurance.
Why is CGL Insurance Important For a Material Handling Business?
Because if a business partner or a customer were to fall and injure themselves while in your building, your company could be on the financial hook for personal injuries and for any potential property damage that was caused by the accident.
And that’s not all. Commercial general liability insurance can also help with cases of false advertising claims or tenants’ legal liability. This makes it a solid risk coverage option to include in your insurance plan.
2. Commercial Property Insurance
It goes without saying that if you sell or rent material handling tools and equipment, you’ve probably got a lot of highly-specialized inventory on your property. A major fire that forces you to replace it all on short notice could leave your company in a difficult place financially.
The sad reality is that many business owners don’t realize until it’s too late that general building insurance often doesn’t extend to the property that you keep on the premises.
Commercial property insurance can help suppliers receive fair value for their property in the aftermath of an insured peril.
3. Products Liability Insurance
Even if your business doesn’t have much to do with the end product, material handling tools and equipment is often involved at virtually every stage of the production process.
Process flaws or failures have the potential to make a product unsafe and in the event that a products liability lawsuit is initiated, your company could potentially be named simply because you supplied the material handling equipment. Also, clients have certain expectations about the capabilities of their material handling equipment and if material handling equipment clients purchase doesn’t meet expectations or causes damage to a customers products, production machinery and/or building material handling suppliers can be held liable.
With products liability insurance coverage, you can shield themselves from the financial fallout of having to pay for litigation out-of-pocket.
Should You Hire An Insurance Broker?
As a material handling equipment supplier you work in a highly-specialized industry where one mistake in your insurance coverage could have devastating effects on your company’s cash flow. With the knowledge and expertise of an experienced broker, it becomes a lot easier to be confident in the fact that you’re getting the coverage you deserve.
