Like all Canadian manufacturers and distributors, Metal Products Manufacturers need insurance to offset the risk of their complex businesses. Metal manufacturers face a series of risks specifically associated with the numerous risks associated with manufacturing of metal products. These risks range from everything to the physical assets of buildings, equipment, raw materials and the metal products themselves, to the liability exposures during and after the manufacturing process.
Do Metal Manufacturers Need Insurance?
You might be a producer of small metal products, such as screws or bolts, or large metal products like bridge or building components produced for the construction industry. You might ship within Canada or to many international destinations in many different markets.
Regardless, as a metal manufacturer, you must make decisions regularly that impact your operations and risks specific as they relate to equipment breakdown, bodily injury, production machinery and assets, fluctuating business income etc..
Wherever your business falls on the spectrum of metal manufacturing businesses or not, ALIGNED Insurance brokers are here to assess and meet your specific needs.
What type of Insurance do Manufacturing Businesses Need?
Manufacturing businesses – and metal manufacturing businesses specifically – need specialized insurance coverage suited to their particular niche businesses and associated risks. There are some coverages that will apply to most metal manufacturing businesses and others that you may wish to add based on your business’ specific needs and preferences.
Firstly, a specialized manufacturer’s Commercial General Liability policy will protect against property damage and bodily injury claims from third parties related to the operations of you your metal manufacturing business and is a key coverage that should be part of all metal manufacturing businesses insurance programs. This commercial general liability should always include product liability insurance as well to cover you for liability associated with bodily injury or property damage to third parties that is specifically from products manufactured.
A Manufacturer’s Errors and Omissions (E&O) policy may also be recommended depending on your operation. This policy may protect against allegations of financial loss associated with the failure of the products you manufacture to perform as it was intended (note this risk is no covered in a Commercial General Liability policy).
The amount of property insurance you require will also depend on the size and scope of your business and may need to be extended to include additional risks associated with a manufacturing business and/or your specific business insurance needs.
Machinery breakdown coverage also know as boiler and machinery coverage is another key insurance product which all metal manufacturers should consider as it provides coverage for damage to often very specialized and expensive equipment due to perils like electrical arching, damage from pressure vessels etc.
What other types of insurance should manufacturers consider?
As part of your Metal Manufacturing Insurance coverage, you may also wish to consider Cyber and Privacy Insurance protection to guard against any breaches of data or data loss.
Given that many metal manufacturers also deal in international markets, consideration should be given to US sales insurance, as well as insurance-related to worldwide jurisdiction and territorial limits. Loss mitigation coverage can be added to protect your business from shipping perils as well.
Employer’s liability insurance and business interruption insurance could also form part of a robust insurance package for your metal manufacturing business. If you do have to enter into any kind of dispute process related to your metal goods, consideration of contract specific limits, defence costs, legal expenses and court attendance costs is imperative. You also need to protect your business’ reputation and brand in the event of any dispute.
Additionally, you may wish to consider zero-dollar deductibles for your company as part of your insurance coverage.
When can manufacturers’ insurance come to your rescue?
There are many scenarios when Metal Manufacturer’s Insurance could come to your rescue, including the following:
- One of your trucks is involved in an serious accident while delivery products to a customer.
- A key piece of equipment malfunctions during production and a quantity of product contains a small flaw.
- Your international shipment is lost at sea.
- A fire destroys your facility
How much does insurance cost for manufacturers?
The cost of your Metal Manufacturer’s Insurance will depend on your specific business needs. Connect with one of ALIGNED’s experienced commercial insurance brokers today to assist you in determining the best insurance coverage for your manufacturing business.