Business InsuranceSpecialty Insurance

Manufacture your best policy

By September 23, 2016 No Comments
Metal with Sparks

There are close to 300,000 manufacturing businesses across America, ranging from machine shops to woodworkers to plastics manufacturers. All of them need a comprehensive insurance policy.

MORE THAN PRODUCT LIABILITY

People often think of insurance protecting a manufacturer against liability claims stemming from products they made. But insurance coverage should be much more than that.

What if you are a manufacturer and are unable to continue making your product because of something that happened off of your premises? For example, a tornado knocks out power lines that prevent you from getting the power your machines need to run. Or, your water source is cut off, preventing you from completing your product. Off premises utility coverage provides coverage when power, water or communications are interrupted from a covered cause, and it leads to a loss for your business.

UTILITY SERVICE INTERRUPTION

Interruption of any of these utilities can cause a loss to business income, business personal property or the building itself, so any combination of coverages is available. The most common coverage combination is insuring business income for a loss of power. Knowing how much your business would lose if there were a loss of power for a day, a week or a month will help you properly insure that exposure.

As severe weather continues to affect operations across the country, manufacturing plants are susceptible to loss of power due to damaged power plants, substations and downed overhead transmission and distribution lines. Many business owners assume that if they don’t have power, they will receive business income coverage for their loss of production. This is not always the case.

If a storm rolls through the area but causes no physical damage to your insured property, business income coverage is not generally provided even if you have lost power. Off premises power coverage can pay for a loss of business income stemming from a loss of power that takes place off of your premises.

SEE YOUR LOCAL AGENT

Every manufacturer has unique insurance needs, and many coverage options are available. To make sure you get the protection your business needs, discuss your exposures with your independent insurance agent.

Coverages described here are in the most general terms and are subject to actual policy conditions and exclusions. For actual coverage wording, conditions and exclusions, refer to the policy or contact your independent agent.