Manufacturing Insurance

What Does Manufacturing Insurance Mean?

Manufacturing insurance is a type of commercial insurance designed to protect manufacturing companies from various risks associated with their operations. It provides coverage for assets, production capabilities, legal claims, business interruptions, workers’ compensation, and commercial vehicles. For smaller-scale operations, related products like machine shop insurance cover many of the same risks.

Workers’ compensation is particularly crucial for manufacturing companies, as they often employ a large workforce and face the potential for multiple compensation claims.

Insuranceopedia Explains Manufacturing Insurance

Manufacturers face significant risks not only because they often employ a large workforce but also due to the inherently hazardous nature of manufacturing work. The use of heavy machinery can increase both the likelihood and severity of workplace accidents. When that machinery itself fails, equipment breakdown coverage can pay for repairs and the income lost while production is down.

Business interruption coverage, a key component of manufacturing insurance, is vital if operations are temporarily halted, such as in the aftermath of an accident.