What Does Manufacturing Insurance Mean?
Manufacturing insurance is a type of commercial insurance that protects manufacturing companies from many of the risks associated with their business, including coverage for assets and production capabilities, legal claims, business interruptions, workers' compensation, and commercial vehicles.
Workers' compensation is especially important for manufacturing companies, since they often employ a large number of people and run the risk of having multiple compensation claims filed.
Insuranceopedia Explains Manufacturing Insurance
Not only can manufacturers be exposed to a lot of risks simply because they often have many employees, but manufacturing work can itself be especially dangerous. Manufacturing typically involves heavy machinery, which might not only increase the frequency of accidents but also their severity.
Business interruption coverage provided by manufacturing insurance can also be crucial if business ceases temporarily, perhaps as the result of an accident.