Do you operate a successful manufacturing business?  If so, you have different needs for insurance than most businesses. When you purchase your insurance coverage, you may wish to save money by taking out only the basic coverage options. However, you might be making an enormous mistake, and here is a perfect example.

Jim worked in the metal and plastic fabrication business for many years and he was very good at his job. In fact, Jim always dreamed of starting his own manufacturing business when a local fabrication company went under, he was able to buy the entire operation for an incredible price.

Jim had a brilliant idea. Instead of competing against established businesses, he would offer his services on an outsourced basis. His company would help finish urgent orders and take on small jobs that were too much trouble for the big companies. This idea worked out well and before long, Jim’s little company was running full-time and he was thinking about expanding.

One day, Jim promised his wife Fay, he would hire her brother Tom’s services. Tom was a so-called efficiency expert and promised to provide suggestions to improve Jim’s business. Jim wasn’t too fond of Tom, but to please Fay, he consented.

Tom came out and made a complete study and one of his suggestions was to eliminate downtime insurance from the manufacturing insurance policy. Jim told Tom he would discuss the matter with his insurance agent, and he called him the next day. Jim’s agent asked Jim what he would do if his plant was shut down for a week or more and Jim had no answer, so he decided to keep the insurance. This turned out to be the right decision.

Two months later, a tornado almost completely destroyed Jim’s plant. His property insurance paid the damages and his downtime coverage compensated him for the lost business. Naturally, Jim didn’t hire the services of his brother-in-law again.

What is Manufacturers Insurance?

This coverage is specifically designed to cover risk factors associated with manufacturing and fabrication companies. This insures you can stay in business no matter what kind of disaster strikes.

Do I Need This Coverage?

If your business makes parts or supplies for other companies you are in the manufacturing business, and you need to have the right kind of insurance in place. These businesses should consider special insurance for manufacturers:

• Cabinet makers
• Clothing manufacturers
• Candy companies
• Canning services
• Fabrication companies
• Machine shops
• Milling shops
• Product distributors
• Factories
• Warehouse providers
• Publishing services
• Print shops
• Tool making companies

Is Basic Manufacturing Insurance Coverage Good Enough for My Company?

If you are thinking about getting by with the bare minimum, you’ll need to consider these options:

• Commercial property coverage – this can cover the interior and exterior of your structures. It will also pay for theft and vandalism.
• Building contents – protects the contents of your building, including equipment, supplies, stock, and employees personal possessions.
• General liability insurance – protects you against personal injury lawsuits and legal issues associated with property or reputation damage.
• Workers compensation insurance – you must provide this coverage for your employees and it pays them for lost wages and medical benefits, if they are injured at work,

Manufacturers Insurance Options

Depending on your business, you might need these insurance options:

• Warehouse liability insurance
• Commercial vehicle insurance – if you have business vehicles, they need insurance.
• Inland marine insurance – this protects your products, supplies, or equipment while in transit, as standard commercial auto insurance does not.
• Equipment breakdown – reimburses you for the time your equipment is broken down and may cover repair or replacement costs.
• Business interruption – known as downtime insurance. If you are out of business due to an insurance claim, this reimburses your lost income.
• E&O coverage – this stands for errors and omission. Protects you against acts of your employees like shoddy workmanship.
• Product liability – covers lawsuits concerning defective products.

Where Can I Get Help with My Manufacturing Insurance Needs?

If you want to get competitive coverage options with the least amount of effort, consider the many benefits of an independent insurance agent from American Advantage – Petersen Group. We are there to make it as easy on you as possible. Our insurance agents routinely do business with some of the top insurance companies in the industry, and we find you find coverage that matches your described needs.

Why spend all your time insurance shopping when you don’t have to? Your independent agent is there to help find coverage customized for your business and business property. We will find you the right property insurance, commercial auto insurance, and business insurance. There’s no need to check out all of these coverage options separately, when your agent can take care of everything for you.

Don’t take unnecessary chances with your business, contact an insurance professional at American Advantage – Petersen Group today. Call us at 262-432-0789 for more information or fill out the free insurance quote form and we’ll get back to you.

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