Did you know that many insurance companies have programs specifically for manufacturers?  However, not many insurance agents feel comfortable with manufacturers because they don't understand them.  Manufacturers have unique exposures depending upon the raw materials received, the processes performed, and the final product provided.  They can have much larger than usual risks associated with loosing a building such as specialized/custom equipment, loss of business income, and loss of customers to name a few.  They may also have large exposures to product recall.

McCaleb-Metzler does not shy away from insuring manufacturers.  We listen to each client, get to know their business and their risks, then from that informed position we can suggest insurance solutions.  Below are a few of the main exposures manufacturers need to consider.

Risk Exposures

• Fire.  This one word can not be over-emphasized.  Damage to a building and/or key equipment can be devastating to a manufacturer.
• Business Income exposure can be very large with manufacturers since business income is derived largely from the plant.  If the plant is damaged, business income suffers immediately and customers that go elsewhere in the meantime may never be recovered.
• Boiler and Machinery:  Breakdown of production equipment.  A significant component of this exposure can also be Business Income.  In other words, if a key piece of equipment breaks, how much income will be lost while it is being repaired or replaced?  Key production equipment may be off line for a long time if replacement is needed or repair is extensive.
• Slip-and-falls in association with premises, specifically where customers visit and with shipping/receiving areas (suppliers and 3rd party transport exposures).
• Products & Completed Operations Liability:  The specific product produced carries a liability of its own.  For example, if you produce baby beds or brake pads your products liability exposure is significantly greater than if you produce business cards. 
• Product recall expense can be large depending upon how much product is in the market and what it takes to get it back to you.  Even if the fault lies elsewhere such as in a raw material you received or a sub component you utilized, the manufacturer may be liable for the recall expense.  Brand Identity Recovery can help in the event of a product recall to ensure accurate information is distributed and reputation is repaired or rebuilt. 
• Pollution liability varies widely depending upon what raw materials are used.  Pollution exposure can also come from processes employed, final products delivered, and by-products of the manufacturing process.
• Commercial Auto & Truck exposure depends upon whether the manufacturer delivers their own product, moves product between plants, picks up their own raw materials, etc.
• Hired and non-owned Auto:  exposure due to employees driving their own vehicles between locations, doing business errands in their own vehicles, or renting/leasing of vehicles, even as a temporary replacement.
• Workers Compensation due to operating machinery and tools, lifting, slip and falls, and repetitive actions.

Coverages Needed

• Property:  Offices, plant, storage, warehouse, yard, inventory, stock, tools, equipment.
• Business Income
• Inland Marine:  Materials and final product in transit, equipment, tools, and business property that is moved away from the premises or transported by auto.
• General Liability
• Products & Completed Operations Liability
• Product Recall and Brand Identity Recovery
• Boiler and Machinery
• Pollution Liability
• Commercial Auto & Truck
• Workers Compensation
• For full definitions, see our Business Insurance Information page.