What You Need to Know About General Liability Insurance for Manufacturing Companies

The manufacturing process involves intricate machinery, hazardous materials, and strict regulations, making it an industry that is inherently fraught with hazards. These risks can lead to substantial financial losses, damaging a company's reputation, operations, and overall stability.

This is where General Liability Insurance comes into play. It serves as a safety net, providing manufacturers with much-needed protection against a range of potential pitfalls. This insurance coverage is designed to safeguard manufacturers from liabilities that could arise from accidents, injuries, or negligence claims. It covers legal fees, medical costs, and other damages, ensuring that manufacturing companies can continue their operations without crippling financial burdens.

We Have the Best General Liability Insurance Policies for Manufacturers

At Brighton Financial and Insurance Services (BFIS), we understand the unique needs of manufacturers. That's why we offer some of the best general liability insurance policies in the industry. Our comprehensive coverage provides manufacturers with protection from a wide range of potential liabilities, including property damage, product liability, and advertising injury claims. We also offer highly competitive premiums that are tailored to match the needs of each individual business.

For more information about our General Liability Insurance policies for manufacturers, contact us today. Our team of experienced professionals will be happy to answer any questions you may have and help you find the perfect policy for your particular circumstances.

What is General Liability Insurance and How Does it Help Manufacturing Companies?

One of the main coverages offered by General Liability Insurance is Bodily Injury and Property Damage Liability. This covers claims from third parties who suffer bodily injury or property damage due to your business operations or products. For instance, if a visitor to your manufacturing plant slips and falls due to a wet floor, this coverage would handle the subsequent medical costs and potential lawsuits.

Another important coverage is Personal and Advertising Injury Liability. This protects your business against claims of libel, slander, false arrest, invasion of privacy, copyright infringement, and wrongful eviction. As an example, if your company is sued for unintentionally using another company's trademarked logo in your advertising, this coverage would pay for the legal defense costs.

Medical Payments Coverage is also included in General Liability Insurance. This pays for immediate medical expenses if someone is injured on your business premises or due to your operations. An example might be a delivery driver injured by falling equipment at your factory, whereupon this coverage would pay for their immediate medical costs.

Lastly, there's Products and Completed Operations Liability. This covers claims of bodily injury or property damage arising from your products or completed work. Let's say a customer gets injured using a product manufactured by your company, this part of the policy would cover the associated costs.

These coverages collectively provide a comprehensive safety net, enabling manufacturing companies to operate with the assurance that they're protected against a broad range of risks.

Who Needs Manufacturer's General Liability Insurance?

Manufacturer's General Liability Insurance is essential for all businesses involved in the production of goods. These include:

• Automotive manufacturers
• Furniture and home furnishing makers
• Electronics producers
• Food product processors
• Chemical product formulators
• Metal, plastic, and rubber parts fabricators
• Power tool assemblers
• Fabric product weavers
• Pharmaceutical companies
• Aerospace manufacturers
• Boat and shipbuilders
• Textile product makers
• Toy producers
• Medical device manufacturers
• Clothing designers and tailors.

You may also need Manufacturer's General Liability Insurance if your business regularly works with dangerous materials and equipment or performs high-risk tasks. In these cases, the risk of injury or property damage is significantly greater, and you'll need additional coverage to protect your assets.

Common Exclusions in a Manufacturer's General Liability Insurance Policy

While General Liability Insurance offers broad protection for manufacturers, it's important to note that it doesn't cover everything. Here are some common exclusions:

Expected or Intended Injury: This exclusion applies to any injury or damage that was expected or intended from the standpoint of the insured. Insurance policies are designed to cover accidents and unexpected events, not deliberate actions.

Contractual Liability: General liability policies typically exclude coverage for liabilities assumed under a contract. However, certain 'insured contracts' may still be covered.

Liquor Liability: If your business manufactures, sells, or serves alcohol, any liabilities arising from this are usually excluded. This is because alcohol-related liabilities are usually covered under a separate liquor liability policy.

Workers Compensation: General liability insurance does not cover injuries to your own employees on the job. These are typically covered by workers' compensation insurance.

Pollution: Most general liability policies exclude coverage for pollution unless it results from a sudden and accidental event. Long-term pollution incidents, such as ongoing emissions from a manufacturing plant, are not usually covered.

Aircraft, Auto, and Watercraft: This exclusion relates to bodily injury or property damage arising out of the ownership, maintenance, use, or entrustment to others of any aircraft, auto, or watercraft owned or operated by or rented or loaned to the insured.

Damage to Your Product: If your product is damaged or has a fault, general liability insurance will not cover the cost to repair or replace it. The policy is designed to cover damage or injury your product causes, not the product itself.

Recall of Products, Work, or Impaired Property: Costs associated with recalling your product from the market are not covered under a general liability policy.

Electronic Data: Damages related to the loss of electronic data are usually not covered under a general liability policy.

Employment Practices Liability: Claims related to employment practices such as discrimination, harassment, or wrongful termination are not covered. These are typically insured under a separate employment practices liability policy.

Remember, every policy is different, so it's crucial to read the policy wording carefully and speak with your insurance broker or agent to fully understand what is and isn't covered. You may need to purchase an additional policy or endorsement to ensure you have the coverage you need.

Manufacturers' General Liability Insurance Vs Professional Liability Insurance

General Liability Insurance and Professional Liability Insurance serve different purposes and cover distinct types of risks that a manufacturing company might face. Understanding the differences between these two coverages is crucial in ensuring comprehensive protection for your business.

General Liability Insurance primarily covers physical risks related to bodily injuries or property damage that could occur on your premises or due to your operations. For example, if a visitor gets injured at your factory or if your operations cause damage to a third-party property, General Liability Insurance would protect your business from the financial liabilities associated with such incidents.

Moreover, General Liability Insurance covers personal and advertising injuries, such as claims of libel, slander, or copyright infringement. It also provides coverage for medical payments and products-completed operations, which covers claims arising from your products or completed work.

On the other hand, Professional Liability Insurance, also known as Errors and Omissions (E&O) insurance, covers more abstract risks. These typically involve financial losses suffered by third parties due to errors, omissions, or negligence in the services provided by your business.

For manufacturers, Professional Liability Insurance is particularly important if your business provides consultations or advice, designs products for clients, or if you are responsible for software or system installation where mistakes could lead to significant financial losses for your clients.

In essence, while General Liability Insurance covers more physical, direct damages, Professional Liability Insurance is designed to cover financial losses resulting from professional errors or negligence. Depending on the nature of a manufacturer's operations, a combination of both types of coverage might be necessary to ensure comprehensive protection against potential risks.

Does General Liability Insurance Have a Deductible?

General Liability Insurance for manufacturers oftentimes does not include a deductible. This means that if a claim is made against a manufacturing company, the insurance policy would cover the costs up to the policy limit without requiring the business to first pay a set amount out-of-pocket.

However, it's important to note that insurance policies can vary based on the provider and the specific needs of the insured business. While most General Liability Insurance policies don't have a deductible, some might include one depending on the terms agreed upon when the policy is taken out.

Always review your policy documents thoroughly or consult with your insurance broker to understand the exact terms of your coverage, including whether or not a deductible applies.

What You Need to Get Manufacturer's General Liability Insurance

Obtaining General Liability Insurance is a crucial step for manufacturers to protect their business against potential risks. The process typically involves several key steps and requires providing detailed information about your business operations. Here's the usual process:

1. Assess Your Needs: Understand the specific risks associated with your manufacturing business. This will help you determine the level and type of coverage you need.
2. Find a Trusted Insurance Agent: A knowledgeable insurance agent who specializes in the manufacturing industry can guide you through the process, explain the terms and conditions of different policies, and help you find the best rates.
3. Provide Business Details: You'll need to provide details about your business, including the nature of your work, number of employees, location of your facilities, types of products you manufacture, safety measures in place, and your loss history.
4. Review Quotes: Your agent will provide quotes from different insurers. Review these carefully, paying attention to the coverage limits, exclusions, terms, and cost.
5. Choose a Policy and Purchase: Once you've compared the options, select a policy that best fits your needs and budget. Your agent will assist you in completing the purchase.

The details you might need to provide include:

• Business operations and procedures
• Safety protocols
• Employee details
• Revenue and payroll figures
• Previous insurance policies and claims history
• Information about your products and services

Working with a trusted insurance agent is highly beneficial. They can help navigate the complex world of insurance, ensuring that you get a policy tailored to your specific needs. Their expertise can help you understand policy terms, avoid gaps in coverage, and even assist in the event of a claim. In the ever-changing world of manufacturing, having a reliable insurance agent by your side can provide peace of mind knowing your business is well-protected.

How Much Does Manufacturer's General Liability Insurance Cost?

The cost of a manufacturer's general liability insurance policy varies depending on the size and scope of your business, the types of products manufactured, the number of employees, location, and other factors. Generally speaking, for smaller companies with limited risk exposure, you can expect to pay around $500-$750 per year for a basic policy. For larger companies with more complex operations and higher levels of risk, the cost increases to around $2,000-$3,000 per year.

It's important to note that these numbers are just estimates and actual costs may vary depending on your specific business operations and the insurance company you choose. Your best bet is to work with a trusted agent who can help you compare quotes from several different insurers and find the most affordable policy tailored to your needs.

Compare Manufacturer's General Liability Insurance Quotes

Here at BFIS, we work with a network of trusted insurance agents to help you find the best coverage at the most reasonable price. We understand that in today’s competitive manufacturing industry, every penny counts. Our experienced agents can provide personalized advice, compare quotes from multiple insurers, and assist you in finding a policy that meets your specific needs while staying within your budget.

Start protecting your business today and get a free quote from our network of trusted insurance agents. Fill out our online contact form or contact us today to learn more!