Manufacturer

If you are a manufacturer, you undoubtedly know that the typical manufacturing company is much more complex than the standard commercial enterprise. That is exactly why a standard Business Owners Policy is not adequate for most manufacturers. For example, your operation might need special coverages to protect expensive machinery and unique liability exposures. At Meslee Insurance, we understand that due to the multifaceted nature of the manufacturing business, you must have special needs. Our licensed staff is trained to consult you and study your particular business to obtain the most comprehensive policies at the most affordable pricing. With access to a vast network of commercial insurance providers, we are equipped with the necessary tools to get you the very best the market has to offer. By arranging custom policies with custom coverages, we do our best to be certain that our clients obtain policies that suit their needs and protect them from the distinctive risks that they are exposed to. Furthermore, we make it our priority to obtain policies with as little gaps in coverage as possible so that you are not confronted with surprises after the fact and are protected should a loss occur. Don’t make the mistake of simply binding a policy to satisfy requirements like so many other manufacturers do! Instead, speak to one of our commercial licensed representatives to ensure that you have the proper coverages to protect your livelihood.

 

Basic Coverages to be considered when obtaining a Manufacturer BOP include:

 

I: Business Property Insurance:

  • Building Property Coverage: Coverage to help you quickly repair or rebuild damages to the structure of the store. (Can be covered at Replacement Cost or Actual Cash Value)

  • Business Personal Property Coverage: Coverage to help you replace the contents in your store such as computers, desks, phones and more. (Can be covered at Replacement Cost or Actual Cash Value)

  • Business Income Coverage: Also known as Business Interruption Coverage, Business Income Coverage will allow you to continue to receive income while your store is being repaired or rebuilt. Not only does it cover costs for payroll and operating expenses but will also help by replacing lost revenue.

  • Outdoor Signs Coverage: Covers costs to replace outdoor signs, plants and shrubs, fences and more.

  • Ordinance or Law Insurance: Ordinance or law insurance covers the costs associated with having to demolish and rebuild to code when your building has been partially destroyed.

  • Other: Just like with wholesalers and retailers, manufacturers have exposures unique to the their industry. Meslee Insurance can help you find particular coverage endorsements that fit your operation. Additional endorsements available include but are not limited to: Product Recall & Replacement Coverage, Accounts Receivable and Valuable Papers & Records coverage, Brands & Labels Coverage, Equipment & Machinery Breakdown Coverage, Coverage for Increased cost of construction, Utility Services Coverage & Spoilage (Temperature Change) coverage.

 

II: Business Liability Insurance:

  • Premises & Operations Liability: Coverage that protects you from liability for injury or damages arising out of your premises or your business operations. For example, if a customer slips in your warehouse and decides to sue you for injuries, premises and operations liability will cover injury and defense costs.

  • Products and Completed Operations: Coverage that protects you from liability arising out of your products or business operations conducted away from your premises once those operations have been completed or abandoned. For example, you are in the business of wholesaling electronics and someone gets hurt while trying your product. Should the case go to court, products and completed operations coverage will help handle the defense costs and legal damages that come with service of suit.

  • Personal & Advertising Injury Liability: Insurance that covers liability for a group of specifically named offenses not related to property damage or bodily injury but are common exposures to most organizations. Examples of this are false arrest, wrongful eviction, malicious prosecution, libel, slander, invasion of privacy, copyright infringement and more.

  • Employment Practices Liability: Coverage that protects you from wrongful acts arising from the employment process such as wrongful termination, discrimination and sexual harassment. EPLI coverage is also offered as a standalone policy and more information can be found by visiting the EPLI section of our website.

  • Other: Just like with Business Property Insurance, there are many liability endorsements that can be found to protect your particular situation as a manufacturer. Examples of these could be Contractual & Advertising Liability coverages, Personal injury coverage, Parking area liability coverage and even Errors & Omissions coverage (for printing).

 

III: Business Crime Insurance:

  • Employee Dishonest Coverage: Coverage that protects you from situations where your employee or group of employees are stealing inventory or acting dishonestly in various ways.

  • Money & Securities: Coverage that protects you from theft of money or other property stolen from your premise or from an employee performing tasks like going to the bank for a deposit.

  • Money Orders & Counterfeit Paper Currency Coverage: Coverage that protects you should you discover that customers have been using counterfeit currency to purchase your products or services

  • Forgery & Alteration Coverage: Coverage that protects you from outside accountants or bookkeepers that are acting dishonestly. An example of this could be a bookkeeper that is writing themselves checks payable by you!

 

Some Manufacturing Operations that we commonly work with:

  • Computer Manufacturers

  • Office Equipment Manufacturers

  • Electrical Equipment Manufacturers

  • Appliances Manufacturers

  • Food Manufacturers

  • Food Processors

  • Luggage Manufacturers

  • Personal Leather Goods Manufacturers

  • Metal Working/Metal Product Fabrication

  • Paper & Allied Products

  • Plastic Products

  • Precision Equipment

  • Publishing & Commercial Printing

  • Stone & Clay Products

  • Glass Products

  • And More

 

The most common mistake: Product Recall Insurance vs. General Liability Insurance

We see it almost every week headlining the news. Over the years, stories on companies recalling defective products from the market place have become increasingly frequent. With manufacturers, this is one of the most important risks and coverages to understand. Many manufacturers believe that the costs associated with recalling defective products are covered under the general liability portion of their insurance policy; however, this is only slightly true. When dealing with product recall, it is important to understand that there are two financial risks that you will most likely have to deal with. Firstly, you must deal with the third party allegations of bodily injury and property damage caused by your defective product. For example, you are a baby stroller manufacturer and due to a defect in your product, a baby falls out of the stroller and is severely injured. In turn, the family files a lawsuit against you claiming damages and injury to their child. The cost to defend yourself or pay for damages would be covered under the product liability portion of your insurance policy. But what about the costs associated with recalling your product from the marketplace? If you have ever been in this situation, you know that these costs can skyrocket rather quickly. Although many believe that these costs will also be covered by the product liability portion of the policy, this is generally not the case. In fact, in order to have protection, you must explicitly endorse your policy so that it includes Product Recall Insurance.

Product Recall Insurance can be added to your manufacturer’s insurance policy to cover the cost of withdrawing your product from the marketplace or in some cases destroying the product completely. Furthermore, certain policies may even provide funding for crisis management through the use of public relation firms. Time and time again, we have been approached by manufacturers who did not have the appropriate coverage and only discovered this after the fact. Dealing with the right insurance agent can make all the difference in the world. Does it cover voluntary recall or recall ordered by the government or another agency? Does it include coverage for replacement or cost to destroy the recalled product? What are the territorial limits included? Our staff has experience dealing with these situations are here to answer your questions.

 

Other information

  • The coverages listed above are general coverages that you will find on most Manufacturer BOP policies. Additional and more specific coverage options are available based on the type of business.

  • Please visit our insurance glossary tab for a full list of insurance terms and definitions.

  • There are many discounts available to help reduce your premium. Please visit our learning insurance discounts page to find out more information on how to maximize your savings.

 

This page contains only a general description of coverages and is not a contract. Details of coverage or limits may vary in some states and by carrier. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements.

 


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