Key Insurance Coverages for Manufacturers

The manufacturing sector is an important part of the American economy. Manufacturing provides an incredible array of consumer and industrial products each year. From small manufacturing operations to sprawling plants, this business sector faces a range of operational risks from employee, property, and liability exposures. Manufacturers in Utah are not immune to these risks, necessitating the coverage available from Utah manufacturer’s insurance. In this guide, we will explore the key insurance coverages manufacturers must have in place, protecting business assets, employees, and owners from losses.

Common Manufacturing Risks

Before delving into Utah manufacturer’s insurance and the crucial coverages all manufacturers must have in place, it can be valuable to gain an understanding of common risks facing this industrial sector. There are many risks, but several stand out as potentially impacting business continuity and income. Common manufacturing risks include:

  • Employee-related injuries and illnesses
  • Property damage/loss
  • Natural disasters (floods, earthquakes, storm activity)
  • Fires
  • Product liability
  • Supply chain/distribution disruptions
  • Burglary/theft
  • Reputational harm 

Within these risks, three stand out. First is supply chain or distribution disruptions. If manufacturers experience these disruptions, operations may grind to a halt. Next, employee-related injuries and illnesses and product liability are of particular concern for manufacturers. The manufacturing sector relies on equipment, machinery, and raw materials that may present potentially hazardous workplace conditions and increase the chances of a serious injury or death of a worker. Product liability concerns arise with the type and quality of products manufactured; a defective or dangerous product can result in recalls and millions of dollars in legal claims. 

Utah Manufacturers Insurance: Essential Coverages

Every manufacturing operation is different, and each business will need insurance coverages to address specific risk exposures. Still, there are several common coverage types that offer protection for the vast majority of manufacturing risks. These include:

General Liability Insurance – perhaps the foundation of Utah manufacturers insurance, this provides basic coverage against a wide range of risks like property damage, third-party injuries or deaths caused by employees performing work-related duties, and reputational harm. 

Product Liability Insurance – manufacturers are duty-bound to produce items that meet established quality and safety standards. Failure to do so may result in consumer injuries or deaths. Product liability insurance helps to cover the expenses associated with legal claims, including legal defenses and judgments or settlements arising from a lawsuit. 

Workers’ Compensation Insurance – required by most states, this valuable insurance protects both the company itself as well as its employees. If a worker is injured on the job, workers’ comp helps pay for medical expenses and lost wages.

Inland Marine Insurance – this insurance provides coverage for products during shipping as well as third-party property housed or managed on business premises.

Commercial Property Insurance – this insurance provides financial compensation if the business property, including buildings or equipment, should become damaged, stolen, or lost. Typically, this insurance covers natural disasters, crime, and fire-related property damage/loss. 

Commercial Auto/Commercial Vehicle Insurance – if you use vehicles in your manufacturing operations, this insurance provides coverage against damage or loss. It also provides liability protection if a vehicle operated by your company should cause property damage, injury, or death to others. 

There are many other types of insurance available; these additional coverages may be needed to provide protection against unusual or unique risks. Utah manufacturer’s insurance policies may be purchased individually or as a package into Business owners’ policies (BOPs). Whatever the type of manufacturing operation or business size, insurance is a key component in risk management. With the right insurance coverages, manufacturing companies can gain peace of mind that their assets are protected against a myriad of business-oriented risks. 

About BTC Insurance Services

Founded in 2011, BTC Insurance Services has proudly served Utah businesses with comprehensive and custom-tailored insurance coverages for a decade. We pride ourselves on fostering long-term client relationships with a personalized and hands-on approach, and have established a reputation built on quality and transparency. For more information about our products and services, we invite you to contact one of our reputable agents today at (855) 944-3457, or send us a message here.

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