Business Income for Manufacturers
For a manufacturer, the largest loss after a fire or other covered event may be the production that cannot happen. Business income coverage should be built around realistic downtime, continuing expenses, bottleneck equipment and the dependencies that keep the operation running.
Build the program around how the operation actually works.
Manufacturing insurance is not one policy. The right structure depends on the product, process, property, people, contracts and potential severity of a loss.
Important distinctions before renewal.
How long should a manufacturer plan for downtime?
There is no universal answer. Consider rebuilding time plus the lead time to replace specialized machinery, reinstall equipment, test it, rebuild inventory and regain normal production.
What is dependent property coverage?
It can address certain business-income losses caused by covered damage at qualifying suppliers, customers or other dependent locations, subject to the policy wording and limits.
Can extra expense help even if revenue is not fully lost?
Potentially. Extra expense coverage can reimburse certain additional costs incurred to avoid or minimize a suspension, subject to the policy terms.
Coverage descriptions are general. Actual coverage depends on the specific policy forms, endorsements, limits, exclusions and facts of a claim.
Keep digging into the exposures that matter.
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