Commercial Property Insurance for Manufacturers
Manufacturing property insurance is more than the building. Production machinery, raw materials, work in process, finished stock, improvements and the time required to resume operations all affect how a property program should be built.
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 should a manufacturer set property values?
Start with realistic replacement costs for the building, machinery, business personal property, stock and improvements rather than book value alone. Specialized equipment and long lead times deserve particular attention.
Does property insurance cover a machine that breaks internally?
Not always. Internal mechanical or electrical failure is commonly handled through equipment breakdown coverage, while property insurance responds to covered causes such as fire. The two should be reviewed together.
Why does business income matter so much for manufacturers?
Physical repairs may be only part of the downtime. Replacing specialized machinery, obtaining permits, rebuilding inventory and requalifying production can extend the recovery period.
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.
Want a second look at your manufacturing program?
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