Insurance for Industrial & Equipment Manufacturers
Manufacturers of machinery and industrial equipment can have substantial property values, complex products liability, installation or service exposures, and significant downstream consequences if equipment does not perform as intended.
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.
Does products liability cover a machine that simply fails to perform?
Not necessarily. Products liability under a general liability policy is generally centered on covered bodily injury or property damage. Pure financial loss tied to performance, specifications or delay may require different analysis and can be one reason to evaluate manufacturers E&O.
Does installation change the insurance program?
It can. Installation or service work may add jobsite liability, commercial auto, inland marine/tools, workers’ compensation and contractual requirements that do not exist for a manufacturer that only ships finished products.
Why are replacement lead times important?
If a specialized machine or production line takes months to replace, the period of interruption can outlast the initial physical repair. Business-income planning should reflect realistic recovery timelines.
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?
Send us a few basics and we will follow up to learn more about your business, current program and upcoming renewal.