Recent manufacturer lawsuits in the news:
- Defective cars and car parts that cause crashes, injuries, or death.
- Children's product recalls.
- Pharmaceutical side effects.
- Patent-infringement lawsuits.
- Frivolous lawsuits against pencil manufacturers for causing students' educational crises.
What would you do if you were subject to a liability suit for more than your current insurance covered?
Thankfully, here at InsuranceHub, we help:
- Electronic manufacturers
- Appliance manufacturers
- Car manufacturers
- Parts manufacturers & more
We understand the liabilities that manufacturers like yourself face. Working with mechanical machinery that assembles parts presents its own set of liabilities to protect your employees from. Harsh chemicals used in the manufacturing process require proper storage and disposal according to the EPA. You face the liability that comes from product recalls due to design flaws, improper usage by the end user, and human mistakes and error.
Types of exposure that product manufacturers need to protection from:
Property exposure: Factories, offices, plants, warehouses, and storage yards that house raw materials and finished products present the risk of fire and smoke damage. There's also the risk that comes along with chemical suppression systems. Then, of course, there's the risk of theft.
Equipment breakdown exposures: What if your production equipment and machinery break down? This will cause you to lose production time and revenue. Plus, you might miss client deadlines.
Inland marine exposures: As long as you have computers, valuable records, accounts receivable, and products coming in and out of your factories, you have potential exposure to fire, theft, spillage, contamination, and collision.
Premises liability exposure: Chemicals are used daily in the production process. A fire could cause toxic fumes that could injure or kill your employees.
Products liability exposures: End users could be hurt by defective parts and products. Small parts can be swallowed by toddlers. Chemicals used in glues, epoxies, and adhesives could be toxic. People have been injured because of improper storage, packaging, or labeling. Manufacturers' directions can be difficult to understand and can lead to improper assembly or installation.
Environmental impairment exposure: The end byproduct of the manufacturing process is often pollution of air, ground, and water. Work along with the EPA to ensure you are working within state and federal guidelines.
Automobile exposure: Check all drivers' DMV records before training them to drive. Make sure that all drivers have proper CDL and HAZMAT licensing. Provide preventive maintenance for all vehicles and keep detailed records of your maintenance program.
Workers compensation exposures: Factories present many opportunities for injuries like burns, slips, trips, and falls. Chemicals can cause eye irritation and burns. Back injuries can result from improper lifting techniques. Teach economical processes to avoid repetitive stress injuries.
Minimum recommended manufacturing insurance coverage:
- Business Personal Property
- Business Income with Extra Expense
- Equipment Breakdown
- Employee Dishonesty
- Accounts Receivable
- Goods in Transit
- Valuable Papers and Records
- Environmental Impairment Liability
- General Liability
- Employee Benefits Liability
- Commercial Umbrella Liability
- Hired and Nonownership Auto Liability
- Workers Compensation
Other product manufacturers insurance coverages to consider: