Manufacturing Insurance
What You Need to Know About Manufacturing Insurance in Ontario
Ontario manufacturing businesses face unique risks that businesses in other industries don’t need to deal with. If you own a manufacturing operation you’ll want to make sure it’s protected with the right insurance. You’ll need coverage that is as flexible and comprehensive as your operations are, not a one-size-fits-all insurance product.
That’s why we, at James Campbell Insurance, will work with you to make sure that you receive the best value and insurance coverage that fits the exact needs of your manufacturing business.
What Is Manufacturing Business Insurance?
Manufacturing insurance is designed to reimburse your manufacturing business for a number of different types of losses. This can include companies that produce raw materials, assemble products, or produce and assemble goods for sale.
Who Needs Manufacturing Insurance Coverage?
If you own a factory of any kind, you will need insurance. When you are responsible for producing or assembling items for consumers or other businesses there are many legal risks and threats to keep in mind. Any business from clothing to candy manufacturers, machine shops, product distributors, printing and publishing services, and everything in between, should consider getting coverage from a reputable manufacturing insurance company.
Is There a Standard Manufacturing Insurance Policy?
There are no standard policies for manufacturing insurance, but there are a few basic coverages that you should consider, such as:
- General liability protection, which covers you in the event of injuries or damage
- Commercial property insurance that covers your building’s interior and exterior, as well as display windows and signs
- Building contents, which can be very important if you are a renter
- Production machinery covers the costs of mechanical breakdown and for the replacement of equipment
- Business interruption coverage protects your business from any loss of profits in the event of an insured loss
You can build your own comprehensive manufacturing insurance package with the help of James Campbell Insurance brokers that will help meet your needs as you grow.
Here are some more examples of important manufacturing insurance coverages for today’s manufacturers:
Pollution and Environmental
Pollution and environmental laws are constantly being revised and updated on local and international levels. Having the right environmental and pollution insurance policy ensures that in the worst-case scenario your manufacturing facility will have the coverage you need to help clean up costs of any accidental spills or leaks.
Errors and Omissions
If a mistake occurs during the manufacturing process that results in issues with a client’s production, your errors and omissions coverage will help cover you if your product fails to perform at your client’s expectations.
Directors and Officers
Directors and Officers coverage will give your organization’s directors and officers protection when a claim of management oversight or negligence is made. These types of claims can crop up due to employee dismissals, shareholder frustrations, or any other significant management decisions.
Product Liability
While you might go through significant quality control initiatives, accidents can still happen and mistakes can still be made. As a result, you might find yourself – and your business – on the receiving end of a lawsuit. This is where product liability can ensure you are protected.
Intellectual Property Insurance
Intellectual property (IP) insurance can help your company fight against claims of IP infringement, and it can also help you pursue those infringing on any of your patents, copyrights or trademarks. IP infringement policies are usually a result of a third party alleging that their intellectual property rights are being infringed upon by the products being manufactured (which can include the process of the manufacture), sold, or distributed by the defendant.
Product Recall Insurance
Manufacturers are usually left to absorb the costs of having to recall their products due to defects, safety issues, or contamination. This can be costly, and, along with the financial impact, it can harm the reputation of your business. Product recall insurance will help you pay for the financial costs related to recalling your products.
Considerations for Certain Manufacturers
Different manufacturing companies can have vastly different risks. Your manufacturing insurance policy should account for exactly what you are producing and the services you are providing. Manufacturing operations can vary widely. Here are two examples that need special consideration:
Aviation or Aerospace Manufacturing
Some standard policies will have exclusions for product liability claims that originate from aviation or aerospace-related operations. If you own a manufacturing facility that produces these products, then you should ensure that this exclusion does not apply to you. In addition, you might need to purchase a separate products liability policy in order to fill any coverage gaps.
Breweries, Distilleries, or Wineries
Unlike other types of manufacturers, there are added risks associated with producing alcoholic beverages. If someone is served over their limits, there is the potential that you could be held liable. This is particularly true if you also serve drinks directly to your customers. Be sure that your manufacturing insurance policy covers you in the event of a liquor liability claim from your business locations as well as off-premises.
Choose James Campbell Insurance for Your Manufacturing Insurance Solutions
At James Campbell, we put you first. Our clients are our top priority and the backbone behind everything we do.
We can help provide you with protection from insuring your first car, your first home or business or even giving you protection during your retirement travels. Whatever you need coverage for, we’ve got your back. We will make sure that you are ready to live a life free of stress or worry so you can focus on life’s important moments each and every day.
James Campbell Insurance Brokers have been taking care of our members for over 40 years. This is why we are able to make insurance easy by offering you the right solutions at the right times. Our solutions are tailored to fit your individual needs, no matter what they may be.
