Manufacturing Insurance in Massachusetts

What is Manufacturing Insurance?

Massachusetts businesses that are in the manufacturing business face a variety of risks, including both property and liability perils. These risks are often substantial, and it’s important to protect against them when possible. One way that manufacturers can protect themselves from many risks is by purchasing manufacturing insurance.

Manufacturing insurance is specialized commercial insurance for businesses in the manufacturing industry. In order to provide manufacturers with multiple protections, these policies are normally underwritten as package policies that combine several coverages together.

Do Manufacturing Policies Come With Workers Compensation?

Workers compensation is an important protection that normally protects against workplace injuries and illnesses, which are not insignificant risks in the manufacturing industry. Manufacturers that have employees are often required by state law to carry the coverage, and it may pose both a significant liability risk and potential legal issue not to.

In many cases, workers compensation isn’t included in manufacturing policies but is purchased separately. An insurance agent who’s familiar with manufacturing policies can also assist with workers compensation.

What Massachusetts Businesses Need Manufacturer Insurance?

Most businesses that manufacture products in Massachusetts can likely benefit from having manufacturer insurance. Not purchasing insurance can leave businesses unnecessarily and dangerously exposed to significant risks, and this is typically the most appropriate type of insurance for businesses in the manufacturing space.

A few specific examples of businesses that might want a manufacturing policy include:

Beverage Manufacturers (e.g. coffee roasters, beverage bottlers, wineries, breweries)
Food Manufacturers (e.g. bakery plants, cheesemakers, confectioners, ice cream makers)
Metalworks Manufacturers (e.g. hardware makers, machine shops, metal goods makers)
Non-Metal Manufacturers (e.g. clockmakers, monument makers, signage companies, leather smiths)

Meat processing plants, slaughterhouses, textile mills, machine shops and box makers are some other businesses that might want manufacturer insurance. The list of potential companies is long.

Any business that’s unsure if this is the best insurance for it should consult with an insurance agent who specializes in manufacturer policies. A specialized agent will be able to make an informed policy decision based on a business’ specific operations and risk profile.

What Coverages Do Manufacturing Policies Come With?

The combination of coverages that are found in manufacturing policies can vary, especially since policyholders can usually customize coverage options. There are a number of coverages that policies might make available:

Manufacturing Consequential Loss Coverage, which may cover damage to manufacturing stock
Consequential Loss to Stock Coverage, which may cover financial losses arising from being unable to use damaged stock
Valuation-Selling Price Coverage, which may cover manufactured products at their expected sale price
Inland Marine Coverage, which may cover manufactured products as they’re distributed to customer locations
Equipment Breakdown Coverage, which may cover vital equipment in the event of a malfunction
Product Liability Coverage, which may cover injuries or damage caused by manufactured products
Manufacturers Errors and Omissions Coverage, which may cover errant advice given to customers
Product Recall Expense Coverage, which may cover costs related to certain product recalls

When considering coverages and limits, it’s important to remember that manufacturers’ risks frequently extend well beyond the actual production of a product. Inland marine and product liability are important projections.

Where Can Massachusetts Manufacturers Get Manufacturing Insurance?

For help finding manufacturing insurance in Massachusetts, contact the independent insurance agents of Roger Butler Insurance. Our agents can help you determine what coverages your business needs, and we have the expertise necessary to make sure you find a policy that provides the required coverages. Since we’re an independent agency, you can be confident that you’ll get the best available policy regardless of who offers it.