The manufacturing industry is as complex as it is competitive. No other business is exactly like yours. Due to the nature of custom builds and unique engineering, standard bodily and property damage insurance might be insufficient. You need to find comprehensive manufacturing insurance that fits your particular needs.
General liability coverage doesn’t usually cover damages due to performance failures or defects in products. When you’re covered by Errors & Omissions insurance, or E&O, you have an extra layer of protection against claims outside of a standard policy. This kind of insurance takes effect if your company ever has to face allegations of negligence due to the use of any of your products.
How a Policy Is Crafted
Your insurance coverage will be based upon several factors. These include the financial stability of your company, what kinds of products you make, how much professional experience you have and your annual revenue.
Add-Ons You Might Need
Consider what kind of business you have and talk to your insurance professional about types of solutions specific to your industry. Do you need patent infringement coverage? Are your products at risk of being recalled? What about foreign liability?
It’s best to talk to a manufacturing insurance professional who is well versed in the trends, regulations and compliance policies specific to your industry. They will be able to pinpoint any risks you might face and know how to cover them.