Do Small Manufacturers Really Need Specialized Coverage?

Running a small manufacturing business in Illinois comes with unique challenges and risks that can’t always be addressed by standard business insurance. If you’re a small manufacturer, you may wonder if specialized coverage is truly necessary or if a basic policy is sufficient.

Understanding the Unique Risks for Small Manufacturers

Manufacturing businesses face exposures that differ from those of retailers or service providers. Some of the most common risks include:

• Equipment breakdowns that can halt production
• Product liability claims if a product causes harm or damage
• Supply chain disruptions affecting your ability to deliver orders
• Employee injuries in a production environment
• Property damage from fire, theft or severe weather

Standard business insurance policies may not fully address these risks. For example, a general liability policy might not cover losses from equipment failure or product recalls, two issues that can have a significant impact on manufacturers.

Why Specialized Manufacturing Insurance Is Important

Specialized coverage is designed to fill the gaps left by standard policies. Some key types of manufacturing insurance include the following:

• Product liability insurance may help protect your business financially if a product you manufacture happens to cause injury or property damage.
• Equipment breakdown coverage may assist with repair or replacement costs if essential machinery unexpectedly fails.
• Business interruption insurance may provide financial support if your operations are temporarily halted due to a covered loss.
• Commercial property insurance may financially cover your building, inventory and equipment against certain types of damage or loss.
• Workers’ compensation, which is required in Illinois, may help financially safeguard both your employees and your business if workplace injuries occur.

Tailoring Coverage to Your Business

We help you understand your options so you can make informed decisions about protecting your business. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.