Is Your Manufacturers Insurance Coverage Keeping Up with Your Equipment Upgrades?

As manufacturers invest in new technology and equipment to stay competitive, it’s essential to verify that your business’s insurance coverage evolves alongside these upgrades. At Pitcher Insurance Agency, Inc., we understand how quickly manufacturing operations can change and how important it is for your insurance policies to keep pace.

Why Equipment Upgrades Matter for Insurance

Modernizing your machinery, upgrading your equipment or expanding your production line can increase your business’s value and productivity. However, these improvements may also introduce new risks, exacerbate existing concerns or raise the replacement cost of your assets. If your insurance policy hasn’t been updated to reflect these changes, you could find yourself underinsured in the event of a loss and facing expensive out-of-pocket costs.

Key Considerations for Manufacturers

Responsible manufacturing businesses should consider the following factors when determining if their insurance remains sufficient:

• Asset value—New equipment often means higher replacement costs. Outdated policies limits may not sufficiently cover your investments.
• Operational changes—Upgrades can alter your workflow, introduce new hazards or require different safety protocols. Any such changes could significantly impact your risk profile and subsequent coverage needs.
• Compliance and regulations—Certain regulations and industry standards may require carefully crafted coverage for certain types of machinery or processes.
• Business interruption potential—If equipment is critical to your operations, it’s important to review your business interruption coverage to make sure it matches your current needs.

How Our Team Can Help

Our team at Pitcher Insurance Agency, Inc. has extensive experience helping manufacturers review and tailor their insurance policies. We work closely with our clients to guide them through the following steps:

• Evaluate current equipment and coverage limits.
• Identify gaps or overlaps in policies.
• Recommend coverage adjustments to reflect new investments.
• Provide ongoing support as your business grows and changes.

Ready to review your manufacturers insurance or discuss your latest equipment upgrades? Contact us today to schedule a coverage review with our experienced team.

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.