Top Insurance Claims in Manufacturing and How to Prevent Them

Manufacturing businesses in Illinois face a unique set of risks every day, from equipment breakdowns to workplace injuries. Insurance claims can be costly and disruptive for manufacturers. Working with an insurance broker can help manufacturers identify common risks and take proactive steps to prevent losses.

Common Insurance Claims in Manufacturing

Manufacturers may encounter various types of insurance claims, including:

• Property damage—Fires, equipment malfunctions, and severe weather can damage buildings, machinery, and inventory.
• Product liability—Claims may arise if a product causes injury or property damage due to design flaws, manufacturing defects, or improper labeling.
• Workers’ compensation—Employee injuries from slips, falls, repetitive motion, or machinery accidents are among the most frequent claims.
• Business interruption—Unexpected events like fires or equipment breakdowns can halt production, leading to lost income.
• Theft and vandalism—Losses from stolen materials, tools, or intentional property damage can impact operations.

How to Prevent Common Claims

Reducing risk is essential for keeping your business running smoothly and minimizing insurance costs. The following are some practical strategies:

• Enhance workplace safety. Implement regular safety training, enforce the use of personal protective equipment, and maintain clear walkways to reduce accidents.
• Maintain equipment. Schedule routine inspections and maintenance for all machinery to prevent breakdowns and fires; secure appropriate coverage, like equipment breakdown insurance, just in case.
• Strengthen product quality controls. Establish thorough testing and quality assurance processes to catch defects before products reach customers.
• Improve security measures. Install surveillance cameras, secure entry points, and conduct background checks to deter theft and vandalism.
• Develop a business continuity plan. Prepare for unexpected disruptions by identifying backup suppliers, creating emergency response procedures, and reviewing your insurance coverage regularly.

Contact Us

Our team at Pitcher Insurance Agency, Inc. specializes in manufacturing insurance and risk prevention for Illinois businesses. We work closely with plant managers and business owners to tailor coverage and provide guidance on loss control strategies that fit your unique operations.

Contact us today to discuss your manufacturing insurance needs and how we can help protect your business.

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.