NJ Manufacturer Insurance & Industries

By Jeffrey Smith

The manufacturing industry is a cornerstone of our modern society. Whether it means making the food someone eats for lunch, or crafting the cabinets they store that food in, or producing a part for the car they drove in to buy it, manufacturing businesses accept a big responsibility in producing and providing products for consumers. That responsibility carries a variety of risks and a wide range of liability along with it. What if your product doesn’t work the way it’s supposed to? What if someone gets hurt making or using your product? What if something happens to a piece of equipment that’s essential to your manufacturing operations, impairing your ability to make money and pay your employees? Manufacturer insurance is imperative for manufacturing companies – to ensure the safety of the business and everyone it touches, as well as its success and longevity.

What is Manufacturer Insurance?

Manufacturer insurance is commercial insurance that meets the specific needs of manufacturing companies – whether they be large or small businesses. It is a safety net for your commercial property, your company vehicles, the employees working for you, your customers, and much more. Each manufacturing business insurance policy is as unique as the business and the product it protects. The cost of manufacturing insurance varies depending on the type of work and the diverse array of risks and hazards involved.

Hanson & Ryan has been supporting businesses with their insurance needs since 1876. We offer comprehensive commercial insurance opportunities, and we would love to learn more about your business so we can tailor an insurance portfolio that is the perfect fit for you.

What Does Manufacturer Insurance Cover?

All manufacturing companies have different needs depending on the work they do, their size, how many people they employ, and where they work. But there are some key elements every manufacturing business insurance policy should have.

Liability

General liability insurance covers things like:

• Accidents and property damage – to cover costs of medical bills or legal claims in the case of bodily injury, or repairs in the event of damaged property.
• Personal and advertising injury – to cover legal costs for defending against claims of libel, slander, invasion of privacy, copyright infringement, or theft of ideas.

Additional Liability coverages:

• Environmental and pollution – to cover cleanup costs, potential legal fees, bodily injury, or property damage associated with environmental hazards and possible pollution.
• Cyber liability – to cover costs associated with repairing computer systems, legal fees, recovering data, and informing customers in the event of cyber breaches of sensitive data your business maintains (like customer names, addresses, credit card or social security numbers, or other personal information in today’s highly-digital age).
• Employment practices – to cover legal expenses for claims of discrimination, harassment, retaliation, and wrongful termination in your hiring practices or during an employee’s term of employment.
• Professional – to cover non-criminal liability related to claims of misrepresentation, negligence, errors, and omissions, sometimes called manufacturing E&O insurance.

Unfortunately, we live in a litigious world where many disputes end up being resolved in a court of law. Being prepared and guarding against such measures is necessary for the endurance of your business. You can learn more about Hanson & Ryan’s wealth of liability insurance offerings here.

Workers’ Compensation

This insurance coverage is a particularly important element of manufacturing business insurance. Employees working in manufacturing are often at high risk of injury while working with heavy machinery, which may increase not only the prevalence, but also the severity of bodily harm in comparison to other industries.

Workers’ compensation insurance supports workers in the event of injury, helping to pay for medical bills, lost wages, and disability compensation. It will pay benefits to the family of an employee in the tragic event that an accident at work leads to their death. It also protects the business as the benefit recipient waives their right to sue the company for their injuries.

States usually mandate that companies carry workers’ compensation insurance, and every state has different requirements.

Property

Property insurance is fairly standard for all business, but it is especially critical for manufacturing companies since it covers some of the most fundamental components of their business operations. Property insurance for commercial businesses covers not only the physical space of your manufacturing operations, but it also covers the physical assets and objects inside, including:

• Furniture, equipment, and supplies
• Inventory
• Money and securities
• Records and other important documents
• Machinery and equipment
• Computers
• Signage
• Fencing
• Other outdoor property not attached to the building
• Intangible property like trademarks, etc.

Hanson & Ryan offers a wide range of property insurance types, including:

• Business property – to cover the physical assets of your brick-and-mortar space and what is inside of it, including what is listed above and more.
• Business interruption/business income – to protect your business if an incident occurs at your operation that temporarily disrupts your work and prevents you from gaining income and paying your employees.
• Tenants’ improvement and betterments – to protect your business in the event of damage to a rented space during renovations or other improvements. If you are renting the space where your business operates, you will likely make upgrades to the property over time, and it is often unclear who is responsible if the building is damaged or destroyed during construction.
• Equipment breakdown – to cover costs in case your equipment breaks down, including repairs, replacements, cleanup of hazardous material, data restoration, and losses suffered through spoiled perishable goods and service and income interruptions.
• Inland marine – to cover losses to equipment suffered during transport. Don’t be fooled by the name – this covers losses on land during transport, including vandalism, theft, breakage and other transit-related property damage.
• Ocean marine – to protect the vessels and cargo involved for any company that ships goods at sea. It also safeguards against third-party liabilities like property damage, bodily injury, and cleanup and removal in the event of a wreck.

Commercial Vehicles

Commercial auto insurance protects manufacturing companies, even if your company doesn’t own any vehicles to do its business. This manufacturing business insurance covers:

• Hired and non-owned vehicles
• Rental car coverage, as policies offered at rental agencies may void existing coverages offered by other insurance companies.
• Personal automobiles belonging to your employees if they use them while on the job, even if it is for a simple trip like one to the bank to make a deposit.
• Personal injury to cover medical bills in case one of your employees is injured in a vehicle accident while conducting your business, regardless of who is determined to be at fault.

Manufacturing Industries We Insure

As you have read, there is a multitude of risks involved in manufacturing operations – many that could have serious consequences to your business, employees, customers, reputation, and livelihood. Having robust and comprehensive manufacturer insurance is as fundamental to your prosperity as the quality of your product. With over 140 years of experience protecting you and your business, Hanson & Ryan is honored to offer superior insurance portfolios and services to the following manufacturing industries:

• Medical equipment
• Textiles
• Cabinets
• Down/feather products
• Frozen foods
• Metals

Manufacturer Insurance Agents in New Jersey

Establishing manufacturer insurance, like starting and running a business, can be a complex and overwhelming process to navigate. There are many elements to consider when deciding the policy that is right for you. At Hanson & Ryan, we specialize in working with you to develop a through understanding of your business, the work you do, and the products you manufacture. Armed with that knowledge, we collaborate with you to create a plan tailored to the unique needs of your business. Please contact the experts at Hanson & Ryan today to get started. We look forward to hearing from and working with you!