When running a manufacturing business, protecting your operations with the right insurance is essential. Manufacturing brings complex risks—property damage, liability claims, and equipment breakdowns, just to name a few. To stay covered, you’ll need policies tailored to your work, equipment, and products. Below are common insurance coverages for manufacturers and why each matters.

Property Insurance

Start with property insurance. This coverage protects your buildings, equipment, raw materials, and finished inventory. It helps pay for repairs or replacements if fire, storms, theft, or vandalism cause damage. Manufacturing sites often hold expensive assets. A property policy ensures you can recover quickly from loss. You can also customize it to cover high-value machines or tools stored offsite.

General Liability Insurance

Next, consider general liability. It protects your company if someone gets hurt at your facility or if your operations damage someone else’s property. Lawsuits are expensive. This policy covers legal fees, court costs, settlements, and judgments. It’s especially helpful when products go to consumers, retailers, or contractors.

Product Liability Insurance

If you manufacture goods, you face risk even after the product leaves your hands. That’s where product liability comes in. It covers injuries or damage caused by design flaws, faulty manufacturing, or poor instructions. Even one defective item can lead to costly claims. This coverage steps in to manage the legal and financial fallout.

Business Interruption Insurance

A serious incident—like a fire or flood—can stop production. Business interruption insurance helps in those moments. It replaces lost income when you can’t operate. It also helps pay for ongoing expenses like rent, utilities, and payroll. This coverage helps you stay afloat while you repair and rebuild.

Equipment Breakdown Insurance

Your equipment powers your production line. If it fails, everything can grind to a halt. Equipment breakdown insurance covers repair or replacement costs. It also helps if downtime leads to lost income. Use this policy to protect against sudden mechanical failures, electrical issues, and pressure system breakdowns.

Commercial Auto Insurance

Do you use company vehicles to transport products or supplies? You’ll need commercial auto insurance. It provides coverage for vehicle damage, driver injuries, and third-party claims. Whether you operate a fleet of trucks or a few forklifts, this coverage helps manage accidents on and off your property.

Workers’ Compensation Insurance

Manufacturing jobs can be dangerous. If an employee gets hurt on the job, workers’ compensation covers medical costs and lost wages. In most states, this insurance is required. But even if it’s not, offering it shows your team you value their safety and well-being.

Cyber Liability Insurance

Many manufacturers rely on digital systems for operations, ordering, or logistics. If your systems are breached or data is stolen, cyber liability insurance can help. It covers costs tied to data recovery, breach notifications, and lawsuits. In a connected world, this is one risk you can’t afford to ignore.

Environmental Liability Insurance

Manufacturing processes sometimes produce waste, chemicals, or emissions. If something leaks or contaminates nearby land or water, cleanup can be expensive. Environmental liability insurance helps cover those costs. It also protects you if someone sues over pollution or environmental damage caused by your business.