A Guide to Insurance for Small Manufacturers
June 6, 2023
Small manufacturers are a vital part of the economy, but they are also at risk for a variety of hazards. From property damage to employee injuries, there are many things that can go wrong during manufacturing. That’s why it’s important for small manufacturers to have the correct insurance policies in place.
There are a variety of insurance policies that are available to small manufacturers. The most common types of insurance include:
- Property Insurance: Covers damage to your property, such as your building, equipment, and inventory.
- General Liability Insurance: Covers claims made against you by third parties for bodily injury or property damage.
- Workers’ Compensation Insurance: Covers medical expenses and lost wages for employees who are injured on the job.
- Business Interruption Insurance: Covers lost income and expenses if your business is forced to close due to a covered loss.
Specific Insurance Needs for Small Manufacturers
In addition to the general insurance policies mentioned above, small manufacturers may also need to consider additional insurance policies to protect their specific needs. Some of the more specialized insurance policies that may be important for small manufacturers include:
- Product liability insurance: Covers claims made against you by customers who are injured by your products.
- Environmental liability insurance: Covers claims made against you for environmental damage caused by your business.
- Cybersecurity insurance: Covers the costs of data breaches and other cybersecurity incidents.
The specific insurance policies that you need will depend on the nature of your business and the risks that you face. It’s important to work with an insurance agent to assess your risks and choose the policies that will provide the best coverage for your needs.
The Cost of Insurance for Small Manufacturers
The cost of insurance for small manufacturers can vary depending on several factors, including the size of your business, the type of insurance you need, and your risk profile. However, in general, the cost of insurance for small manufacturers is relatively affordable.
In fact, according to The Hartford, small businesses on average pay $1,057 per year for General Liability Insurance and $840 per year for Workers’ Compensation Insurance. This is a small price to pay for the peace of mind that comes with knowing that your business is protected from financial ruin in the event of a loss.
Insurance is an important investment for small manufacturers. If you are a small manufacturer, working with an independent insurance agency, like Lewis Mohr, can help you determine the right insurance policies for your business and get quotes from multiple insurers. By following these tips, you can ensure that you have the right insurance coverage to protect your small manufacturing business.