Insurance jargon: What do the terms really mean?
It’s important to be specific, especially when it comes to insurance issues. You need to know exactly what you’re covered for, when your coverage can
Auto Part Makers’ Insurance
Product recall, damaged tools, and liability issues that come with faulty products can complicate matters quickly, whether you manufacture auto and truck operating parts, body parts, reefers, or other vehicle accessories. Make sure your tools and machinery are covered – as well as the work itself – by adding some specialized extensions to your basic Commercial General Liability (CGL), Property, and Auto insurance coverage.
What kind of insurance coverage do non-critical auto part makers need?
Precise tool, multi-step processes, and critical vendor relationships can make the manufacturing of non-critical auto parts a difficult job. We’ve compiled a policy to address common challenges, concerns and demands at each step of the way, with coverages like:
When can auto part insurance come to your rescue?
Your business relies on your skill and care as much as it relies on your specialized equipment: if you make a small mistake in the production phase, it could compromise the finished vehicle, and the blame could fall on you.
Need more? No problem.
We have some automatic extensions too, like Product Recall Expense, Negative Publicity, and Defective Goods Repair or Replacement Extension for claims made.
Coverage that fits the mould (and pattern)
Working with expensive moulds, dies, forms, and patterns can be risky. If your customer supplies you with dies to make a certain auto body part, you could be responsible for the safety of the dies – even if you were to lend them to another company who was helping with the project. If a fire breaks out at that subcontracted plant and destroys those dies, you could be responsible for the costly consequences.
Our Moulds and Patterns coverage provides full replacement cost for dies, moulds, patterns, models, and forms at any location in Canada or the United States, whether it’s your own workspace or another company’s property.
Fixing a costly mistake? Let us help you
When you work with precise parts and complex machinery, defects can happen, and sometimes they go unnoticed for a while. If your auto parts were turning out with rough and sharp edges, causing you to suspect a defect in your production process, you may decide to suspend production and recall the parts.
Recalling a product is no easy feat – and it can get expensive. With Product Recall Expense coverage, a parts manufacturer would be covered for some of the expenses involved in recalling a defective product, and Manufacturers and Wholesalers Product Impairment coverage would reimburse the manufacturer’s loss of business income (up to $50,000) that comes from the recall.
Protect your bottom line against cybercrime
If you work with a computer system, you’re vulnerable to cybercrime – regardless of your industry. For instance, an auto parts manufacturer’s computer system could transmit a virus through its integrated inventory management software, disrupting the data that reaches customers. If those customers are unable to manage orders and inventory, they could lose a significant amount of income and sue you for damages.
Our Cyber Risk policy will help you here. It offers protection against lawsuits that stem from the transmission of computer viruses, helping your business stay afloat. Cyber Risk can also protect against losses resulting from network security breaches, privacy breaches, and internet media liability, plus policyholders have access to a consultation from a leading data risk management provider at no additional cost.
Managing Risk
We know that the risks your non-critical auto part manufacturing business faces are different that the risks affection other manufacturing businesses. We also believe that you can help to defend against your unique set of risks with the right information and some smart guidance.
Our value-added services focus on helping you identify and mitigate the risks your business faces each day. An assessment of your protection systems, hazardous materials, and best practice risk control measures can help uncover the inherent risks associated with the equipment and materials you use. In-person consultations carried out by experienced risk services professionals can leave you with the knowledge and confidence you need to protect every aspect of the business you’ve worked so hard to build.
Resources for Manufacturing
6 key business interruption risks (and a template to help safeguard your operation!)
When things go wrong at work, you could face two types of consequences: immediate challenges and long-term repercussions. Unfortunately, business interruption risks – those factors
Liability Insurance
Business owners face unique risks that could land them in legal trouble. With our industry expertise and a substantial network of top brokers, we can help protect your company with the right liability insurance.