Machinery & Equipment Manufacturers’ Insurance

A person using a machinery press to work with a sheet of metal
A person using a machinery press to work with a sheet of metal

Your operations rest on expensive production machinery – so do your profits and reputation. The machinery and equipment manufacturing business is the backbone of the whole sector, and that means there’s little room for error. You could run into problems during production, during installation, or with the functionality of the finished product.

We’re here to help protect your livelihood with coverage for problems that can arise in the workshop and beyond.

What kind of coverage do machinery and equipment manufacturers need?

Precise tools, multi-step processes, and critical vendor relationships can make the manufacturing of machinery and equipment a difficult job. We’ve compiled a policy to address common challenges, concerns, and demands you could meet at each step of the way.

When can machinery and equipment insurance come to your rescue?

Your business relies on your skill and care as much as it relies on your specialized machinery: if you make a small mistake in the production phase, it could compromise the finished piece of equipment, and the blame could fall on you.

Make sure your tools, machinery, and hard work is covered with some extensions to your basic Commercial General Liability (CGL), Property, and Auto insurance coverage that are particularly helpful for machinery and equipment manufacturers.

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.

Problems in production? Cover your tracks

You’re great at your job, but everybody makes mistakes. If your equipment manufacturing company was responsible for supplying defective gears to a manufacturer of drilling rigs, rendering the rigs inoperable, that manufacturer could come to you to cover the loss. You haven’t caused any property damage to the rigs, but they can’t be used until the gears are repaired or replaced, and that will put the project (and potential revenue) on hold.

Errors and Omissions (E&O) coverage can take care of some expenses that your defective product can bring. This extension addresses the financial loss of third parties when your product renders their product unusable, and you can request higher limits to supplement your Commercial General Liability Policy.

Protect your business when you take it on the road

If you’re in charge of installing the equipment you manufacture, you’ll likely face more risk in your daily operations. Trouble can happen in the loading phase, in transit, or when you’re at the install site, and your CGL insurance could fall short in each of those cases.

Installation Floater is an especially helpful extension for manufacturers who also work offsite. It provides coverage for common installation hazards, like fire or theft of your goods while they’re on their way to the install site. Your goods (or the goods that you’re responsible for) are also covered during installation, and while they’re being temporarily stored at other locations.

Retrieve faulty parts quickly and easily

Defects can show up at any time; your product could seem fine when you distribute it to retailers, but customers may report malfunctions in the following weeks. If a retailer deems your product unsafe, you may have to recall the defective items.

Supplying a product is no easy feat, and it can get expensive. With Product Recall Expense coverage, an equipment manufacturer would be covered for some of the expenses involved in recalling products you suspect are defective, 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.

Managing Risk

We know that the risks your machinery and equipment manufacturing business faces are different than the risks affecting other types of 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, process equipment, and fire and burglary protection 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

A worker’s foot tangled up in an electrical cord.

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.

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Business Interruption Insurance

Have you considered what would happen if something caused you to close up shop or suspend production for a while? Are you sure your business could survive the setback? Learn why business interruption insurance is so important to keep your company going.

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