Manufacturing Insurance 101

In the manufacturing industry, businesses face unique risks and challenges that require specialized business insurance coverage. Here’s a comprehensive guide to the essential insurance coverages for manufacturing businesses.

1. General Liability Insurance

General Liability Insurance is fundamental for any business. It protects against claims of bodily injury, property damage, and personal injury that occur on your business premises or as a result of your business operations. For manufacturers, this covers incidents that might occur during the production process or from defective products.

2. Property Insurance

Property Insurance protects your physical assets, including buildings, machinery, equipment, and inventory. This coverage is a must for manufacturers, as any damage to your equipment or facilities can disrupt production and lead to significant financial losses. Property Insurance helps cover the cost of repairs or replacement and can include coverage for natural disasters, fire, theft, and vandalism.

3. Business Interruption Insurance

Business Interruption Insurance, also known as Business Income Insurance, compensates for lost income and ongoing expenses if your business operations are halted due to a covered event, such as a fire or natural disaster. This coverage is essential for manufacturers, as downtime can severely impact your revenue and ability to meet customer demands.

4. Workers’ Compensation Insurance

Workers’ Compensation Insurance is mandatory in most states and covers medical expenses and lost wages for employees who are injured or become ill due to their job. In the manufacturing industry, where the risk of workplace injuries is higher, this coverage is critical for protecting your employees and ensuring compliance with state laws.

5. Product Liability Insurance

Product Liability Insurance is specifically designed to protect manufacturers from claims related to product defects that cause injury or damage. This coverage is essential for any business that produces or sells products, as it covers legal fees, settlements, and judgments that may arise from defective products.

6. Equipment Breakdown Insurance

Equipment Breakdown Insurance, also known as Boiler and Machinery Insurance, covers the cost of repairing or replacing machinery and equipment that break down due to mechanical or electrical failure. For manufacturers, whose operations depend heavily on specialized equipment, this optional coverage can be very useful to avoid costly downtime and repairs.

7. Commercial Auto Insurance

If your manufacturing business uses vehicles for transportation of goods, raw materials, or employees, Commercial Auto Insurance is necessary. This coverage protects against accidents, theft, and damage involving company vehicles and can include liability, collision, and comprehensive coverage.

8. Cyber Liability Insurance

In today’s digital age, Cyber Liability Insurance is becoming increasingly important. This coverage protects against data breaches, cyber-attacks, and other cyber-related incidents. For manufacturers who store sensitive information or rely on technology for operations, Cyber Liability Insurance can help cover the costs of legal fees, notification expenses, and recovery efforts.

9. Inland Marine Insurance

Inland Marine Insurance covers goods, tools, and equipment while they are in transit or stored off-site. This is particularly important for manufacturers who frequently ship products or move equipment between locations. This coverage ensures that your assets are protected no matter where they are.


Manufacturing businesses face a variety of risks that require specialized business insurance coverage. By understanding and investing in the right insurance policies, you can protect your business from potential financial losses and ensure smooth operations. At Ameriguard Insurance, we specialize in tailoring insurance solutions to meet the unique needs of manufacturers. Contact us today to learn more about how we can help safeguard your manufacturing business.

For more information on our insurance products and services, visit or call us at 763-767-0522

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