When you own a busy factory, you are responsible for ensuring its safety and productivity. You must protect the people who work for you and also guard against events that can raise your costs and put you at risk of litigation.
Part of protecting your factory and its staff involves investing in the right coverage for it. You can get the protection you need when you purchase insurance for manufacturing that is designed for businesses like yours.
Coverage for Accidents
Despite your best attempt to keep your factory safe for your workers, you still may have workers who occasionally get hurt on the job. They might slip and fall on wet floors. They may also get their fingers or limbs caught in machinery.
When accidents occur, they can leave you vulnerable to expensive litigation and workers comp claims. You may want to avoid paying for court judgments and workers' comp settlements out of your own pocket. Instead of putting your personal or business finances at risk, you can take out insurance for manufacturing and cover those costs with your policy.
The insurance for manufacturing may pay out most or all of the costs from your injured workers' claims and lawsuits. You can keep money in your bank account and use your insurance for manufacturing to pay those expenses for you.
Coverage for Defective Products
Likewise, insurance for manufacturing can also cover the costs associated with your factory putting out defective products. When there is a production glitch, for example, or worker mistakes, your factory may turn out products that are useless and potentially dangerous. Your consumers will expect you to compensate them for any losses or damages they incur.
Instead of paying for those damages yourself, you can use your insurance for manufacturing to cover them for you. Consumers can make claims against your policy and receive payment for their damages from it.
Coverage for Production Losses
Finally, your insurance for manufacturing can pay out for production losses. For example, if you lose a day of productivity because of a power outage or storm, you may be able to recoup that day's losses with your insurance for manufacturing. It can pay you the money you lost because of not being able to make and sell products.
Insurance for manufacturing serves several vital purposes. It can pay out damages from worker accidents. It can also cover you if your factory puts out defective products or if you lose a day of productivity.