Manufacturing operations face a multitude of risks in the course of business. There are things like market competition, workforce hurdles and safety concerns to be aware of. There are also challenges that other industries do not face, such as loss of equipment or product reliability issues. It is important for manufacturers to have insurance protection for all scenarios that could be detrimental. There are various manufacturing industry coverage available to meet the needs of these unique businesses.
Examples Where Loss Can Occur
Consider the situation where your company provides defective product into the marketplace. You may need to issue a recall of a large amount of product. Not only does this mean you need to pay to have the product returned or destroyed, but you likely will need to replace it at no cost. There may also be compensation involved to de-install or sort affected products. Costs can balloon quickly. Fortunately, there are insurance coverage to protect the company in this instance.
What if a natural disaster strikes your location? You could face loss of equipment, product and real estate. On top of that, the facility may not be able to produce a new product for some time. Without the right insurance, these losses could be too steep to recover from.
Catastrophic events are real and can be significantly harmful to a manufacturing operation. Understanding available insurance coverage is essential to protecting the stability of your business when they occur.