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Why Business Interruption Insurance Is Essential for Your Manufacturing Business

Business interruption insurance for manufacturers can cover your business should it face a disaster or outage. If your company loses income because the business needs to close or rebuild after a disaster, business interruption insurance will compensate your company for the financial losses so your business can reopen as quickly as possible. Property insurance only covers damage to the physical property and does not cover time or products lost due to interruption of the company. Hurricane, flood, and earthquake insurance are not covered by business interruption insurance and you might need separate coverage in your policy for those types of disasters.

There are several types of coverage which business interruption insurance might cover, such as profits, operating expenses, use of a temporary location, commissions, and training. It may also cover extra expenses normally faced by your company or encountered during repair. Business interruption insurance can also cover losses from your business being closed by the government due to major events or a mandated curfew. The coverage time for business interruption insurance usually begins on the date of the disaster and goes until the business resumes normal operations. A qualified insurance agent can help you develop a comprehensive policy with business interruption insurance for manufacturers to fit the needs of your business.

Manufacturing Liabilities and Santa Fe Insurance

Workers in the manufacturing industry must continually move raw, or finished goods in the course of producing safe and marketable commodities for sale to clients and businesses. Equipment that is vital to production must be properly maintained in order to remain on schedule and profitable. Improper handling of these materials and other essential tasks can cause overexertion, repetitive motions, strains/sprains, many of which can cause injuries. These risks can be controlled through safety training, the following of procedures and guidelines, and the use of safety equipment.

Product liability is yet another very serious matter that must be addressed. While most products are carefully examined and tested before they ever go to market, manufacturers will still turn out defective products that wind up in stores from time to time. While a few minor defects may not become a serious issue, anything that could result in danger to the general public, or that could result in health concerns or injuries, can present a real issue. Manufacturers must therefore rely on workers compensation insurance and liability coverage from a Santa Fe Insurance agency to address these concerns.

Employee and product safety go hand in hand

When preparing a new product to go to market, you should examine every aspect involved in the safe execution of the process. After all, you don’t want your employees to be at any risk, and you don’t want to produce a product that is deemed as “unsafe.” When you think about this product, do you think of all the implications that can arise from its use? Your primary focus should be on safety at all times, not on getting the product into the hands of the consumer. By doing so you’ll not only keep your brand name in the minds of the public, but you will also be successful as a business owner.

There will always be things that are out of your control, some of which that could result in property damage or injuries due to the products that you manufacture. That’s why the primary objective should be on protecting your employees, as well as your business and your assets. Liability insurance for products you manufacture, and workers comp for your employees are two key policies that should always be in place. Speak to an agent about any questions or concerns you have related to insurance products and services.

Securing El Monte Manufacturers Insurance

Manufacturing companies here in El Monte provide products for a lot of industries both locally and across the US. Retailers and wholesale companies rely on you to get their merchandise to them on time. But your company may experience delays for any number of reasons, and when this is the case, you could suffer huge financial losses. You may also face the possibility of losing business from many of the major firms you supply.

A work stoppage can have a serious impact on your bottom line. El Monte Manufacturers Insurance will ensure that your company remains solvent during a business interruption due to equipment breakdown.

Anytime your operations are halted due to a mechanical issue you’ll have difficulty meeting deadlines, plus your “paid” employees won’t have a lot to do in the meantime but they still expect to receive a paycheck. The first issue is how will you be able to deliver your orders, and yet you’ll still have to meet the demands of your payroll.

Mechanical issues can plague a manufacturer

Equipment can break down for any number of reasons. It could be due to a lack of proper maintenance, or it could simply have defects that prevent it from performing its necessary functions. Most companies cannot afford to have backup equipment due to the cost. You may need to find an alternative way to fulfill your obligations, either contacting another manufacturer that can offer you their facilities or you may need rental equipment. This will increase your costs, so you could wind up losing money on the deal.

That’s where having El Monte Manufacturers Insurance can make a huge difference. Clients have deadlines to meet, and they may wind up canceling orders so you’ll likely suffer a loss of revenue, along with damage to your reputation. Having coverage for equipment breakdown is the solution to this issue.

In addition to a piece of equipment causing you headaches, you need to be aware of your exposure to the possibility of a faulty electrical system, which can only further add to your delays. Things like transformers can blow a fuse, making it difficult to get the job done on time. If you value your company and have concerns about an equipment failure you should get the protection you need. Manufacturers insurance that includes equipment breakdown coverage is a viable solution when you need to keep things up and running.

 

Product Liability Insurance and Product Defects

Manufacturers create many useful and necessary products but are also open to a wide array of risks and exposures. Depending on the exact types of products being produced and sold, the risks will vary, but if the item in question ends up causing an injury due to a defect, this will certainly be a major concern. In order to minimize product liability exposure, or to defend product safety when necessary, owners need Product Liability Insurance to protect them against claims in the event someone does suffer an injury when using their product.

In Defense of The Manufacturer

Issues brought up in product liability claims need to be thoroughly understood and examined. The basic principles of safety in product design are for manufacturers to design out any defect to eliminate hazard so that the product is deemed safe. If a hazard is known to exist and cannot be designed out, then you must build in safety devices to prevent injury
Manufacturers must also provide warnings when deemed necessary.

In most product liability cases the defendant will attempt to assert that there is no evidence of prior accidents, and if there had been prior accidents the defendant would have known about them. There should be a mechanism in place to check on the safety of the product, as well as several ways to determine whether or not there had in fact been accidents involving the product.

Foundational evidence must be established before evidence of a lack of prior accidents would be admissible. In order to lay the proper foundation for a defense of no prior accidents the defendant would also have to show they likely would have known of those prior accidents if they had occurred. This could be based upon the number of units sold and the extent of prior use, provided that identical products were used under similar circumstances.

The fact is that defective products are simply part of the downside of the manufacturing industry. In California, as in most states, it’s prudent for any company operating this type of business to carry Product Liability Insurance to ensure that if a lawsuit arises claiming injury from a defective product, that the company will be in a position to mount a defense.

Orlando Manufacturers Insurance and Liability Concerns

Manufacturers run many important operations here in the US subject to a variety of laws and regulations that are intended to govern product liability. Any time someone is injured, regardless of how seriously, this may often result from a product distributed by a particular company, and can therefore create cause for a claim. Orlando manufacturers insurance is necessary to deal with issues regarding liability for injuries to others.

Injuries can occur due to contact with a product purchased from your company in a few different ways. Bodily injury may arise from the product itself, property damage losses may occur, the product packaging can result in an injury, or it could even be due to instructions for use, labels, warnings and other “on product” messages provided.

Blame often falls directly on the Manufacturer

The manufacturer, and not the distributor, is often held responsible for any injury arising from a defective product simply because the distributor usually has no control over the design, assembly or quality of the item being sold. However, wholesaler-distributors may be held liable for product defects under certain circumstances. For example, anyone who provides installation, service or repair work as a part of their service for their customers may increase their product liability exposure in that process.

Also, anyone that modifies, repackages or re-labels certain products may assume a greater liability than those that do not. With so much at stake, having Orlando manufacturers insurance is the best way to mitigate these types of risks and exposures.

Whenever the distributor is directly responsible for the defective condition, for instance, if they’ve damaged the product while repackaging, or by making product modifications, they can be held liable for product liability. By having knowledge of a defective condition prior to the sale of a product, and doing nothing about the issue, they can be held accountable for any resulting injuries. A significant number of federal and state laws and regulations impact product liability, something that both, manufacturers and distributors should know.

The Consumer Products Safety Commission (CPSC) is one of two federal organizations that oversee many of the products going to market. They’re job is to protect the public from unreasonable risks of serious injury or death from more than 15,000 types of consumer products under their jurisdiction. As a manufacturing business owner, it would be prudent to consult with a qualified products liability attorney to ensure that your business is in compliance with applicable requirements.