Tips for Manufacturers on Conducting an Insurance Review

In the dynamic world of manufacturing, businesses face a myriad of risks, from equipment breakdowns to employee injuries. Comprehensive manufacturers insurance coverage is crucial for mitigating these risks and safeguarding the company’s financial health. Regularly reviewing insurance policies can help businesses stay protected against evolving threats and changing operational needs.

Why Is Reviewing Insurance Important?

Reviewing insurance coverage is essential for several reasons, such as the following:

• Financial protection—Reviewing coverage ensures that the business is adequately protected against new risks that may have emerged since the last review. For instance, advancements in technology or changes in production processes can introduce new vulnerabilities.

• Coverage gaps—Regular reviews can identify gaps in coverage that could leave the business exposed. This is particularly important in the manufacturing sector, where the cost of equipment and potential liability claims can be substantial.

• Cost savings—Reviewing insurance policies can lead to cost savings. By reassessing their coverage, businesses might find more competitive rates or identify redundant policies that can be eliminated.

What Should Businesses Consider When Reassessing Their Coverage?

When reassessing their insurance coverage, manufacturing businesses should consider several key factors:

• Relevant risks and exposures—Conduct a thorough risk assessment to identify potential hazards and vulnerabilities. This should include evaluating the likelihood and impact of various risks, such as natural disasters, cyber-attacks and supply chain disruptions.

• Coverage adequacy—Ensure the current policies provide adequate coverage for all identified risks. This includes property insurance, liability insurance, workers’ compensation and business interruption insurance. Be aware of any exclusions in your coverage, as such omissions could leave you without adequate coverage.

• Regulatory changes—Stay informed about any changes in regulations that might affect insurance requirements. Compliance with industry standards and legal obligations is crucial for avoiding penalties and ensuring comprehensive coverage.

By regularly reviewing and updating their insurance coverage, manufacturing businesses can better protect themselves against unforeseen events and ensure long-term operational stability.

We’re Here to Help

Contact Pitcher Insurance Agency in Palatine, Illinois, today to learn more about coverage options for manufacturers or to review your policies.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.