What Coverages Does Light Manufacturers Insurance Offer?
As mentioned, light manufacturers insurance policies typically offer several coverages. Some of the coverages that may be found in a policy are:
- Manufacturers Errors and Omissions Coverage, which is a form of errors and omissions coverage that’s uniquely written for manufacturing businesses
- Brands and Labels Coverage, which may let a business remove labels from damaged goods or mark the goods as “salvage”
- Manufacturers Consequential Loss Coverage, which may cover the value of remaining stock that’s in the process of being manufactured and is damaged when a covered incident occurs
- Consequential Loss to Stock Coverage, which may cover the cost of not being able to use stock that’s damaged in a covered incident
- Valuation-Selling Price Coverage, which may cover finished goods that are damaged at the full selling price
- Product Recall Expense Coverage, which may cover the costs associated with a covered product recall
What Massachusetts Businesses Should Consider Light Manufacturers Insurance?
Light manufacturers insurance policies are written to meet the needs of light manufacturing businesses. In general, these tend to be manufacturing businesses that have gross annual receipts of up to $10 million and property worth up to $7.5 million in total.
Some examples of Massachusetts businesses that may meet the above criteria and benefit from having a light manufacturers insurance policy include:
- Food manufacturing businesses, such as bakery plants, confectioners, cheese makers and ice cream producers
- Beverage manufacturing businesses, such as soft drink bottlers, craft breweries, coffee roasters and water bottlers
- Non-metal manufacturing businesses, such as leather smiths, monument makers, signage companies and clock makers
- Metal works manufacturing businesses (that make low-risk products), such as machine shops, hardware makers and metal good manufacturers
Do Light Manufacturing Policies Provide All the Protections Manufacturers Need?
Although light manufacturing policies are written specifically for light manufacturing businesses, they don’t normally provide every protection that manufacturers need. In most cases, no insurance policy is able to meet all of the insurance needs that a business has.
A light manufacturing business might also need commercial property insurance, commercial auto insurance, workers compensation insurance and umbrella insurance (as well as other types of insurance).
How Can Businesses in Massachusetts Get Light Manufacturing Insurance?
Because light manufacturing insurance is highly specialized, Massachusetts businesses shouldn’t try to purchase it on their own. Instead, they should work with an independent insurance agent who can help explore the risks that a light manufacturing business is exposed to and explain what coverages will protect against those risks. The expertise of our agents, who’s familiar with this kind of insurance, will help ensure your business finds a policy that will provide proper protection.
