Ontario manufacturing businesses face unique risks that other businesses may not have to deal with. To save money, you might consider scraping by with the minimal requirements on a insurance policy, but this could be a huge mistake. Let’s look at Jason M, for an example.

Jason had a great idea for a new kind of carrying strap. The design made it possible for one or two people to carry objects without injury. Plus, thanks to the way the product was designed, it was very inexpensive to produce. It took Jason a few years to come up with the money he needed (and he had to take on a business partner) but he finally was in operation and seeing his dreams come true.

Jason was a firm believer in keeping costs as low as possible, so he only wanted to carry minimal liability insurance and did not think he needed business interruption insurance. However, his partner Jeff, did not agree. After all, what would happen if production stopped for a few weeks or months? They would have all of those orders to fill and all kinds of financial and legal obligations. After much discussion, Jason decided to go along with Jeff and check into these insurance options.

The men visited Jeff’s insurance professional and talked about their manufacturing insurance needs. In fact, the insurance person went over all their risk factors and discussed loss prevention strategies. This made Jason realize how important risk management was to business, and now he understood what Jeff was talking about. The men decided to take the advice of the experienced insurance specialist and purchase additional liability insurance with loss of income protection, as part of a complete business insurance package.

Six months later, the manufacturing facility was running well when the main production lines quit. One of the machines that produced the straps broke down and it would take almost two weeks to get the parts needed. Thankfully, the men had purchased coverage for their production machinery and business interruption, and they suffered no major problems.

What is a Manufacturers Insurance Policy?

This insurance is there to reimburse your manufacturing business from a number of different losses. This includes companies that produce raw materials, assemble products, or produce and assemble goods for sale.

Who Needs Manufacturer Insurance Coverage?

Anyone that owns a factory needs this insurance, but there are many more businesses that should consider it. In fact, when you assemble items for consumers or businesses, there are many legal issues to consider. These companies should take out this coverage:

  • Clothing manufacturers
  • Robotics and plastic manufacturers
  • Candy makers
  • Canned goods companies
  • Fabricators
  • Tool and die makers
  • Machine shops
  • Product distributors
  • Cabinet makers
  • Warehouse and distribution services
  • Printing companies
  • Publishing services

Are There Standard Manufacturing Insurance Policies?

A standard policy really does not exist, but there are basic coverage items you need to consider:

  • General liability protection – covers you for injury and damages.
  • Commercial property – covers your building interior, exterior, and things like display windows and signs.
  • Building contents – this coverage is extremely important if you are a renter.
  • Production Machinery (for mechanical breakdown of equipment)
  • Business Interruption (protects your business from loss o profits in the event of an insured loss)

Finding the Right Manufacturers Insurance

Do you know all there is to know about risk management, loss prevention, and business insurance? Few people do. That is why you should trust your insurance to seasoned professionals that understand the insurance industry and the needs of manufacturing businesses. This is where Bunnell Hitchon Insurance Brokers Inc.comes in.

We have been in this business since 1890, and with that kind of experience you can be assured of high quality and competent service. Bunnell Hitchon Insurance Brokers Inc. is not tied to any one insurance company, because we are independent brokers. We do business with many top insurance companies in Canada and that puts us in position to give you affordable manufacturing insurance that is customized for your business.

"Bunnell Hitchon Insurance Brokers are the best! I’ve always had incredible service with them and I always recommend them when anyone asks me where my insurance is. Great Job guys! Thanks for much!"

- R. Green

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