Business owner’s policy for manufacturing businesses

A business owner’s policy protects against common accidents while shielding your business property from damage, too. This policy bundles general liability insurance and commercial property insurance in one plan, usually at a reduced rate. A BOP protects against:

• Damage to manufacturing equipment and other business property
• Customer injuries and property damage
• Product liability lawsuits
• Slander, libel, and copyright infringement
• Temporary closure

Manufacturing business owners can tailor a BOP to meet their specific needs. In the manufacturing industry, useful add-ons might include business interruption insurance, food spoilage coverage, contract liability coverage, and other endorsements.

Businesses that are eligible for a BOP typically:

• Have fewer than 100 employees
• Have a small office or facilities
• Make less than $1 million in annual revenue
• Operate in a low-risk industry
• Need less than 12 months of business interruption insurance

Talk to a licensed Insureon agent to find out if a BOP fits your manufacturing company.

A BOP includes commercial property insurance that protects:

• Manufacturing equipment, such as casting machines
• Office furniture and fixtures 
• Your building if you own it

A BOP reimburses you for stolen items, as well as property damaged by vandalism, weather, a burst pipe, or a fire.

The general liability portion of a business owner’s policy can pay for legal bills and other expenses related to customer injuries or property damage. For example, it can provide coverage if:

• A distributor breaks a wrist while touring your facility
• Your employee shatters a customer's laptop or phone

A BOP can cover medical bills for an injury, or repair or replacement of a damaged item. If a client or other third party sues over damages, it can cover attorney’s fees and other costs related to the lawsuit.

Product liability insurance is a key policy for manufacturers. It protects against lawsuits over damage or injury caused by your products. You may see it included in products-completed operations coverage, which can help pay for lawsuits over poor workmanship and defective products.

Check with an Insureon agent to make sure this coverage is included in your BOP or general liability insurance.

The general liability portion of a BOP also provides coverage against advertising injuries, including:

• Defamation, such as libel (written) and slander (spoken)
• Copyright infringement

For example, if an employee writes a negative comment on social media about a competing manufacturer and your business is sued for libel, general liability insurance could help pay the resulting legal fees.

A temporary closure can lead to significant financial loss for a small company. Business interruption insurance shields your manufacturing company from lost revenue and other expenses related to closure caused by a covered event.

For example, if there’s a fire at your lumber mill, business interruption insurance can cover lost profits, employee wages, and other operating expenses while your business is closed for renovation.

A BOP provides broad coverage at an affordable price for manufacturers, but it doesn’t shield against employee injuries and cyber risks. Manufacturing business owners should also consider:

General liability insurance: Manufacturers that don't purchase a BOP should at least consider general liability insurance to protect against basic third-party (non-employee) risks.

Workers' compensation insurance: Workers' comp pays for medical bills and provides disability benefits to employees who are injured on the job. Most states require this coverage for businesses that have employees.

Cyber liability insurance: Any business that handles credit card numbers or other personal information should carry cyber insurance. It helps businesses recover from costly cyberattacks and data breaches.

Commercial auto insurance: This policy pays for injuries and property damage caused by your manufacturing business's vehicle. It's required in most states for vehicles owned by a business.

Commercial umbrella insurance: Similar to excess liability insurance, this policy boosts coverage on a general liability, employer’s liability, or commercial auto insurance policy once the limit is reached.

Are you ready to safeguard your manufacturing business with a business owner’s policy? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.