- General liability insurance
General liability insurance covers common small business risks like customer injury, customer property damage, and advertising injury. It protects your business during lawsuits and helps you qualify for leases and contracts.
General liability covers common risks
General liability insurance can safeguard a manufacturing company’s income and assets against everyday risks, such as a visitor injury at your factory. When an accident happens, this policy can pay for medical bills or the cost of replacing someone’s damaged property. If you're sued over an incident, this policy can help address your legal expenses, too.
This policy provides liability coverage related to:
- Customer injuries
- Customer property damage
- Product liability
- Advertising injuries
Bundle policies to save money and increase security
If you run a small manufacturing business, you might be able to bundle general liability insurance with commercial property insurance in a business owner’s policy. A BOP costs less than purchasing each policy separately. Manufacturers that are eligible for BOPs typically:
- Have fewer than 100 employees
- Own a small facility
- 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 business.
What coverage can general liability provide for manufacturers?
If a distributor or delivery person slips and falls at your facility, there’s a chance you could be blamed for the injury. If the person sues, you could end up paying for medical expenses – plus the cost of hiring a lawyer. In accidents involving third-party injuries, general liability insurance covers:
- Medical bills
- Attorney’s fees
- Court-ordered judgments
- Funeral expenses in fatal incidents
However, to cover employee injuries, you’ll need to carry workers’ compensation insurance.
Customer property damage
If property belonging to a customer, delivery person, or visitor is damaged at your factory, your business could be held responsible. General liability insurance protects you when someone else’s property is damaged.
For example, if a client’s expensive jacket is torn on your manufacturing equipment, your general liability policy could help pay for the cost of repair or replacement. If someone decides to sue over more expensive damages, general liability could cover your attorney’s fees, court-ordered judgment, and other costs related to the lawsuit.
As a manufacturer, you could be sued if one of your products causes an injury or illness. For instance, your perfume might cause a customer to suffer a serious allergic reaction, which results in a lawsuit. General liability insurance can pay for legal costs related to harm caused by your products, including property damage.
Most general liability policies include product liability insurance for these risks, but it’s important to check that your policy includes this coverage. You may see it included in your products-completed operations coverage, which guards against defective products and faulty workmanship.
While advertising your manufacturing company and its products, it’s possible to unknowingly imitate a competitor’s slogan or logo. Accidental advertising injuries are covered by general liability insurance, including:
- Defamation, both libel (written) and slander (spoken)
- Copyright infringement
For example, if a competing manufacturer sues because the logo on your product is similar to its logo, general liability can cover costs stemming from the lawsuit.
Other important policies for manufacturers
While general liability insurance covers many common risks, it does not provide complete protection. Employee injuries or damage to business property can occur at any small business. Other manufacturers’ insurance policies to consider include:
Workers’ compensation insurance: Required in almost every state for manufacturing businesses that have employees, workers’ compensation can cover medical costs for occupational injuries and illnesses.
Business owner’s policy: This policy bundles general liability insurance with commercial property insurance, usually at a lower rate than if the policies were purchased separately.
Umbrella insurance: Also called excess liability insurance, this policy boosts coverage on a manufacturer’s general liability, employer’s liability, or commercial auto policy once the limits are reached.
Get free quotes and compare policies with Insureon
Are you ready to safeguard your manufacturing business against common risks with general liability insurance? Complete Insureon’s easy online application today. Once you find the right policy, you can begin coverage in less than 24 hours.