Insurance for Manufacturing and Product Liability
Since 1956, RJ Ahmann Company has been a premier provider of insurance for manufacturing businesses nationwide.
Do you need product liability insurance for manufacturers?
Manufacturers insurance programs have many elements in common with typical business insurance programs, particularly in terms of workers’ compensation and property insurance. A unique aspect of insurance for manufacturing companies is the need for product liability insurance. From recalls to patent infringement, product manufacturers deal with many unique risks. Manufacturers insurance, more accurately described as insurance for manufacturing or product liability insurance, provides protection for these unique risks – particularly when products manufactured by your company cause harm to others. Here are a few examples:
- A child dies after swallowing a magnet from a toy.
- A mechanic develops lung cancer caused by the asbestos dust he breathed while working on the brakes of a truck.
- An E. coli outbreak forces a meat processor to recall tons of ground beef.
Which businesses should have product liability coverage?
Any business that manufactures or distributes a product to be used by the public faces potential manufacturing liability lawsuits. The liability insurance that many companies purchase is often limited to on-premises slips and falls. This does not cover injury or property damage caused by products. If you manufacture any of the products below, your company should have well-designed product liability insurance for manufacturing:
- Food of all types
- Metal, plastic, rubber and wood products, from components that go into other manufacturers’ products, to your own finished goods
- Leather goods and textiles
- Anything with moving parts that can pinch, cut or crush
Deaths, injuries and property damage from consumer product-related incidents cost the U.S. more than $700 billion each year.
- U.S. Consumer Product Safety Commission
Why is product liability coverage important?
Most products have the potential to cause bodily injury or property damage to others. Even if the injury or damage is caused by product misuse, attorneys often look for the “deepest pocket” to sue. All too often, the product manufacturer becomes the target. Whether the verdict is innocent or guilty, the company’s legal fees can be substantial. A well-designed product liability insurance program can help protect your bottom line by paying your attorneys’ fees to defend your business, as well as damages if you lose. For all businesses that manufacture products or sell them, insurance for manufacturing is essential.
How does it work?
Product liability insurance for manufacturing companies protects you against unforeseen liability arising from property damage or bodily injury caused by your product. It pays for your defense costs as well as the actual damages caused by your product. Our experts can help you design a product liability insurance program that is tailored for your manufacturing exposures in the United States and around the world.
What if we have to recall our product?
Product manufacturers insurance programs can be extended to cover the costs of recalling your product from the marketplace and destroying it. In some cases, insurance for manufacturing can even be extended to protect the product manufacturer from the income lost in the recall.
Could your business survive if another firm accuses you of patent, trademark or copyright infringement?
Does your business have the resources and the know-how to defend itself if another company alleges you stole their patented product design? What if they accuse you of violating their copyright or trademark on your Web site? Could you afford legal counsel and court fees? Specialized insurance for manufacturing companies protects you from patent, trademark and copyright infringement allegations, as well as providing funds to pursue those who violate your intellectual property rights.
A smart solution
If you’re a company that needs insurance for manufacturing, or if you just want to learn more, RJ Ahmann Company can help. Our highly trained professional staff, based in Minneapolis, Minnesota, has close relationships with 32 contracted property casualty insurance carriers. Through other intermediaries and our worldwide partner network, we can access the entire insurance industry. We will help you identify and quantify your risks and then obtain comprehensive, cost-effective manufacturing business insurance – tailored for your business’s unique needs.
To ensure that you get the strongest insurance protection at the best rates, we:
- Will help you understand all the liability insurance issues that arise from manufacturing a product
- Will utilize our vast resources to place the right coverage where you need it
- Contain claims costs through effective pre-loss and post-loss claims management
Ready to learn more? RJ Ahmann Company is ready to help with insurance solutions for manufacturing companies.