General liability insurance for manufacturers

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

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 (BOP). This package costs less than purchasing each policy separately.

Manufacturers that are eligible for a BOP 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.

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.

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.

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: 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 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 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.