Product liability, equipment breakdown, supply chain risk, and the coverage gaps that manufacturing companies overlook until a claim happens.
Manufacturing companies face risk at every stage of the production cycle — from raw material sourcing to product delivery. A product liability claim can reach back years after a product leaves your facility. An equipment breakdown can halt production for weeks. A supply chain disruption can cost more than any single insurance claim. Breaking Risk explains the risk landscape for manufacturers and what coverage actually addresses it.
A defective product can trigger claims years after it leaves your facility. Product liability coverage and product recall insurance address different parts of this exposure.
The failure of a single piece of critical equipment can halt production entirely. Equipment breakdown coverage pays for repair and the resulting business income loss.
Dependence on single-source suppliers creates concentration risk. Contingent business interruption coverage addresses losses caused by supplier failures.
Manufacturing environments carry elevated workers' comp exposure. Experience modification rates directly affect your premium, and managing claims is as important as coverage.
Manufacturing operations often involve chemicals, waste, and processes that create environmental exposure. Pollution legal liability is frequently excluded from standard policies.
Operational technology systems in manufacturing facilities are increasingly targeted by ransomware. A cyber attack can shut down production as effectively as a physical disaster.
Most manufacturers assume their general liability policy covers product claims. The reality is more complicated — and more expensive.
When a critical machine fails, the cost isn't just repair — it's the production loss, the customer penalties, and the rush to find alternatives.
Ransomware attacks on operational technology systems have shut down production lines at major manufacturers. Here's what the exposure looks like.
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