Your company spent a lot of money on custom tools and specialized manufacturing equipment. But what happens when that machinery breaks down, tools are stolen, or your equipment malfunctions? Not only could your business be in trouble, as it’s unable to meet customer needs, but you also may end up paying thousands out of pocket for the repairs.
Thankfully, there’s insurance for these situations. Let’s explore your options.
The Problem with Lost Income
Losing income when your machinery breaks down happens in two different ways. One, you won’t have any revenue coming in from your customers because you’re unable to deliver the products that they ordered. And two, your company will have to pay for those repairs. This can create a vicious cycle of lost revenue that ends up with even larger companies closing their doors and putting their employees out of work. In order to prevent that, you need an insurance solution or two.
Manufacturing Insurance
There are insurance plans designed specifically for machine shops and manufacturing companies that protect the business from losses should issues arise with their products. A malfunctioning set up that is manufacturing equipment can damage products that then end up on shelves, leading to pricey recalls and replacements.
Thankfully, there are manufacturing insurance plans that cover those goods from the moment they’re completed and stored in your warehouse up through the time that they end up in the hands of your customers. Insurance solutions can cover many different situations where things can go wrong during the manufacturing, storing, and delivery process.
Tools and Equipment Insurance
If your business uses tests of tools and other specialty insurance instead of manufacturing equipment, there are options like tools and equipment insurance. These plans kick in when your tools are stolen, damaged, or vandalized. The policy can pay for the costs of replacing those items, which can be quite pricey if they’re very specialized, or the cost of repairing them.
Keep in mind that this type of insurance doesn’t cover every single circumstance. For example, old equipment that wears out or tools that are damaged by someone who doesn’t know how to properly use them aren’t covered.
Machine Shop Insurance
Another option is machine shop insurance. These combined plans contain multiple insurance solutions for companies that run things like CNC machines. A standard machine shop plan typically includes product liability insurance, which pays for things like parts that fail due to manufacturing issues; equipment breakdown insurance that covers the machinery itself should it stop working for various reasons; and commercial property insurance because you also need to cover the building that holds all of the equipment.
Other Options
Additional insurance options for manufacturing companies include worker’s compensation insurance, commercial vehicle insurance, and even umbrella liability insurance. It all comes down to what your business needs.
Have Questions? Contact Charlotte Insurance
Want to learn more about insurance for specialized machinery and custom tools? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.