Those who own and operate warehouses or storage spaces for manufacturers, or do their own manufacturing and also operate a place to store the goods before they’re shipped to customers, need to have the right types of insurance in place. Otherwise, they could be forced to pay a lot of money out of pocket should something go horribly wrong.
As we know, accidents do happen. So, what types of insurance policies should your manufacturing company need to have in place? Here are the top four that you should consider purchasing to protect you, your business, and your assets.
Storage Facility Insurance
Your storage facility plays a crucial role in your business’ operations. It holds the goods that are either waiting for someone to purchase them or have already been bought and are waiting to get packed and shipped off to their new homes. As a result, a weather-related event, like a hurricane, or accidental issues, like a fire, can lead to major losses. This is where having insurance on your storage facility can save you thousands, if not millions of dollars, since it will pay for repairs to the building, helping you stay in business.
Workers’ Compensation Insurance
If you employ workers at your storage facility or warehouse, then you’ll need to have workers’ compensation in place. Should one of them get hurt while on the job and it’s determined to be the company’s fault, the insurance policy will pay for their medical expenses, missed days of work, and more. It will prevent your business from having to cover these things out of pocket. Additionally, most states require you to have workers’ compensation in place, so this is usually not optional.
Warehouse Liability Insurance
What happens when something happens inside of your building and damages your products? A broken shelf can lead to things falling onto the hard concrete floor, making them unsellable. Other incidents, like those involving a forklift, can also cause quite a bit of damage. Thankfully, you have warehouse liability insurance for these situations. The insurance will pay to repair the damaged fixtures, as well as the replacement costs for the products that are lost. Your business won’t lose out, as long as you have enough coverage in place.
Companies that only run warehouses or storage facilities don’t have to worry about product liability insurance because they don’t make anything. They just store it and ship it. However, if your business does both the manufacturing and the storing, you’ll need to have a product liability policy. What happens if a batch of your products ends up being incorrectly made? What if you made food items, like dried noodles, which end up being contaminated? You need to have product liability insurance to cover all of these situations and more. These expenses can end up being quite costly if you have to pay for everything out of your own pocket.
Have Questions? Contact Charlotte Insurance
Want to learn more about warehouse and storage insurance options for manufacturing companies? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your business needs.