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Manufacturing

Manufacturing(factory-722863)From raw material suppliers to finished end-product producers, the manufacturing industry is a vastly important contributor to the U.S. economy.

In fact, if the U. S. manufacturing industry was a country, it would be the 10th largest economy in the world.

According to the Manufacturing Institute in 2012, U.S. manufacturing:

  • Contributed $1.87 trillion to the economy – 11.9% of the overall GDP
  • Supported an estimated 17.2 million jobs – about 1 in 6 private sector employees
  • Drove productivity growth by more than 2.5 times the rate of the service sector

As large as the U.S. manufacturing industry is as a whole, many individual manufacturers contribute to its size and breadth. Our services line of products includes tailored coverages unique to the risks faced by manufacturers, as well as international endorsements to cover overseas exposures.


Minimum recommended coverage:

Building, Business Personal Property, Business Income, Accounts Receivable, Computers, Goods in Transit, Employee Dishonesty, General Liability, Employee Benefits, Environmental Impairment, Umbrella, Hired and Nonownership Auto, Workers Compensation

Other coverages to consider:
Business Auto Liability and Physical Damage, Employment Related Practices


Property exposures include metal dust, soldering, welding, flammable liquids and spray-painting. In addition, the electronic circuitry must be protected until it can be encased. It is important that heat-producing operations be isolated from dust and flammable liquids. Dust collection systems and housekeeping are necessary controls. Greasy rags should be kept in covered metal containers to prevent spontaneous combustion. Flammable liquids should be stored in a separate area and no more than a day’s worth should be allowed in the processing area. Spray-painting must be done in a separate UL-approved booth.

Premises liability depends on the number of visitors and customers allowed on site and the locations they are permitted to visit. Some equipment is demonstrated to customers, which increases the chance of loss.

Products liability exposure is determined by the machine being built. Any machine that is used in assembly production with cutting and punching will have the high potential for loss. Machines that are “move along” machines without parts that would harm workers will pose less of a problem. It is important to know how people can harm themselves using the machine in order to determine the hazard involved. Warnings of possible hazards and instructions for proper use must be posted on the machine.

Environmental impairment is moderate to high from the chemicals, paint, and solvents and metal wastes.
Automobile liability is normally limited to a salesperson fleet and the occasional truck for errands. An outside carrier delivers most machines and raw material is brought in by common carrier. Anyone who drives a company-owned vehicle should undergo regular MVR checks and vehicles must be subject to regular, documented maintenance.

Workers compensation exposures are multiple. Key items to watch fore are whether or not the necessary coverings, including face and hands protection, are used during welding, casting, or other operations. Guards should be on machinery, especially the cutting and shearing devices; and whether or not employees are allowed to remove guards should be evaluated. Burns during welding or casting and cuts or amputations during the shearing and cutting operations are all possible. Additional workers compensation concerns are chemical burns and eye, skin, and lung irritants. Repetitive motion injuries can be a concern, and it is necessary to make sure that workstations are ergonomically designed, especially if the internal workings of the machines are the responsibility of the manufacturer.