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Manufacturing Risks and Insurance

To buy, renew, reword midterm, or trigger any type of insurance for manufacturing business: contact us. We contractually guarantee lowest cost within the global insurance marketplace for tailored coverage that we structure independently of any insurance broker or lobbyist. DeshCap is ranked #1 for Liability Risk worldwide and Top Operational Risk Advisor.


This content is independent of any content coming from insurance brokers, insurers, or any insurance lobbyists. Commercial insurance is rarely taught in schools, and when it is, it’s mostly done through the lens of brokers or insurers. There are many misconceptions around manufacturing risks and insurance for manufacturers, like many other topics in commercial insurance, due to bad habits acquired through the over reliance on insurance brokers or insurers or information providers who are lobbied by them. It is also important to note that insurance for manufacturers has both an operational aspect and a legal aspect, on which we put weights of 95% and 5% respectively in terms of importance to protecting a manufacturer and its investors (the point is that going to court to enforce coverage defeats the purpose of buying insurance, so you want to make sure that whatever insurance you buy protects your business right, based on operational data, and pays out fast on large losses).

construct of insurance for manufacturers
Most Business and Investors miscalculate the construct of insurance for manufacturers.

Manufacturing Risks

Manufacturers are faced with physical, financial, and cyber risks. The size, scope, sophistication of the manufacturer will dictate the breadth and magnitude of risks it faces. Here are some examples of manufacturing risks:

  • A cyber attack that halts the system within a manufacturing plant
  • Accounts receivable that are in protracted default
  • A fire that damages expensive equipment and causes a business interruption leading to lost profits

Many forms of manufacturing risks can be insured through commercial insurance, however the insurance must be reworded and tailored to the risk type and magnitude faced by a manufacturer. A common mistake made is to purchase a standard commercial insurance policy from a broker or insurer that is used on hundreds of manufacturers. For example, insurance for food manufacturers will be different than insurance for pallet manufacturers, which is different than insurance for gun manufacturers. In addition, each type of manufacturer will have its own company specific risks depending on its operations, so while manufacturing risks can be specific to a manufacturer's niche or scope, the manufacturer's measured risks will be different than its direct competitors (simply put the operation is unique given its own processes, people, and systems, which impact manufacturing risks differently).

Insurance for Manufacturers

Commercial insurance for manufacturers must be reworded to fit the operational risks of the manufacturer and triggered for effective payout at loss. This has to be done independently of any insurance broker or company. Whether it is cyber insurance for manufacturers, liability insurance (General, D&O, E&O, RWI), property insurance, credit insurance, or other, the insurance will need to be tailored to the specific form of manufacturing as well as the specific operational details of the manufacturer.

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For any queries regarding the above or more as it relates to manufacturing risks or insurance for manufacturers, feel free to contact us.

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