Insurance for Plastic Product Manufacturers

Top 3 Recommended Policies

General Liability Insurance

Property Insurance

Worker's Compensation

General Liability Insurance

A general liability insurance policy protects businesses against lawsuits filed as a result of third-party injury, third-party property damage, or advertising damages. Plastic product manufacturing companies are incredibly risky as they have heavy machinery and equipment on site. 

If a person falls due to a slippery floor or their property gets damaged at the site of your business, they could sue your business for damages. General liability insurance offers coverage against such lawsuits. It not only provides legal and settlement coverage but also covers the medical bills and repair or replacement expenses of the damaged property. It is a must-have policy as the chances of accidents happening at a plastic products manufacturing factory are extremely high.

Property Insurance

As mentioned earlier, plastic product manufacturing companies have a lot of valuable equipment and assets on site. If heavy rainfall causes the rainwater to come rushing into your property, your machinery and equipment could get damaged beyond repair. 

Since repair and replacement costs of heavy machinery are extremely high, you need property insurance to cover these expenses. A property insurance policy covers the repair or replacement costs of the property damaged due to fire, rain, theft, vandalism, or a lightning strike. This includes everything present on-site, from the entry gate to all the furniture, tools, machinery, equipment, lighting, etc. 

A property insurance policy also offers compensation if your business operations are temporarily halted due to property damage.   

Technology Insurance

Plastic product manufacturers rely on special technology to design and manufacture products efficiently. This technology is acquired after heavy investments. Since your business heavily relies on this technology, you need a technology insurance policy to get coverage for it.

It offers coverage for the loss of income and the expenses incurring from any damage to this technology and equipment. This covers all your hardware, software, servers, copy machines, fax machines, telecommunications equipment, and any other technological asset. This policy covers both on-site and off-site equipment. 

Commercial Auto Insurance

Commercial auto insurance offers coverage for property damage and medical payments that arise from an accident. It also includes coverage for the legal expenses that may arise from an accident if a business vehicle is involved. 

Plastic product manufacturing companies may own several vehicles to drive to and from the factory, carry inventory, equipment, and tools, and transport employees or clients. If a company vehicle is involved in an accident, commercial auto insurance will cover the following expenses:

• Medical bills of the driver
• Repair expenses for the company vehicle
• Medical bills of a third party involved in the accident
• Repair expenses for the property damage of a third-party
• Lawsuits
• Vehicle theft
• Vandalism
• and other losses

Nearly every state in the U.S. requires businesses to have commercial auto insurance, except for Virginia and New Hampshire. Without commercial auto insurance, you will have to pay thousands of dollars in property damage repairs and medical bills.

Workers’ Compensation Insurance

Workers’ compensation insurance is purchased by business owners to protect their employees. This type of policy covers the lost wages, medical expenses, rehabilitation expenses, and/or death benefits for employees who sustain an injury or get ill at work. 

Let's say a machine operator gets injured due to a malfunction and ends up breaking their arm. They will have to stay home for a couple of weeks until they fully recover. Since they have sustained a work-related injury, your company will be liable to bear their medical expenses. 

This is where your workers' compensation insurance comes in. It will not only cover the medical and rehabilitation expenses but also offer compensation to the worker for lost wages. It is a must-have policy for any business.

Equipment Breakdown Coverage

Equipment breakdown coverage is of great significance for plastic product manufacturers as it offers coverage for the damages incurred to your equipment. It covers all the repair or replacement costs associated with equipment breakdown. It can save thousands of dollars of your money in case machinery or equipment malfunctions. 

In addition to covering repair or replacement costs, this policy also helps you quickly resume your business operations and even offers coverage for the income lost due to equipment breakdown. Some insurance providers also include modern equipment risks, such as microelectronics, service interruption data restoration, or cloud computing services interruption. 

Employment Practices Liability Insurance

An EPLI policy protects the employers and the business from claims resulting from wrongful discipline, failure to employ, failure to promote, wrongful termination, sexual harassment, racism, and discrimination. Such claims are very common at workplaces today, and a false claim can not only lead to a legal battle but also destroy your reputation. 

Your Employment Practices Liability Insurance (EPLI) policy will protect you against all losses incurred when settling and litigating false employment practices liability claims. Every business must have an EPLI policy to protect itself from expensive lawsuits. 

Get the Right Insurance Tailored Just for You!

In addition to the policies mentioned above, plastic product manufacturers must also have environmental liability insurance, a business umbrella policy, and surety bonds to protect themselves from several business risks. 

Get started today!

Now that you are aware of what insurance is needed for plastic product manufacturers, get in touch with Elemental Risk Management to get a tailored policy that is designed for your specific business needs. 

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