Product Liability Insurance

This is arguably the most critical coverage for automotive components manufacturers. Product liability insurance protects against claims arising from defective products that cause injury, death, or property damage. Coverage should include:

• Bodily injury and property damage claims
• Legal defense costs and settlements
• Product recall expenses
• Regulatory defense costs
• Crisis management and public relations support

Given the potential for catastrophic losses in automotive applications, manufacturers should consider high policy limits and worldwide coverage.

Commercial Property Insurance

Protects manufacturing facilities, equipment, inventory, and other physical assets against perils such as fire, explosion, theft, and natural disasters. Key considerations include:

• Replacement cost coverage for buildings and equipment
• Coverage for raw materials and finished goods
• Protection for specialized tooling and dies
• Coverage for equipment breakdown and mechanical failure
• Ordinance and law coverage for building code upgrades

Business Interruption Insurance

Manufacturing operations depend on continuous production to meet delivery schedules. Business interruption insurance covers lost income and ongoing expenses when operations are suspended due to covered perils:

• Lost profits during shutdown periods
• Continuing expenses like payroll and loan payments
• Extra expenses to minimize business interruption
• Contingent business interruption from supplier failures
• Extended period of indemnity for complex recovery

General Liability Insurance

Provides broad protection against third-party claims for bodily injury and property damage occurring on your premises or arising from your operations:

• Premises liability for visitor injuries
• Operations liability during manufacturing activities
• Completed operations coverage
• Personal and advertising injury protection
• Medical payments coverage

Workers' Compensation Insurance

Manufacturing environments present various workplace hazards. Workers' compensation provides mandatory coverage for employee injuries and illnesses:

• Medical expenses for work-related injuries
• Lost wage benefits for injured employees
• Disability benefits for permanent impairments
• Return-to-work programs and rehabilitation
• Employer liability protection

Cyber Liability Insurance

As manufacturing becomes increasingly connected, cyber insurance becomes essential:

• Data breach response and notification costs
• Business interruption from cyber attacks
• Cyber extortion and ransomware protection
• Third-party liability for data breaches
• System restoration and forensic investigation costs

Professional Indemnity Insurance

For manufacturers providing design, engineering, or consulting services alongside component production:

• Errors and omissions in design or specifications
• Failure to meet performance standards
• Intellectual property infringement claims
• Breach of contract allegations
• Legal defense and settlement costs

Environmental Liability Insurance

Manufacturing processes often involve chemicals, metals, and other potentially hazardous materials:

• Pollution cleanup and remediation costs
• Third-party environmental damage claims
• Regulatory fines and penalties
• Business interruption from environmental incidents
• Transportation pollution coverage