By The Huttenlocher Group
Tool and die shops may need several different forms of insurance. Do to the nature of the industry they're exposed to many unique risks. Your insurance needs will depend on the risks inherent in your particular shop.
At The Huttenlocher Group we have Tool & Die Insurance specialists. Commercial insurance agents who specialize in the Tool & Die Industry. They'll assist you in getting the correct tool and die shop insurance for your company.
Among the types of insurance available are:
Commercial property insurance protects your company's physical assets. Events like acts of nature, fire, explosions, burst pipes, vandalism and theft. Commercial property insurance covers your physical building, your valuable machinery, and your inventory. It even is able to protect your business income with business interruption insurance.
Also covered on a Commercial Property Insurance Policy:
Furniture and equipment
Fence and landscaping
Equipment Breakdown coverage is an optional part of a commercial insurance policy. This coverage may help pay the cost to repair or replace broke-down or damaged equipment. Again, business interruption would cover lost revenue resulting from a covered peril.
Wear and tear on equipment is not generally covered by equipment breakdown insurance. If your equipment stops working because of maintenance your insurance won't cover that. If the machine should get replaced due to age, your insurance may also not cover that.
Five categories of equipment that equipment breakdown insurance generally covers:
Mechanical. Motors, engines, generators, elevators, water pumps, specialized production and manufacturing equipment.
Electrical, which includes transformers, electrical panels and cables.
Computers and communications. Computer systems, phone systems, voice mail systems, security systems and fire alarm systems.
Air conditioners and refrigeration systems
Boilers and pressure equipment
Commercial General Liability
General liability insurance covers your shop from a variety of liability exposures. Risks such as customer injury, customer property damage, and advertising injury for example. This coverage helps protect your shop from the high costs of lawsuits.
With a CGL policy, you'll have protection from claims such as:
Damage to premises rented to you
All businesses that manufacture and sell products should have product liability coverage. This coverage protects your business in the event of a lawsuit. If a claim that a product you made and/or sold caused injury or damage, this coverage kicks in. If your client uses tools you made and they have a workplace injury, they may hold you and your company liable. Product liability insurance is able to protect you in these cases.
Workers' compensation, also known as "workers comp," is a government-mandated program. This program provides benefits to workers who become injured or ill on the job or as a result of the job. It is in a sense, a disability insurance program for workers. They will provide cash benefits and/or medical care for workers who get hurt or who became ill as a result of their job.
Disclaimer: The analysis of coverage is in general terms and is superseded in all respects by the Insuring Agreements, Endorsements, Exclusions, Terms and Conditions of the Policy. Some of the coverage mentioned in this material may not be applicable in all states or may have to be modified to conform to applicable state law. Some coverages may have been eliminated or modified since the publishing of this material. Please check with your local Independent Insurance Agent for details.