What is Manufacturers Business Insurance?
Manufacturing insurance in Calgary is a type of commercial insurance designed to protect those with manufacturing operations from paying out of pocket for sudden or unexpected costs such as legal defense fees, legal settlements, medical bills, property damage mitigation and much more, depending on the specific terms of your policy. It's a form of risk management that is critically important for manufacturing companies. In the unfortunate event that something goes wrong, such as a third-party bodily injury, massive equipment failure or product recall, you need to know that you will be able to get help to recover from financial losses and get your business up and running again, or keep it in operation.
Who Should Have Calgary Manufacturing Insurance?
Any company operating in the manufacturing industry needs comprehensive manufacturing insurance. Calgary businesses that require manufacturing insurance can range from massive fabrication plants to small, independent food or beverage manufacturers such as craft breweries. There's such a wide range of products that can be manufactured, and such a wide variety of methods and techniques that can be used to accomplish the manufacturing process, so Calgary manufacturing insurance is a broad category that applies to many different types of fabrication and manufacturing businesses.
Subcategories of Manufacturing Insurance in Calgary Include:
However, it's worth keeping in mind that this list is far from exhaustive. You could be manufacturing cosmetics, toys, household goods or numerous other possibilities, but regardless of what you're making, you need to be covered by a comprehensive policy for manufacturing insurance in Calgary. The expert brokers at Krywolt Insurance have the expertise to find the right options to meet the particular needs of your unique business.
What Types of Coverage Are Available for Manufacturing Insurance in Calgary?
We work with Calgary manufacturing companies of all descriptions to ensure their business, their inventory, their machinery, their finished products and raw materials are all protected. As all manufacturing companies are different, so too are the options for insurance required to ensure your business is protected with the right manufacturing insurance for your business.
Commercial General Liability
All business insurance in Calgary needs to include basic commercial liability coverage, which is intended to help business owners cover costs related to personal harm, third-party property damage and third-party bodily injury. For example, say a client comes into your business facility to retrieve products and drops a heavy box on their foot, causing an injury such as broken toes. They could choose to sue you to recoup the cost of medical expenses, which can be partially or completely covered by commercial general liability insurance. Or, maybe you rent your manufacturing facility, and there's an incident that results in costly damage to the building. Your landlord could sue you to recover the costs of repairing the damage or replacing destroyed items and building components. Without adequate Calgary manufacturing insurance that includes commercial general liability, you'll have to pay those costly fees out of pocket, along with legal defense expenses.
Pollution Legal Liability Insurance
Generally speaking, the manufacturing process involves the use of chemicals, solvents, food substances, fuel and more that have the potential to cause harm to the environment. If you operate out of a fixed site facility, it's important to have pollution legal liability. This type of manufacturing insurance in Calgary covers both gradual events such as a slow leak that is leeching contaminants into groundwater or soil and sudden events such as a chemical spill. You'll receive funds to help with property damage recovery, clean-up costs, bodily injury claims and more that are related to the polluting incident. It can also apply to legal defense costs if the polluting event prompts legal action to be brought against you.
Cargo Insurance
Shipping cargo is an integral part of most manufacturing operations, whether you need to move massive pallets of goods halfway around the world or are just bringing a few boxes to a local restaurant or retail store. As we all know, there's a lot that could happen between your cargo loading bay and the final destination. When it comes to manufacturing insurance, Calgary policyholders need to know that cargo insurance is a necessary addition to their policy because it offers protection against financial losses incurred when cargo is damaged or goes missing.
There are two main categories of cargo insurance: inland and marine. As the name suggests, inland cargo insurance applies to goods that are being transported over land via truck or train. However, most standard inland policies exclude goods that are crossing a border and it's mainly intended for domestic deliveries within Canada. Marine cargo insurance, on the other hand, covers shipments that are being moved across the water via ship or airplane. That includes a much wider range of perils, including risks such as sinking, ship collisions, piracy, loading and unloading damage and other potential circumstances. Cargo insurance differs from freight insurance in that cargo insurance protects the shipper, or owner of the cargo, while freight insurance protects the carrier or freight forwarder.
Product Liability Insurance
When your products or goods leave Calgary and go out into the world and reach the end user, sometimes there are unforeseen complications that can lead to damage or injury. What if you produced an edible product but failed to label it correctly with all included ingredients and some consumers suffered severe allergic reactions? Or what if you designed and manufactured a toy that caused injury to a few children who played with it? Product liability insurance covers scenarios like that where your product has caused or is alleged to have caused third-party bodily injury or third-party property damage, which makes it an important part of your manufacturing insurance in Calgary. Product liability insurance could be used to cover expenses such as legal defense fees, and should you be successfully sued, legal settlement costs.
Professional Liability Insurance
Also known as errors and omissions insurance, professional liability is a type of liability coverage for manufacturing insurance in Calgary that applies to legal fees and settlement payments in the event that you have legal action brought against you for allegedly failing to provide a product or service as promised, breach of contract, professional negligence and more. This differs from commercial general liability in that it covers litigation costs for situations in which your product has allegedly caused third-party financial loss, but not bodily injury or property damage.
Product Recall Insurance
In the examples of possible product liability claims above, and in dozens of other potential scenarios, it's not enough to just pay settlements to those who bring legal action against you. You also need to recall the faulty or hazardous products so they can't cause any further injury or damage. Or, you may have a product that has not resulted in lawsuits, but you're being forced to recall it by regulatory bodies who detected a compliance violation in how the product was designed, manufactured, labelled, packaged or marketed. Product recall insurance is a part of Calgary manufacturing insurance that provides financial assistance dealing with the costs associated with a product recall, such as the logistics of getting the product back and rehabilitating it if possible, along with the financial loss of the contaminated or non-compliant products up to the coverage limits on your policy.
Commercial Property Insurance
Whether you run a major manufacturing plant in Calgary or you're an artisan who is hand-manufacturing goods in your garage, it's important to have commercial property insurance. In the manufacturing industry, your facility and equipment are of the utmost importance to your success. Commercial property coverage is essential to a Calgary manufacturing insurance policy because it gives you the peace of mind that comes with knowing you won't be on your own to cover expenses for property damage caused by factors like fire, theft and natural disasters. The exact perils that are covered depend on the type of manufacturing insurance policy you have—all-risks or named perils—and the risks that are excluded or included in your specific property coverage for manufacturing insurance in Calgary. It's a good idea to speak with your broker at Krywolt Insurance about the risks that are especially likely to affect your particular location. For example, if you are located within a flood zone close to the Bow or Elbow Rivers, it's important to make sure flooding is included in your policy so you're not left to deal with severe water damage mitigation all on your own.
Business Interruption Insurance
If your commercial property is damaged in a disaster such as a fire, the commercial property insurance portion of your manufacturing insurance will help you deal with expenses such as damage restoration and replacing your damaged equipment, stock and inventory. But the repair and replacement process isn't going to take place overnight. You may have to operate at reduced capacity or shut your manufacturing process down entirely until the issue is resolved and your commercial property and equipment are back to normal—and it stands to reason that you'll lose quite a bit of revenue while that's underway. That is why business interruption coverage is necessary for manufacturing insurance in Calgary. It protects you against business income losses by providing insurance compensation for lost revenue while you're recovering from a damaging event. It may also cover additional expenses such as the cost of a temporary location and rental equipment or employee wages.
Equipment Breakdown Insurance
Your manufacturing equipment is a critical part of your commercial operations in Calgary, but like any type of machinery or tools, it's not impervious to damage, and it's not going to last forever. If your assembly-line equipment suffers a mechanical failure right while you're gearing up to push through a major order from your biggest client, it can have a disastrous effect on your ability to fulfill your contractual obligations and bring in revenue. Equipment breakdown insurance covers repair or replacement costs for equipment that breaks down due to reasons such as power surges, operator error or motor failure. Damage that is unrelated to a mechanical breakdown such as fire or flood would fall under commercial property coverage on your Calgary manufacturing insurance.
Additional Calgary Manufacturing Insurance Coverage
- Contractors Operations and Professional Services
- Business Interruption Insurance
- Corporate Travel Insurance
- Cyber Insurance
- Expatriate Care Insurance
- Fleet Vehicle Insurance
- Group Injury and Sickness Insurance
- Kidnap and Ransom Insurance
- Multinational Insurance Solutions
- Political Risk Insurance
- Professional Indemnity Insurance
Frequently Asked Questions About Calgary Manufacturing Insurance
How Much Does It Cost for Manufacturing Insurance in Calgary?
You need a Calgary manufacturing insurance expert who is capable of defining all the potential risks associated with how you choose to operate your business so you can get the best possible coverage to ensure that a single oversight or a simple accident doesn't overcome your manufacturing business and cause major financial losses. You know how to run your business, we know the potential risks and all the ways to protect your business from potentially crippling lawsuits or loss.
We don't offer instant online quotes for Calgary manufacturing insurance costs because there is no way we can find out more about you and your business until we speak with you and get a clearer picture of what your business needs to succeed. Once we've chatted with you and know more about how you operate your business, we can find the right insurance options for your unique company to ensure you are fully covered and protected against whatever comes your way.
What Information Do I Need to Provide to My Krywolt Insurance Broker?
The manufacturing sector has many folds—for example, are you certified for a particular process? Or does your company process or equipment include trace particles of other ingredients that may cause health issues for customers? There are a wide range of things we will need to chat about to learn more about your business and then get the best possible Calgary manufacturing insurance coverage for you.
Here are a couple of things to think about before we chat.
- What is the value of the assets of the business?
- Is your product consumable? Is it a piece of textile, toy, furniture, or technology?
- Do you own the business premises?
- Is there liability on the services you are providing and if so, think about those risks and jot some down.
- Are you integral to continued operations—what would happen if you were injured and couldn't work?
Am I Legally Required to Have Manufacturing Insurance in Calgary?
Business insurance, which includes Calgary manufacturing insurance, is not legally mandatory in Canada, so you're not required to have it. That being said, going without it is likely to have some serious repercussions for the success of your business.
No matter how conscientious and exacting your business practices are, you can't prevent every possible mishap or situation that could end up costing you a staggering amount of money in legal expenses, medical bills, legal settlements, repair and replacement for equipment, property damage mitigation and more. Those costs could be enough to cause financial ruin to your business if you don't have adequate Calgary manufacturing insurance coverage to protect you. You may also find that clients are unwilling to work with a manufacturer who is not insured, costing you valuable contracts that will end up going to your competitors instead. The dedicated team of Krywolt Insurance brokers has the experience necessary to find the best possible coverage for your business at competitive prices so you can rest assured that your business is protected against damaging financial losses.
