Auto parts manufacturing is a very specialized activity, and it requires specialized insurance. One of the areas where insurance can help when trouble strikes is equipment breakdown. An unexpected mechanical breakdown can cause production to come to a halt. Workers are idle, clients are waiting for delivery, and income is lost. When your equipment breaks down, you have to make a choice: repair, rent, or replace. Each of these options requires an outlay of cash, and some time to implement. However, when you are insured for equipment breakdown, you will be able to make a claim and recoup some of your losses. Surprisingly, many businesses don’t have a clause for equipment breakdown coverage for auto parts manufacturers in their insurance policies. Do you? Is your coverage sufficient for all of your business needs? 

Assessing Where You Stand

If you have had insurance for a number of years, it may not reflect your company’s current situation. Or it may never have contained the coverage that was necessary for your protection. Insurance is one of those areas of business where we tend to make a decision and then forget about it…until it’s time to make a claim.

Rather than waiting until trouble arrives, why not assess where you stand with regard to insurance? If you don’t have a policy that’s been customized for your specific needs, you may be missing coverage, or paying for coverage that you will never use. For example, if your plant needs to store and use combustible liquids, you should have coverage in place that reflects that. Do you have product recall insurance, coverage that pertains to cyber risk, or broad form vendors insurance?

Customized coverage is the best option for most businesses. Having coverage that has been created specifically for your business will ensure that the activities you engage in are protected, and that you’re not paying for coverage that is unnecessary.

Customized Insurance Policies

The first step in obtaining a customized insurance policy is to partner with an insurance broker. Good brokers will come in to talk with you, observe, and find out as much as possible about your business, your employees, and the work you do. The goal is to gather information in order to develop a custom policy in conjunction with an insurance company.

Usually, your broker will bring in a safety specialist to do a comprehensive risk analysis. The safety specialist will be familiar with all applicable laws and regulations, as well as safety protocols for your industry. He or she will spend some time in the thick of things, observing. After observing your employees, a risk analysis report will pinpoint ways in which your company could and should avoid or reduce exposure to risk. (This professional will also have knowledge of currentsafety legislation, and be able to suggest safety protocols that you can implement.)

Finally, your broker will find the coverage you need and connect you with an insurance company. Your policy will be unique – customized to reflect the singular nature of your operation.

Equipment breakdown coverage for auto parts manufacturers is a critical part of your manufacturing business. Contact an insurance broker today, and learn how best to protect your assets, your workers, and your livelihood.