Light industrial is a term you often hear when discussing commercial insurance, but what does it mean? Typically, light industrial refers to operations such as machine shops, sheet metal work (shop only, no installation), and manufacturing of metal goods, electrical components, and food products. Basically, producing or processing small goods.
When thinking about coverage needs, remember that most manufacturers have some specific exposures that they need to cover. It may be obvious that a manufacturer’s facility and machinery need to be covered, but there are other property coverages to consider: business income, consequential loss, coverage for patterns, molds, models, and dies belonging to others, and equipment breakdown are just a few. Manufacturers also have specific liability needs, such as products liability, additional insureds, per location aggregate, and manufacturer’s E&O. Other coverage concerns can include equipment that is leased or borrowed from others, newly purchased property, coverage for their products or materials in transit, and offsite storage locations.
In addition to coverage, manufacturers can benefit from loss control services and advice on a variety of topics, including machine guarding, hot work, , OSHA recordkeeping, and product and machine safety signage. The concerns of a manufacturer are to protect their building, their expensive – and sometimes difficult to replace – machinery, and any property of others that may be in their custody. In addition to all of this, manufacturers have to focus on protecting another valuable asset – their employees. Workplace safety is a big concern and having the right insurance agent and carrier partners are key.
Central’s Manufacturer’s Questionnaire can help identify exposures (that even the manufacturer doesn’t realize it has sometimes) and is a great tool to get started filling those coverage gaps.
The information above is of a general nature and your policy and coverages provided may differ from the examples provided. Please read your policy in its entirety to determine your actual coverage available.
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