general liability insurance

5 Exclusions in Manufacturer’s General Liability Insurance

By Hoffman Brown Insurance | , | No Comments
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All business owners including manufacturers face potential risk factors specific to their industry that may lead to financial losses. Commercial or business insurance consists of several types of coverage that pay for your losses and damages caused by a wide range of covered perils. One such coverage is general liability insurance coverage.

In this blog, we will discuss the five exclusions in your business general liability insurance that you, as a manufacturer, must know about and the added coverages you may buy to cover these excluded elements. Also, taking appropriate steps may limit your losses and save your business from a financial setback.

5 Important Elements of Your Manufacturing Business Not Covered in General Liability Insurance

  1. Intellectual Property (IP)

    Intellectual property refers to the exclusive rights you can legally obtain for your unique devices, processes, products, or technologies. You can protect them through patents, trademarks, design rights, or copyrights.  However, to gain benefits from your product, some other company may claim their rights to your product. As a result, you may face third-party liability claims that your general liability insurance may not cover. Instead, you need Intellectual Property (IP) insurance for your protection.

  2. Management Liability

    The management team of your manufacturing business consists of directors and other senior executives who may be exposed to liability charges by past or current employees. These officers have specific roles and responsibilities due to which they may have to take certain employee-related decisions that may make them vulnerable to allegations and lawsuits for wrongdoing. Your general liability coverage may not protect your executives who need management liability coverage for better protection.

  3. System Failure Due to Cyber Breach

    Digitalization of manufacturing processes has positively impacted the industry and is being adopted by most businesses. While your company may see reduced operation costs, increased production, and improved cohesion among the several manufacturing stages, it also becomes exposed to cybercrime incidents. With cyber-attacks, cyber extortions, and data breaches on the rise, you must take all measures to prevent this from happening to your business. Besides leading to system failures and financial loss, it also may negatively impact your reputation. However, your general liability coverage may not secure you from this peril so you must have the right cyber insurance for assured protection.

  4. Product Recall-Related Expenses

    If a defect in a product makes you recall it from the market, it affects both your financial health as well as your reputation. It will not, however, be covered in your general liability coverage. You must buy a recall policy to probe the reason for the defect, provide solutions, stabilize your finances, and secure enhanced protection for first-party indemnity.

  5. Liability for Health Product Manufacturers

    Manufacturers of medical equipment nutraceuticals or other specialized healthcare-related products are at a higher risk of liability charges and lawsuits. General liability coverage may not be the right coverage, instead, you must have life science insurance coverage to protect your interests.

Secure Your Manufacturing Business with Hoffman Brown Insurance!

For more information on commercial business insurance, contact our team today. At Hoffman Brown Company, we prioritize providing you with the right insurance coverage for your manufacturing business.

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