Common Insurance Claims Filed by Manufacturing Companies
- Nate Jones, CPCU, ARM, CLCS, AU
- 6 hours ago
- 2 min read
Manufacturing companies face daily operational risks that can lead to costly insurance claims. From workplace injuries to property damage and product defects, understanding the most common manufacturing insurance claims helps businesses reduce exposure, improve safety, and secure the right coverage. Proper insurance planning can mean the difference between quick recovery and prolonged downtime.
Workplace Injury and Workers’ Compensation Claims
One of the most frequent claims filed by manufacturing companies involves employee injuries. Slips, falls, repetitive motion injuries, and machinery-related accidents often result in workers’ compensation claims. These claims cover medical treatment, lost wages, and rehabilitation costs.
Manufacturers that follow safety standards set by the Occupational Safety and Health Administration (OSHA) can reduce injury-related claims and improve long-term insurance costs.
Property Damage Claims
Manufacturing facilities house valuable assets, including machinery, tools, raw materials, and finished goods. Fires, equipment malfunctions, storms, and vandalism are common causes of property insurance claims. Even minor damage can disrupt production schedules and lead to significant financial loss.
Commercial property insurance helps cover repair or replacement costs, allowing manufacturers to resume operations quickly after a covered event.
Product Liability Claims
Product liability claims arise when a manufactured product causes bodily injury or property damage after distribution. These claims can involve design defects, manufacturing errors, or inadequate warnings. Legal defense costs and settlements associated with product liability claims can be substantial.
Manufacturers that distribute products to retailers or consumers often face contractual requirements to carry product liability insurance to protect all parties in the supply chain.
Equipment Breakdown Claims
Manufacturing companies rely heavily on specialized equipment to maintain production. Equipment breakdown claims occur when machinery fails due to mechanical or electrical issues. These claims may cover repair costs, replacement parts, and in some cases, lost income resulting from downtime.
Business Interruption Claims
When a covered loss forces a manufacturing facility to shut down temporarily, business interruption claims may be filed. These claims help replace lost income, cover ongoing expenses, and support recovery efforts while operations are suspended.
Why Understanding Claims Helps Lower Risk
By analyzing common claims, manufacturers can identify operational weaknesses and implement risk management strategies. Improved safety training, routine equipment maintenance, and quality control procedures help reduce claim frequency and insurance costs over time.
How Wexford Insurance Supports Manufacturers
Wexford Insurance specializes in manufacturing business insurance and helps companies prepare for, manage, and recover from common insurance claims. Their tailored coverage solutions address manufacturing-specific risks and support long-term stability. Request a free manufacturing insurance quote from Wexford Insurance to ensure your business is protected against the most common manufacturing claims.
