What Insurance Coverages Does a Plastic Manufacturing Business Need?
- May 21
- 6 min read
Running a plastics manufacturing operation means you’re balancing production speed, employee safety, and equipment reliability—every single day. One equipment malfunction, workplace injury, or defective product can disrupt your workflow and quickly turn into a costly
insurance claim.
At Wexford Insurance, we work with manufacturers who face this reality daily. Many come to us after experiencing a close call or a claim that made them realize their current coverage wasn’t built for how their operation actually runs. That’s why understanding plastic manufacturing business insurance isn’t just helpful—it’s critical.
Nate Jones, CPCU, ARM, CLCS, AU), founder of Wexford Insurance, puts it this way:
“Manufacturing businesses don’t fail because of one big loss—they struggle when multiple smaller gaps in coverage stack up. The right insurance program prevents that from happening.”
This guide breaks down the essential coverages, real-world costs, and how to build a policy that actually protects your people, equipment, and production.
Average Cost of Plastic Manufacturing Business Insurance
Insurance costs vary based on your facility size, processes, and workforce. Below are realistic estimated ranges for key policies that manufacturing businesses rely on.
Estimated range: $1,000 – $6,000+ annually
Based on product exposure, operations, and claims history
Standard limits typically start at $1M per occurrence / $2M aggregate
This covers third-party injury or property damage tied to your operations or products.
Estimated range: $3,000 – $20,000+ annually
Based on payroll, employee roles, and injury risk
Manufacturing environments typically fall into moderate to higher-risk classifications due to machinery and repetitive tasks.
Estimated range: $2,000 – $15,000+ annually
Driven by building value, fire exposure, and equipment cost
Protects your facility, inventory, molds, and production equipment from covered losses.
Business Owner’s Policy (BOP)
Estimated range: $3,500 – $12,000+ annually
Combines property and liability into a single package
Often a cost-effective option depending on your operation size.
Umbrella Insurance
Estimated range: $1,000 – $5,000+ annually
Extends liability limits above your base policies
At Wexford Insurance, we frequently recommend umbrella coverage due to the severity potential of manufacturing claims.
Core Insurance Coverages Every Plastic Manufacturer Needs
General liability insurance protects your business if a third party is injured or their property is damaged as a result of your operations.
Examples include:
A vendor slips in your facility
A defective product causes property damage after delivery
A visitor is injured while touring your plant
This coverage helps pay for medical costs, legal defense, and settlements.
Learn more about https://www.wexfordins.com/general-liability-insurance.
Manufacturing work involves machines, heat, repetitive motion, and sometimes hazardous materials.
Workers’ compensation covers:
Medical treatment for injured employees
Lost wages during recovery
Employer liability protection
At Wexford Insurance, the most common claims we see in plastic manufacturing involve hand injuries, repetitive strain, and minor burns—often from routine tasks rather than major accidents.
Your facility and equipment represent one of your largest investments.
Property insurance covers:
Fire damage
Storm damage
Vandalism or theft
Certain equipment-related losses
In Nate Jones’s experience as a former underwriting manager, fire exposure is one of the biggest underwriting concerns in plastic manufacturing due to the materials and machinery involved.
Plastic manufacturing relies on specialized equipment such as molds, presses, and extrusion systems.
This coverage protects:
Mobile equipment
Tools and molds
Equipment in transit or temporary storage
Without it, even a minor equipment loss could disrupt production for weeks.
If your business transports raw materials or finished products, commercial auto insurance is essential.
It covers:
Company vehicles
Liability from accidents
Damage to vehicles and transported goods
Learn more about https://www.wexfordins.com/commercial-auto-insurance.
Umbrella Insurance
Umbrella insurance provides an extra layer of liability protection above your standard policies.
This becomes critical when:
A claim exceeds your base liability limits
Multiple claims occur in a short period
Product-related liability escalates into a larger issue
What Factors Affect Insurance Costs
Several key elements drive pricing for plastic manufacturing insurance.
Size of Your Operation
Larger facilities with more employees, machines, and production volume naturally carry higher exposure.
Type of Products Manufactured
Some plastic products pose more liability risk than others—especially components used in:
Industrial systems
Consumer goods
Automotive or medical applications
Product liability exposure directly impacts your insurance cost.
Equipment Value and Complexity
High-value machinery increases property insurance costs and potential downtime risk.
Safety Practices and Training
Documented safety procedures, training programs, and maintenance logs can positively influence your insurance pricing over time.
Nate Jones, CPCU, ARM, CLCS, AU, often advises:
“Insurance carriers don’t just look at what you do—they look at how consistently you manage risk. That’s what separates average pricing from preferred pricing.”
Claims History
Frequent claims—even small ones—can significantly increase premiums over time.
At Wexford Insurance, we’ve seen manufacturing businesses stabilize their insurance costs by addressing root causes of recurring claims instead of treating them as isolated incidents.
How to Lower Your Plastic Manufacturing Insurance Costs
Implement structured employee safety training programs
Maintain detailed equipment inspection and maintenance logs
Rotate employees to reduce repetitive strain injuries
Document all incidents and near-misses to identify patterns
Bundle policies with a single carrier for efficiency
Review classifications and payroll annually to avoid inaccuracies
Work with an independent agency to compare multiple carriers
One of the most common mistakes Nate Jones, CPCU, ARM, CLCS, AU sees manufacturing business owners make is ignoring small safety issues until they become claims.
“The most expensive claims are often predictable,” Nate says. “They start as minor issues that go unaddressed.”
Important Risk and Compliance Considerations
Manufacturing environments are subject to ongoing safety standards and regulatory guidelines.
The Occupational Safety and Health Administration (OSHA) provides safety requirements for workplaces involving machinery, chemicals, and repetitive processes
.Learn more: https://www.osha.gov
Additionally, the National Institute for Occupational Safety and Health (NIOSH) offers guidance on reducing manufacturing risks, especially injuries tied to repetitive motion and machine operation. Learn more: https://www.cdc.gov/niosh
Following these standards doesn’t just reduce accidents—it helps improve your insurance profile over time.
Frequently Asked Questions About Plastic Manufacturing Insurance
Do I need all of these coverages?
In most cases, yes. Each policy addresses a different type of risk. Without a complete program, gaps in coverage can leave your business exposed.
Can I bundle my insurance policies?
Yes. Many manufacturers use package policies to combine general liability and property coverage, which can help streamline management and reduce costs.
What is the most important insurance for manufacturers?
Workers’ compensation and property insurance are typically the most critical, followed closely by general liability.
Does insurance cover defective products?
Yes, in many cases. Product liability coverage (usually part of general liability) can help protect you if a product causes damage or injury after it leaves your facility.
How often should I review my insurance coverage?
At least once per year—or anytime your operations change significantly. Growth, new equipment, or new product lines can all impact your insurance needs.
Why Plastic Manufacturers Choose Wexford Insurance
Wexford Insurance was built to serve business owners who operate in complex, high-risk industries like manufacturing.
We are an independent agency, which means we don’t work for one insurance company—we work for you. We compare multiple carriers to find the best coverage for your operation.
At Wexford, we recently helped a plastics manufacturer who had outgrown their original policy. Their coverage hadn’t kept up with their expanded production and equipment upgrades. By restructuring their insurance program, we helped identify gaps and improved protection without unnecessary cost increases.
Our office is located at 107 N State Road 135, STE 304, Greenwood, IN 46142, and we work with manufacturers across the country.
Nate Jones, CPCU, ARM, CLCS, AU—our founder—earned his degree in Insurance and Risk Management from Indiana State University and previously worked as an Underwriting Manager. That background gives us an inside perspective on how insurance companies evaluate your business.
As a Trusted Choice independent agency, we focus on long-term relationships, not quick sales. Our goal is to help you build a sustainable insurance strategy that evolves with your operation.
Get the Right Coverage for Your Plastic Manufacturing Business
Your insurance program should reflect how your business actually operates—not just what a generic policy includes.
If you’re unsure whether your current coverage is adequate—or you’re preparing to grow—now is the time to review your options.
Our office address is107 N State Road 135, STE 304,Greenwood, IN 46142
Call 317-942-0549 or visit www.wexfordins.com. We will compare multiple carriers and help you secure the right protection at the best possible price.
