Metal Manufacturing Risk Assessment

Insurance policies protect against more than just home or automobile accidents! There are many different types of insurance coverage that are available through dependable brokers in the GTA specifically designed for metal manufacturing. There are many industry specific insurance products out there that help to cover business owners in various industrial fields. Some of these include medical professionals, food service and retail businesses and manufacturing sectors. Tool and die manufacturers for example have a need for extensive coverage to protect them from health and safety concerns as well as loss of profit. Equipment breakdown coverage for tool and die shops is essential for risk assessment management for protecting both workers and the business!

Equipment Breakdown Coverage: Tool and Die Shops

Equipment breakdown insurance is more than covering a loss from a boiler or other type of machinery. Whether it be a tenant in a manufacturing building, or a property owner, manufacturing professionals should protect their machines and production lines by insuring against potential equipment breakdowns. Equipment breakdown coverage for tool and die shops is an important consideration when managing risk assessment.

Comprehensive packages built with the manufacturing industry in mind help protect tool and die shops by closing potential gaps in coverage with equipment breakdown insurance. Traditionally known as "boiler and machinery” insurance policies, this coverage reads between the lines for the client; additional coverage for sudden and accidental breakdown helps to cover stationary equipment.

Due Diligence for Coverage Qualification

For Canadian manufacturing businesses, there are some guidelines that must be met for underwriting this type of insurance policy. For example, clients must show due diligence in quality control and safety. Due diligence is defined as "reasonable steps taken by a person or a business to satisfy a legal requirement” or, "the care that a reasonable person exercises to avoid harm to other person or their property.” Also, tool and die operations must take place in a building that is 40 years or less to qualify for specific equipment breakdown insurance. These insurance products do not specify between owners or renters of industrial space; both property types are covered under equipment breakdown coverage for tool and die shops.

Some other considerations tool and die manufacturing businesses should consider when managing risk assessment include:

·       Business Income Coverage – covers lost or impacted income during down time of an equipment breakdown.

·       Equipment and Tools – includes mobile equipment resulting in breakdown and loss of income.

·       Failure to Meet Customer’s Expectations – coverage for any products that the client’s customer has rejected due to malfunctioning equipment or other factors.

·       Product Recall– pays for expenses of any product that recalled before it can cause bodily harm.

Regional Coverage for Manufacturing Insurance

Potential clients interested in securing equipment breakdown for tool and die shops should partner with a reputable insurance provider who specializes in policies for the manufacturing sector. With any important business decision, choosing the right insurance broker and product requires research. Many potential clients now turn to the Internet to research and read testimonials before making their choice. Choosing a regional brokerage who represents long-standing businesses in the local area is wise; they will have an understanding of what your tool and die shop needs in terms of coverage and will be able to suggest the appropriate equipment breakdown coverage that will benefit your business specifically. With coverage like this, production and profits are truly insured against any equipment breakdown for tool and die shops.