Insurance for Manufacturing and Wholesale Businesses
Manufacturing and wholesale businesses face a combination of property, liability, and operational exposures that require careful attention. From products liability and equipment breakdown to business interruption and supply chain risk, the insurance needs of a manufacturer or wholesaler are more complex than most commercial operations.
This page is for Minnesota manufacturers and wholesale distributors — including light and heavy manufacturers, food processors, fabricators, assemblers, and wholesale distributors of goods. It is relevant for businesses of varying sizes, from small job shops to larger production facilities.
Common Exposures for Manufacturers and Wholesalers
Products liability
If a product you manufacture, distribute, or sell causes bodily injury or property damage, you can face significant liability claims. Products liability is a core coverage for any business in the manufacturing or distribution chain.
Property and equipment
Manufacturing facilities contain specialized equipment, raw materials, work-in-process, and finished goods inventory — all of which need to be covered at accurate values.
Equipment breakdown
Production equipment failures can halt operations and result in significant losses. Equipment breakdown coverage addresses losses that standard property insurance excludes.
Business interruption
A fire, equipment failure, or supply chain disruption can shut down production for an extended period. Business income coverage replaces lost revenue during the restoration period.
Workers' compensation
Manufacturing and warehouse work carries above-average injury rates. Workers' compensation is required by Minnesota law for most employers and is a significant cost for many manufacturers.
Inland marine and transit
Raw materials, work-in-process, and finished goods in transit or at customer locations need coverage beyond standard property policies. Inland marine policies address these mobile exposures.
Cyber liability
Manufacturers increasingly rely on connected systems, industrial control systems, and customer data. A cyberattack or ransomware incident can disrupt production and result in significant costs.
Coverages Commonly Considered
Commercial Property
Covers the building, equipment, raw materials, work-in-process, and finished goods inventory at accurate replacement values.
Learn moreGeneral Liability
Covers bodily injury and property damage claims arising from operations and completed products. Products and completed operations coverage is a critical component.
Learn moreWorkers' Compensation
Required by Minnesota law for most employers. Manufacturing and warehouse operations typically have above-average workers' compensation costs.
Learn moreCommercial Auto
Covers vehicles used to transport goods, make deliveries, or support operations.
Learn moreCyber Liability
Covers costs related to cyberattacks, ransomware, and data breaches affecting manufacturing systems and customer data.
Learn moreInformation Typically Needed for a Review
- Description of products manufactured or distributed — including materials, processes, and end uses
- Annual sales revenue and payroll
- Building information — owned or leased, square footage, construction type, year built
- Equipment schedule with approximate replacement values
- Maximum inventory value at any one time
- Vehicle schedule if the business owns vehicles
- Prior loss history — typically three to five years
Situations That May Require Special Underwriting
- Manufacturers of products with elevated liability exposure — including food products, medical devices, chemicals, or products used in safety-critical applications — typically require more specialized underwriting.
- Businesses with prior products liability claims, especially significant ones, may face limited market options.
- Operations involving hazardous materials, flammable liquids, or significant chemical processes require careful underwriting review.
- Manufacturers with significant export sales may need products liability coverage that extends to international markets.
- Businesses with highly specialized equipment or long lead times for replacement parts may need to carefully consider business interruption coverage limits and waiting periods.
Frequently Asked Questions
Coverage availability, eligibility, and terms vary by carrier, program, and individual risk characteristics. The information on this page is general in nature and does not constitute a coverage guarantee or commitment to insure.