Auto Parts Manufacturers Insurance

An auto parts manufacturing business also maintains and repairs automobiles which include trucks, buses, and motorcycles. Production of these automobile parts involves assembling the different components and parts.

As an auto part business owner, you need insurance to protect your business from lawsuits and protect your livelihood.

Cost of auto part manufacturer insurance

General liability insurance for an auto part manufacturing business largely depends on the location, size, revenue, and claims history.

Why auto parts manufacturers need insurance

Your manufacturing facility can be damaged by either an act of nature, fire, vandalism, or theft.

The workers can get injured while at work caused by malfunctioning the equipment used in production or human error.

Auto parts manufacturers are held liable for defective parts that end up causing vehicle accidents.

Types of insurance for automobile manufacturers

Auto parts manufacturers face risks that are unique to the industry and different from other manufacturing businesses. Therefore it is essential to have the right coverage to ensure that you are fully covered in any unforeseen eventuality. Other risks faced by auto parts manufacturers are common to any commercial business.

Due to the unlimited potential for auto parts manufacturer liability, as the business owner, you have a responsibility to source for an insurer who understands the industry. The coverage needed for an auto part manufacturing business depends on the specific nature of the manufacturing process, the size of the facility, and where it is located.

Some insurance policies are essential for auto part manufacturers, and this includes.

Commercial property

This policy covers your commercial facility if it is damaged by an act of nature like fire, theft, and vandalism. It covers contents inside your facility and your building.

Commercial general liability

This is essential coverage for auto parts manufacturers. It covers third-party property damage or personal injury sustained from the products. For example, if a part manufactured by your plant allegedly causes a motor vehicle accident, the policy covers the legal expenses and settlement fees if a lawsuit is filed.

Equipment breakdown

The policy covers the mechanical breakdown of the equipment. It ensures the equipment is repaired or lost. It takes care of the revenue lost due to the breakdown.

Workers compensation

This is a significant insurance policy for an auto manufacturing business. The policy is mandatory for a business that employs one or more individuals. For example, your employee can sustain an injury caused by the equipment in the facility. This policy covers the medical expenses and wages lost during the treatment.

As an auto parts manufacturing business owner, you can opt for individual policies specific to your industry and commercial package policies, which combine several policies under a single plan.

Get the assistance of a qualified insurer to advise on the best coverage for your business.