Top Insurance Risks Facing Michigan Manufacturers and How to Manage Them

Michigan manufacturers face a range of exposures that can threaten day-to-day operations and long-term financial stability. Willow Insurance Group offers manufacturing insurance that may financially protect your operations when the unexpected happens.

Key Insurance Risks for Michigan Manufacturers

A dedicated manufacturing insurance policy can address significant risks, such as:

1. Property damage and equipment breakdown—Fires, storms or mechanical failures can halt production and lead to costly repairs. Property insurance and equipment breakdown coverage may help cover these losses.
2. Product liability—If a product you manufacture causes injury or property damage, your business could face legal and financial consequences. Product liability insurance may help with medical bills, defense costs and settlements.
3. Workers’ compensation claims—Michigan law requires certain employers to carry workers’ compensation insurance, which may provide financial support to employees who become sick or injured due to their work.
4. Cybersecurity threats—As manufacturers adopt digital technologies, data breaches and ransomware can disrupt operations and compromise sensitive information. Cyber liability insurance may pay recovery costs and other expenses after a cyber incident.
5. Supply chain disruptions—Delays in your supply chain can impact production schedules and revenue. In such cases, business interruption insurance may help cover lost income and extra expenses.

Risk Management Strategies for Manufacturers

Consider the following steps:

• Conduct periodic risk evaluations to identify vulnerabilities and address them proactively.
• Invest in employee training to help reduce workplace accidents.
• Maintain and upgrade equipment to help prevent breakdowns.
• Implement updated cybersecurity measures to help secure your systems.
• Review insurance coverage annually to make sure policies keep pace with your business.

Contact Our Team

Willow Insurance Group can help you identify risks and secure optimal insurance for your manufacturing business. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.