As a manufacturer, you are likely well aware of the importance of carrying product insurance. After all, you need coverage for your equipment as well as the products it creates and the consumers who purchase them. But did you know that a policy can actually save your business money?
It may sound too good to be true, but this is not the case. There are several ways in which this type of insurance can benefit your bottom line in addition to protecting your business.
It Salvages Relationships
When a consumer experiences a bodily injury or property damage due to a product, a domino affect occurs down the distribution chain. The retailer that sold the product usually feels it first, followed by the wholesaler, assembler, components manufacturer and finally the product manufacturer.
If your manufacturing company finds itself the brunt of the blame for the defective product, you risk damaging the aforementioned relationships and losing the gains you make from them. However, if you have product insurance, it can protect all involved parties, thereby keeping the peace.
It Addresses Downtime
Should your equipment break down and render your operation unable to produce for a period of time, a good carrier will assess the impact and work with you to help minimize losses. This means that whether you are out of business for a few hours or a few days, the hit you take should be far less severe.
These are just a couple of examples of how product insurance can safeguard your budget, preserving your company’s dependable reputation and decreasing the consequences of downtime.