The metal working industry is known for its wide range of business diversity. Machine shop owners are used to setting up their businesses in their own particular ways. Although the products and services offered by two machine shops may be somewhat similar, their processes, materials, equipment, and administration are bound to be very different.
Since every machine shop is set up differently, the insurance needs may vary from shop to shop. When it comes to retaining insurance for a metal working business, there is no standard coverage. Each policy must be customized according to the way the shop is set up to do business.
The following is a rundown of the typical coverage machine shops need. The amount of coverage as well as its limits and declarations will need to be adjusted by the agent based on each individual business’s requirements.
Every business needs some level of commercial liability coverage. In the case of machine shops, a liability scenario could be visiting clients who wish to check on the status of their project. Should there be an accident at the shop, liability coverage protects the business in case lawsuits are filed. This coverage may also be extended to finished products such as tools, which may end up injuring users.
This type of coverage is extremely important for machine shops, as it protects the business in situations where the equipment breaks down or malfunctions. Essentially, this coverage pays for the cost of repairing or replacing broken down equipment.
Similar to liability, property coverage is vital for the purpose of providing business continuity in case disaster strikes and the physical property of the machine shop is damaged. The items typically covered include: machinery, tools, raw materials, equipment, signage, and even office furniture.
More than just insurance coverage, workers’ compensation is the law. No machine shop should dare operate without workers’ compensation. San Diego shop owners need to be aware that accidents in the workplace can happen even when the strictest safety programs are in place. The benefit of this coverage is not limited to paying for the medical bills of workers who are injured on the job. It also prevents lawsuits from being filed against the machine shop after a workplace accident.
Other Coverage Options
In National City, commercial auto insurance is something shop owners should consider if they use a car or truck for business. Separate coverage may also be obtained for defective products. This is different from the liability coverage that protects against injuries to a client or operator. Large shops with large staff may benefit from employer practices liability. If the shop’s precision machinery connects to the internet, cyber crime coverage may come in handy, and it can be extended to protect the business from other computer security threats.
To learn more about the types of commercial insurance your machine shop might need, get in touch with Tri-Star Insurance. In additional to reliable commercial insurance, we are also a leading provider of auto insurance. National City shop owners can trust in American Tri-Star to meet their business’s insurance needs. Call 619-474-3900 today for a free quote.