It can happen on either side product, whether it be raw materials or the finished output of your operation is sitting on the dock, just waiting. Because of a delay in-transit, issues at the port of arrival or customs disputes, such time is eating up valuable profits, or could end a deal altogether. The bigger the loss, the harder the hit. This is why many companies are protecting themselves with manufacturers insurance that includes business interruption coverage.
Sometimes called business income insurance, such policies cover situations that are common and yet out of the companys control. Consider the following scenario. A fab shuts down due to inclement weather, and property damage occurs. Whether its a hurricane, flood, earthquake, fire, explosion, utility outage or other event isn’t the issue the problem here is the time that it takes to get back up-and-running. Sure, a liability insurance plan can help reimburse the costs of property restoration. But what if your operations are down for a week or more? Is your business ready to absorb the loss associated with such downtime?
Manufacturers insurance can reimburse your business for interruptions in operations. When weighing the pros and cons of various policies, many fabricators are electing such coverage as it offers a cushion to help the company recover from any such loss of productivity.