Benefits of General Liability Insurance For Manufacturers

For manufacturers general liability insurance provides protection against legal liability for commercial risks arising from ownership, maintenance or use of business premises and defects in manufactured products.

If the defective product produced by the manufacturer is supplied to the customer, results in bodily injury or damage to the property of the customer, then he can sue the company. In such cases the liability insurance will protect the company against the claims made by the customer. The compensation paid includes claimant's costs, fees and expenses, all according to the law of the country regarding the insurance policies.
General liability insurance for a manufacturer provides the coverage in the following areas

• Injury to third parties
• Damage to third party property
• Damage or injury caused by completed operations
• Can be extended to cover rip and tear, caused due to faulty workmanship
• Can be extended to cover expenses from product recalls

The following manufacturers comes under coverage of this policy

• Medical products manufacturers
• Machinery manufacturers
• Automobile parts manufacturers
• Valve, boiler manufacturers
• Overhead crane and Furniture manufacturers
• Exercise equipment manufacturers

As the number of manufacturing firms are increasing world wide, downward pressure is being experienced on the premiums and thus the cost of insurance policies decreased dramatically over the years for the manufacturing industry and also the service providers tailoring the liability insurance policies according to the needs of specific business.