On Solid Ground: 5 Things Every Machine Shop Should Keep In Mind About Insurance

Machine shop owners must consider all ways that they face liabilities when operating their business.

When reviewing these liabilities, the business owner must consider what insurance policies provide the most protection for each liability. Operating a business leads to liabilities involving avoidable accidents, and it is up to the business owner to find the right level of coverage to protect their company and workers.

1. Buying Machine Shop Insurance

Buying machine shop insurance provides adequate coverage for common accidents and liabilities that can occur in a machine shop. This includes accidents involving the machines, high-voltage accidents such as arc flashes, and industrial accidents that can lead to multiple injuries. The policies provide assistance like professional liability coverage and apply to any liabilities connected specifically with a machine shop. Business owners who want to learn more about the policies or get a free quote can find details over at Garrity Insurance right now.

2. Worker’s Compensation Coverage

Worker’s compensation coverage provides coverage all workers who are injured on the job. It pays for all medical requirements for the accident injuries and provides wage replacement for workers who are unable to return go to work immediately. The wage replacement ranges up to 90% of the employee’s total wages. However, a claim’s adjuster must review the claim and provide an approval before the worker is covered.

3. General Liability Coverage

Buying general liability coverage protects the business in case a liability presents itself. For example, a breach of contract resulting in a lawsuit award is covered under the policy. The purpose of coverage is to mitigate the potential for a financial loss and prevent the company from shutting down as a result of a lawsuit. It gives the company funds to pay for lawsuit damages, too. If the company faces a lawsuit for premises liabilities, the policy offers coverage for medical treatment for the visitor’s injuries and offers compensation for pain and suffering.

4. Commercial Property Coverage

Commercial property coverage provides funds if the property is damaged due to a covered event. Typically, covered events include fires, natural disasters, and vandalism. The funds are released to the property owner when the property is damaged. However, if the property is a total loss, the insurance provides the replacement value to the owner to help them either rebuild or purchase a new commercial property. A complete inspection is conducted when the property is damaged, and a damage report is filed with the insurance claim.

5. Product Liability Coverage

Product liability coverage protects the company after a consumer is injured while using one of the company’s products. Consumers report injuries related to products to the Consumer Rights Protection Agency, and the agency determines if the product is dangerous and poses a risk to consumers. Consumers present medical evidence when filing a lawsuit against the company. If the outcome of the lawsuit is in the favor of the consumer, the insurance policy provides the consumer with a payment to cover the lawsuit damages.

Machine shop owners must evaluate all ways in which they could face liabilities and mitigate these risks proactively. Insurance coverage can protect the business owner and enable them to lower risks to their business. Coverage can prevent a serious financial loss to the company and prevent a complete shutdown. Understanding how each policy works shows the business owner what to expect from each policy.