What's Included in General Liability for Manufacturing Companies?

Commercial General Liability Insurance (CGL) for manufacturing companies includes two primary coverage components standardized by the Insurance Services Office (ISO): premises-operations coverage and products-completed operations coverage.

Premises-operations coverage protects against bodily injury and property damage occurring at the manufacturing facility during business operations, while products-completed operations coverage addresses liability after manufactured products leave the manufacturer’s control.

Standard CGL policies provide defense costs and indemnification up to specified per-occurrence limits and general aggregate limits.

The premises-operations component covers incidents occurring on manufacturing property including customer injuries from slips and falls, damage to client property during installation or service work, and bodily injury caused by manufacturing equipment or processes.

This coverage extends to owned and leased facilities, including warehouses, production floors, and office spaces. Defense costs for liability claims are covered in addition to policy limits, meaning legal expenses do not reduce available coverage for settlements or judgments.

Products-completed operations coverage activates after manufactured goods are sold, distributed, or installed at customer locations. This component addresses bodily injury or property damage caused by defective products, improper installation, or manufacturing errors discovered after delivery.

The ISO policy form separates this coverage into a distinct aggregate limit because product liability claims can accumulate over time as defects manifest across multiple units sold.

Manufacturing operations involving food production, machinery, chemicals, or consumer goods typically require higher products-completed operations limits due to increased exposure.

Standard CGL policies include medical payments coverage providing $5,000 to $10,000 per person for immediate medical expenses resulting from accidents on manufacturing premises, regardless of fault. Personal and advertising injury coverage protects against claims of libel, slander, copyright infringement, or wrongful eviction. Fire legal liability coverage applies when the manufacturer damages rented premises through fire.

Additional insured endorsements extend coverage to contractors, landlords, and clients as required by manufacturing contracts and lease agreements.

CGL policies exclude professional liability for design services, pollution incidents, workers compensation claims, automobile liability, intentional acts, and contractual liability unless specifically endorsed. Coverage applies on an occurrence basis, meaning incidents during the policy period remain covered even after policy expiration, unlike claims-made policies requiring continuous coverage.

Premium calculations incorporate ISO classification codes specific to manufacturing type, annual payroll figures, gross sales revenue, and prior claims history through experience modification rates.

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What’s Included in General Liability for Manufacturing Companies?