Licensed in Over 50 States | 20+ Years Manufacturing Expertise | Certified Specialists
You’ve been researching Business Owner’s Policies. You discovered something frustrating. Manufacturers aren’t eligible.
This isn’t a rejection of your business. It’s actually about how manufacturing insurance works differently than coverage for low-risk industries.
While general liability insurance protects you from third-party claims, you need more than what standard BOPs offer.
Manufacturing businesses face unique challenges. They require specialized coverage.
Understanding why BOPs don’t work helps you get the right protection for your operation.
At Manufacturing Insurance Group, we’ve spent 20+ years helping manufacturers navigate exactly this situation.
BOP vs. Commercial Package Policy: See the Difference
Understand why manufacturers need specialized coverage
Check Your BOP Eligibility
Business Owner's Policy (BOP)
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General Liability
Basic third-party coverage only. Limited to standard risks.
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Commercial Property
Fixed limits. Not designed for heavy equipment or high-value inventory.
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Business Interruption
Basic coverage. Doesn't account for complex manufacturing shutdowns.
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Standard Limits Only
Cannot be customized. One-size-fits-all approach.
Commercial Package Policy (CPP)
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General Liability
Includes product liability with customizable limits for manufacturing risks.
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Commercial Property
High limits for equipment, machinery, and inventory. Covers actual asset values.
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Business Interruption
Extended coverage for manufacturing shutdowns, supply chain disruptions, and lost revenue.
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Equipment Breakdown
Critical for CNC machines, assembly lines, and industrial equipment.
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Enhanced Product Liability
Comprehensive coverage for products you manufacture and distribute.
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Customizable Limits & Endorsements
Adjust coverage as your business grows. Add specialized protections as needed.
Get Your Custom Commercial Package Policy Quote
Designed specifically for manufacturing operations with 20+ years of industry expertise
Request Free QuoteLicensed in All 50 States | Certified Specialists | 20+ Years Manufacturing Expertise
What's the Difference Between a BOP and General Liability Insurance?
A Business Owner’s Policy (BOP) bundles general liability, commercial property, and business interruption coverage into one package designed for small, low-risk businesses. General liability insurance covers only third-party bodily injury and property damage claims.
Here’s what makes them different:
Business Owner’s Policy includes: General liability protection, commercial property coverage, business interruption insurance, and all bundled at one discounted rate.
General liability insurance covers: Third-party bodily injuries, property damage you cause others, advertising and personal injury claims, and legal defense costs.
BOPs typically save businesses 10-20% comparted to purchasing separate coverage.
That’s significant. The bundled approach simplifies insurance management while reducing costs, making BOPs attractive for eligible companies.
However, this convenience comes with strict eligibility requirements that exclude entire industries. Manufacturing is one of them.
Why Can't Manufacturing Companies Get a Business Owner's Policy?
Insurance carriers classify manufacturing as a high-risk industry. This automatically disqualifies you from standard BOP programs.
BOPs require fewer than 100 employees, under $5 million annual revenue, and low-risk operations. Manufacturers are explicitly excluded from BOP eligibility due to additional risks they face. They’re grouped with bars, car dealerships, and banks.
Why manufacturers are considered high-risk:
Heavy machinery operations create equipment breakdown exposure. Product liability stems from goods you manufacture and distribute.
You face higher workers compensation requirements than office businesses. Your significant property values in equipment, inventory, and facilities increase exposure. Complex operational processes raise claim probability.
This isn’t about your business being “bad risk.” Manufacturing simply involves more variables.
More than a retail shop. More than a consulting firm. More than most service-based operations that qualify for standard Business Owner’s Policy coverage.
Your equipment alone represents exposure levels that exceed BOP design parameters. CNC machines, assembly lines, industrial tools—the machinery that drives your production also creates breakdown risks.
Risks that can halt operations. Risks that standard BOPs weren’t designed to cover.
A fire in your facility affects more than just property. It impacts inventory.
It disrupts production schedules. It threatens customer commitments. It jeopardizes your entire supply chain.
Standard BOPs can’t adequately price or cover these manufacturing-specific exposures. You need something built for your industry.
What Does General Liability Insurance Cover for Manufacturing Businesses?
Coverage includes:
Bodily injury:
A supplier visits your facility, slips on the production floor, and breaks their wrist. Your general liability policy covers their medical expenses and any resulting lawsuit.
Property damage:
Your delivery truck damages a client’s loading dock during dropoff. General liability handles the repair costs.
Product liability:
A component you manufactured fails and causes damage to customer equipment. Your policy covers the claim.
Advertising injury:
Someone claims your marketing infringed their trademark. General liability provides defense.
Legal defense:
This protects your business. It shields you from liability claims that could otherwise devastate your finances.
However, general liability covers only what you do to others. It doesn’t protect your own assets.
It doesn’t cover your equipment. It won’t replace your inventory.
Not sure what coverage limits you need? Our manufacturing insurance specialists can assess your specific risks and recommend proper protection.
Why General Liability Alone Isn't Enough for Manufacturers
General liability leaves critical gaps in your protection. Serious gaps. Potentially business-ending gaps.
Your facility could burn down. Machinery could fail. A natural disaster could force shutdown. General liability pays nothing for these scenarios.
What general liability doesn’t cover:
Your manufacturing equipment and machinery sit exposed. Building and facility damage remains unprotected.
Inventory and raw materials lack coverage. Lost income during shutdowns creates cash flow disasters. Equipment breakdown repairs come out of pocket.
The average business interruption claim in manufacturing operations is approximately $2.38 million. Without proper coverage, a major incident could end your business. Permanently.
Think about your operation right now. How long could you survive with zero production? What happens when customer orders can’t be fulfilled?
Who pays your employees during repairs? Where does the money come from to replace damaged equipment?
These questions reveal why manufacturers need comprehensive protection beyond basic liability coverage.
The policy pays during the restoration period. This typically starts 48-72 hours after the loss and continues until your facility is repaired or reasonably could have been repaired.
Commercial Package Policies: The Better Alternative for Manufacturers
They’re perfect for high-risk industries. They’re designed specifically for manufacturers needing customized coverage that adapts to your unique operational risks.
CPP advantages for manufacturers:
Customizable coverage limits for each exposure type let you protect what matters most. Higher limits available for equipment and inventory values match your actual asset values.
Add specialized coverages like equipment breakdown and product recall as needed. Scale with your operation as you grow.
Industry-specific endorsements address manufacturing risks. Bundle multiple policies for efficiency and cost savings. Unlike the rigid BOP structure, CPPs adapt to your specific situation. Need higher equipment coverage?
Increase that limit. Require pollution liability? Add that endorsement.
Operating multiple facilities? Scale coverage accordingly.
Expanding into new product lines? Adjust your product liability limits. Manufacturing Insurance Group designs CPPs specifically for manufacturing operations. We understand production environments.
We know equipment values. We comprehend operational risks because our founders come from manufacturing backgrounds themselves.
With 20+ years serving manufacturers exclusively, we know exactly which coverages protect your facility, equipment, inventory, and business continuity. We don’t force you into inadequate packages.
We build protection around your actual exposures. We design coverage that grows with your business.
Get the Right Manufacturing Insurance Coverage Today
Manufacturing Insurance Group specializes exclusively in manufacturing operations. We bring 20+ years of industry-specific expertise to your coverage decisions.
We understand your production environment. We know your equipment values.
We comprehend your operational risks because we’ve spent two decades protecting manufacturers like you.
Our customized Commercial Package Policies address manufacturing-specific exposures that standard Business Owner’s Policies simply can’t cover.
Get your free custom quote today. We’ll design a Commercial Package Policy addressing your specific exposures.
You’ll receive complete protection without coverage gaps. No wasted premium dollars.
Just comprehensive coverage built for manufacturing operations.
Call us for your free consultation at (234) 231-9943 and discover how we protect your manufacturing business with precision coverage designed for your industry.
Frequently Asked Questions About BOP vs. General Liability Insurance
Can small manufacturing businesses ever qualify for a BOP?
No. Manufacturing operations are excluded from BOP eligibility regardless of size. Insurance carriers classify all manufacturers as high-risk, which disqualifies them from standard Business Owner’s Policy programs.
Even a small manufacturer with 10 employees faces equipment, product liability, and operational exposures that exceed BOP design parameters. You need a Commercial Package Policy instead. It’s designed for your risk profile and provides the specialized coverage manufacturing operations require.
Do manufacturers need both general liability and property insurance?
Yes. Absolutely yes.
General liability covers damage you cause others. Property insurance protects your equipment, facility, and inventory.
Most manufacturers also need business interruption coverage because production shutdowns create significant financial losses that can threaten business survival.
Commercial Package Policies bundle these essential coverages efficiently. Manufacturing Insurance Group designs packages addressing your specific operational exposures, ensuring comprehensive protection without coverage gaps.
Does general liability insurance cover defective products I manufacture?
Yes, most general liability policies include product liability coverage. This applies to bodily injury or property damage caused by products you manufacture, sell, or distribute.
It covers legal defense costs. It covers settlements when defective products cause harm to third parties.
However, product recall costs require separate coverage. We help manufacturers understand exactly what’s included in their general liability policy and identify any gaps needing additional protection to ensure complete coverage for your manufacturing operation.
How do I get the right manufacturing insurance coverage?
We design Commercial Package Policies specifically for manufacturers, ensuring comprehensive coverage without paying for unnecessary protection. Contact us today for your customized quote based on your actual exposures. We’ll help you build a coverage program that protects your manufacturing business with precision insurance designed for your industry.