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Forge a Futureproof Operation: Michigan Manufacturing Insurance Solutions (Since 2003)
Protect your Michigan manufacturing business against unpredictable risks with tailored insurance from The Allen Thomas Group, your trusted partner for over 20 years.
Michigan’s Manufacturing Engine: Unveiling the Powerhouse
As a linchpin of Michigan’s economy, the manufacturing industry contributed over $38 billion to the state’s GDP in 2021.
From automotive and aerospace to furniture and medical devices, Michigan manufacturers drive growth and innovation through advanced technologies and highly-skilled workforces.
However, persistent headwinds can disrupt operations. Trade wars and supply chain bottlenecks strain profit margins already narrowed by global competition.
The skilled labor shortage also looms large, with recent estimates indicating over 100,000 unfilled manufacturing jobs in Michigan. When production slows, revenue loss quickly follows.
Without adequate safeguards, unexpected risks can completely derail manufacturers anchored in Michigan’s industrial heartland.
But comprehensive insurance helps weather uncertain storms, protecting investments in plants, property, and people.
Table of Contents
The Crucible of Risk: Why Insurance Matters for Manufacturers
Like molten metal forged through flames, manufacturing mines opportunity from risk.
But when accidents strike, insurance coverage shields against catastrophic loss.
In this climate of lean operations and legal liability, manufacturers require an extra layer of financial protection. Consider that in 2020, the average cost of a products liability lawsuit reached nearly $23.1 million.
From customer injuries to intellectual property disputes, even baseless claims incur monumental defense costs. Or examine workplace accidents – in 2019 alone, Michigan logged over 86,000 job-related injuries and illnesses according to the Bureau of Labor Statistics. A single safety incident easily exceeds six figures in medical expenses, compliance fines, and productivity losses.
Manufacturing insurance is the bulwark business needs, guarding against risk factors beyond management’s control – from natural disasters and cybercrime to global pandemics.
With customized coverage backing day-to-day operations, manufacturers gain peace of mind to re-invest, expand markets, and forge innovation.
Building Your Armor: Understanding Manufacturing Insurance
Commercial insurance designed specifically for manufacturing offers integrated protection across critical business segments. This includes:
Manufacturers face immense product liability exposure. General liability insurance is crucial coverage that includes:
- Product Recall Costs: Reimburses consumer notification and product retrieval expenses due to safety risks. For example, a major auto parts manufacturer spent $26 million on a recent Detroit recall.
- Third Party Property Damage and Bodily Injury: Covers legal claims alleging property damage or bodily injury caused by products.
- Products and Completed Operations Liability: Applies to damages occurring after products leave company possession.
- Product Negligence Lawsuits: Handles legal defense and settlement costs.
Property risks like fires, storms and theft are familiar foes, but cybercrime also endangers manufacturing infrastructure holding sensitive intellectual property worth billions.
By one estimate, cyberattacks cost Michigan manufacturers $25,000 per incident on average. Insuring buildings, equipment, and data is essential.
Defending product safety requires proactive risk management and liability protection. Our product recall insurance responds when manufacturers must retrieval products due to design flaws or contamination issues. Coverage includes:
- Customer Notification Costs: Expenses to inform consumers of recalls, including postage, social media promotions, email, phone calls and texts. Supply chain tracing software also qualifies.
- Retrieval Logistics Expenses: Costs to coordinate product returns like shipping, handling, destruction or disposal. Rental equipment even applies for large volumes.
- Replacement Costs:
Provides funding to manufacture new products replacing recalled items. Applied when stock is unavailable to fulfill orders. - Reputation Repair Services: Access public relations assistance to communicate transparency, restore consumer confidence and repair market perception after recalls.
Business interruption insurance offers vital support through income replacement after covered incidents suspend operations. It covers financial obligations like:
- Employee payroll
- Loan payments
- Electricity bills
- Lease/rent payments
- Other fixed costs
Expert agents accurately calculate your business’s true daily revenue value for optimum coverage.
All Michigan manufacturers must carry workers compensation for employees injured on the job per state law.
The Allen Thomas Group partners with risk management experts to contain expenses using medical cost containment services and return-to-work programs.
Additional Coverages for a Robust Risk Management Strategy
Comprehensive protection also accounts for emerging threats – policies can include specialized coverages such as the following
Defends against lawsuits alleging wrongful termination, discrimination, harassment, or other unfair employment practices.
Covers costs associated with data breaches, cyberattacks, and other digital threats, including legal defense, notification to affected individuals, and credit monitoring services.
Provides additional liability protection beyond the limits of your primary policies, acting as a “safety net” for catastrophic events.
The Allen Thomas Group: Your Trusted Partner in the Forge
With over 20 years dedicated exclusively to safeguarding Michigan business, The Allen Thomas Group leverages collective risk management wisdom to forge insurance solutions securing manufacturers’ futures.
Our advisors act as partners protecting all facets of your operation – from the back-office to the assembly line floor.
Products evolve – and so do our policies and programs – staying relevant to the manufacturing sector with expertise spanning:
- Automotive Parts Suppliers
- Medical Device Manufacturers
- Aerospace Industry Fabricators
- Furniture Producers
- And General Manufacturing
Manufacturing Based Insurance Solutions Crafted For Your Needs
We know how frustrating and complex the process of finding the right manufacturing insurance can be and how it slows down production. Let us help assemble a policy that works for you.
Tell us about your specific needs and we will find the right policy for you.
Review the results of our search.
We will walk you through your new policy step by step.
Get Coverage For Your Michigan Production Facility
It Just Takes A Few Clicks
Or Give Us A Call At (440) 826-3676
Our Carrier Partners
That allows us to find the best rates for your manufacturing business
We Provide Customized Business Insurance For The Following Manufacturing Types
Secure Your Manufacturing Facility Now: Get a Free Quote Today!
Connect with an agent today for your free insurance consultation and policy review.
Discover The Allen Thomas Group difference – request your quick quote now or give our team a call at (440) 826-3676!
Get More Insights On Making The Right Insurance Decision For Your Manufacturing Company
How does Michigan Manufacturing Insurance protect against losses caused by natural disasters?
Michigan Manufacturing Insurance typically includes coverage for property damage caused by natural disasters. This can help manufacturers repair or replace damaged machinery, buildings, and other physical assets.
What role does Michigan Manufacturing Insurance play in the event of supply chain disruptions?
Many manufacturing insurance policies offer business interruption coverage which can provide financial protection in the case of supply chain disruptions due to covered events. It helps to cover lost income and extra expenses when a business cannot operate as usual.
Can Michigan Manufacturing Insurance cover liability issues related to customer injuries or damages caused by defective products?
Yes, many manufacturing insurance policies include product liability coverage that protects manufacturers if their products cause harm to customers due to defects.
What are the top manufacturing industries in Michigan?
The top manufacturing industries in Michigan include:
1. Transportation Equipment:
– The transportation equipment industry is the largest manufacturing sector in Michigan, employing 21% of the state’s industrial workers. This includes the automotive industry, for which Michigan is well known, as well as large automotive suppliers.
2. Industrial Machinery and Equipment:
– This sector accounts for 19% of manufacturing jobs in Michigan, reflecting the state’s diverse manufacturing base.
3. Fabricated Metal Products:
– Employing 13% of the industrial workforce, the fabricated metal products industry is a significant contributor to Michigan’s manufacturing sector.
4. Rubber and Miscellaneous Plastic Products:
– This sector employs 8% of the industrial workforce, highlighting the state’s presence in the plastics industry.
5. Food and Kindred Products:
– Accounting for 6% of the industrial workforce, the food and kindred products industry is also a notable part of Michigan’s manufacturing landscape.
These industries collectively demonstrate the diverse and robust nature of manufacturing in Michigan, with a strong emphasis on transportation equipment, reflecting the state’s historical and contemporary significance in the automotive industry.
Citations:
[1] https://www.industryselect.com/blog/top-10-manufacturing-companies-in-michigan
[2] https://www.dnb.com/business-directory/company-information.manufacturing.us.michigan.html
[3] https://clutch.co/logistics/manufacturing-companies/michigan
[4] https://www.michigan.gov/leo/news/2022/10/06/2022-manufacturing-week
[5] https://milmi.org/_docs/publications/Cluster_reports_2023/Michigan-Manufacturing-Industry-Cluster-Workforce-Analysis-Report.pdf
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