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Pharmaceutical Manufacturers Insurance Policy Information

Pharmaceutical Manufacturers Insurance

Pharmaceutical Manufacturers Insurance. Any company that develops, tests, manufactures, and distributes medications can be considered a pharmaceutical company. While many people will immediately think of well-known global industry giants, the truth is that small startups developing just one promising drug also fall under this branch of industry.

Pharmaceutical manufacturers produce over-the-counter drugs such as antacids, antiseptics, cough drops or syrups, mild painkillers, and vitamins, and prescription drugs, including controlled substances, which may be patent-protected or generic.

Drugs are made from a variety of raw materials which may be organic, chemical, or synthetic. Processes may include aeration, blending, crushing, filtering, freezing, heating, mixing, molding, pressurizing, or washing.

The end product may take a variety of forms such as capsule, jelly, liquid, pill, powder, spray (aerosol or non-aerosol), suppository, or time-release patch. Cleanliness, purity, and the proper mix of ingredients are critical.

Pharmaceutical manufacturers have laboratories engaged in product development, testing, and quality control. Products must pass rigid clinical trials before being approved by the Food and Drug Administration (FDA) for use by consumers.

Although the development of medications can ultimately be a profitable business, these companies are also subject to strict regulations. Many of the pharmaceuticals they test will never enter the market.

The drugs that pharmaceutical companies develop, make, and distribute may save lives or greatly improve the quality of life for numerous patients - but medications can also have adverse effects that may, in the worst cases, prove to be life threatening.

What types of pharmaceutical manufacturers insurance might companies in this industry carry to protect their business interests in the event of catastrophic circumstances? To find out more, read on.

Pharmaceutical manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked pharmaceutical manufacturing insurance questions:

How Much Does Pharmaceutical Manufacturers Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small pharmaceutical manufacturing businesses ranges from $97 to $159 per month based on location, size, revenue, claims history and more.

Why Do Pharmaceutical Manufacturers Need Insurance?

Insurance For Manufacturers

All commercial ventures face a multitude of risks. Even a stay-at-home mom running a muffin delivery business on the side faces, for instance, the risk of being sued if her product contained traces of peanuts that were not advertised, and a customer has an anaphylactic reaction.

As companies that manufacture medications produce products that can easily have life and death implications, however, there is no doubt that pharmaceutical companies have an extremely complex risk profile.

Pharmaceutical companies can fall victim to some of the same threats that are universal to any business. A facility may be hit by an act of nature such as an earthquake, hurricane, lightning strike, or wildfire.

Essential manufacturing equipment may suddenly breakdown, requiring repair or replacement. Even criminal acts like theft or vandalism can have serious financial consequences.

They also have to contend with a whole host of industry-specific risks, however. Products may have serious side effects that cause permanent harm. Other companies may ignore patents and illegally reproduce pharmaceuticals. Inventory may be lost to expiration dates. Cyber criminals may gain access to ongoing research and make it public.

Although nearly all businesses require insurance, pharmaceutical manufacturers insurance coverage that protects against all possible perils is a particular priority for companies within the pharmaceutical industry.

What Type Of Insurance Do Pharmaceutical Manufacturers Need?

Each company has unique insurance needs that depend on factors as varied as the exact types of medications they manufacture, the markets they serve, the location of their manufacturing facility or facilities, and the size of their company.

Pharmaceutical companies will, like manufacturers in any other field, need to partner with skilled commercial insurance agents to ensure that they are protected against all perils that may impact their field.

While pharma companies depend on insurance more than companies in other industries, they, too, need to carry the following essential types of pharmaceutical manufacturers insurance:

  • Commercial Property: This type of pharmaceutical manufacturers insurance is designed to shield companies from financial losses if their facilities are struck by acts of nature, theft, vandalism, and certain other accidents that cause property loss or damage. It will (partially) cover the costs of damage to their building(s), but also physical assets therein, such as industrial equipment and raw materials.
  • Commercial General Liability: Liability insurance exists to help cover the costs associated with third party property damage or physical injury claims. It exists in various subcategories. General liability insurance may cover events such as third parties being injured on a company's property or a malfunction within their facility causing damage to a neighboring property.
  • Product Liability: Covers the costs that can follow if a third party, such as a patient, is harmed by a product.
  • Product Recall: Designed to cover the expenses associated with product recalls, this type of insurance is also essential to pharmaceutical companies.
  • Environmental Or Pollution: Is an essential in case hazardous substances are spilled into the ecosystem.
  • Workers Compensation: This type of insurance covers the medical expenses and any lost wages of employees who sustain workplace injuries or illnesses for which the company is held liable.

Pharmaceutical manufacturers insurance policies can be complicated, and businesses in this field may further require cyber insurance, commercial auto insurance, equipment breakdown insurance, and intellectual property insurance (in case another company reproduces a medication).

Pharmaceutical Manufacturing's Risks & Exposures


Premises liability exposures are normally low to moderate unless aerosols are manufactured or stored on premises. Although tours may be conducted, access by visitors is usually limited and controlled due to the need for a sterile environment.

Visitors may be injured by slips, trips, or falls, or may be exposed to toxic or caustic chemicals. Fumes, spills, or leaks from tanks may cause serious injury or property damage to neighboring properties.

Pharmaceutical manufacturers generally have traveling sales representatives who visit drug store chains, doctor's offices, and trade shows. Large sales cases or exhibition materials may present tripping hazards that could result in injuries to customers or the general public.

Products liability exposures are severe due to the potential for bodily injury, including sickness and death, to consumers of finished products. Quality control at all phases of the operation from product development to packaging is critical to reduce the exposure to injury.

Significant injuries or damage may follow from improper processing or mixing of ingredients, improper storage, during transport or even inappropriate packaging and labeling.

Packaging should include information addressing possible side effects and inform consumers of action that should be taken in the event of an allergic reaction. Factors affecting risk include whether the medicine produced is available over the counter or by prescription only; whether it is an established medicine (such as aspirin) or is newly developed; and whether it is the result of the manufacturer's research only, or is supported by academic research.

Lack of compliance with government regulations and controls may dramatically increase hazards, and may also make defense of claims difficult. There should be a plan for recalling defective products.

Environmental impairment exposures are very high. Sudden or cumulative discharges of chemicals may contaminate air, surface or ground water, or soil. Disposal procedures must adhere to all EPA and other regulatory standards. Processes themselves may cause thermal or noise pollution. If there are underground tanks, a UST policy will be required.

Workers compensation exposures may be high. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, hearing loss from machinery noise, and back injuries from lifting. Employees should be provided with safety training and protective equipment. Ergonomically designed workstations can prevent repetitive motion injury.

Aerosol containers may explode and injure workers. Ingredients may be toxic and/or caustic, with a high potential for injury to eyes, lungs, or skin. Workers must be made aware of the potential side effects, including long-term occupational disease hazards, so they can be aware of warning symptoms and obtain treatment as early as possible. Drivers of forklifts and vehicles may be injured in accidents.

Property exposure consists of an office, production plant, and warehousing of raw materials and finished goods. Ignition sources include electrical wiring, heating and cooling equipment, overheating of production machinery, buildup of static electricity, escape of fumes from storage tanks, and refueling of forklifts.

The large draft spaces in storage warehouses can contribute to the spread of a fire. Flammable lubricants and cleaning agents may be stored on premises. Some chemicals and final products may be spoiled by temperature change, humidity, dust or other factors. Due to the sterile conditions that must be maintained throughout the manufacturing process, even a small fire can result in a total loss to stock.

Raw ingredients and finished stock are expensive, and may be targeted by thieves who anticipate profits from black market sales. Vandalism can result from protestors. Appropriate security controls should be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.

Business interruption exposure can be high because a large loss can result in lengthy downtime for repairing or replacing production equipment.

Equipment breakdown exposures include breakdown losses of processing systems, heating and cooling equipment, electrical control panels, and other apparatus. Breakdown and loss of use to the production machinery could result in significant loss, both direct and indirect, such as, time element.

Crime exposures are chiefly from employee dishonesty and theft of money and securities. The black market for pharmaceuticals, particularly controlled substances, makes many drugs and/or their raw ingredients targets for theft.

Employees may act alone or in collusion with outsiders in stealing money, raw materials, trade secrets, or finished stock. Background checks should be conducted on all employees. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.

Inland marine exposures include accounts receivable if the manufacturer offers credit to customers, computers (which may include computer-run production equipment), goods in transit, and valuable papers and records for customers' and suppliers' information as well as quality control testing results and proprietary formulas used for drugs.

Goods in transit may be damaged by fire, theft, collision and overturn, spillage, contamination or aerosol explosion. Some products require shipment in refrigerated vehicles to prevent spoilage.

Commercial auto exposure may be very high if the manufacturer transports raw materials or finished products. Haz Mat licenses may be required. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others. Each driver should have an appropriate license and an acceptable MVR.

All vehicles must be well maintained with documentation kept in a central location. Transport of aerosols is hazardous because the products need to be kept at cooler temperatures. Refrigerated trucks used for this purpose as well as the transport of other drugs sensitive to temperature changes should be well maintained to prevent overheating and explosion.

Commercial Insurance And Business Industry Classification

Description for 2833: Medicinal Chemicals And Botanical Products

Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 283: Drugs

2833 Medicinal Chemicals And Botanical Products: Establishments primarily engaged in: (1) manufacturing bulk organic and inorganic medicinal chemicals and their derivatives and (2) processing (grading, grinding, and milling) bulk botanical drugs and herbs. Included in this industry are establishments primarily engaged in manufacturing agar-agar and similar products of natural origin, endocrine products, manufacturing or isolating basic vitamins, and isolating active medicinal principals such as alkaloids from botanical drugs and herbs.

  • Adrenal derivatives: bulk, uncompounded
  • Agar-agar (ground)
  • Alkaloids and salts
  • Anesthetics, in bulk form
  • Antibiotics: bulk uncompounded
  • Atropine and derivatives
  • Barbituric acid and derivatives: bulk, uncompounded
  • Botanical products, medicinal: ground, graded, and milled
  • Brucine and derivatives
  • Caffeine and derivatives
  • Chemicals, medicinal: organic and inorganic bulk, uncompounded
  • Cinchona and derivatives
  • Cocaine and derivatives
  • Codeine and derivatives
  • Digitoxin
  • Drug grading, grinding, and milling
  • Endocrine products
  • Ephedrine and derivatives
  • Ergot alkaloids
  • Fish liver oils, refined and concentrated for medicinal use
  • Gland derivatives: bulk uncompounded
  • Glycosides
  • Herb grinding, grading, and milling
  • Hormones and derivatives
  • Insulin: bulk, uncompounded
  • Kelp plants
  • Mercury chlorides, U.S.P.
  • Mercury compounds, medicinal: organic and inorganic
  • Morphine and derivatives
  • Oils, vegetable and animal: medicinal grade refined and concentrated
  • Opium derivatives
  • Ox bile salts and derivatives: bulk, uncompounded
  • Penicillin: bulk, uncompounded
  • Physostigmine and derivatives
  • Pituitary gland derivatives: bulk, uncompounded
  • Procaine and derivatives: bulk, uncompounded
  • Quinine and derivatives
  • Reserpines
  • Salicylic acid derivatives, medicinal grade
  • Strychnine and derivatives
  • Sulfa drugs: bulk, uncompounded
  • Sulfonamides
  • Theobromine
  • Vegetable gelatin (agar-agar)
  • Vitamins, natural and synthetic: bulk, uncompounded

Description for 2834: Pharmaceutical Preparations

Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 283: Drugs

2834 Pharmaceutical Preparations: Establishments primarily engaged in manufacturing, fabricating, or processing drugs in pharmaceutical preparations for human or veterinary use. The greater part of the products of these establishments are finished in the form intended for final consumption, such as ampoules, tablets, capsules, vials, ointments, medicinal powders, solutions, and suspensions. Products of this industry consist of two important lines, namely: (1) pharmaceutical preparations promoted primarily to the dental, medical, or veterinary professions, and (2) pharmaceutical preparations promoted primarily to the public.

  • Adrenal pharmaceutical preparations
  • Analgesics
  • Anesthetics, packaged
  • Antacids
  • Anthelmintics
  • Antibiotics, packaged
  • Antihistamine preparations
  • Antipyretics
  • Antiseptics, medicinal
  • Astringents, medicinal
  • Barbituric acid pharmaceutical preparations
  • Belladonna pharmaceutical preparations
  • Botanical extracts: powdered, pilular, solid, and fluid, except
  • Chlorination tablets and kits (water purification)
  • Cold remedies
  • Cough medicines
  • Cyclopropane for anesthetic use (U.S.P. par N.F.), packaged
  • Dermatological preparations
  • Dextrose and sodium chloride injection, mixed
  • Dextrose injection
  • Digitalis pharmaceutical preparations
  • Diuretics
  • Effervescent salts
  • Emulsifiers, fluorescent inspection
  • Emulsions, pharmaceutical
  • Fever remedies
  • Galenical preparations
  • Hormone preparations, except diagnostics
  • Insulin preparations
  • Intravenous solutions
  • Iodine, tincture of
  • Laxatives
  • Liniments
  • Lip balms
  • Lozenges, pharmaceutical
  • Medicines, capsuled or ampuled
  • Nitrofuran preparations
  • Ointments
  • Parenteral solutions
  • Penicillin preparations
  • Pharmaceuticals
  • Pills, pharmaceutical
  • Pituitary gland pharmaceutical preparations
  • Poultry and animal remedies
  • Powders, pharmaceutical
  • Procaine pharmaceutical preparations
  • Proprietary drug products
  • Remedies, human and animal
  • Sodium chloride solution for injection, U.S.P.
  • Sodium salicylate tablets
  • Solutions, pharmaceutical
  • Spirits, pharmaceutical
  • Suppositories
  • Syrups, pharmaceutical
  • Tablets, pharmaceutical
  • Thyroid preparations
  • Tinctures, pharmaceutical
  • Tranquilizers and mental drug preparations
  • Vermifuges
  • Veterinary pharmaceutical preparations
  • Vitamin preparations
  • Water decontamination or purification tablets
  • Water, sterile: for injections
  • Zinc ointment

Description for 2835: In Vitro and In Vitro Diagnostic Substances

Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 283: Drugs

2835 In Vitro and In Vitro Diagnostic Substances: Establishments primarily engaged in manufacturing in vitro and in vivo diagnostic substances, whether or not packaged for retail sale. These materials are chemical, biological, or radioactive substances used in diagnosing or monitoring the state of human or veterinary health by identifying and measuring normal or abnormal constituents of body fluids or tissues.

  • Angiourographic diagnostic agents
  • Barium diagnostic agents
  • Blood derivative diagnostic reagents
  • Clinical chemistry reagents (including toxicology)
  • Clinical chemistry standards and controls (including toxicology)
  • Coagulation diagnostic reagents
  • Cold kits for labeling with technetium
  • Contrast media diagnostic products (e.g., iodine and barium)
  • Cytology and histology diagnostic products
  • Diagnostic agents, biological
  • Electrolyte diagnostic reagents
  • Enzyme and isoenzyme diagnostic reagents
  • Hematology diagnostic reagents
  • In vitro diagnostics
  • In vivo diagnostics
  • In vivo radioactive reagents
  • Iodinated diagnostic agents
  • Metabolite diagnostic reagents
  • Microbiology, virology, and serology diagnostic products
  • Pregnancy test kits
  • Radioactive diagnostic substances
  • Technetium products
  • Viral test diagnostic reagents

Description for 2836: Biological Products, Except Diagnostic Substances

Division D: Manufacturing | Major Group 28: Chemicals And Allied Products | Industry Group 283: Drugs

2836 Biological Products, Except Diagnostic Substances: Establishments primarily engaged in the production of bacterial and virus vaccines, toxoids, and analogous products (such as allergenic extracts), serums, plasmas, and other blood derivatives for human or veterinary use, other than in vitro and in vivo diagnostic substances. Included in this industry are establishments primarily engaged in the production of microbiological products for other uses. Establishments primarily engaged in manufacturing in vitro and in vivo diagnostic substances are classified in Industry 2835.

  • Agar culture media, except in vitro and in vivo
  • Aggressins, except in vitro and in vivo
  • Allergenic extracts, except in vitro and in vivo
  • Allergens
  • Anti-hog-cholera serums
  • Antigens
  • Antiserums
  • Antitoxins
  • Antivenin
  • Bacterial vaccines
  • Bacterins, except in vitro and in vivo
  • Bacteriological media, except in vitro and in vivo
  • Biological and allied products: antitoxins, bacterins, vaccines, viruses,
  • Blood derivatives, for human or veterinary use, except in vitro and
  • Coagulation products
  • Culture media or concentrates, except in vitro and in vivo
  • Diphtheria toxin
  • Hematology products, except in vitro and in vivo reagents
  • Plasmas
  • Pollen extracts, except in vitro and in vivo
  • Serobacterins
  • Serums, except in vitro and in vivo
  • Toxins
  • Toxoids except in vitro and in vivo
  • Tuberculins
  • Vaccines
  • Venoms
  • Viruses

Pharmaceutical Manufacturers Insurance - The Bottom Line

Pharmaceutical manufacturers insurance policies can vary widely in coverage, costs and exclusions. To learn if your pharmaceutical manufacturing operation has the best fit insurance policies - talk to an experienced commercial insurance broker.

Often they are able to save you on premiums and offer you better policy options than you currently have.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).

Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Manufacturing Insurance

Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.

Manufacturing Insurance

For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.

Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.

The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.

Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.

In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.

What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.

Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.

Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.

The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.

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