What is Manufacturers General Liability?
Manufacturers General Liability insurance is a type of business coverage designed to protect manufacturing businesses from common third-party risks. This can include bodily injury, property damage, and personal or advertising injury claims. It's a foundational policy that helps manufacturers manage liabilities arising from daily operations, products, and interactions with clients or the public.
Who Needs It
Any business involved in manufacturing goods should consider general liability insurance. This includes small-scale workshops, large factories, and contract manufacturers. Whether you're producing consumer goods, industrial equipment, or parts for other businesses, liability coverage helps protect against unexpected legal and financial claims.
What It Typically Covers
Manufacturers General Liability insurance generally includes protection against:
- Bodily Injury: Claims if someone is injured on your premises or due to your business operations.
- Property Damage: Coverage for accidental damage to someone else's property caused by your work or product.
- Product Liability: Claims related to injuries or damages caused by products you manufacture.
- Personal and Advertising Injury: Protection against claims like libel, slander, or misleading advertising.
- Medical Payments: Basic medical coverage for injuries that occur on your premises, regardless of fault.
Common Exclusions and Limitations
While this insurance provides broad protection, it does not cover everything. Common exclusions include:
- Employee injuries (covered by workers’ compensation)
- Intentional acts or illegal activities
- Damage to your own property or equipment
- Professional errors or omissions
- Pollution-related claims (unless endorsed)
Always review your policy details to understand what is and isn’t covered.
Factors That Influence Cost
Several factors can affect the cost of your Manufacturers General Liability insurance:
- Type of products manufactured
- Business size and annual revenue
- Claims history
- Number of employees
- Location and operational risks
Proof of Insurance & Compliance
Clients, vendors, or property managers may require proof of insurance before working with your manufacturing business. A Certificate of Insurance (COI) serves as official documentation. Requirements vary by state and industry, so it's important to understand what applies to your specific situation.
How to Get a Quote
Getting covered starts with a customized quote based on your business needs. Our team can help you find the right Manufacturers General Liability policy for your operation. Get a quote today.
Frequently Asked Questions
Is Manufacturers General Liability required by law?
It’s not always legally required, but many clients, landlords, and vendors may require it before you can do business with them.
Does this insurance cover product recalls?
No, product recalls are typically excluded. You may need a separate product recall insurance policy for that type of coverage.
Can I combine this with other business insurance?
Yes, general liability is often bundled with property and other coverages in a business owners policy (BOP) or commercial package policy.
What happens if a customer sues over a defective product?
If the claim involves bodily injury or property damage caused by the product, general liability insurance may help cover legal fees and settlements.
How do I show proof of coverage to clients?
You can request a Certificate of Insurance from your provider, which outlines your policy limits and active coverage dates.
Still have questions? Talk to a local insurance expert.