What is Manufacturing Package?
A Manufacturing Package is a bundle of commercial insurance coverages tailored to manufacturers, processors, assemblers, and related businesses. It combines property and liability protections to address common risks such as property damage, product liability, equipment breakdown, and business interruption. These packages are designed to reduce gaps between standalone policies and simplify claims handling for manufacturing operations.
Who needs it
Typical buyers include small to mid-sized manufacturers, contractors that perform in-house fabrication, wholesalers, retailers that assemble products, and importers with storage facilities. Operators with significant equipment exposure, inventory, or onsite operations often need a combination of property coverage and commercial liability to manage operational hazards and transportation risks.
What it typically covers
A Manufacturing Package usually includes:
- Commercial property coverage for buildings, stock, and raw materials
- General liability for third-party bodily injury and property damage
- Equipment coverage or equipment breakdown protection for presses, conveyors, and HVAC
- Business interruption and extra expense to protect income after a covered loss
- Product liability or completed operations coverage for goods sold or installed
Depending on the insurer, add-ons can include commercial auto exposure, inland marine for goods in transit, and participant accident coverage for on-site training or tours.
Common exclusions or limitations
Standard exclusions often include wear-and-tear, intentional acts, punitive damages, pollution without specific endorsement, and losses from unapproved modifications to equipment. Some policies limit coverage for high-value finished goods, professional liability, or cyber-related losses unless added by endorsement. Underwriting factors can influence available limits and exclusions.
Factors that influence cost
Premiums are driven by plant location, building construction, fire protection systems, payroll and revenue, claims history, nature of manufacturing operations, and safety controls. High-risk operations—such as heavy fabrication, chemical processing, or extensive hot work—typically face higher rates and may need specialized endorsements. Insurers will also review inventory turnover, storage methods, and transportation exposures during underwriting.
Proof of insurance & compliance
Manufacturers often need certificates of insurance to satisfy landlords, lenders, or customers. Certificates and additional insured endorsements document limits for commercial liability or property interests. For contractors supplying or installing equipment, proof of insurance may be required before starting work or bidding on projects. For resources on program options, see Manufacturing Industries Insurance and consider the Manufacturing Insurance Program for program-specific guidance. If you handle importing, the Manufacturing, Wholesaling, and Importing Insurance — Citadel Insurance Services page may highlight relevant exposures.
How to get a quote
Gather basic information before requesting a quote: description of operations, 12-month payroll and sales, list of owned equipment and values, loss history, and any subcontractor relationships. Discuss coverage needs with your broker, review policy limits, and verify exclusions. If you prefer to initiate the process online or get help from an agent, you can talk to your agent to start a customized quote.
Frequently Asked Questions
What’s the difference between a package and separate policies?
A package combines core coverages—property and liability—under one policy for streamlined administration. Separate policies can be customized but may require coordinating multiple carriers.
Does a Manufacturing Package cover products after they are sold?
Product liability or completed operations coverage is commonly included, but limits and time frames vary; confirm specific terms and any needed endorsements.
Can I add inland marine or cyber coverage?
Yes. Many insurers offer endorsements or separate policies for inland marine (goods in transit), equipment coverage, and cyber liability; discuss options during underwriting.
Still have questions? Talk to a local insurance expert.