The rapidly changing risk landscape in the manufacturing industry has led to new and significantly higher property and casualty exposures. Due to the increasing frequency and severity of claims, as well as the financial impact of losses, many standard insurance carriers have exited the market or reduced their offerings by limiting coverage or lowering policy limits.
Non-Standard Manufacturing Special Multi-Peril Insurance provides broad, all-risk protection in a single policy. It combines property and liability coverage to help manufacturers manage a wide range of hazards in one comprehensive plan.
This policy helps cover losses resulting from:
- Damage or destruction to factory buildings, warehouses, machinery, raw materials, and inventory due to fire, natural disasters, theft, or vandalism
- Third-party bodily injury or property damage claims caused by accidents on your manufacturing premises
What is Non-Standard Manufacturing Special Multi-Peril?
Non-Standard Manufacturing Special Multi-Peril Insurance is designed for manufacturers who face complex or higher-than-average risks that fall outside the guidelines of standard policies. It provides tailored coverage for property damage, general liability, and other exposures under one policy, making it easier to manage claims and ensure adequate protection across operations.
Who Needs It
This type of policy is ideal for manufacturers that:
- Operate in high-risk industries or use hazardous materials
- Have experienced frequent or severe claims in the past
- Own multiple buildings, warehouses, or high-value equipment
- Have been declined by standard insurance carriers
What It Typically Covers
Coverage under a special multi-peril policy may include:
- Property damage from fire, storms, and other covered perils
- Equipment breakdown and business interruption
- General liability for third-party injuries or property damage
- Vandalism, theft, and other criminal acts
- Loss of inventory or raw materials
Common Exclusions and Limitations
While coverage is broad, some exclusions may apply. These can include:
- Wear and tear or gradual deterioration
- Flood or earthquake damage (unless specifically added)
- Intentional acts or fraudulent claims
- Product liability or professional errors (unless endorsed)
Factors That Influence Cost
Several factors can affect the cost of a non-standard multi-peril policy, including:
- Business size and location
- Type of manufacturing operations
- Claims history and loss experience
- Value and condition of property and equipment
- Chosen coverage limits and deductibles
Proof of Insurance and Compliance
Manufacturers may need to show proof of insurance to meet vendor, lender, or regulatory requirements. A special multi-peril policy typically includes a certificate of insurance, which can be used to demonstrate active coverage. Since requirements vary by state and industry, it’s important to review your obligations with a licensed insurance professional.
How to Get a Quote
To explore your options and receive a customized quote, visit our Non-Standard Manufacturing Special Multi-Peril Insurance page.
Frequently Asked Questions
What is considered a “non-standard” manufacturing risk?
Non-standard risks typically include operations with high claim frequency, use of hazardous materials, or manufacturing processes that fall outside typical underwriting guidelines.
Can this policy be customized for my specific manufacturing business?
Yes, the policy can be tailored with endorsements and coverage options to fit your specific risks and operations.
Is business interruption included in this coverage?
Business interruption may be included or added as an option. It helps cover lost income and expenses if your operations are halted due to a covered loss.
Does this policy replace product liability insurance?
No, product liability is typically not included unless specifically endorsed. It is often purchased as a separate policy.
How long does it take to get coverage in place?
Timeframes vary based on underwriting and documentation needs, but many policies can be issued within a few business days after submission.
Still have questions? Talk to a local insurance expert.