Manufacturing businesses due to their operations, face higher liability risks and therefore require greater liability protection than firms in other industries. Even as the cost of liability lawsuits continue to rise, manufacturers also face costly risk exposures related to third party bodily injury or property damage claims caused by:
The need for a commercial umbrella policy becomes necessary when payouts for damages on covered claims exceed the limits set in an existing policy.
Larger companies operating at a regional, national or global level could find excess casualty coverage hard to place, for a number of reasons.
What is Non-Standard Manufacturing Umbrella?
Non-Standard Manufacturing Umbrella is excess liability insurance that extends the limits of underlying policies when a claim exceeds their payouts. It sits above commercial general liability, employers’ liability and commercial auto, helping protect manufacturers from large third-party bodily injury or property damage judgments, product liability exposures, and catastrophic settlements. It complements other commercial liability and property coverage without replacing them.
Who needs it
Manufacturers, contract assemblers, component suppliers, and companies with transportation exposure or on-site facilities commonly seek this coverage. Firms with frequent contractor operations, heavy equipment, or high-volume product distribution face greater operational hazards and may use umbrella protection to manage catastrophic risk. Smaller operators and larger regional manufacturers alike may explore options like Manufacturing Umbrella Liability to address gaps above standard policy limits.
What it typically covers
An umbrella policy usually provides additional limits for third-party bodily injury, property damage, and certain personal and advertising injury liabilities. It can apply after exhaustion of limits on general liability, employers’ liability and commercial auto. Some forms may also respond to excess product liability or broader participant accident exposures, depending on underwriting. For placement and structure details, see information on Manufacturer Umbrella/Excess Liability Insurance.
Common exclusions or limitations
- Intentional acts, criminal conduct, or expected losses are typically excluded.
- Some policies exclude professional liability, pollution, or specific product failures unless endorsed.
- Coverage often requires that underlying policies be maintained without lapses; breaches can void excess coverage.
Factors that influence cost
Underwriting considers revenue, product type, claims history, distribution footprint, safety programs, and fleet exposure. A high number of prior product liability or general liability claims, complex supply chains, or significant commercial auto exposure raise premiums. Working with brokers familiar with Non-Standard Manufacturing General Liability Insurance can help identify cost drivers and placement strategies.
Proof of insurance & compliance
Manufacturers often need certificates of insurance to satisfy vendors, landlords, or contract requirements. Umbrella limits are shown as excess coverage on certificates and may be required by clients or government contractors to meet contractual risk-transfer obligations.
How to get a quote
To get an accurate proposal, insurers typically ask for revenue figures, loss runs, descriptions of products and operations, fleet details, and existing policy limits. For a quick start, request a review online and provide your current policy declarations and claims history — you can get a quote directly through our site.
Frequently Asked Questions
Do umbrella policies cover product recalls?
Generally no. Product recall and certain pollution-related losses are often excluded and require separate recall or pollution liability coverage.
Will an umbrella policy pay if an underlying insurer denies a claim?
Typically an umbrella responds only after the underlying policy has paid or its limits are exhausted; if the underlying insurer denies coverage due to noncompliance, the umbrella may also not respond.
How much umbrella coverage should a manufacturer carry?
There’s no one-size-fits-all answer; limits depend on exposure, asset levels, contractual needs, and distribution reach. Discuss limits with your broker to match operational and contractual risk.
Still have questions? Talk to a local insurance expert.