Risk & Business Magazine Nesbit Agencies Risk & Business Magazine Fall 2017 - Page 29

WORKERS’ COMPENSATION BY: CHAD NESBIT NESBIT AGENCIES Metal Manufacturing The Value Of Adequate Coverage M etal manufacturing is one of the most essential types of businesses in the industrial landscape. Whether it’s making the raw materials for use in specialty items or fabricating those specialty items, it is simply essential. Whether a business is small, mid-sized, or large, however, one thing is important not to overlook: proper and adequate insurance coverage. party caused by subcontractors for which the company can be held liable. Having proper agreements in place in advance is a key aspect of success, yet it is all too often ignored or falls by the wayside in favor of the more common types of risk mitigation. There are several risk transfer tools at your disposal, including indemnity agreements, additional insurance, waiver of endorsement requests, and additional requirements being added to the status of the insured. For metal manufacturers, business income coverage is one of the most often ignored types of coverage. This is protection against a potential loss of income or profits stemming from some sort of business interruption. This could be a result of a number of things, including damage to equipment or the property. Ultimately, though, the goal is to help replace lost net income; continue to pay for expenses such as mortgages, advertising, taxes, and payroll; or pay for relocation expenses and advertising fees for a temporary location to be opened. Finally, the third part of the trifecta of coverage is having proper safety protocols in place. That includes not only formalized programs and training for employees and management but also the associated insuran ce coverage. Onboarding processes should include training for all employees so that they understand the safety program and the risks that they may encounter while on the job. Warnings and proper signage should be posted and visible. The insurance policies will vary, but often liability and workers’ compensation are essential components. Risk transfer agreements are equally important. These agreements help to offset potential financial losses stemming from property damage or bodily injury to a third Product liability is also a concern for manufacturers, but it depends on the type of manufacturing being done. Someone specializing in raw materials isn’t going to need to cover themselves from the potential of injury claims simply due to the nature of the product which is being provided. A proper overview of your risk potential by a professional should be able to determine whether or not you might require product liability insurance as well. Don’t let your company fall victim to a liability simply because you didn’t know one existed. It pays to research in advance, and there is no better place to start with research than calling a professional to help assist. For more information or to ensure your company is adequately covered for the road ahead, contact us! + Chad Nesbit has over 23 years of experience in the areas of risk management and insurance program development. Chad currently oversees the marketing at Nesbit Agencies. Chad helps develop risk management plans for many different industries and companies of all sizes. In addition to his agency responsibilities, Chad also serves on various insurance company advisory boards regionally as well as nationally. 29