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.
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