1. Commercial Property, Plant & Stock Inventory (Raw Materials to Finished Goods)
Covers your shop building, tenant improvements, heavy stationary machinery, raw materials, work-in-progress, and finished inventory awaiting shipment against fire, wind, smoke, theft, and water damage. We structure valuation so finished goods are insured for their selling price or replacement cost.
Real-world example: If a warehouse fire destroys $140,000 in raw steel, aluminum stock, and finished custom assemblies staged on pallets for Friday delivery, Commercial Property covers the loss.
2. Equipment Breakdown (Boiler, Machinery & Electrical Arcing)
Standard property policies exclude internal mechanical breakdown, electrical short-circuiting, motor burnout, and pressurized boiler/compressor failure. Equipment Breakdown pays to repair or replace CNC machines, lathes, walk-in coolers, air compressors, and electrical panels when they fail internally — plus lost business income while they're down.
Real-world example: If a power surge arcs the main control board on a $180,000 5-axis CNC mill, Equipment Breakdown pays for expedited factory parts, technician labor, and production downtime.
3. Products & Completed Operations Liability
Once a component or product leaves your shop floor and enters the stream of commerce, your biggest exposure is a claim that a defect caused bodily injury or damaged a customer's property or equipment. Products Liability defends your company and pays covered damages nationwide.
Real-world example: If a welded trailer hitch or hydraulic bracket your shop fabricated fails in the field and causes an accident, Products Liability funds expert engineering defense and settlements.
4. Inland Marine, Riggers & Motor Truck Cargo / Transit
Raw materials coming in from suppliers, precision dies/molds, mobile forklifts, and finished products riding on common carriers or your own delivery trucks need protection outside your four walls. Inland Marine and Transit floaters cover goods and mobile equipment wherever they travel.
Real-world example: If a forklift tips while loading a custom industrial control panel onto a flatbed or a shipment is damaged in transit across state lines, Inland Marine covers the repair or replacement.
5. Business Income, Extra Expense & Supply Chain (Contingent Business Interruption)
If a fire or critical machine failure halts your production line, Business Income replaces lost net profit and continuing payroll/overhead. We also add Contingent Business Interruption to protect you if a key sole-source supplier or customer facility suffers a covered property loss.
Real-world example: If your primary component foundry suffers a fire that delays your assembly line for 30 days, Contingent Business Income helps cover your lost production margin and extra expediting costs.
6. Product Recall Expense & Bailee's Customers Coverage
If your shop performs custom machining, powder coating, or assembly on high-value parts owned by your customers, Bailee's Coverage protects their property while in your care, custody, and control. Product Withdrawal/Recall endorsements help cover notification, shipping, and disposal costs if a batch must be pulled.
Real-world example: If a customer drops off $60,000 worth of aerospace or agricultural parts for heat-treating and a shop incident damages them, Bailee's Coverage pays the customer's claim.
