Business Insurance for California Manufacturers

Operational exposures

• Product defect causing injury or damage
• Equipment failure halting production
• Employee injury on the production floor
• Property loss from fire or water
• Pollution from chemicals or waste

Relevant coverage options

These coverages are commonly considered for this industry. Coverage depends on policy wording, exclusions, limits, and underwriting — no policy automatically covers every example below.

• General Liability — Third-party bodily injury, property damage, and advertising injury.
• Product Liability — Claims from products you make, sell, or distribute causing injury or damage.
• Commercial Property — Building, equipment, inventory, and contents against fire, storm, theft, and more.
• Equipment Breakdown — Sudden mechanical or electrical failure of equipment and systems.
• Workers' Compensation — Statutory coverage for employees' on-the-job injuries and certain occupational disease.
• Pollution Liability — Third-party claims and cleanup from pollution events.
• Commercial Umbrella — Extra liability limits above primary policies for severe claims.

Common policy limitations

• General liability products coverage excludes the product's own value and defective work
• Equipment breakdown excludes wear and tear
• Pollution is excluded from general liability

Information typically needed for a quote

• Products made and markets served
• Equipment and inventory values
• Payroll by classification
• Materials handled and storage

A practical claim scenario

Situation: A defective component causes damage at a customer's facility, prompting a recall and a claim.

How coverage may respond: Product liability may address the injury and damage and recall coverage may address the recall costs, subject to limits and terms — both are distinct from equipment and property coverage.