Buildings & Improvements
Construction, additions, tenant improvements, fire protection, code requirements and specialized production spaces.
Manufacturing Property & Business Interruption Insurance
Protect the Assets and Income Production Depends On
Build coverage around your facilities, machinery, inventory, utilities and realistic path back to full production.
Manufacturing Property Risk
A Building Limit Does Not Describe the Operation Inside It
Manufacturing property includes far more than walls and roofs. Production depends on machinery, electrical systems, utilities, inventory, tooling, customer property, data and specialized improvements that may be difficult to replace.
Champion Risk evaluates the assets and dependencies behind production so reported values, limits and coverage terms better reflect what the company would actually need after a loss.
Property Risk Profile
What a Manufacturing Property Review Should Examine
Machinery & Equipment
Replacement values, installation, calibration, freight, foundations, controls and the availability of comparable equipment.
Inventory & Work in Process
Raw materials, seasonal peaks, finished goods, spoilage, valuation methods and property stored at other locations.
Customer-Owned Property
Materials, molds, dies, tooling, equipment and other property in the manufacturer’s care, custody or control.
Utilities & Infrastructure
Electrical service, gas, water, refrigeration, compressed air, ventilation and other systems that production cannot operate without.
Off-Site Dependencies
Suppliers, customers, warehouses, outside processors and service providers whose disruption can affect revenue.
Equipment Breakdown
Mechanical Failure Is Different From External Property Damage
Commercial property and equipment breakdown coverage address different causes of loss. A power surge, motor burnout, pressure-system failure or accidental mechanical breakdown may require specialized treatment even when no fire, storm or collision occurred.
The analysis should extend beyond repair costs to include spoiled inventory, temporary equipment, expedited parts, technician travel and income lost while the equipment is unavailable.
Request an Equipment Dependency ReviewBusiness Interruption
The Machine May Be Repaired Before the Business Is Restored
Recovery may require permits, construction, replacement equipment, programming, tooling, calibration, testing, raw materials, employee return and customer approval. A business-income limit and restoration period should reflect the entire sequence—not an optimistic repair estimate.
Request a Business Interruption ReviewContingent Business Interruption
Your Revenue Can Stop Without Damage at Your Facility
A fire at a key supplier, customer or outside processor can interrupt production or demand even when the manufacturer’s own property remains intact. Coverage depends on policy terms, named or unnamed dependencies, causes of loss and applicable limits.
Review:
- Single-source suppliers
- Customer concentration
- Outside processing dependencies
- Utility-service interruption
- Alternative suppliers and capacity
- Relevant policy sublimits
Property and Equipment Valuation
Book Value Is Not a Recovery Plan
Accounting values may not include current equipment prices, freight, installation, engineering, foundations, electrical work, calibration or the additional cost of replacing older machinery with available technology.
Values should be reviewed with coinsurance, inflation, blanket limits, margin clauses, replacement-cost provisions and reporting requirements.
Include the full replacement cost
- Purchase price and inflation
- Freight, taxes and installation
- Foundations and utility connections
- Engineering and programming
- Calibration, testing and commissioning
- Debris removal and code upgrades
Coverage Structure
Property Protection May Require Several Connected Coverages
Commercial Property
Buildings, business personal property, inventory and other covered assets against specified causes of loss.
Equipment Breakdown
Certain accidental mechanical, electrical and pressure-system failures, plus related covered loss.
Business Income & Extra Expense
Lost income, continuing expenses and reasonable mitigation costs during a covered restoration period.
Utility Services
Specified direct damage or time-element loss caused by covered interruption to off-premises utilities.
Contingent Business Interruption
Covered income loss involving dependent suppliers, customers or other qualifying locations.
Ordinance or Law
Eligible costs associated with demolition, undamaged portions and required upgrades following covered damage.
Inland Marine
Production equipment, tools, customer property and other movable assets in transit, at outside processors or temporarily located away from the facility.
Flood, Earthquake & Other Catastrophe
Separate or specialized protection for causes of loss restricted or excluded by standard property policies.
Common Questions
Manufacturing Property Insurance FAQs
What does manufacturing property insurance cover?
Subject to policy terms, manufacturing property insurance may cover buildings, machinery, equipment, inventory and other property against covered causes of loss. Values, locations, property ownership and applicable limits and exclusions should be reviewed carefully.
What is the difference between commercial property and equipment breakdown insurance?
Commercial property generally addresses covered external causes of physical damage, while equipment breakdown may address certain accidental mechanical, electrical or pressure-system failures. The policies can work together, but each contains specific terms, limits and exclusions.
How should a manufacturer calculate business interruption coverage?
The analysis should consider projected revenue, continuing expenses, payroll, extra expenses, equipment and construction lead times, permitting, testing, customer approval and the realistic period needed to restore operations after a covered loss.
Does manufacturing property insurance cover customer-owned property?
Coverage for customer-owned materials, molds, dies, tooling and equipment depends on policy language, reported values, location, cause of loss and the manufacturer’s legal responsibility. Customer contracts and property records should be reviewed with the policy.
Protect the Path Back to Production
Test Your Values, Dependencies and Recovery Assumptions
We’ll help identify where property damage or equipment failure could create the greatest operational and financial consequences.