Calgary Electronics Manufacturing Insurance
Insurance for Electronics Manufacturers in Calgary, AB
Technology is undoubtedly one of Calgary's fastest growing industries, and naturally that includes electronics manufacturers. All types of businesses in the manufacturing sector need Calgary manufacturing insurance, but electronics manufacturers may have unique insurance concerns that go beyond that of your typical wood shop or apparel producer. You deliver components and electronic products that are innovative and technologically complex on tight deadlines with almost no margin for errors, and you need to know that you are backed every step of the way by a comprehensive Calgary electronics manufacturing insurance package that is tailored to meet your specific insurance needs.
What is Calgary Electronics Manufacturing Insurance?
From equipment breakdowns and product recalls to lost cargo and disruptions to the supply chain, you are exposed to a wide range of perils that could result in astronomical costs for legal defence fees, settlements for liability claims, property damage mitigation and more. Those types of unexpected financial losses can be devastating to a business owner, and many businesses never fully recover. That's why it is so necessary to have Calgary electronics manufacturing insurance coverage in place so you can reap the long-term benefits of financial protection from legal claims, theft, natural disasters and much more.
The way you choose to operate your business, from manufacturing processes to public relations, is completely unique—and your Calgary electronics manufacturing insurance solutions need to be unique as well. Count on the team of experienced insurance professionals at Krywolt Insurance to find the best available coverage for all the common risks you're likely to encounter, so you can have the peace of mind that comes with knowing you can continue to grow your business success no matter what comes your way.
Which Businesses Should Have Electronics Manufacturing Insurance?
Regardless of whether you are an electronic component fabricator or produce complete products that are ready for consumers, all technology companies in the manufacturing industry need the best possible electronics manufacturing insurance. Calgary, AB business owners pride themselves on following the highest standards of workmanship and professionalism, and that includes investing in electronics manufacturing insurance for the benefit of your company, employees, shareholders, business partners and consumers. That includes:
- Original equipment manufacturers (OEM)
- Contract electronics manufacturers (CEM)
- Original design manufacturers (ODM)
What's Included With Calgary Electronics Manufacturing Insurance?
There's no set list of coverages that are included with Calgary electronics manufacturing insurance, because every policy is a little bit different to reflect the particular insurance requirements of the individual policyholder. Navigating through all the possible types of coverage you may need or want can feel daunting at first, but the experts at Krywolt Insurance have the experience and skill to track down the right options to make sure your business has financial protection in the event that you experience a likely peril. Here are a few electronics manufacturing insurance options to consider.
Professional Liability Insurance
It's essential for technology companies to have professional liability coverage on their Calgary electronics manufacturing insurance policy. Professional liability is also referred to as errors and omissions (E&O) because it protects you against financial loss from lawsuits related to a mistake your company made (an error), or because you forgot to do something or failed to deliver a promised service (an omission). Claims are based on allegations that your products, employees or services caused financial damage to a third party such as a stakeholder or contractual business partner.
Suppose you encounter an unforeseen issue such as a sudden labour shortage or forget to order a component you need for your manufacturing process, causing you to be unable to complete an order on time. The supplier or retailer waiting on that order could choose to bring legal action against you to recoup the cost of the disruption to their supply chain. Needless to say, legal costs can get out of control quickly. In a situation like that, your professional liability insurance provider would support you with funds to cover legal defence fees and settlement costs, up to the limit listed on your policy.
Cargo Insurance
Nobody manufactures goods simply to throw them in a warehouse and never look at them again. Regardless of whether you are moving massive shipping containers across international waters or simply sending out a few pallets to nearby businesses, it's crucially important to have the right cargo insurance as part of your electronics manufacturing insurance. Calgary, AB business owners need varying types of cargo insurance, depending on where, how and how far they are sending their goods. The farther it's going, the more likely it is to encounter some type of issue that damages or destroys your cargo, including piracy, jettisoning and more. Generally speaking, cargo insurance protects you from losing money because of problems like non-delivery of cargo, theft in transit, failure to pass customs clearance, collision damage, accidental loss, jettisoned cargo and other risks that could occur during transit. It does not protect against losses incurred because of inadequate packing or flawed products.
Product Recall Coverage
It's all too easy for manufacturers to assume they'll never need product recall insurance—it should be easy enough to avoid, just don't put out a defective product. But if you've been in the manufacturing industry for some time, you know it's not that easy at all. Even the most cautious manufacturers with the most stringent quality assurance practices can run into a situation where a product recall is necessary.
When people think about the costs associated with a product recall, their minds tend to go straight to matters of litigation related to the faulty or mislabeled product. Legal fees and other costs associated with lawsuits are liability issues that would be covered under your professional liability insurance. Product recall coverage, on the other hand, is designed to offer you support to pay for the logistics of a product recall, which can be surprisingly expensive. You need to get all of the recalled products back from retailers and suppliers before any more of them hit the shelves, which is costly in itself, and then you need to rehabilitate the product to make it suitable for sale if possible. If it's not possible, you'll have to pay to destroy the product and soak the cost of all that lost stock. By ensuring that product recall coverage is included with your Calgary electronics manufacturing insurance, you can rest easy knowing you'll be able to financially recover and get your business running again as quickly as possible in the event of a recall.
Pollution Liability Insurance
By necessity, most manufacturers work with solvents, harsh chemicals and other substances that have the potential to cause environmental devastation if they get into the soil, water or even air. If your manufacturing processes involve materials that can harm the ecosystem, it's a very good idea to consider adding pollution liability insurance coverage to your Calgary electronics manufacturing insurance. Pollution legal liability is applicable to the costs associated with a sudden event like a chemical spill, as well as a gradual event like a slow leak that is letting toxic contaminants seep into the soil near your facility. Polluting events, whether they're sudden or gradual, can leave you on the hook to pay for extensive clean-up costs, property damage, injury claims, and legal costs that are related to the event that caused environmental harm.
Commercial Property Insurance
Some businesses can operate almost anywhere, as long as there's an available laptop and a good Wi-Fi connection—but manufacturing is not like that. You can't run your business unless you have access to the physical location and specialized equipment that you've designed your processes around. But, like any other building, your manufacturing facility is vulnerable to damage and loss from uncontrollable factors such as fire, flooding, theft and natural disasters.
Commercial property coverage for Calgary electronics manufacturing insurance falls into one of two categories: all-risk or named perils. All-risk insurance gives you financial protection against a wide variety of risks, but excludes the risks that are specifically listed as exclusions on your policy. The alternative is a named perils policy, which gives you financial support for issues related to the specific risks that are listed in your policy—also known as the "named perils." It's important to discuss commercial property insurance with your Krywolt Insurance broker so you know exactly what your policy does and does not cover and you can access the correct kind of commercial property coverage to protect you from the risks that are most likely to occur.
Accounts Receivable Insurance
Your electronics manufacturing business is a critical part of the supply chain. You use the money you receive from completed contracts to pay your employees, purchase new materials and cover all the other costs of running your business—so if you don't get paid for some reason, it can throw a wrench into the works and seriously damage your ability to keep manufacturing and fulfilling new contracts. If one of your clients defaults on payment because they were unable to hold up their end of the bargain for financial or political reasons, you'll be glad to have accounts receivable coverage on your Calgary electronics manufacturing insurance policy. Your insurance company will provide compensation to make up for the lost revenue so you can keep operating your business and move forward on meeting your obligations to other clients without suffering major financial losses.
Additional Coverages for Calgary Electronics Manufacturing Insurance
How Are Premiums for Calgary Electronics Manufacturing Insurance Calculated?
When it comes to rates for electronics manufacturing insurance, Calgary, AB insurance providers look at a range of information to determine probable risk and calculate how much your premiums will work out to. A few of the factors they will want to know about are:
- Deductibles and limits of your coverage options
- Your industry and specializations
- How you choose to operate your business
- Office locations
- Measures you have in place for damage mitigation
- Annual revenue
- Number of employees
- Employment practices (eg. the use of subcontractors)
- Whether you currently have insurance
- Your past claims history
Do I Need Inland Marine Insurance If I Only Ship Domestically in Canada?
It's typical to get the categories of cargo insurance confused because the word "marine" implies that it will go overseas by ship. However, inland cargo protection, which is sometimes referred to as inland marine insurance, is designed to prevent financial loss during transport for goods that are being moved over land by truck or train. That may include coverage for shipments that are being sent to the United States, but it is usually limited to domestic land cargo that is being transported within Canada. On the other hand, marine cargo protection, which is also referred to as ocean marine insurance or maritime cargo insurance, is intended for shipments that are being transported internationally over water via ship or airplane.
Where Can I Get a Competitive Rate on Calgary Electronics Manufacturing Insurance?
Ready to get started on a comprehensive package of electronic manufacturing insurance? Calgary, AB business owners can rely on the experienced business insurance brokers at Krywolt Insurance to seek out the ideal options for their unique electronics manufacturing insurance needs. Give us a call today at 403-475-5434 to get more information or to get a custom-tailored, competitive quote for Calgary electronics manufacturing insurance.
