Machinists manufacture goods and fabricate parts that help to make the world go 'round. Everyone knows working with metal, and heavy machinery comes with some safety risks, but not everyone understands all the ways machine shop fabrication can leave them open to serious legal and financial risks as well. Calgary machine shop insurance is essential to protect machinists from damaging financial losses.
When you fabricate parts or manufacture products in Calgary and send them on to the next step in the supply chain, there are a lot of things that can potentially go wrong between your loading bay and the end-user—and you could be held liable in the event that your goods or services cause bodily injury, property damage or even environmental harm. Comprehensive manufacturing insurance is critically important regardless of what you happen to be manufacturing, but machinists are exposed to unique risks on a regular basis that many other types of manufacturers don't have to worry about. The way you choose to operate your machine shop is unique, which is why you need specialized machine shop insurance. Calgary machine shop owners can get a custom policy that is designed to protect against all the perils they are most likely to encounter by speaking with an experienced Krywolt Insurance broker.
Calgary machine shop insurance is a type of manufacturing insurance that focuses specifically on the insurance needs of machine shop businesses. Some parts of it are designed to protect you against paying out of pocket should someone make liability claims against you, so you're able to recover related attorney fees, settlement costs, medical expenses, repair or replacement for damaged property, and more. Other elements can include coverage for disasters that render your commercial property unusable, mechanical equipment breakdown exposures, product recall expenses, and more, depending on how your individual Calgary machine shop insurance policy is written.
If you operate a machine shop, it's very important to invest in Calgary machine shop insurance so you can get the peace of mind that comes with knowing your business won't be ruined by unexpected financial losses. That includes machine shops that work with metal, plastic, or composites, whether you're producing finished goods or fabricating components, and whether you are making simple mechanisms or high-tech parts. It doesn't matter how cautious you are or how carefully you do everything by the book—some perils simply can't be avoided. Paying staggering costs out of pocket in the event of a lawsuit or disaster isn't possible for most business owners, and such an event could cause catastrophic damage to your professional and personal finances if you aren't protected by the right Calgary machine shop insurance coverage.
There is a wide variety of Calgary machine shop insurance coverage available, so no two commercial insurance policies are exactly alike. Here are a few of the coverage types that are either necessary components of business insurance or well worth considering as additions to your policy.
Commercial general liability is a basic part of business insurance coverage that is intended to protect you from financial loss in the event that someone makes a third-party claim against you for bodily injury, property damage, or personal harm. Your insurance carrier will provide funds to cover legal defense and settlement costs, medical bills, and the cost of repair or replacement for damaged property.
Suppose a potential client comes into your Calgary facility to negotiate a contract or inspect your operation and injures themselves by tripping over a shop vac on the floor. In that case, they could sue you to recoup the cost of their medical bills and rehabilitation expenses. If you're covered with commercial general liability, you can get financial assistance for legal defense fees and the cost of the settlement against you, should the lawsuit be successful.
Whether you're in charge of a huge facility or a cozy little shop in Calgary, your business operation is dependent on you having access to the space that has been specifically tailored to accommodate your manufacturing processes. But catastrophic damage or loss caused by fire, natural disasters, or theft will leave you out in the cold with no way to repair your facility and get your machine shop up and running again unless you have commercial property coverage on your Calgary machine shop insurance.
Commercial property insurance falls into one of two categories: all-risk or named perils. All-risk coverage protects you against a wide range of common or likely perils, except the ones that are specifically excluded in your policy. On the other hand, a named perils policy offers financial protection against the specific risks that are listed in your policy—also known as the "named perils." The question of whether all-risk or named perils is better for your particular circumstances is determined by a range of factors. Speak to your Krywolt Insurance broker in Calgary about business insurance services so they can ensure you have the right type of commercial property insurance for your particular needs.
Machinists need far more than just basic hand tools to do their jobs effectively and safely. There's simply no way to carry out business operations at your machine shop without your essential machine tools and other equipment. This is why it can feel like the end of the world if you have a piece of specialized equipment shudder to a stop just when you're ramping up production to fill a significant contract. Equipment breakdown insurance is well worth considering for your Calgary machine shop insurance because it covers replacement or repair costs for equipment that has broken down because of damage related to motor failure, power surges, or operator error. For example, if you opened up your shop one morning and discovered a boiler had exploded during the night, causing damage to your facility. Your commercial property insurance would cover the damage to the facility—but repair or replacement of the boiler itself would be handled under your equipment breakdown insurance.
Product liability coverage is a specialized type of commercial general liability insurance that provides financial assistance for expenses that result from harm caused by one of your goods or components. Product liability claims can be related to injury and illness caused by defects in design or the manufacturing process. They may also be related to problems such as labels that are inaccurate or misleading or noncompliance with advertising regulations or because you failed to warn a consumer how to use a product. Suppose you fabricate a defective component that causes a disruption to a manufacturing partner's product line, and as a result, they fail to meet their contractual obligations to suppliers. In that case, you could be liable for damages, but your insurance provider will help cover those expenses if you have product liability insurance on your Calgary machine shop insurance policy..
Some parts of the manufacturing processes used in a machine shop have the potential to create environmental hazards. Environmental liability is a complementary addition to your Calgary machine shop insurance if you work with chemicals, solvents, or paint that can cause damage to the ecosystem if they are accidentally released into the air, soil or water. Pollution legal liability coverage applies to both sudden disasters like a chemical spill and gradual damage caused by an issue like a slow leak that is allowing contaminants to seep into groundwater. In scenarios like that, you could be liable for astronomical clean-up costs, property damage, bodily injury claims, and more that are associated with a polluting event that caused environmental harm. It can also apply to legal defense costs if legal action is brought against you because you caused ecological damage.
There are no mandatory business insurance requirements in Alberta, so your machine shop business is not obligated to have insurance coverage. That being said, it would be incredibly reckless to run a machine shop without the protection of a robust Calgary machine shop insurance policy. There's no doubt that eventually, the cost of going without insurance will be far, far higher than the amount you have to pay for your premiums.
Regardless of how cautious you are, it's impossible to prevent everything that could go wrong in relation to your machinist business, from litigation and product recalls to severe damage caused by fire or flood. Keep in mind that you could also have legal action brought against you for allegations that are not true and be forced to defend yourself in court. Random mishaps and unfortunate mistakes could end up costing you your livelihood if you have to cope with unexpected financial losses and don't have financial support from your insurance provider.
There's another potential pitfall that comes with forgoing insurance—some clients will refuse to work with a machinist who doesn't have Calgary machine shop insurance and take their money to your competitors instead. Let the dedicated team of brokers at Krywolt Insurance advise you on the comprehensive insurance protection you need so you don't have to sacrifice the business you've poured your heart into.
When determining your eligibility for certain Calgary machine shop insurance products and the rates for that coverage, insurance companies carry out a risk assessment of your products’ liability exposure by evaluating criteria such as:
Another factor that may significantly impact your product risk evaluation is if you are fabricating critical components of a system for something like an automobile or medical equipment. The brokers at Krywolt Insurance have the experience and expertise to guide you through the risk evaluation process and find the best possible coverage options for your Calgary machine shop insurance.
At first glance, they might seem to be more or less the same, but product liability and product recall insurance provide coverage for different types of expenses. Product liability coverage is meant to provide financial assistance with expenses that arise from legal claims alleging your goods caused injury or damage, was labelled incorrectly, or did not comply with advertising regulations. That could include legal defense fees, settlement costs, and other related expenses.
If it is found that your goods did indeed cause or were subjected to the issues listed above, it could trigger a product recall. Your product liability coverage protects you against financial losses from lawsuits, but it doesn't apply to the massive expenses that come with a product recall, including:
With product recall coverage, machine shops in Calgary can get back to business as soon as possible with financial support from their insurer to pay expenses related to the logistics of a product recall.
Don't leave yourself unprotected from paying out of pocket to mitigate the many potential risks that can befall you over the course of your business operations. Call 403-879-8660 to speak with a qualified commercial insurance specialist at Krywolt Insurance and get the Calgary machine shop insurance coverage you need to sleep easily at night knowing you're safe from financial losses.