Manufacturers are using a wide array of materials and processes to produce products, including products or components created by third parties. They are navigating increasingly complex operational structures, supply chain relationships and processes. Meanwhile, they must contemplate a diverse web of potential uses and users of their products. All of this creates evermore challenging exposures for manufacturers … exposures that must be managed with specialized expertise and outstanding flexibility.
Employment Practices Liability
Allegations of discrimination and other wrongful employment acts are widespread. Compounding the risk is the potential for claims brought by third parties, such as customers or suppliers. Difficult economic times and employee downsizings amplify this exposure.
Zurich Employment Practices Liability insurance covers manufacturers in claims alleging wrongful termination, discrimination, harassment and other violations -- including claims initiated by non-employees. Coverage is available on its own or with Zurich's Directors & Officers Liability and Fiduciary Liability insurance.
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Directors & Officers Liability
Management decisions are under the microscope. The risk of employees, customers, vendors, shareholders and other constituents alleging mismanagement is greater than ever. The personal assets of individual directors and officers can be at stake in these claims -- and the pared-down D&O coverage or souped-up GL policies many manufacturers have traditionally relied on can fall dangerously short in protecting them.
Zurich’s Directors & Officers Liability insurance covers manufacturers, their directors, officers and others. Coverage is available standalone or easily coupled with our Fiduciary Liability insurance and Employment Practices Liability insurance.
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Fiduciary Liability
Volatile financial markets make the already-challenging duties of managing benefits plans even more difficult. While competitive benefits are a must to attract and retain skilled workers, administering any employee benefit program exposes a manufacturer, its directors, employees and others perceived as having “fiduciary responsibility” to claims of mismanagement.
Zurich provides Fiduciary Liability insurance as part of a comprehensive management liability solution.
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Property
The downside of just-in-time manufacturing and delivery can be significant business interruption costs. When a production delay is triggered by a loss suffered by a key supplier, a work-in-process, or an equipment breakdown, contractual penalties can exacerbate the exposure.
Manufacturers also face valuation challenges, such as the property of others (e.g., loaned patterns, molds, dies or other equipment) in their care. Sophisticated manufacturing processes, such as Computer-Aided Design requiring Electronic Data Processing hardware, can add substantial values with specific valuation issues.
Zurich Property Portfolio Protection (P3) offers broad, customized protection with ultra-efficiency, building in essential elements manufacturers may typically need to purchase separately.
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Crime
The intricacy of manufacturing operations makes them especially vulnerable to crime. For example, the common practice of importing materials from various vendors or outsourcing processes opens multiple avenues to theft and employee dishonesty.
Zurich provides Crime coverage on a standalone basis or bundled with our property and casualty or financial lines packages.
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General Liability and Umbrella Liability
America is the world’s most litigious market -- and the lawsuits show no sign of abating. From premises liability, to product liability exposures, to the contractual liability risks inherent in purchase orders, production contracts, premises leases and other agreements, manufacturers face a gamut of liability exposures.
Zurich’s primary General Liability and Umbrella Liability insurance combine high limit protection with experienced claim and litigation management.
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Automobile
A single car accident that causes severe injuries can result in substantial damage awards. For a manufacturer that has fleets of trucks shipping goods for just-in-time deliveries, the potential for losses is compounded.
Zurich tailors Automobile coverages for particular exposures ranging from incidental passenger and service vehicles, to heavy tractor-trailer fleets.
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Workers' Compensation
Leaner workforces make optimizing workplace safety more vital and more challenging. When an employee suffers an injury on the job, preserving productivity and controlling medical and lost-time costs is critical.
Zurich combines Workers' Compensation insurance with exceptional resources and expertise to help manufacturers create a safer workplace, and minimize the costs of occupational injuries and illness. Virtual Consulting and other loss prevention tools guide managers in implementing effective programs. Medical provider networks make effective medical treatment available to injured workers at sensible costs. Zurich's eZ Transition return to work tool accelerates workers’ safe return to productivity and helps employers protect the investment they have made in their workforce.
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Accident & Health
Accidents are already the fifth leading cause of death -- and they are increasing faster than the top four causes. Accident coverage is an important and efficient way manufacturers can protect employees, enrich employee benefits packages and attract skilled workers.
Zurich provides several Accident & Health coverages that can be customized to individual needs. These include Business Travel Accident, and employer- or employee-paid AD&D insurance, all with Zurich Travel Assist® services.
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Environmental
The ongoing emphasis on environmentally-friendly technology, combined with the focus on protecting natural resources, contribute to putting manufacturers in a position of increased scrutiny from regulators and the public. Historical use of a manufacturing facility or its current operations may have led to contamination of ground water, soil, ambient air, as well as third-party bodily injury and property damage.
Zurich's Z Choice™ policy can be an effective risk management tool in transferring pollution liability to an insurer rated A by A.M. Best.* It offers a customizable format that provides flexibility in selecting only the coverages relevant to each particular risk. This, in turn, allows our clients to obtain a policy by specifically choosing and paying only for the environmental insurance they require.
*As of September 30, 2009
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