Manufacturing coverage guide

The manufacturing industry is becoming increasingly global, as old-world manufacturing techniques meld with advanced technology, creating an evolving, dynamic industry. This creates evolving and expanding liability and risk. At The Hanover, we strive to create insurance coverages and products that keep pace.

Comprehensive products that deliver peace of mind

The Hanover provides a complete suite of insurance products to protect your property, autos, and employees. The Hanover Manufacturers Advantage covers a wide variety of industries, including:

• Metal
• Plastics
• Machinery/auto parts
• Consumer goods/food
• Other (such as printers, textiles, wood products)

The Hanover difference

Drawing on exceptional industry knowledge and expertise, The Hanover offers flexible targeted insurance solutions that add value and protect a manufacturer’s throughput. At the forefront of our strategic approach are experienced risk solutions professionals, who help minimize risks throughout the life of the policy. Plus, our team of local underwriters — with their deep understanding of the manufacturing industry — allows us to create customized solutions for each individual business.

• Best-in-class local underwriting, claims, and risk management expertise at every level.
• Risk solutions website — a valuable resource for loss prevention information and services.
• Hanover Specialty Industrial (HSI) — offers solutions for high-hazard industrial risks and increased exposures related to property, product liability, or environmental exposures.
• Experienced claims teams are deeply committed to delivering responsive and personalized service.
• Financial strength including an “A” rating (Excellent) by A.M. Best Company.

Our broad range of industry-specific coverages includes:

Commercial property (CP 00 10 06 07)

Selection of base property broadening endorsements — bronze, silver, gold, platinum — that add or enhance more than 65 special coverages, including:

PRODUCT FEATURES	THE HANOVER	NOTES
Blanket limit of insurance — more than eight vital coverages	✔
Broadened business personal property	✔
Seasonal increase — protects against inadequate limits for personal property due to seasonal fluctuations in inventory	✔
Sales representative samples	✔
Employee theft including ERISA compliance	✔
Ordinance or law	✔
Personal effects and property of others	✔
Property in transit and property off premises — covers property at trades shows or exhibitions	✔
Business income and extra expense from dependent properties — covers loss of income and extra expense due to damage at a supplier’s premises or anywhere else in the world	✔
Equipment breakdown, including microelectronics coverage, cloud computing services, and data restoration	✔
eCommerce	✔

Manufacturing property broadening endorsement (411-0815 04 14)

Manufacturing property broadening endorsements add or enhance more than 10 coverages to further customize protection and address industry-specific exposures, including:

PRODUCT FEATURES	THE HANOVER	NOTES
Contract cancellation — covers loss of income due to cancellation of contracts by customers due to a covered cause of loss	✔
Molds, dies, patterns and plates — covers damage caused directly by accidental marring or scratching	✔
Extended warranty coverage — covers the value of unusable warranty coverage purchased on equipment that is replaced due to damage by a covered loss.	✔
Spoilage and contamination coverage — covers damage to perishable goods resulting from breakdown, contamination or power outage on premises or in transit	✔
Research and development — if suspended due to a covered loss, coverage applies to business Income to cover ordinary payroll and loss of continuing fixed charges directly attributable to development activities	✔

 

Commercial general liability (CG 00 01 04 13)

Suite of general liability broadening coverages that add or enhance more than 20 coverages, with one to two million dollars of liability, including:

PRODUCT FEATURES	THE HANOVER	NOTES
Aggregate limit per location	✔
Medical payments increased reporting period	✔
Employee benefits liability	✔
Liquor liability — primary limit ($1 million available)	✔
Employment practices liability	✔
Broad form property damage — borrowed equipment, customer goods ($1 million limits)	✔

 

Product recall

Covers expenses incurred to remove a defective product from the marketplace, including shipping, transportation and disposal, as well as the cost to notify customers. It also helps cover the cost of inspecting and testing defective products to determine if a recall is warranted. Additional endorsements include:

PRODUCT FEATURES	THE HANOVER	NOTES
Product recall expense coverage (421-3754)	✔
Reimbursement for expenses incurred to remove, transport and dispose of product	✔
Costs to notify customers	✔
Costs of inspecting and testing defective products to determine if a recall is warranted	✔
Product recall additional covered expense endorsement (421-3754) Repair, replacement or repurchasing coverage Customer’s lost profit coverage — can protect manufacturers when a product recall affects their customers’ abilities to deliver their goods Good faith advertising coverage — covers the costs to help repair a company’s damaged reputation	✔
Product recall liability coverage (421-4099) — covers claims for damages and legal representation costs	✔

 

Manufacturers’ Errors and Omissions (Loss Use: 421-0839; Repair and Replace: 421-0845; Repair, Replacement, or Adjustment: 421-0848)

This coverage offers three options: Loss of use standalone endorsement cover claims for lost revenues. Repair, replacement or adjustment endorsement option cover claims for the cost to repair or replace defective parts. The third option includes the base loss of use form and an endorsed repair, replacement or adjustment coverage.

PRODUCT FEATURES	THE HANOVER	NOTES
Loss of use covers lost revenues	✔
Repair and replace or adjustment of defective parts	✔

 

Printers Errors and Omissions (Errors and Omissions: 421-00449; Cost to Correct: 421-080910)

Coverage pays damages for economic loss caused by the errors or omissions in printing or graphic arts (pre-press) operations. Cost to correct coverage is also available to pay for the costs to correct, repair or replace work due to an error or omission.

PRODUCT FEATURES	THE HANOVER	NOTES
Errors and omissions covers damages arising from a negligent act, error, or omission that occurred during a printing service	✔
Cost to correct includes the cost of reprinting, recovery, shipment or the cost of additional services performed to correct deficiencies in the original services	✔

 

Data Breach Coverage Form (411-0669)

Covers notification, forensic analysis, and credit monitoring services expenses, costs of labor to re-create or copy lost or stolen data, Cyber Business Interruption and Extra Expenses incurred due to a breach.

PRODUCT FEATURES	THE HANOVER	NOTES
Data breach services — consulting services to assist with notification of breach, help line for questions about the data breach, fraud alert, and identity restoration case management services	✔
Data breach expense — covers notification, forensic analysis, credit monitoring services expenses, breach restoration expenses, and loss of business income incurred during the period of restoration	✔
Additional expense coverages — legal and/or public relations expenses incurred within the first six months, notification expenses to potentially-identified persons, cyber extortion response costs, and investigations	✔

 

Cyber Liability (391-1801)

Cyber Liability coverage offers protection for lawsuits as a result of a data breach.

PRODUCT FEATURES	THE HANOVER	NOTES
Privacy and security liability — losses incurred as a result of a privacy or security data breach	✔
Cyber media liability — losses incurred as a result of a “Cyber Media Breach”	✔

 

 

---

115-1118 (2/18)        LC2017-575