Manufacturing expenses fall into three main categories of expenses: materials, labor and overhead. All three costs are direct expenses - meaning the salary or office supplies for an accountant do not factor in as an indirect cost, while those of a foreman are.
Manufacturing businesses generally pay an estimated average premium of approximately $90 monthly or $1,090 annually for a business owner's policy that combines general liability insurance and commercial property coverage at a discounted rate than purchasing both separately.
Manufacturers E&O coverage provides additional insurance protection that addresses two key risks faced by most businesses: damages caused by an alleged product or work defect and litigation expenses related to such allegations. Such an additional policy can help guard your business against customer financial loss while simultaneously guarding its brand and reputation.