Running a manufacturing business in Connecticut takes precision, planning, and the ability to manage risk—yet too often, insurance coverage gets left on autopilot. That can lead to costly oversights.
We’ve seen far too many smaller CT manufacturers in the marketplace unknowingly exposed to gaps that could have serious financial consequences. In most cases, the person handling the insurance simply didn’t receive the right advice or support—not because of neglect or poor management
If you’re a business owner, business manager, or controller, this post is here to help you ask the right questions and avoid common pitfalls in your coverage—before a loss puts your manufacturing operation at risk.
#1: Relying on General Liability Alone
Many manufacturers assume general liability covers many exposures that it actually doesn’t cover. It’s common to see it as a ‘catch-all’ coverage. Unfortunately, that assumption can be costly. With rapid technological advancements and the fast pace of business, manufacturing companies in Connecticut face a growing number of risks. General liability insurance alone will not ensure that today’s manufacturers will be properly covered.
The reality: General liability typically doesn’t cover:
- Product recalls
- Defective workmanship or design
- Pollution-related claims
- Customer financial loss from a defective product
Real risk: Imagine a product you manufacture which causes a malfunction in your customer’s system, halting their operations. Without the right product liability or manufacturers’ errors & omissions (E&O) coverage, your company could be on the hook for major damages.
What to do: Don’t settle for the basics. A well-advised insurance program should include product recall, pollution liability, and tailored E&O coverage.
#2: Outdated Property Valuations
It’s common for manufacturing facilities to be underinsured simply because no one has reviewed the property schedule in years. This can lead to serious issues when it’s time to file a claim.
Smaller to mid-sized operations often lack the manpower to stay on top of this, and insurance management can easily fall to the back burner. That’s why it’s essential to work with an experienced independent insurance agent—someone who not only helps you select the right coverage but also ensures it evolves with your business as it grows and changes.
The reality: If you don’t keep your building or machinery values up to date, a co-insurance clause could penalize you or limit your reimbursement after a loss.
Real risk: Replacing a CNC machine or rebuilding part of a facility is significantly more expensive today than it was just a few years ago. If your coverage hasn’t kept pace with rising costs, your policy may fall short when you need it most.
What to do: Schedule regular insurance reviews that include updated replacement cost assessments for your building, inventory, and equipment.
#3: Skipping Equipment Breakdown or Cyber Coverage
Many manufacturers overlook these coverages, viewing them as optional—even though they play a critical role in protecting operations.
The reality: Most manufacturers rely heavily on automated systems and digital tools to run efficiently. A breakdown or cyberattack can bring everything to a standstill.
Real risk: A power surge knocks out a production line, or ransomware locks you out of your systems. Without the right coverage, you risk losing days—or even weeks—of productivity and revenue
What to do: Equipment breakdown coverage helps protect against mechanical or electrical failure. Cyber liability covers things like data breaches, ransomware, and related business interruption.
Why Work with the Right Insurance Professional
At V.F. McNeil Insurance, we know that protecting your operation isn’t just about buying insurance—it’s about making sure your coverage is built around the real risks you face.
As a Trusted Choice® independent insurance agency, our team works with Connecticut manufacturers of all sizes. We help to develop insurance programs that reflect your operations, exposures, and evolving needs. We ask the right questions, offer proactive advice, and help you stay one step ahead of costly gaps.
Let’s Talk About Your Coverage
Don’t wait for a claim to reveal a costly gap. While the issues we’ve outlined here are among the most common insurance oversights we uncover during reviews, they’re far from the only ones. Every manufacturing operation is unique—and so are its risks.
Contact V.F. McNeil Insurance today to schedule a comprehensive, no-obligation review of your business insurance program. We’ll help ensure your coverage is aligned with your current operations and future growth—so you can focus on running your business with confidence.
