Underwriting Guide
What Underwriters Ask About Manufacturing
Manufacturing accounts carry significant products liability exposure — goods they produce can cause injury or property damage long after leaving the facility. Underwriters scrutinize the manufacturing process, quality control procedures, and completed operations exposure carefully. Five-year loss runs and a detailed product description are essential.
General Liability / Products LiabilityCommercial PropertyWorkers' CompensationCommercial AutoCommercial UmbrellaInland Marine
Operations & Products
What products does the manufacturer produce — describe in detail?
Why they ask: The product description is the foundation of products liability underwriting. Vague descriptions lead to coverage disputes.
Who are the end users of the products — consumers, businesses, or both?
Why they ask: Consumer products face higher products liability risk from personal injury claims. Industrial products may carry different risks.
Are products sold under the manufacturer's own brand or for private label?
Why they ask: Private label products expose the manufacturer to liability for the client's brand. Some carriers exclude this.
Does the manufacturer import raw materials or finished components from overseas?
Why they ask: Imported components create products liability exposure if the foreign supplier has no US presence to name as additional insured.
What quality control and testing procedures are in place?
Why they ask: Documented QC processes reduce products liability risk and can improve pricing. Carriers want evidence that defective products are caught before leaving the facility.
Facility & Equipment
What is the total square footage of the manufacturing facility?
Why they ask: Facility size affects both property and GL rates. Large facilities with complex machinery need accurate property valuations.
What is the replacement cost value of the building, machinery, and equipment?
Why they ask: Manufacturing equipment is expensive and often undervalued. Equipment breakdown coverage should be evaluated for production-critical machinery.
Are there any hazardous materials, chemicals, or flammable substances on-site?
Why they ask: Hazardous materials create environmental liability and fire exposure. Some carriers exclude pollution losses; others offer specific endorsements.
Is there a sprinkler system in the facility?
Why they ask: Fire suppression significantly reduces property premium and may be required for eligibility on large facilities.
Employees & Loss History
How many employees work in the facility, broken down by job function?
Why they ask: WC payroll is calculated by class code. Manufacturing workers in different roles (clerical vs. production) carry different rates.
What is the experience modification rate (EMR)?
Why they ask: Manufacturing has significant WC exposure from machinery injuries, repetitive motion, and chemical exposure. EMR above 1.2 is a concern.
Have there been any product recalls in the last 5 years?
Why they ask: Prior recalls indicate quality control failures that predict future products liability claims.
Provide 5 years of GL and WC loss runs.
Why they ask: Products liability claims in manufacturing can be severe. A single defective product claim can exhaust primary limits.
Answers that raise red flags
⚠No quality control procedures or documented testing protocols
⚠Prior product recalls or product liability lawsuits
⚠Manufacturing of products intended for children, food contact, or medical use without appropriate coverage
⚠EMR above 1.25 with multiple WC injuries from machinery
⚠Hazardous materials without pollution liability coverage
⚠Significant revenue from international exports where product liability laws differ
Tips for presenting this risk favorably
✓Include a detailed product brochure or spec sheet — it answers the operations description requirement more accurately than a verbal summary
✓Document quality control procedures in writing and include them with the submission
✓Provide complete 5-year loss runs for both GL and WC with reserve and paid amounts
✓Confirm whether the business needs product recall coverage — often a separate policy
✓Identify all foreign suppliers and confirm whether they have US-based entities that can be named as additional insureds
Collect all this information automatically
AgencyAssist sends your client a plain-English intake link and maps every answer to the correct ACORD fields — including all the questions above.