Insurance for Machine Shops

Machine shops are one of the types of businesses that always have something going on. Even when the economy is slow, machine shops seem to keep a steady stream of customers and contracts flowing through. You’ve worked hard to build this stable business, now make sure you have it fully protected with the right kinds of commercial insurance coverage.

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General Liability

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Property Coverage

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Auto Insurance

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Workers Compensation

General Liability For Machine Shops

General liability insurance protects you when things go wrong. If a customer injures themselves while visiting your shop, you’d have to financially cover his or her medical and related recovery expenses. General liability takes this weight off your shoulders and covers these losses for you. It also protects you from financial hardships when unforeseen events occur.

Business Owners Policy (BOP)

A business owners insurance policy (BOP) combines general liability coverage with various types of property coverage. You can tailor a BOP policy so that it includes just the right types of protection for your specific machine shop needs.

  • Equipment Breakdown – When your equipment breaks down, it can cost you in both lost income and repair expenses. Your machine shop is most likely covered in hundreds of different tools and machinery for your daily operation. If any of the break downs affect the functioning of your business, you BOP can provide services for repairs and replacement of the machines or equipment.
  • Buildings and Contents – A BOP protects your physical machine shop and the property you have inside. Whether damages occur from pipe bursts or fire, it can still ruin all the inventory and equipment, you can be protected from such losses through your business owners policy.
  • Business Income and Extra Expense – If you must temporary close your machine shop due to damages and unexpected events; a BOP can cover you for lost income or temporary extra expenses.
  • Electronic Data – The files, software and important business information that you keep in electronic form can be protected from hazards by your BOP.
  • Newly Acquired or Constructed Buildings – As you expand your machine shop, the BOP can expand coverage to protect the new buildings and structures.
  • Valuable Papers Protection – Does your machine shop keep equipment warranties, customer contracts and supplier details in physical paper form? These valuable papers are expensive or sometimes impossible to replace if they’re damaged or destroyed in a fire, but a BOP will pay for the expenses to duplicate or retrieve these documents.
  • Employee Dishonesty Coverage – When employees take assets from your company, your company loses financially. Whether the employee steals supplies or money directly, or they give products and services to their friends and family without charge, your BOP can protect you from the losses that result.

Commercial Auto Coverage

Commercial auto insurance can protect your company from losses caused by auto accidents. It can be configured to protect personal and company vehicle, as well as rentals and loaners. It can also provide medical coverage for people involved in the auto accident.

Workers Compensation

Workers comp coverage protects your employees in the event that they are injured while working. Accidents happen in machine shops and without this coverage your employees would have to pay their own medical bills, or they would sue your company to pay them. Workers comp will pay for all the medical bills and related expenses for recovery.


Your customers may require your machine shop to be bonded before they will do business with you. Surety bonds act as a guarantee that you will deliver products and services according to the terms of your contract.