Connect coverage to the actual operation
Contract manufacturers must clarify who designs, supplies specifications, owns tooling and materials, controls changes, performs testing, accepts product, and bears recall or delay costs.
Risks to review
- Customer property, molds, dies, tooling, and materials
- Product liability, quality, rework, and recall disputes
- Contractual indemnity, confidentiality, and intellectual property
- Equipment, supplier, cyber, and production interruption
Information to prepare
- Customer contracts, specifications, products, end uses, and territories
- Ownership and values of tooling, materials, work in process, and finished goods
- Quality, testing, traceability, approval, and change-control procedures
- Property, equipment, income, suppliers, cyber controls, and loss history
Frequently asked questions
Why are customer contracts central to the insurance review?
They can allocate design, quality, indemnity, insurance, tooling, confidentiality, recall, delay, and warranty responsibilities.
Should customer-owned tooling be included?
Yes. Ownership, values, location, custody, replacement time, and contractual responsibility should be documented.
Coverage descriptions are general. Eligibility, availability, limits, deductibles, valuation, exclusions, and policy terms vary by operation and insurance market. Actual policy documents control.