Your industry in focus

The manufacturing sector is undergoing a new industrial revolution. Innovations in technology, increasingly global markets, sophisticated supply chains and tough competition are the new reality. We don’t have to tell you the industry is complex – you know your business. Our goal is to help you protect it, and empower you to make it better, through pro-active risk management services and by underwriting to the specific risks your business is facing.

Targeting: Mid-large manufacturers
Specializing in:
  • Automobile parts
  • Chemicals
  • Cosmetics
  • Electrical machinery, Equipment, and Supplies
  • Food & Beverage
  • Metal products
  • Heavy equipment
  • Machine shops
  • Printing
  • Pulp and Paper Mills
  • Rubber products

What Sovereign’s manufacturing solutions offer:

Businesses involved in manufacturing have standard risks they all need to prepare for – like property, business interruption, crime and liability – and we’ve got you covered. But your complex business needs more. Our approach is to provide solutions that your business actually needs instead of offering blanket protections designed for the sector you’re working in. It’s better value for your business to get protection that you truly need – and nothing that you don’t. Working with your Broker, we can customize limits and deductibles and work with coverages based on your needs.

We can develop a solution for:

  • Property
  • Business Interruption
  • Equipment Breakdown
  • Crime
  • Liability
  • Automobile
  • Technology & Cyber

Coverages designed to protect your business:

We develop coverage to address the specific exposures faced by businesses like yours. Explore coverages unique to the Manufacturing industry below:


Manufacturer's Errors and Omissions Liability

Manufacturer's Errors and Omissions Liability

Coverage snapshot

Mistakes happen. It’s how you recover from them that matters. Our Manufacturers Errors and Omissions Liability coverage can protect your business from financial loss and legal costs for errors like:

  • Design errors
  • Faulty installations
  • Improper use of raw materials
  • Subcontractor errors
  • Product failures

And with our Specifications coverage, we can cover you for expenses you incur to repair or replace your product.


Imagine a scenario where...

You manufacture a custom-made motor that is designed to generate a specific amount of power. Weeks after the motor is installed at your customer’s production facility, they report that the motor is generating less power than it was designed for and their production capacity has been impacted. Cue the domino effect: your customer incurs extra expenses to shut down the production line, replace the motor with a more expensive alternative and to top it all off, they lose one of their contracts because of the production delay. Not surprisingly, your customer sues you for the lost revenue and extra expenses. The motor still works, and there is no bodily injury or physical property damage so the Commercial General Liability doesn’t provide coverage. But Manufacturers Errors and Omissions Liability does!


Unspecified Locations - Contents (Worldwide)

Unspecified Locations - Contents (Worldwide)

Coverage snapshot

In this economy, thinking globally is key to growing your business. Naturally, manufacturers looking to expand will find their operations growing to countries outside of North America. We help you get there, safely, by extending your stock and equipment coverage to non-owned locations located outside Canada/USA.


Imagine a scenario where…

You’re a metal manufacturer located in Toronto, Canada but you permanently store your custom molds and dyes at your contract manufacturer in Hamburg, Germany. A fire at the German operation destroys the molds and dyes and you’re looking to recover the damages. Many property wordings covering contents at locations that are not scheduled on your policy are limited to a North American coverage territory and may also have a time period limitation (typically 30 days). At Sovereign, your equipment permanently located at and controlled by your German contract manufacturer in Hamburg is protected!

Contingent Business Interruption Extension - Named and Unnamed Locations (including supply chain disruption)

Contingent Business Interruption Extension - Named and Unnamed Locations (including supply chain disruption)

Coverage snapshot

You depend on partners, like suppliers and distributors, to get the job done. An issue at any point in your supply chain can cause a domino effect of business interruptions. If your supply chain is disrupted we can provide coverage to reimburse you for lost profits and extra expenses. We can also provide coverage for business interruption caused by direct physical loss or damage to the property of one of your partners. 


Imagine a scenario where…

You’re a manufacturer with a supplier in India that receives some of its supplies from a supplier in China. A fire breaks out in the China facility, which causes an interruption at the India warehouse, which ultimately causes a business interruption at your manufacturing plant. A traditional Contingent Business Interruption extension would only protect you if the fire broke out at the supplier in India. We recognize that supply chain management is becoming increasingly complex and we extend coverage to secondary contingent properties such as the facility in China.

Depreciation in Value of Undamaged Stock

Depreciation in Value of Undamaged Stock

Coverage snapshot

A loss might leave your stock undamaged, but that doesn’t necessarily mean you’re in the clear. Factors like environmental disruption or chemical exposure can cause your product to be rejected. Following a loss on your premises, if your undamaged stock diminished in value and can’t be sold, because of an order from an authorized government authority or because it fails to meet your minimum written quality standards, we can cover this stock loss.


Imagine a scenario where…

You operate a low hazard, chemical manufacturing facility and during a recent windstorm a tree damages your roof and causes water damage to the building and some equipment. Luckily, there was no physical damage to your raw materials, stock or products. Seems like you’re in the clear! Not quite. Your customers have strict minimum quality control standards enforced with written contracts. Because the damaged roof and subsequent water damage have altered the quality control environment at your manufacturing facility, your customer rejects your products claiming they don’t meet the minimum written quality standards. You need to submit a claim for the undamaged stock. Generally, property coverage responds to direct physical loss or damage to contents. The Depreciation in Value of Undamaged Stock allows coverage, under certain circumstances, for stock that was not damaged.

Product Recall Expense (Enhanced) – includes: product tampering, pre-recall expenses and replacement value expenses

Product Recall Expense (Enhanced) – includes: product tampering, pre-recall expenses and replacement value expenses

Coverage Snapshot

The health and safety of your customers is your greatest priority. So, if your product has been intentionally tampered with (or is threatened to be tampered with) to cause harm to consumers, you need it recalled. Fast. We can help cover your expenses to withdraw the product from the marketplace. These expenses include your pre-recall expense (inspection) and the option to replace the recalled product. We include Product Recall Expense coverage for threatened, actual alteration, or contamination of a product that has been tampered with and as a result is unfit for use or dangerous to the consumer.


Imagine a scenario where... 

You’re a shampoo manufacturer with a large facility that develops and packages 50 different varieties of product. You receive an anonymous call that two of your brands were tampered with by a distributer that you’ve parted ways with. The products are believed to have been re-labeled by the distributor and shipped to stores without your knowledge. Without this Product Recall Expense extension, the additional expenses that you incur associated with the recall would result in your profits taking a hit.

Product Impairment

Product Impairment

Coverage snapshot

When your reputation takes a hit, it can take some time to gain back the trust and confidence of your customers. Product Recall coverage helps you get your products off shelves and returned to your facility, but you could also sustain lost sales while things settle after the recall. This is where Product Impairment can help. It covers a reduction to your income resulting from the loss of confidence– a great complement to Product Recall Expense protection.


Imagine a scenario where...

You’re a food manufacturer and you sell your product to a large retail grocery store chain. Once your product is on the shelves, you discover that a foreign material may have been introduced during the manufacturing process and a large batch of product has the potential to cause bodily injury to your consumers. You begin a product recall. Unfortunately, your sales start to drop once news hits the media and they take a few months to rebound. Product Impairment can help cover this reduction to your income while your sales rebound.

Communicable Disease and Food Contamination

Communicable Disease and Food Contamination

Coverage snapshot

You would never want your product to be responsible for making someone sick and take all precautions to prevent it. But if you’re faced with food contamination from a communicable disease, we can provide coverage for loss of income and any extra expenses arising from contamination. And if a civil or public health authority restricts access to your premises, our extended business interruption coverage can protect you here as well.


Imagine a scenario where…

An employee at your factory returns after vacation, and one week back to work discovers they’ve been infected with a contagious illness during their travels. You inform the appropriate government authorities and, to prevent further contamination to your products, they shut down your operation for 30 days while equipment is cleaned and sanitized and employees are tested for exposure to the virus. You submit a claim for the loss of income and extra expenses incurred during the shutdown.

Social Engineering

Social Engineering

Coverage snapshot

We’ve all been exposed to scams - an alert from a security firm that your software needs a fix, or a financial institution advising you to correct an account error. It’s suspicious, and we know not to click. But fraudulent behavior isn’t always as obvious when it comes to our business. The truth is, no business is safe from social engineering. Our coverage protects your business if a third party fraudulently impersonates someone to intentionally mislead your employees into transferring money or securities into a third-party account.


Imagine a scenario where…

One of your employees receives an email from a trusted supplier instructing them to transfer funds to an updated bank account. Nothing seems out of place given you’ve done business this way, with this supplier for years. A month later, you receive a notice that you’re behind in payments. Turns out that someone was impersonating your supplier, and you re-directed payments straight to them. Social Engineering protection can help by providing coverage, up to a specified amount, that would go towards replacing the funds you were misled into sending.

Radioactive Contamination

Radioactive Contamination

Coverage snapshot / why you need it

By their very nature, radioactive materials are unstable. It’s not an exposure you want to leave unchecked. Radioactive contamination protection is usually excluded from typical property insurance policies, but we cover direct physical loss or damage to your property caused by sudden and accidental radioactive contamination.


Imagine a scenario where…

You’re a plastics manufacturer that uses radioactive isotopes in detectors that monitor and control the thickness of your plastic sheets. A power surge at your facility damages your equipment, causing the radioactive isotopes to leak and contaminate your property and your products. The damage to your property is covered under your commercial property policy and the contamination damage caused by the radioactive isotopes is covered thanks to the Radioactive Contamination extension.

Client stories

We see the people behind the policy - BWS Manufacturing

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BWS Manufacturing is a second generation, family run business operating out of Centreville New Brunswick. BWS manufactures and distributes various types of trailer products, working with customers to provide top quality transportation solutions across North America. Since 1967, the business has grown into a successful corporation while maintaining its ‘small family’ mentality. People are at the heart of this business; at BWS, their workers are their greatest asset. In 2015, BWS experienced a fire in their paint shop, resulting in a total loss of the facility. Fortunately, thanks to their strong team, their broker partner Palmer Atlantic Insurance and Sovereign Insurance they were able to get back on their feet without losing any production.