If you’ve been in business long enough, whether it’s manufacturing, construction, or agriculture, you’ve probably learned the hard way that having insurance and being fully protected are two very different things.
We’ve sat across the table from business owners who thought they had everything covered… until a claim revealed otherwise. It’s not always about what’s in your policy; sometimes it’s about what’s missing.
These “hidden gaps” aren’t always obvious. But when they surface, they can derail everything you’ve worked hard to build. Here are a few we often see – and how to avoid them.
1. Outdated Equipment and Property Values
A lot of policies were written back when construction and machinery costs were much lower. But over the last few years, prices have jumped, fast. If your policy is still based on outdated numbers, you could come up short when it matters most.
We recently worked with a manufacturer who hadn’t updated their equipment values in five years. After a partial fire, they were shocked to learn that their coverage didn’t come close to what it would cost to replace the damaged machines today.
Ask yourself:
• Are your buildings and equipment insured for today’s market? Or yesterday’s?
• Do you have replacement cost coverage, or just actual cash value?
2. Subcontractor Assumptions That Backfire
Construction teams are busy. It’s easy to assume that a subcontractor has their own insurance and many do. But if you don’t document it correctly, or if their policy lapses mid-project, your business could be left holding the bag.
One contractor we know thought their electrical sub had active insurance, until a wiring issue caused a fire. No hold harmless clause. No certificate on file. The general contractor was liable.
What to review:
• Do your contracts clearly transfer risk and require updated certificates?
• Are you listed as additional insured on their policy?
3. Unscheduled Equipment or Late Additions
We’ve seen it happen too many times: a farmer buys a new tractor at auction or a contractor rents a lift for a rush job, but forgets to add it to their policy. Then something happens… and it’s not covered.
Even if you think you have “automatic” coverage, that protection is usually limited in time and value. If you don’t report it quickly, you could be out thousands — or more.
Tip:
• Review your equipment schedule every quarter, not just at renewal.
• Know the rules around inland marine or newly acquired equipment clauses in your policy.
4. Gaps in Cyber Liability and Data Protection
If you’re in manufacturing and haven’t looked into cyber liability coverage, now’s the time. Ransomware, phishing scams, and system hacks are becoming real threats, especially if your machines or vendors rely on digital systems.
We’ve heard from manufacturers who lost days of production because a hacked vendor’s system took their order flow offline. And standard property insurance doesn’t cover that.
Ask yourself:
• Do we store employee or vendor data digitally?
• Could a cyber attack shut us down, even temporarily?
5. Liability Limits That Haven’t Kept Up With Growth
This one’s simple: as your business grows, so does your exposure. More employees, more locations, more moving parts — all of that increases the chance that a serious claim could exceed your policy limits.
It’s not about fear. It’s about reality. If you doubled your revenue in the last five years but haven’t touched your liability coverage, it’s time to re-evaluate.
Solution:
• Consider a commercial umbrella policy. It’s one of the most affordable ways to add an extra layer of protection across all your core policies.
Your Business Changes. Your Insurance Should Too.
Insurance shouldn’t be a once-a-year checkbox. When your operations evolve: new equipment, more employees, bigger contracts – your coverage should keep up.
That’s why we take a different approach. Instead of just renewing what’s on paper, we dig deeper. We work with business owners across manufacturing, construction, and agriculture to find the blind spots most others overlook. Then we help build a plan that actually reflects what’s at stake, not just what’s required.
Let’s make sure you’re truly protected, not just insured.
Reach out to our team to schedule a risk review designed around your operation, not just your industry.
