Skip to Content

manufacturers penalty insurance

Manufacturers penalty insurance covers an insured manufacturer against financial responsibility imposed under a contract for delay in completion of a product.

On This Page

manufacturers penalty insurance

Manufacturers penalty insurance covers an insured manufacturer against financial responsibility imposed under a contract for delay in completion of a product.

Additional Information


Manufacturers are sometimes compelled to assume a stipulated financial penalty in contracts with purchasers of their products.The policy generally covers 90 percent of the penalty loss sustained but does not extend to strikes or labor disputes.