CNC, or computer numerical control, refers to the practice of using a computer to direct tools and other machinery.
This automation is making it possible for manufacturers to produce intricate parts with high levels of automation. The emergence of CNC technology has led to the growth of new manufacturing industries such as CAD/CAM software design and service providers. In order for these businesses to offer their services profitably and securely, manufacturers must secure CNC insurance coverage. Read on for three good reasons why you should secure CNC insurance coverage today.
You Face Liability
- Automation has made it possible to produce intricate parts with high rates of automation.
- Automation has also made it easier for manufacturers to produce parts that can cut their costs.
- This has resulted in the creation of cheaper products, which has reduced the demand for professional machinists.
- The demand for machinists has led to a shortage of skilled professionals, which in turn has caused wages to decrease.
- As a result, risks to human life and significant property damage can occur when operating CNC equipment.
- If a manufacturer’s CNC machine causes harm to a customer, the manufacturer may be liable for the damage.
- In order to avoid the risk of facing significant liability, you should consider obtaining CNC insurance.
You Need Reputational Insurance
As CNC equipment has become more common, so too has the risk of damage and loss. This has led to a rise in the number of claims, and as a result, reputational insurance is now commonly sold as part of CNC insurance policies.
Reputational insurance can help ensure that companies are able to continue operating and exporting products. It is important to remember that a reputation is based on the reliability and security of a company’s supply chain.
Thus, a loss due to CNC equipment can seriously damage a company’s reputation. Reputational insurance can help to reduce the risk of significant financial loss due to damage to a company’s reputation.
You May Need Shop Equipment Protection
Many manufacturers purchase CNC equipment that is used to produce custom parts. As these parts are often made for production, these parts often undergo significant wear and tear.
If your business uses large shop-top CNC machines, you may want to consider coverage under shop equipment protection.
By purchasing shop equipment protection, you can ensure that your business has the coverage it needs to cover the cost of repairs should damage occur.
A good example of when you may want to purchase shop equipment protection is if damage occurs to a large CNC machine. If the damage is severe enough to cause production to be delayed, coverage under shop equipment protection can help to reduce lost revenue.
CNC Operators Are Highly Dangerous
Using a machine to create custom parts is a very dangerous job. CNC operators are often required to work in a position that requires seeing parts close up.
This can lead to a high risk of seeing parts that are out of tolerance or parts that have a manufacturing defect. A good way to reduce the risk of seeing out-of-tolerance parts or seeing parts with manufacturing defects is to use CNC software. CNC software can help to ensure that parts are cut to the ideal dimensions. A good CNC insurance policy can also help to cover the cost of purchasing a maintenance contract for your CNC equipment.
Conclusion
CNC insurance can help to ensure that your business has the protection it needs in case of damage to machinery and equipment used to produce custom parts.
By purchasing CNC insurance, you can help to protect your company in the event of a large machine-related damage.
CNC insurance can help to ensure that your company has the coverage it needs to cover the costs of repairs should damage occur.
CNC insurance can be a good investment for many businesses. CNC insurance can help to protect your business from damages to machinery and equipment, as well as protect your reputation by covering maintenance costs and out-of-tolerance parts. If your business uses large shop-top CNC machines, you may want to consider coverage under shop equipment protection.
