What’s included on a manufacturers insurance policy?
Policies vary and need to be tailored to the exact requirements of your business, there are many types of insurance protections available but for manufacturer there are core covers that need to be in place.
Manufacturers Liability Insurance
Liability insurance is the cornerstone of any insurance policy whether you produce component parts or you manufacture the complete product.
If you have staff, even if only part time or casual, you’re required by law to have Employers Liability insurance in place. Manufacturing plants and factories can be dangerous places with plant and machinery running, and the risk of injury and illness is likely to be higher than, say, an office based business.
You may have clients, customers or other members of the public visiting your manufacturing workshop, factory or plant. Public liability is designed to protect you from claims coming from members of the public for any damage or injury that the business may cause – it could be as simple as a customer falling over on a greasy floor during a visit to your premises.
Producing goods there is a manufacturing liability which is commonly referred to as product liability insurance, this type of insurance cover is critical for any type of manufacturing business. As a business that produces goods you have a duty of care to ensure that the products you make are safe and fit for the purpose they were intended.
Sometimes things can be wrong with your product that causes a loss to property or even injury to the user or worse, death. If a claim was to be brought against the business on the basis that the item was in some way sub-standard, you could face a sizeable legal bill. Product liability Insurance will provide defence costs and where the business has been found to be negligent also pay any compensation that is awarded.
Manufacturers Building and Contents insurance
Your premises are likely to be absolutely critical to your business. If you own the premises with a mortgage, it’s likely to be a condition of your lender that you have adequate building insurance in place. Even if you don’t have a mortgage, the building itself is likely to represent a significant investment that should to be protected.
Your business equipment and other contents should be protected, too. Were you to suffer a fire or a break in for example, the disruption to your business, not to mention the cost of replacement, is likely to be significant. You can protect your business premises and contents with a manufacturing insurance policy.
Stock and Raw Materials
Raw materials and stock supplies are what allow you to get on with making your goods, and it’s therefore critical that they are insured, similarly you may have customers goods, these are the raw materials or components provided by your customer, these also need protecting.
Depending on what the business produces, there can be an amount of finished products awaiting sale, these are covered within the overall stock sum insured at the premises.
Manufacturers Plant and Machinery Insurance
By the very nature of business producing goods you are heavily reliant on your plant and machinery. In the event of a loss at your premises its essential that your production machinery is fully covered. Business machinery can be everything from a simple drill up to large automated machinery such as CNC’s used throughout all different types of trade.
Manufacturers Business Interruption Insurance
Worse case scenario – you have a fire and the building and everything in it is destroyed or damaged. Outside of the costs of repair and replacement, what would the impact be on your business? How long could you continue to pay staff and other overheads without being able to get products out and invoiced? How long would your customers remain loyal before seeking out an alternative source – and how easy would it be to get them back once they’ve switched.
Business interruption insurance is designed to keep the business “in business” whilst the premises are being rebuilt or the machinery or other lost or destroyed items replaced.
What insurance covers are available for a manufacturing business?
A manufacturers insurance policy, can have a number of other sections available:
Goods in Transit insurance – this protects products such as raw materials or completed goods whilst in transit from supplier to the business premises or to the customer.
Money cover – sometimes a business might have been paid for goods in cash, insurance for money provides protection to the business against such things as theft from the premises or from a safe.
Engineering Inspection – there can be quite a lot of machinery in a manufacturing environment such as Compressors, Fork Lift Trucks, Lifting Gear or Overhead Cranes, these must be inspected by law, this type of service can be included on a policy such as this
Machinery Breakdown Insurance – With production machinery being the lifeblood of the business having machinery breakdown insurance in place can get you back up and producing goods again in a very short space of time.
Cyber Insurance – this provides your business with many different covers protecting you against the costs of an attack from a hacker, from providing experts to deal with ransom ware through to crime and social engineering, Cyber Insurance is becoming a main stream product.
Directors & Officers Liability Insurance – protecting the Directors and Senior members of the company against action taken against them for a wrongful act, whilst a limited company has limited liability, the liability of director is open ended.
Professional Indemnity Insurance – For businesses such as Precision Engineers for instance, this type of cover provides protection against professional negligence or advice in the course of the business.
Legal Expenses Insurance – Basic cover against disputes such as VAT or Tax investigations or where an employee takes an employer to a tribunal. Sometimes even the best business relationships can end in a dispute which is where Contract Disputes Cover can help.
Why arrange your manufacturing insurance through Real Insurance?
We can offer professional advice about the types of cover that you may be legally required to have as well as those that are likely to have a material relevance to your business, meaning you get the peace of mind that comes from knowing an advisor has looked over your requirements with you.
We have access to a range of products from a host of leading UK insurers. That means choice and flexibility in terms of the cover that is available to our clients.
We’re not a call centre. You’ll speak with a real person each time you deal with us and know us by name. You won’t be put on hold or transferred to another department.
What types of Manufacturers do we deal with?
Joinery Business Insurance
Food and Drinks Manufacturers
Sign Manufacturers Insurance
Plastics Industry Insurance
Vehicle parts manufacturers
USA Exporters Insurance