What insurance is required to protect the assets of my furniture manufacturing business?
An insurance policy for a furniture manufacturer would usually be provided on what is known as a commercial combined insurance policy or perhaps a combined insurance package. These are policies that are designed to provide the protections for your business in a modular form so you are only buying the types of cover your business will need, and what is even better with a combined insurance policy is that it’s totally scalable as your business grows.
Whether you use modern or traditional furniture manufacturing techniques, your assets such as machinery, fixtures and fittings are essential to the day to day operation of your business, insurance is designed to pay for the replacement costs should you have a loss at the premises, this might be due to fire, storm, flood or even theft or malicious damage.
It’s important that you make sure the amounts that are covered on the policy really reflect the correct amounts and values. As an example in most cases the machinery and plant such as fork lift trucks, your office machinery and computers all need to be replaced as new so it’s essential that this amount is correct, even down to three phase cabling to your machinery. Not forgetting all your raw material, in progress and completed stocks that you have in your factory or workshop.
Other Insurance protections for businesses involved in the production of furniture
Whilst we have only touched on some of the Key covers required by those in the furniture manufacturing industry, many more covers are available.
Getting your products to your customer may involve your own vehicle or vehicles, your goods need to be protected when moving them, even when they are in the custody of carriers. Goods in Transit insurance will provide this cover.
Inspection services are available to run alongside your main policy, Furniture Manufacturers may use compressors, forklift trucks, spraying facilities with ventilation as well as large dust extraction systems. These are required to be inspected by law.
Other covers area available that protect the business and the directors too. Directors & Officers Liability or Management Risks insurance as its commonly referred to will defend the directors should an action be taken directly against them, this is essential cover to protect the directors personal assets.
Cyber Insurance – if you have a website, you use email or where your networks run the production business, being hacked, having a cyber-attack such as ransomware can close you down very quickly. Having Cyber insurance will get your systems back up and running as soon as possible and will pay necessary costs too.
What do insurers look for when quoting insurance premiums for manufacturers
One of the keys to getting competitively priced insurance cover for your furniture business is to make sure that it ticks all the boxes for the insurer. In any furniture makers business it’s likely that there will be many different risks that could cause concern, use of machinery that causes dust, materials such as wood or other items that burn well, the use of solvents in a spraying environment. Health & Safety plays a big role too, Employers Liability claims very often stem from a lack of health and safety in the workplace and businesses should look to ensure a documented regime is in place. Use of external quality management accreditations such a ISO and associations such as the British Furniture Manufacturers Association all go towards what makes an insurer attracted to you.