High Risk Liability Insurance
Insurance for high risk product manufacturers and trade processes
Liability insurance for High Risk Product Manufacturers
Specialist Insurance Brokers for placing High Risk Liability Insurance across a wide spectrum of manufacturers and producers. The UK has a strong manufacturing base but sometimes insurance for a product manufacturer producing certain types of goods or using riskier processes can prove either difficult or expensive to obtain.
High Risk Liability insurance falls across two aspects, the product that is being manufactured or the processes involved to manufacture or produce that item. Typical Examples of where a manufacturer may be considered high risk:
Precision Engineering
Precision Engineers manufacturing products for Automotive, Rail or Aviation.
Even a small cabin fitting in an aircraft may be a problem to many insurers.
Food and Supplement Manufacturers
Whilst there are specialist policies for Food manufacturers, Foods supplements might fall outside what an insurer would normally accept.
Metal Coatings
Certain Types of metal coatings can use hazardous substances to health such as Chromium or other chemical substances.
Cosmetics
As these are applied to skin they can be considered high risk products and specialist insurers are required who understand the risks and the cosmetics insurance market.
What is High Risk Liability Insurance
Manufacturing any type of product requires various insurance protections to be in place, often for many businesses their products and processes don’t fall into every insurers appetite and its usual that a specialist market needs to be found and so insurance cover becomes bespoke around the individual requirements of that business.
Combined Liability Insurance is usually made up of three separate types of cover, Public Liability, Product Liability Insurance and Employers Liability, depending on the sector a company is in or the type of work or process that is being carried out means other special extensions could be required.
Real Insurance Group have access to a wide range of markets that accept the higher risk business or processes as well as those that don’t really fit any category, in fact some of our underwriters like the more quirky products or processes
What does High Risk Liability Insurance cover?
Public Liability provides insurance to protect individuals or businesses against claims where a member of the public may be injured or where loss or damage has been caused by the negligence of the business, it provides essential legal defence cover and if it is found that the business is at fault then it will pay compensation too, subject to the limitations of the policy.
Product Liability Insurance is very similar to Public Liability but the difference is where the manufactured product or a product supplied has caused a loss, caused damage or injured someone. A typical example of this is where the product itself whilst being used breaks causing injury. Manufacturers of OEM parts insurance is essential, your product could break causing damage to the main product or component or VAR as it’s commonly referred to.
Employers Liability Insurance protects a business against claims made against it where an employee becomes injured or suffers health issues due to their employment. A business, as it grows needs addition people to carry out certain processes, these could be viewed as being higher risk and many insurers might prefer not to insure the business because of this. Employers Liability, isn’t an option where you have people working for you, it’s a legal requirement to have it place.
How much Liability cover does my business need?
Liability insurance cover is usually available for businesses from just £1million and above, at Real Insurance we can place Public Liability Insurance up to £100million in various layers, this is referred to as a Limit of Indemnity.
There are two approaches to how much liability cover to have, there is the standard on many policies of £2million or £5million Limit of Indemnity, sometimes a manufacturer may be required to have a higher limit by their customer, this could easily be £10million or more.
Employers Liability is usually a standard amount of £10million, depending on processes or the amount of people working together may mean that a higher limit is required. These are usually referred to as an Excess of Loss or Excess Layer Insurance.
Does Liability Insurance have an Excess?
An excess is the amount of money the insurance company will not pay in the event of a claim, this varies from insurer to insurer and can also depend on the type of business you have. This is usually referred to as a Third Party Property Damage Excess. A typical excess may be £250 or £500.
A high risk liability insurance policy may have a higher than usual excess, this may be for instance the insurer has a much higher excess because they are a specialist market with higher excess as standard. Sometimes if a product is being exported to certain territories such as the USA or Canada then the insurer may just increase the excess for that country.
Why deal with Real Insurance for your Liability Insurance?
Real Insurance are specialist commercial brokers, we deal with insurance for many different types of business. We have access to a wide range of providers and only place with A Rated UK based insurance companies.
We can offer professional advice about the different types of cover that your business may require, whether you are a small business or a larger established one. When you speak with our teams you can always speak to the same person.
Importantly, 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.
Speak to us today about any aspect of High Risk Liability Insurance whether you are a manufacturer or you work in other sectors.
