What does insurance for metal finishers cover?
A metal finisher’s insurance policy is designed to protect the business from large costs whether that’s property damage or the costs of defence or compensation should someone be injured.
Whilst there are many different insurance policies available to a business there are three key areas, the protection of the business assets, a financial cushion to keep the business “in business” if the premises are damaged or destroyed, and whilst the world increasingly becomes more litigious, robust Liability insurance will protect the business from claims where its alleged to have caused a loss or injured someone.
Many businesses dealing with metal surface treatments will have business premises, particularly those that go through various chemical processes such as electroplaters or anodiser’s, also for many other business types in this sector such as Enamellers or other Metal Coating specialist premises to run your business from are essential.
Business premises need protecting whether and that starts with the buildings themselves if you own or are required to insure them. The process equipment is essentially the lifeblood of the business without it your business would suffer considerably so needs protecting against such exposures of fire, theft damage and everything nature can throw at it such as storm or floods.
Insurance protection for a metal finishing business should include the machinery, plant as well as the stock such as chemicals, coatings and particularly customer’s goods when they leave their products with you for processing.
Having a claim can be devastating to any business; it needs therefore to continue to trade as soon as possible but this isn’t always possible particularly if there has been a larger loss. Business interruption will continue to pay the reduction in gross profit or revenue received whilst the building is repaired or rebuilt and the machinery replaced.
With robust business interruption insurance, it will keep the business “in business” it will also continue to pay further reductions until the business is back in the position it was in directly before the loss, subject to the policy indemnity period. An indemnity period referred to in business interruption insurance is the length of time your insurance company will continue to pay.
Public Liability insurance is critical for businesses that are in the metals processing industry; it protects you against allegations of negligence for loss, damage or injury that may be caused to a third party such as a member of the public. Product Liability is very similar should the product you are supplying cause any losses, chemicals left on products that cause damage for instance. Both Public & Product Liability will pay for the legal defence costs as well as any compensation that the business has to pay up to the indemnity limit purchased.
Use of chemicals and processes when preparing or finishing metals means that an employee could be injured, Employers Liability is not only essential it’s a legal requirement when employing people.
What is an indemnity limit
When taking out liability insurance it essential to get the limit of indemnity correct, the standard policy limit of £2m or £5m could be adequate for public & products liability, however sometimes the customer can dictate the limit required if you are doing work for them, this could be £10m or higher.
Employers Liability Insurance usually comes as £10m as standard although this can be increased as required.
Public Liability – does metal finishers insurance policy have excesses?
Public Liability insurance for metal finishers will usually have an excess, this is the first part of a claim like you would have on a car policy, and this can vary from insurer to insurer.
An excess on a public liability insurance policy refers to third party property damage excess. Some policies also have a bodily injury excess to. It’s essential when taking out liability insurance that you understand the amounts of excess you have.
What other covers are available on a metal finishers insurance policy?
An insurance policy for anyone in the metal finishing industry when working from business premises would usually have Commercial Combined insurance. Putting the above covers aside there are other covers available.
Although Money insurance cover is still available and optional, most businesses these days don’t have a lot of physical cash, it never the less remains an option.
Goods in Transit Insurance covers your goods from A to B against various events, theft for instance is a risk. Cover can be extended to include your goods whilst they are with carriers, something worth considering as usually their cover can be very basic.
Many modern policies can include other insurance covers that have traditionally been on separate policies, Machinery Breakdown is a typical example of this.
Cyber insurance, on some policies its now available included in the main range of policy covers it usually provides quite basic protections; we would always advise looking at the stand alone Cyber Insurance Policies as they can offer much wider cover options.
Directors & Officers Liability Insurance is essential to cover the assets of the directors of the business should a wrongful act be committed. Whilst the business itself might have limited liability, the directors certainly don’t, their liability is unlimited.