What is included in a Plastic Manufacturers Insurance Policy
Insurance for any type of manufacturer needs to be tailored to exactly the covers the business requires, it’s always advisable where possible to obtain an insurance policy that has covers designed for the sector its intended for, saving valuable time and possible uncertainty as to whether you actually have the correct cover in place.
A plastic injection moulding business, a rotational moulder or plastic extruders all work from business premises. Every day that business is exposed to many risks, the weather is a typical example where storm or flood can cause extensive damage. Businesses in the plastics industry can have a larger exposure to fire given the processes or the types of plastics used.
Tooling isn’t made overnight, so things like lead-in times need to be understood, what happens if you make thousands of the same product for one customer and the tooling gets damaged, whilst a plastics manufactures insurance policy having business interruption cover will help, what contingency plans are in hand to continue manufacturing the product.
All these types of questions need to be answered to ensure that a robust plastics business insurance policy will respond fully in the event of a loss.
Other covers available are Goods in Transit Insurance – essential when your goods are being transported around the country.
Inspection and Machinery Breakdown –Inspection for many items in a plastics business is required by law where there is compressed air or the use of a forklift truck amongst other items of pressure or lifted plant.
Machinery Breakdown is a cover that should always be considered, this is designed to get the business working as soon as possible. Engineering Business Interruption can also be included where there is significant downtime do to a broken machine.
Liability Insurance for businesses who manufacture plastic products
Public Liability will cover a business against negligence caused to a member of the public, this might be a customer that comes to your premises and slips or trips causing injury or loss, equally a fire breaks out at your premises that causes an interruption to a neighbouring business.
When manufacturing products even with the most modern machinery and the latest technology, an extensive instruction manual a product could cause loss or damage to its user, even worse where the plastic component that you have manufactured fails causing damage to the main item, this could prove costly and Product liability insurance for a plastics business is essential, paying the legal costs and any compensatory payments should you be found to have been negligent in its production.
Most businesses have employees, and where they do, Employers Liability is not only essential it’s actually a legal requirement. Should one of your employees become injured whilst in the course of their work then the insurance policy will respond, paying the necessary legal costs as well as any compensation that may be payable to the employee.
What risks are involved in a plastics manufacturing business?
Any manufacturing business carries a certain amount of risk, but some are exposed more than others, businesses manufacturing plastics and plastic products use many different products that can be hazardous to health.
Having robust Health & Safety practices in the business can not only help to save on premium, with the potential for plastic fumes, some plastics themselves having a degree of toxicity as well as chemicals used means that maintaining ongoing work space assessments is essential.
Insurers look for quality managed businesses in sectors such as the plastics industry; this means complying with all relevant Health & Safety requirements, COSHH, LOLER, PUWER, LEV and of course even the most basic of HSE requirements.