What’s included on a manufacturers insurance policy?
Typically, a manufacturing insurance policy will be made up of a number of ‘parts’ designed to protect specific areas of your business:
Liability covers (notably, manufacturing liability insurance).
Public liability is designed to protect you from claims coming from members of the public – for example if a customer slips over on a wet floor during a visit to your premises. Similarly, employers liability cover protects you from claims made by a member of your own staff, who may bring a case in the event of an accident.
Manufacturing liability insurance, often referred to as product liability insurance, is usually critical for a manufacturing business. You have a duty of care to ensure that the products you make are safe and meet statutory legal standards. Failure to do so could see you facing costly legal complaints.
Warehouse or factory building and contents insurance.
Naturally, your premises are the beating heart of your business. If you have a production line, it’s likely that you’ve had the building laid out in a certain way to accommodate your needs. You may have expensive computer equipment on site to assist with designs. All of this should be protected with a manufacturing insurance policy.
Stock and raw materials.
Whatever you manufacture, you’ll start with raw materials or stock supplies. It’s likely that stock levels will fluctuate – seasonality, customer demand, even currency fluctuations – are likely to affect your own purchasing patterns. You need to have the right value of cover in place without over paying for insurance you don’t need.
Manufacturers plant and machinery insurance.
You’re likely to be heavily reliant on your plant and machinery. It’s also likely to be costly to replace or repair. Plant and machinery insurance can cover the costs or repair or replacement of critical machinery.
What would happen if you suffered a warehouse fire, the theft of key stock, or a piece of machinery was out of action for a few days due to a breakdown? Outside of the cost of repair or replacement of the affected items, its likely you’ll be dealing with irritated customers who aren’t happy that their order is being delayed.
How much would it cost your business if you were having to pay staff, mortgage or rent and all of the other standard business overheads, but without any meaningful product being invoiced?
How long would your customers stay patient before seeking out an alternative supplier – and how easy would it be to get them back once they’ve switched.
These are the ‘hidden costs’ of business continuity that can be insured, helping you keep the business going while things get fixed.
Why choose JM Glendinning to get my manufacturing insurance quotes?
A well established, independent, business insurance broker, JM Glendinning have experience dealing with a range of manufacturing businesses insurance requirements.
We have relationships with a whole host of leading UK insurance companies, meaning we can compare the policies for you and recommend what we think would be in your best interests.