Manufacturing Company Insurance Guide

What is manufacturing insurance and which covers do we need to protect the company

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Manufacturing insurance can start from £389 per year for the most basic cover
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As a Willis Towers Watson Network broker we have the expertise to arrange specialist covers
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The below expert guide offers general information but to discuss your needs give us a call
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An expert guide to manufacturing insurance and how it can protect your company from unexpected events

The below expert guide details the types of insurance covers available to manufacturers and explains why sufficient time should be spent arranging company cover.

As a Willis Towers Watson Network broker, we have the market access and expertise to guide our clients and identify value for money when arranging your necessary cover. Talk to one of our experts by calling us on 0345 625 0711.


What you need to know about manufacturing insurance 

As a manufacturer you face a variety of different risks that could have serious financial consequences to your company. Transferring those risks such as fire, theft, material damage, and liability compensation claims makes good business sense.

Prudent manufacturing companies will consider additional covers such as environmental liabilities, product recall and supply chain covers, alongside the traditional liability and property covers to fully protect your interests.


What is manufacturing insurance?

Manufacturing insurance is a combination of liability and property covers which help companies protect their interests from a variety of different exposures whilst operating their business.

What you manufacture will have a significant bearing on our approach to identify what insurance suits your needs. Whether you operate in equipment, food, drink, plastics, electronic, textile, chemical, metal, precision tooling, or ceramics, will all impact your cover.

Employers' liability, public liability, product liability insurance are key considerations, in addition to buildings insurance, material damage, equipment breakdown and business interruption cover.

What is manufacturing insurance?


    Why is manufacturing insurance important?

    Workplace safety can pose an immediate threat to the wellbeing of your employees, subcontractors, counterparties, and visitors. Health and safety policies will need be combined with comprehensive cover to guard against injuries and accidents.

    Secondly, the exposure posed by the products you produce, also carries a significant risk to potentially high liability claims being made by your customers and third parties.

    Not to mention the risks posed by fire, theft and business interruption resulting from damage to your building or equipment. Ensuring you have adequate manufacturing insurance is paramount to mitigate the costs of an unexpected event.


    What manufacturing insurance covers do you need to protect your company?

    There are a variety of specialist and non-specialist covers available that can be tailored under a standard or bespoke product to meet your individual company needs. Below we've produced a guide to explain how the cover can offer protection. 

     

    Product Liability Guide

    Product liability insurance offer protection against compensation claims arising from harm or injury caused by the product you manfactured or distributed. The Consumer Protection Act states manufacturers, distributors, suppliers and retailers could be held responsible for damage, injury or death caused by their product or any of that product’s component parts.

     

    Employers Liability Guide

    Employers’ liability insurance covers the cost of defending and compensating employees who become ill or injured through the workplace and is a compulsory insurance for companies under law.

     

    Public Liability Guide

    Public liability insurance covers a defence and compensation claims by persons other than your employees in connection to your business activities. Negligence is the largest cause for successful allegations, for example someone trips on an uneven surface which the company has created. 

     

    Buildings and Property Damage Guide

    Buildings and property damage insurance covers damage by unforeseen events to physical assets which the company owns or is under their duty of care, examples would include your premises, equipment, plant, machinery and other contents.


    Business Interruption Guide

    Business interruption insurance covers the loss of income to the company when the production of the product has been halted directly due to a physical loss or damage. The cover seeks to compensate the loss of actual income to the company when an unforeseen event has occurred to the point where the business can no longer operate. 


    Additional covers typically purchased by manufacturing companies to protect the balance sheet


    Cargo Insurance Guide

    Cargo insurance protects the physical loss or damage of the goods once they are in transit, whether they are being imported or exported from overseas by sea or air, or whether it is a domestic transit over land. Cover can also be extended to cover the potential storage at third party premises.

     

    Machinery Breakdown Guide

    Machinery breakdown insurance provides the company with accident insurance for machine breakdown, covering damages that can happen suddenly, causing losses of relative importance and making necessary the repair or replacement for the normal course of business. 

     

    Directors and Officers Guide

    Director’s and officer’s insurance offers protection to the company’s board and senior executives for decisions they make on behalf of the company, as they can be held personally liable for their actions. For example, a legal defence could be covered for civil actions, criminal allegations and regulatory investigations.

     

    Cyber Insurance Guide

    Cyber insurance offers first-party costs and cover for third-party damages in a package product that will provide protection in the event of a cyber attack or data breach. If your manufacturing line is reliant on systems and controls, consider what would happen if they went offline and a hacker requested a ransom demand.


    What manufacturing industries require a specialist insurance broker?

    Most manufactures will already use the services of an insurance broker, however which broker use could significantly impact the cover and pricing you are able to obtain from insurers. As a Willis Towers Watson Network broker we have the expertise and market access to Lloyds of London to secure the best cover for our clients.

     

    > Aerospace Products

    > Automotive Products

    > Construction Products

    > Food and Drink Products

    > Electronic and Robotic

    > Industrial Equipment

    > Metalworking Products

    > Plastics and Injection Moulding

    > Precision Engineering