Posted on: 17 April 2019
What protection should you consider?
Businesses in the manufacturing industry have to consider a wide range of insurance needs to cover the many and varied risks that the business could face.
Take a look at the insurance covers that we think are essential to any business in the manufacturing industry.
Your essential insurance covers
Employers’ liability insurance
Whilst Public Liability isn’t a legal requirement, Employers’ Liability insurance is if you employ any staff. The only exception is if you are not a limited company and only employ direct members of your family. Even then, it is still prudent to have Employers' Liability insurance.
Employers’ Liability insurance is designed to protect you from claims that may come from an employee who has injured themselves performing their duties whilst working for your business.
Public liability Insurance
Public liability insurance is designed to protect you from claims arising from your business activities. For example, visitors to your business premises, who could claim against you if they injure themselves or damage their property as a result of your business activities.
Public liability isn’t a legal requirement but as a manufacturing business, there is a higher risk of injury for your visitors, so it is best practice to have Public Liability insurance.
As you are likely to be manufacturing a product, you could be liable if the product you supply is defective and causes injury or damage due to these defects. Products liability insurance helps to cover you against claims if you are found at fault for supplying a defective product.
As the manufacturer, you could be taken to court if your product is defective and causes injury or damage as a result.
Products liability isn’t a legal requirement, however it is strongly recommended for manufacturers as a claim arising from a faulty product could be very costly and you may be strictly liable for injuries it causes.
In the manufacturing industry, it is almost certain that you will have some form of business premises where you perform your business activities.
If you only rent your business premises, you should check with your landlord who is responsible for ensuring that there is commercial buildings cover for the property. Responsibility will usually lie with the property owner unless stipulated in the contract of lease.
Again, buildings cover isn’t a legal requirement but you should consider the financial cost of repairing damage to the building, which you will have to cover yourself if you don’t have the correct insurance.
Commercial contents insurance should be an essential consideration as it can cover the cost of replacing the machinery or plant which is vital to your business operations, should they be damaged or stolen. Contents insurance can also cover other property like stock and work in progress so it’s an essential part of any manufacturer’s insurance policy.
In the event of a major loss, like a fire or flood, you may be unable to trade until you can get the premises up and running again Business Interruption insurance is an important cover to have. Whilst you are not manufacturing, or have only limited capacity due to the property loss, you will still have overheads which need paying and Business Interruption insurance should always be a key consideration.
Other insurance considerations for Manufacturers
The insurance covers mentioned above represent the minimum risks you need to consider. As a manufacturer you will also have to think about risks which are individual to your business such as:
- Goods in Transit and Marine
- Directors and Officers Liability
- Cyber and Data
- Legal Expenses
- Personal Accident and Travel
- Motor Fleet
- Engineering Inspection
Manufacturing insurance with Premierline
At Premierline, we understand every business has individual insurance needs, and with so many different varieties of manufacturing businesses, from food manufacturing or furniture manufacturing, it is important to have the insurance policy that is right for you and your activities.
Our trained insurance experts work with some of the most well-known insurance companies in the UK to find the best insurance cover to protect you and your business. Get in touch today for a comprehensive business insurance quote.
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