What Is Manufacturing Insurance And Why Do You Need It?

A&T Blog Sep23

Challenges are an unavoidable part of the manufacturing industry, but having proper insurance in place is one of the best ways to protect against unanticipated losses. From physical damage to lost profits, manufacturing insurance provides essential coverage should anything go wrong during your operations. We’re exploring what exactly is included in a manufacturing insurance policy and why every business in the industry needs one.

Understanding Manufacturing Insurance

Manufacturing insurance – sometimes referred to as industrial insurance, production insurance, or wholesale insurance – offers a safety net against various risks for businesses involved in the production of goods. Essentially, this ensures the business’s operations can continue smoothly even when any unforeseen events threaten to disrupt them. For instance, this could provide financial coverage for anything from the breakdown of equipment to any damage caused by your stock.

What Does Manufacturing Insurance Cover?

Fundamentally, manufacturing and production insurance doesn’t protect against only one type of risk. Instead, it offers cover for most risks that could potentially impact the manufacturing process. We’ve listed some of the main types of coverage for industrial insurance below:

  1. Business Interruption Insurance: Protects your business against losses arising from unexpected interruptions, like storm damage and flooding. This ensures that, even if your operations are forced to halt temporarily, you’ll have a financial buffer.
  2. Refrigerated Stock Cover: For those in the food and pharmaceutical industries, this type of manufacturing insurance covers the loss of perishable goods due to refrigeration or freezer failures.
  3. Equipment Breakdown Insurance: A must-have for industries relying heavily on machinery. This covers the repair or replacement costs of equipment when it breaks down.
  4. Employee Theft Insurance: Safeguards against losses from dishonest acts by employees, such as theft or fraud.
  5. Product Liability Insurance: This component of production insurance covers against claims arising from injuries or damage caused by the products you manufacture or sell.
  6. Public Liability Insurance: Protects against claims made by third parties, such as customers or vendors, if they suffer an injury or property damage because of your business.
  7. Commercial Legal Expenses Insurance: Covers legal expenses that can arise from disputes related to contracts, employment, or property.
  8. Personal Accident Insurance: Compensates for any injuries that occur to an owner or employees, ensuring they’re financially covered during their recovery period.

Benefits Of Manufacturing Insurance

When it comes to why you should consider manufacturing insurance for your own business, it offers several key benefits:

  • Financial Security: In the face of unexpected setbacks, industrial insurance aims to ensure your business remains financially stable.
  • Peace Of Mind: Knowing you’re covered allows you to focus on enhancing your business operations rather than worrying about potential risks.
  • Credibility Boost: Having a suitable policy can enhance your business’s reputation as it shows stakeholders that you’re prepared for contingencies.

Who Needs Manufacturing Insurance?

Any business involved in the production of goods should consider investing in manufacturing or production insurance. Whether you’re a small-scale artisan or a large-scale industrial manufacturer, unforeseen events can result in substantial losses. Ensuring you’re adequately covered means your business can withstand the challenges that may come your way.

Manufacturing Insurance From Alan & Thomas

Taking out a suitable manufacturing insurance policy is more than just a safety measure – it’s a smart business decision. At Alan & Thomas, we offer specialist production insurance for businesses involved in the manufacture of goods and products. Our status as a Chartered Insurance Broker enables us to work with a large number of insurance providers around the UK, meaning we can find you the appropriate coverage no matter the unique requirements for your business.

Are you considering industrial insurance for your own business? Get in touch with us at Alan & Thomas and we’ll tailor your manufacturing insurance cover to your needs. Speak with us today by calling 01202 745900 or by emailing info@alan-thomas.co.uk.