Insurance for manufacturing firm — expert tips

The manufacturing industry is not without its risks.

There are risks associated with the manufacturing floor and processes, the products being manufactured, and other parts of the industry and owners of manufacturing businesses need to work out a strategy to mitigate these risks.

What are the best insurance types to get? Which risks are worth managing?

Cover the Basics
First and foremost, business owners will want to protect their plant and machinery, which can be done by taking out commercial property insurance.

This type of policy can protect a business against the risk of damage caused by natural disasters, accidents (i.e. fire) etc, and in many cases may also cover the cost of replacing tools and machinery if it’s stolen or damaged during an insurable event.

The insurance policy also covers the structure of a manufacturing facility, which means a business is protected against damage caused by natural disasters, accidents (i.e. fire) and more. The commercial property insurance may also cover loss of income.

Cover Your Products
Product liability insurance is another type of insurance cover that is crucial to the manufacturing industry. As the industry make products for customers, there are risks of those products being defected or flawed.

There are also risks of the flawed products harming customers.

In both of these instances, the financial liabilities can seriously jeopardise the well-being of a manufacturing business.

Product liability insurance may not always be able to eliminate those financial liabilities entirely.

If a business tries to save on insurance premiums it may end up with inadequate insurance cover.

That said, having some – the majority – of the risks mitigated is already a huge plus.

Cover Your Vehicles
If a manufacturing business owns one or more vans it probably goes without saying that it will have a legal obligation to take out van insurance.

However, this doesn’t mean a business has to pay over the odds for it – by using a van insurance comparison service like Quotezone it can compare quotes from a wide range of insurance companies in just a few minutes, helping to find a suitable policy at a great price.

You Can’t Be Too Careful
All businesses have to protect their employees. The people working in the manufacturing line are its biggest assets and their wellbeing is paramount to the efficiency of all manufacturing businesses. Keeping them safe by creating a safe working environment is only the beginning.

The next part of that equation is protecting those employees with a suitable employers’ liability insurance policy.

Not only is this good business sense, it’s also a legal requirement.

Some manufacturing companies even go as far as providing an extensive cover for personal items of employees as part of their property insurance.

Cars or motorbikes parked in front of the factory, the tools or safety gear that employees use, and other personal items that employees bring to work are covered.

Evaluate Your Risks
Before starting a search for the right insurance policies to get for a manufacturing business, it is a good idea to do a risk analysis.

Speak to insurance experts, have thorough assessments done by an insurance company, and consider the business’s risk tolerance before moving forward with insurance purchases.

Combined with comparing multiple quotes and getting insurance cover from the same insurance company to earn better deals, complete cover can be provided for a business, its assets, and its employees without breaking the bank.