What Does Manufacturing Business
Insurance Cover?

manufacturing business insurance

This blog will outline what manufacturing business insurance is, what it covers and why manufacturers should make sure that they have this protection in place. We hope that after reading you should fully understand what this insurance covers and be encouraged to ensure that you have cover in place.

What is manufacturing business insurance?

Manufacturing business insurance is a special type of business insurance that has been created to meet the needs of manufacturing line and factory owners. It provides you an extra level of defence for the issues you can’t prepare for. Obviously, the quality of your products is vital, and you regularly have to work quickly to meet deadlines, whilst also keeping high standards at all times, so sometimes things can go wrong. Insurance for manufacturing can be a complex topic, with a number of specific protections that need to be added to a standard business insurance policy. Whether you operate a microbrewery, a metal fabricator, large vehicle manufacturing plant or even a small plastic goods moulding company, dedicated manufacturing insurance is fundamental to any modern factory environment.

Why you should get manufacturing insurance cover?

Insurance of any kind needs to be well constructed, accurate and comprehensive; you can’t just rely on a standard business insurance policy if it leave gaps in your coverage, and all potential risk factors need to be explored and considered on their own merits. Benefits of tailored manufacturing business insurance include lower premiums, reduced exposure, easier to manage policies, and the elimination of coverage gaps.

No risks should be underestimated, as no two manufacturing businesses are the same and each comes with its own complications and hazards, a customised insurance policy is the only way to ensure full protection.

What it covers…

Usually, manufacturing business insurance can cover your buildings, contents, equipment and machinery, stock and raw materials, as well as your clients and visitors, your staff, and other trading activities like exhibitions.

One of the most important areas of cover for a manufacturing business insurance policy is liabilities, whether you produce components and parts, or you manufacture the complete product.

Public Liability – You could be attending events to promote your products and you may have clients or school groups visiting your workshop or factory. Public liability is made to protect you from claims from members of the public for any damage or injury that the business may cause.

Employer’s Liability – If you have staff, even if they’re only part time or casual contracts, you’re required by law to have Employers Liability insurance in place. Manufacturing plants and factories can be dangerous places with large machinery running and employees potentially handling hazardous materials, this means that the risk of injury and illness is likely to be high.

Product Liability – When you’re producing goods there is manufacturing liability protection, commonly referred to as product liability insurance, this cover is critical for any type of manufacturing business. As a business that makes products you have a duty of care to ensure that what you’re creating is safe and fit for the purpose they were intended. Something could be wrong with your product that causes damage or injury to the end user. A claim could be brought against your business on the basis that the item was faulty or sub-standard, and you could encounter a substantial legal bill as a result. Product Liability insurance will can cover defence costs and if necessary compensation.

Other coverages that can be added on or included as part of our manufacturing insurance include:

  • Material Damage
  • Business Interruption
  • Loss of income
  • Goods in Transit
  • Contents & Stock
  • Glass & Signage
  • Directors & Officers Liability
  • Cyber Security
  • Product Recall
  • Motor Fleet
  • Equipment & Machinery
  • Engineering Inspection
  • Personal Accident
  • Legal Expenses
  • Fire & Theft

Where to get a manufacturing business insurance quote

With any type of insurance, it’s important to browse the market to ensure that you are getting the most appropriate policy for your requirements at the best possible price. This can be a very time-consuming task, not to mention confusing with all the potential add on covers that you might need and complicated jargon to read through. By using a manufacturing insurance broker, you can relax knowing that it’s their job to guide you to the best policy to go for and which provider to use for the best price.

Whether you are making cars, clothing, confectionery, industrial machine parts or engines, within our team of experts we’ve have industry specialists who understand the intricate practices involved in advanced manufacturing operations and provide cover to fit.

1st Choice Insurance are an independent brokerage, which means that we are not tied to any specific providers or corporations, so you can trust that our manufacturing insurance advice is unbiased. Give us a call on 01743 770 500 and speak to a friendly and knowledgeable member of the team. Let us save you time, hassle & money on your manufacturing insurance policy.