Manufacturing Insurance

If you work in food, pharmaceutical, clothing, automotive, chemical, electrical, industrial, machinery or other types of manufacturing, having the right cover is essential to help protect your business, your staff and your trading partners.

Our insurance brokers can recommend policies to provide cover for:

• Property damage incurred due to vandalism or materials
• Extreme weather events such as fire, floods and storm
• Equipment damage or breakdown
• Stock and material loss or damage
• Equipment theft or damage
• Product recalls
• Labour shortages
• Commercial vehicles
• Cyber events such as ransomware and data breaches

Manufacturing insurance is essential for manufacturers in a wide range of industries. Whether it’s lost production time due to a machinery breakdown, fire or supply chain failure, or a product recall caused by a defect, manufacturing insurance can provide protection when your business needs it most.

Automotive and industrial manufacturers are subject to the highest volume of product recall insurance claims, followed by food and beverage manufacturers and retail goods manufacturers.

Workers’ compensation is a major risk for manufacturing businesses. In fact, the manufacturing industry has the highest number of workers’ insurance claims when compared to other industries.

Cyber insurance is also growing in importance as hackers pose a risk to both the smooth functioning of your systems and machinery as well as your confidential business data. Intellectual property theft, interruption of operations and direct theft of funds are three of the biggest cyber risks facing manufacturers.

Susan runs a manufacturing business making cookies, which she supplies to a major airline group.

On a flight one day, plastic fragments were discovered in one of her cookies, sparking a recall and product liability lawsuit, and attracting negative publicity.

As Susan had both product liability and product recall insurance, the costs associated with the recall and lawsuit were covered, as was the cost of restoring the reputation of her brand following the incident.

There are some exclusions to what manufacturing insurance can cover. There is often also a deductible or excess.

Our team of brokers will explain how the policy works, outline any exclusions, excesses, and limits of liability, depending on your insurer and the requirements of your business.