Australia is home to more than 100,000 manufacturing businesses. If yours is one of them, you’re probably familiar with the challenges that come with operating in this sector.
There’s no shortage of things that can go wrong and without the right manufacturing insurance cover in place, it’s easy to end up out of pocket or, in a worst-case scenario, out of business. These are some of the more common exposures manufacturing business owners need to safeguard against.
Product Liability Insurance
If a customer suffers an injury to themselves or their property because of using or consuming your products, they may decide to seek compensation. Product liability insurance can help cover those settlements and the costs associated with product recalls.
Product Recall Insurance
Product recall insurance is designed to protect businesses from the financial repercussions of recalling a faulty or contaminated product. For SMEs, the potential damages resulting from a recall can be catastrophic, affecting both the bottom line and the company's reputation. Product recall insurance provides coverage for costs associated with the recall process, such as communication expenses, transportation, disposal, and even potential legal liabilities.
Errors and Omissions Extensions
Public and products liability wording can be extended to cover amounts that the insured becomes legally liable to pay as compensation for financial loss, arising out of a negligent act, error, or omission in connection with the business.
Say, for example, you’ve fabricated a lift for a shopping centre and that lift proves to be faulty, tenants within the centre may claim they’ve suffered financial losses as a result. The nature of your business is an important factor to consider when determining the level of cover you’re likely to need.
Property and Machinery Damage Insurance
Property insurance can help you rebuild and re-open, should your premises be knocked out of action by a natural disaster, while machinery insurance can assist you to replace any plant that’s damaged or destroyed.
Specialist machinery can’t be purchased off the shelf. It could take months or even years before it’s delivered and then it may need to be commissioned by a representative from the supplier. It’s important business owners understand just how long it can potentially take before their lines are up and running again. If equipment or parts aren’t available or need to be imported, the rectification process can be extremely protracted.
Food processing businesses that keep a significant volume of ingredients or stock in cold storage may wish to add machinery breakdown cover to their policies.
Business Interruption Insurance
Business interruption insurance can be critical for manufacturing businesses as it can cover ongoing operational costs while you recover from a catastrophic event. It can also provide financial relief if supply chain disruption makes it impossible to obtain the materials needed in the manufacturing process.
Injuries in the Workplace
Regardless of the nature of your business, there’s always a risk of accidents and injuries in the workplace. Implementing stringent workplace health and safety procedures and ensuring all employees receive adequate training before setting foot on the factory floor can help you reduce it.
Your employees are entitled to seek compensation for any physical or mental injuries they incur while on the job. Should that occur, workers’ compensation cover can help you defray the cost.
Business Insurance for Manufacturers is our Expertise
If you haven’t reviewed your business insurance for a while, now is a great time to do so. Our business insurance brokers can help ensure you have the right cover for your specific business needs and circumstances, at the best possible price. Get in touch via the form below to connect with our team.
