Manufacturer Insurance
Manufacturer insurance protects businesses involved in the manufacturing industry. It covers protection against various risks and liabilities associated with manufacturing operations, products, equipment, building, raw stocks and facilities. It is also known as Commercial Manufacturing Insurance.
The goods and product manufacturers are more vulnerable to losses. To overcome such failure, they need a Manufacturer Insurance plan. It also offers coverage for vehicle damage and injury of workers.
Company owners should evaluate the risk and take the appropriate coverage plan that gives sustainability, protection and generates revenues for the business.
Manufacturers of every sector and size should purchase Manufacturer Insurance. It can protect their assets and operations. Automobile, electronics, food and beverage, pharmaceuticals, textiles and machinery companies can consider manufacturer insurance.
Original Equipment Manufacturers (OEMs) that produce components or parts used in the assembly or production of other products should consider manufacturing insurance.
Businesses that provide contract manufacturing services, Small and Medium-sized Enterprises (SMEs), and manufacturers with international operations or specialised equipment can also opt for manufacturer insurance.
Lifecycle Fire and General is a broker who can assist manufacturers in selecting the right Manufacturer Insurance plan to safeguard their raw or provided goods from damage or loss.
We offer Insurance plans based on the nature of the manufacturing process, product types, equipment used, industry regulations, and other factors.
In the manufacturing sector, 31 percent of people are employed in the food industry, which is the highest than other sectors. Manufacturing employment is raised in the Taranaki region, making up 14.6 percent of the workforce.
By the March 2020 quarter, the manufacturing sector employed 244,000 people.
The manufacturing industry had the highest rate of entitlement claims in 2021, with 35 insurance claims per 1,000 FTEs (21 percent of all entitlement claims).
Manufacturer insurance offers various types of coverage to protect businesses in the manufacturing industry. The specific types of coverage available may vary depending on the insurance provider and policy.
- Property Insurance: Property insurance protects the physical assets of a manufacturing business, including buildings, machinery, equipment, inventory, and raw materials. Also cover damages or losses caused by fire, theft, vandalism, natural disasters, and other covered perils.
- Product Liability Insurance: Product liability insurance protects manufacturers from claims and lawsuits related to injuries, property damage, or losses caused by their products. It covers legal defence costs, settlements, or judgments resulting from allegations of product defects, design flaws, or inadequate warnings.
- General Liability Insurance: General liability insurance offers coverage against third-party bodily injury, property damage, or advertising-related claims. It protects manufacturers against lawsuits or legal expenses arising from accidents, injuries, or incidents on their premises or during operations.
- Product Recall Insurance: Product recall insurance covers the costs of recalling and replacing products due to safety concerns or faults. It helps manufacturers manage the financial costs of a product recall, including communication, retrieval, disposal, and potential business interruption.
- Employment Practices Liability Insurance (EPLI): EPLI provides coverage for claims arising from employment-related issues such as wrongful termination, discrimination, harassment, or violation of employment laws. It helps protect manufacturers from potential lawsuits and associated legal costs
- Lawsuit coverage: If the business underwent legal proceedings due to its manufactured goods or manufacturing plant. This insurance helps in the settlement.
There are various benefits of taking Manufacture’s Insurance coverage.
- Equipment Breakdown coverage: It covers the costs of repairing or replacing machinery and equipment that experience sudden breakdowns. It helps protect against losses resulting from equipment failures, electrical malfunctions, or mechanical breakdowns.
- Business Interruption coverage: This insurance compensates manufacturers for lost income and ongoing expenses when their operations are interrupted or temporarily halted due to a covered event. It helps cover fixed costs, employee wages, and lost profits during the period of interruption.
- Cyber Liability: It protects manufacturers from the financial consequences of cyber-attacks, data breaches, or unauthorised access to sensitive information. It covers expenses for notification costs, forensic investigations, legal fees, and potential damages from cyber incidents.
- Commercial Auto: This offers coverage for vehicles used in manufacturing operations, such as trucks, vans, or specialised vehicles. It protects against damages, accidents, or injuries related to owned or leased vehicles used for business purposes.
- Workers’ Compensation Insurance: Give coverage for medical expenses, lost wages, and rehabilitation costs for injured workers
While manufacturing insurance can cover a wide range of risks and liabilities specific to the manufacturing industry, it will not cover
- Intentional acts or intentional damage caused by the insured.
- damages or losses that are expected or occur due to normal wear and tear.
- Product recalls due to safety concerns or defects, quality control issues or failure to meet industry standards.
- Losses resulting from fraudulent or dishonest acts committed by employees.
- Intellectual property claims, such as patent or copyright infringement lawsuits.
- Pollution-related damages or environmental liabilities.
- General business risks unrelated to manufacturing operations, like market fluctuations, business strategy failures, or economic downturns.
The manufacturers carefully review all terms, conditions, exclusions, and limitations of their insurance policy to understand what is covered and what is not.
These are some common types of insurance coverage available for manufacturers. LIfecycle Fire and General have a consultant who assesses specific risks in the manufacturing sector. We offer customised coverage plans for our clients to meet their unique needs and exposures.
We specialise in manufacturing insurance and can help businesses to identify any coverage gaps, address specific risks, and explore additional insurance options if needed.