With dedicated manufacturing insurance, you can get all the cover you need for your manufacturing business on a single policy.
There are many risks associated with manufacturing products and materials. You should not proceed with your operations until you have sufficient insurance in place to cover all of these risks.
What Is Manufacturing Insurance?
Manufacturing insurance is specialist cover for businesses that manufacture products or materials. A single policy can include cover for your buildings, equipment, stock, products, and your workers.
A manufacturing insurance may include:
- Buildings insurance.
- Business interruption insurance.
- Vehicles insurance.
- Product liability insurance.
- Public liability insurance.
- Employer’s liability insurance.
- Goods-in-transit cover.
- Stock cover, including any raw materials or finished products you keep in storage.
How Long Does It Take to Get Manufacturing Cover?
Depending on a number of factors, it could take a matter of days to arrange for manufacturing cover.
Insurers may need to tailor your policy to ensure it meets all of your requirements, and to ensure that they have thoroughly assessed your business’s unique risk profile. The bigger and more complex your manufacturing operation, the longer it may take to get the cover you need.
Note that many of these factors will also affect the price of your manufacturing policy.
What Can Affect the Time it Takes to Get Manufacturing Insurance?
- Comparing quotes. You may choose to approach a number of insurers to get multiple quotes for the cost of cover. This is good practice but bear in mind that the more quotes you get, the longer it will take to arrange for cover.
- The nature of your manufacturing business. The size of your business, including the number of employees you hire, will affect the cost and the complexity of your cover. Insurers will also consider the specific products you manufacture, including whether they use any potentially hazardous materials or processes in their construction, and whether they will pose any particular risks to your end customers. The size and complexity of your supply chain will also make a difference, as it will determine whether you need any additional cover for vehicles and drivers.
- The type of cover you choose. Some insurers may offer a standard suite of cover for all of their manufacturing customers. Others may choose to tailor their cover to meet your exact needs. Getting bespoke cover can prove more cost-effective, as you will not pay for any cover you do not need. However, it can take longer to arrange for a tailored policy than it can to get an off-the-shelf product.
No Matter How Long It Takes, You Need Manufacturing Insurance
Apart from some forms of cover, such as employer’s liability insurance, there is no legal requirement to get manufacturing insurance. However, you should not start manufacturing any products without first getting adequate insurance in place.
Product liability is a vital form of cover for all manufacturers. If any of your products are ever found to be faulty or hazardous, you may need to issue a product recall. You may also face legal action and compensation payments should any customers or stockists take legal action against you.
Without adequate manufacturing insurance, you would be liable for covering all of these costs yourself. A product recall alone could prove so expensive that it could sink your business entirely.
Never start manufacturing any products or materials until you have all the cover you need, no matter how long it takes to get a policy.
Get The Manufacturing Insurance You Need As Soon As Possible
Working with an insurance broker can help speed up the process of getting manufacturing cover.
An expert broker will take the time to get to know you, your business, and your products. They can then liaise with their approved insurers in order to arrange an insurance package that gives you all the cover you need at a competitive price.
James Hallam is an independent Lloyd’s broker with a dedicated team of experienced insurance brokers who are committed to protecting your manufacturing business. We can arrange specialist niche insurance packages for manufacturing businesses to ensure you are covered for all risks.
Find out how we can help you get a tailored and cost-effective manufacturing insurance policy today.