Manufacturers insurance is a generic term used in insurance to cover the many aspects of a business involved in this sector. As with other sectors, insurance is there to protect businesses of all sizes from micro enterprises to large scale manufacturers.

A manufacturing insurance policy covers the actual manufacturing process of the products, the assets and the equipment of the business. It also covers injury to employees and any injury to customers if the product is faulty or badly made.

If you’re a small business with a limited production output or a larger manufacturer, another area that should be insured correctly is financial loss from a fire or flood. This could have a severe financial impact should the business be out of action for a long period of time.

Where a manufacturing business could require insurance is for recalling the product from the marketplace due to it being faulty, dangerous or contaminated. Product Recall Insurance covers the financial and associated costs of this eventuality.

Manufacturing plant with manufacturer insurance

What information does your insurance provider need to insure you?

To create a profile of your business, its exposure and processes, your insurer would require the following information:

  1. A full description of the business activities and the processes involved in the production or manufacture of the product/s.
  2. Where the business sources its ‘raw materials’ from. If they are sourced from outside the UK/EU, they need to know more. This is due to the fact that some territories produce sub-standard materials which may be unacceptable in the UK.
  3. If you intend to export, an insurer needs to know where, especially if your goods go to the United States or Canada.
  4. The premises where the manufacturing takes place is also an area of interest. There could be hazards that would need to be mitigated (particularly with food).
  5. Compliance and Health & Safety is another important factor. An insurer would need to see that you comply with minimum standard requirements, government rules and regulations and that health and safety procedures are formalised to all employees.

Commercial insurance can be complex. For assistance with any questions you may have, don’t hesitate to contact Titan Insurance. With over 30 years’ experience, our highly qualified team are ready to assist. Call us on 0207 731 3700 or drop us an email.