Insurance Tips for ManufacturersPosted by AP Insurance on Mar 1, 2012 in Business Insurance | Comments Off
This bulletin is designed to give manufacturers a better understanding of some of the risks that they may face and some of the solutions that are available to them.
Manufacturers face a multitude of different issues depending on their particular sector so this issue COULD go on for pages! However, I’ve tried to keep it brief by dealing with the most common areas that I have come across.
Common Issues and Concerns
- Business Description. This may seem a minor point but an insurer bases their terms and cover on what they believe the insured is doing. Getting it wrong could mean that your client is not insured, or at best has to pay an additional premium before a claim is settled.
- Multiple Locations. If your client has more than one premises, they should check that all addresses are shown on each section of the policy schedule. Not doing so could mean a damage claim at one location is insured but not the loss of profit.
- Stock in transit to Europe. Yes we’re in a single market but many insurers still only cover goods in transit within the UK as standard.
- Warranties. Breach these and cover is invalid. Do your clients remove rubbish and waste as prescribed? Do they store stock above the minimum height? Have they actually read their alarm warranty and comply with each aspect?
- Indemnity Period. This is the length of time the insurer will pay for loss of profits following damage. 12 months is the norm but will that be enough to rebuild, replace machinery AND win back enough customers to get back to their pre-loss turnover level?
- Reliance on a large customer or supplier. If one of these had a major fire and stopped buying from or supplying to your client, would the loss of profit be fully insured?
- Pollution. New regulations place a far more onerous responsibility on businesses if pollution occurs, and this can include an apparently insignificant event such as a leaking oil tank or drums of paint. Many of the costs are not insured by standard insurance policies.
- Since 2006, regulations have required the management of asbestos in a property, although this may not require its removal.
How we can help
For manufacturers in Bromsgrove, Redditch, Worcester and throughout Worcestershire and Warwickshire, we can offer:
- A free no obligation review of current insurance arrangements and a report on possible alternatives.
- Guidance on risk management issues
- Access to independent specialists to assist with electrical, asbestos and Energy Performance surveys.