According to a report in the Guardian newspaper on the 5th of March 2018, British manufacturing is facing an especially rosy and positive future as demand for exports grows.
Manufacturing output is forecast to grow by 2% during the course of the year – a rate which healthily exceeds the 1.5% estimate for overall growth in the country’s economy.
If you are poised to take advantage of this positive outlook and play your part in any section of the manufacturing industry, then manufacturers’ insurance is almost certain to play an essential role in safeguarding your financial success.
So, what does manufacturers’ insurance cover?
Your plant and machinery
- at the heart of any manufacturing process is the plant and machinery used in production;
- manufacturers’ insurance, therefore, focuses on helping to safeguard these critical assets against loss or damage;
- the range and configuration of any plant and machinery, however, is as diverse as the players in the manufacturing sector itself, so no one size fits all when it comes to the manufacturers’ insurance you need;
- a specialist provider, with expertise and experience in this field of insurance, may help you identify the cover that suits your particular operations;
Keeping your plant and machinery up and running
- just as your plant and machinery is essential to your manufacturing production, so it is important to keep it up and running, with breakdowns kept to a minimum and necessary repairs made as quickly and as efficiently as possible;
- manufacturers’ insurance could potentially be tailored to cover the cost of such breakdowns and failures in your plant and machinery, providing the financial wherewithal for cost-effective and timely repairs;
- despite the precautions you take to ensure the timely repair of plant and machinery, there is still likely to be some delay before these can be made and production is in full swing once again;
- in the interval, you are likely to be losing revenue and failing to meet the production targets your operations might otherwise have achieved – a potentially critical financial loss;
- to indemnify you against the losses caused by such interruptions to production, manufacturers’ insurance typically provides a degree of compensation – based on the calculated losses arising from the breakdown or failure of essential plant and machinery;
- whatever quality control measures are in place as part and parcel of your production processes, there remains the risk of customers’ claiming to have bought faulty or defective products;
- the inclusion of product liability indemnity in your manufacturers’ insurance package helps to ensure that you have sufficient financial safeguards in place to meet or to counter such claims;
Employers’ liability insurance
- any successful manufacturer relies on his workforce;
- it is a workforce whom you are legally obliged to protect through employers’ liability insurance – so that you are able to meet successful claims from any employee, past or present, who has been injured or has contracted a longer-term medical condition because of the work they have done for you;
- the law currently demands a minimum level of indemnity of £5 million;
- employers’ liability insurance may be bought separately, on a standalone basis, but premiums may be more competitively priced when you incorporate the necessary cover into your manufacturers’ insurance
With suitable manufacturers’ insurance in place, you may be fully prepared and financially protected to meet the challenges and opportunities in the forecast growth of Britain’s manufacturing industries.