Some industries are riskier than others, and manufacturing is among those that pose serious liability and/or fire risks. Anything you are manufacturing comes with a potential for liability, whether it’s automotive parts, caravans or trailers, recycled goods, food, electrical parts, extruded plastic products, clothing, furniture, industrial plant incl. process plant and conveyors or other goods. You have to look at each of them with the proper interest and choose a type of insurance and a coverage plan that protects you, as a manufacturer, against the many opportunities for liability.

What Is Covered By Manufacturer Insurance?

Generally, you will receive some recommendations on which types of insurance you should get and what they cover. These are just a few of the instances that are protected by manufacturing insurance:

• Labour hire injury exposure
• Machinery breakdown
• Material, equipment and premises damage coverage
• Insurable risk profiling
• Fire hazard risks
• Statutory liability
• Transit and cargo needs
• Product recall exposure
• Occupational safety and health
• Business interruption risk
• Directors’ and officers’ liability
• Product liability protection for injury or damage incurred as a result of manufacturing or design defects
• Management liability, such as omissions and errors
• Manufacturing and design risk
• Supply chain management

Manufacturing is essential to the Australian economy, but that doesn’t mean it doesn’t come with risks or that it can’t suffer from liability. Every manufacturing company has the responsibility of protecting itself through insurance coverage for all possible accidents, injuries, omissions, errors, delays, interruptions, defects, etc. Otherwise, any accident or mistake may be incredibly damaging, and we all know that you can’t foresee everything. Don’t put yourself and your company at risk; choose a comprehensive insurance plan with coverage for all your needs.

Why Is It Important To Have Manufacturing Insurance?

To put it simply, you never know what is going to happen. And as a company that employs a significant number of people and produces consumer goods, the risk of liability is always present. A manufacturing company has to cover itself against claims resulted from injury, damage, mistakes, delays or interruptions.

Any consumer may discover a problem with their product and decide to sue, and in this case, the manufacturing company has to be prepared to take on that case with legal expenses covered. In the absence of insurance, such a company may go down after a few mistakes or even one significant oversight. Manufacturing is a field that brings risks, so protect yourself against them.