Employee works on a car manufacturing line

Manufacturing insurance for businesses

Protect your business from serious risks

Being a critical part of the supply chain carries many risks. From machinery and equipment damage to product recalls, not to mention threats from theft and hazards for employees.

Having the right manufacturing business insurance gives you peace of mind whilst minimising operational interruptions should the worst happen.

Typically manufacturers need core covers for: material damage, business interruption, theft, goods in transit, management liability, employers’ liability insurance, and public liability insurance for third party claims.

Many businesses want extra protection in place such as:

We’ll arrange the right cover for your manufacturing business...

Mike Davies - Account Executive Leah Gregory - Account Executive

 

We help business owners like you by providing expert advice on manufacturing insurance across the UK.

By arranging tailored solutions, from building insurance, liabilities, fleet, cyber or marine insurance, we’re here to protect your business. We also offer risk management tools to improve your internal systems and minimise the risks associated with running a manufacturing business.

The insurance market can be challenging to navigate. We’ll review your current insurance arrangements and help you understand the products that are right for you. We’ll work with you to set up a bespoke service plan that ensures your requirements are met and agree on communications that suit you.

We take the time to get to know you and your business, working as a trusted member of your extended team.

Our services include claims support, employee benefits, health and safety, contract wordings, mergers and acquisitions.

Speak with a manufacturing expert now

Get in touch with our manufacturing insurance experts to see how we can help you and your business.

Confidence in the face of change with GCL Food Ingredients

Confidence in the face of change with GCL Food Ingredients

With fresh thinking and a more transparent approach, we re-ignited GCL’s confidence in the value of insurance and how it can support their multifaceted business operations – not hinder it.

What does manufacturing insurance cover?

No two manufacturers are the same. The specifics of the commercial insurance you need depends on your manufacturing operation and business model.

Our typical manufacturing insurance policy includes the following core covers:

  • Business interruption
  • Business travel
  • Employers liability
  • Engineering inspection
  • Goods in transit
  • Management liability (D&O, EPL, crime, cyber)
  • Material damage
  • Motor fleets (cars, commercial vehicles and special types)
  • Public and products liability
  • Theft (including full theft)

And, can include a number of optional extras:

  • Additional increased cost of working
  • Claims preparation costs
  • Collusion
  • Contract works
  • Efficacy
  • Engineering covers; sudden and unforeseen damage, boiler explosion, hired in plant, machinery movement
  • Environmental
  • Financial loss
  • Machinery breakdown
  • Seasonal fluctuation
  • Specified suppliers and customers
  • Vendors indemnity

Not to mention less common, bespoke additions where necessary:

  • Advanced business interruption
  • Customer tooling or property in the care custody and control
  • Molten metal breakout
  • Option to output basis of BI settlement (very relevant where turnover increases or reduces solely due to commodity index)
  • Parametrics
  • Part products clause – only damage to “that part” is excluded
  • Product recall
  • Property being worked upon
  • Side D D&O (ESG)
  • Supply chain
As with all insurance policies for manufacturing companies, terms and conditions apply. Manufacturing insurance cost varies.

Make your risk profile more favourable

Most manufacturers will also conduct regular health and safety training courses amongst many other risk management initiatives such as fire risk assessments. This helps present a more favourable risk profile to insurers.

Find the right risk management solution for your manufacturing business on our new digital marketplace.

Speak with a manufacturing expert now

Get in touch with our manufacturing insurance experts to see how we can help you and your business.

Frequently asked questions

Product recalls can most commonly be characterised as resulting from any of the following events or conditions:

  1. Unsafe products
    Products may have an imperfection, deficiency or defect that creates a dangerous situation. As a result, these unsafe products can potentially cause bodily injury or property damage.
  2. Manufacturing defects
    Manufacturing defects can potentially result in bodily injury or property damage for those businesses providing component parts to be used in the final assembly of products. A related concern is Impaired Property, when the tangible property of others cannot be used or is less useful because it incorporates a defective product. In this case, a recall event may be triggered by the need for the customer to recall the product that incorporates your component item.
  3. Adulteration
    Affecting consumable products, adulteration involves the contamination of products and may include microbiological, chemical, allergen or physical hazards, mislabelling, and actual or threatened tampering. Such events can be accidental or unintentional, as well as intentional.
Yes, we will be able to arrange a factory insurance policy that will meet your needs. Simply get in touch with the manufacturing team to tell us about your factory, and we’ll do the rest to secure your factory insurance.

High-quality manufacturing insurance should help you recover if a serious incident damages or destroys your premises or machinery. It shouldn't just cover the cost of repair or reinstatement but also help replace lost income.

Employers’ liability insurance is also critical, covering issues arising from employing people, supplying customers and the eventual use of your products. Moreover, depending on the type of manufacturing business you run, and its supply chain, you may also need insurance for stock, goods in transit, book debts, and more.

Putting that tailored cover in place can be complex and time-consuming, especially as it is often harder to find cover for things like the manufacture of safety-critical related clothing and equipment.

All of this makes it essential to get help from an expert. After all, true peace of mind comes from knowing you have the right manufacturers' insurance cover in place – not just generic, ”off the shelf” cover – at the right price. By collaborating with an expert in risk management, manufacturers can minimise their risk exposures, including the risk of worker injuries, cyberattacks, and the impact of severe weather. Adequate business interruption cover is vitally important.

Product safety alerts, reports and recalls for unsafe products and resources for consumers, businesses and regulators can be found on the government’s website.

Equipment breakdown insurance is sometimes called machinery breakdown insurance, mechanical breakdown insurance or accidental failure cover. This type of insurance covers

  • Costs to replace or repair damaged equipment
  • Loss of income resulting from equipment failure
  • Spoiled stock
  • Costs incurred as a result of any rebuild or restoration.

Equipment breakdown insurance protects your critical equipment. From mechanical or electrical machinery to computers or communication systems, this cover will assist with unexpected costs caused by an unexpected failure.

If you’re a manufacturer and hold a general liability (GL) policy, you may have some gaps in your cover that you didn’t realise.

While you’ll likely be covered for bodily injury and property damage resulting from your products, services, or operations, there are some critical exposures your GL policy might not cover, such as products liability.

You may think that general liability insurance would also extend to cover product liability claims, but it isn’t always the case. Due to their complex nature, product liability claims and necessary recalls are highly specific, especially in food and drink. Consequently, they tend to be more expensive than a general liability insurance policy will allow, often exceeding the limit of a traditional general liability policy.

Learn more about the potential gaps in your insurance cover.