Manufacturing Insurance – Current & Future Risks of The Pandemic/Brexit

With Brexit, the insurance sector was and to some extent is still vulnerable to disruption. The disruption comes from the level of regulation and interconnection between the United Kingdom and the EU. The risk was that millions of policies signed pre-Brexit would become invalid. But how does this affect businesses in the sector?

Paperwork will be the first challenge and this challenge extends beyond the British border, a lot of companies have not been updated on these new regulations which make everyday business quite difficult and can cause delays. 

We all saw the lorries queuing up in Dover, and these challenges could continue for manufacturing companies. More delays come from customs paperwork, as manufacturers will have to declare all items on board, and if a mistake is made, this could cause even more delays. Manufacturing companies are ahead of the game and are making changes to suit the new needs, which is incredible. 

Despite this positivity, it is imperative to keep on top of your insurance policy to cover you against the new risks that have arisen. The main one we would suggest to help you would be: 

– Business Interruption Insurance – Business interruption insurance will cover you  in the event that your business has to stop running normally, this is usually due to a disaster, flood or fire. In more recent times a lot of businesses in the hospitality industry have won disputes over if they should get business interruption insurance due to the pandemic, so it is worth keeping an eye on this. 

As mentioned above restaurants, retail businesses and manufacturing businesses have closed to limit the spread of the COVID-19 virus. This, however, has resulted in significant business interruption losses. A lot of businesses didn’t actually have business interruption insurance, which is why we have mentioned it above as it is so important. 

It could be argued that food manufacturers have been impacted the most as they could find themselves in breach of their existing insurance policies if they have made operational changes as a result of the COVID-19 pandemic. Any changes must be mentioned to insurance companies to ensure any policies still stand, this is to prevent any surprises in the future. 

We would again strongly suggest looking into business interruption insurance, as the future of the pandemic looks promising, you can never be too cautious. 

Whether you are manufacturing food, curtains, steel, boxes or something else, Business Line Insurance understands the covers you need from your manufacturers’ insurance to ensure you have the protection you need. Here are some over covers you should be considering for your company:

Stock insurance covers the cost price of your stock and will typically include any raw materials. It is available at each stage of the production and manufacturing process. If any stock or raw materials are damaged, destroyed or even stolen, this type of insurance will ensure that you are covered.

You could also look into business contents insurance as this is also a great way for businesses to ensure their items and equipment are covered against any damage, theft, fire or flood.

Commercial property insurance policies provide cover in the event of damage or theft. Property insurance is broken down into two levels of cover, this is usually all risk and named and defined perils. All risks generally apply to all losses caused by hazards that are not specifically excluded in the policy and names and named and defined perils are listed in the policy and can include a number of hazards.

Machinery cover provides a cover for all plants and machinery on a business premise. Cover will be given for sudden and unforeseen damage, explosions, any replacements needed and anything else you need. We cover a range of machines and will get your business up and running in no time.

Public liability insurance is one of the main covers when it comes to business insurance. If your business is held responsible for injury or property damage to a client, contractor, member of the public, this cover will help you. It is not a legal requirement, however, it keeps you and your business safe at all costs.

Product liability insurance covers the cost of compensating anyone who is injured by a faulty product that your business designs, manufacturers or supplies. This is extremely important in manufacturing as it is the source of everything you do.

Employers’ liability insurance covers you and your business if an employee becomes ill or injured as a result of the work they do for you. It is legally required by all businesses with one or more employees, so please keep this in mind.

It is imperative now more than ever to carry out risk mitigation. The purpose of this is to prepare businesses for potential risks, a properly planned and thought out mitigation plan will properly weigh the impact of each right and prioritize planning around this risk and its impact. Rather than planning to avoid risk, mitigation allows you to deal with the aftermath and the step to take afterwards. If you have carried this out, we would suggest sharing this with your insurer, so they can suggest the best possible covers for your specific needs. 

If you would like more information on the changes in the manufacturing industry and how to keep on top of this insurance-wise please get in touch with a member of the Business Line Insurance on 020 3058 4309.