Talk to us about your Manufacturing Insurance needs
Manufacturing processes and factory floors are being transformed by advances in technologies, globalisation and a changing business landscape. Manufacturers have unique and complex risks, which can shut down operations and severely disrupt their business. Manufacturing businesses require specific risk planning to structure an insurance program to suit their operating environment.
Barrack Broking understands these challenges and the complexities to manufacturers insurance. We are well positioned to proactively help companies of all sizes navigate and thrive in today’s world of uncertainty with Manufacturing Liability insurance.
Our Industry Affiliations
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Barrack Broking affiliates with the Manufacturing Excellence Forum (MEF).
MEF is a grassroots not-for-profit established in 2021 to support and grow the Sunshine Coast's manufacturing sector. They help manufacturers solve problems, build capability and grow. -
Barrack Broking is the risk and insurance partner for Australian Steel Institute
The peak body representing the entire Australian steel supply chain from the manufacturing mills right through to end users in building and construction, heavy engineering and manufacturing.
What does Manufacturing Insurance cover?
Every manufacturing business operates differently, so it’s important to first gain a clear understanding of the business and its specific risks. This includes reviewing contingency plans, contractual obligations, and business continuity measures. Once these factors are understood, the most suitable insurance solutions can be identified. Common types of insurance for manufacturers include:
Under Australian Consumer Law manufacturers have a legal responsibility to supply products without safety defects. If a consumer suffers an injury or damage to themselves or their property due to your product, they may seek compensation. One of the most critical areas of insurance for manufacturing businesses is product liability. Product liability insurance is designed to cover these claims, including the costs associated with product recalls. This type of insurance is crucial for protecting your business from financial losses stemming from defective products.
Manufacturers’ Errors and Omissions (E&O) Typical professional indemnity policies will not cover claims arising from the supply of goods. As well, public liability insurance usually only covers personal injury or property damage. Manufacturers’ Errors and Omissions extends cover to include claims arising from negligence, contractual liability, statutory breaches and equitable breaches.
Property insurance will be required to protect against property being damaged or destroyed. Most businesses will also require insurance for stock and ingredients, sometimes kept in cold storage. Repairing and replacing specialised machinery can take a long time, especially if parts need to be imported or custom-made. Ensuring you are covered for such circumstances is essential.
Manufacturing businesses can be disrupted by several sources. Whether access is prevented from debris following a storm, or an energy crisis happening on the other side of the world. Business interruption insurance is designed to support your manufacturing business in the aftermath of local and catastrophic events. This insurance helps to cover ongoing operational costs while you recover and can provide financial relief if supply chain disruptions prevent you from obtaining necessary materials.
Manufacturing environments often involve the use of heavy machinery, hazardous materials, repetitive motions, and physically demanding tasks, all of which increase the risk of accidents and injuries. Implementing stringent workplace health and safety procedures, along with comprehensive employee training, can mitigate these risks. However, should an accident occur, workers’ compensation insurance will cover the costs associated with employee injuries, whether physical or mental. Australian law requires employers to have workers compensation to cover their employees.
As operational technology and industrial control systems are increasingly integrated with internal networks and systems, they are becoming more susceptible to cyber-attacks. Not only is production at risk, but cybercriminals can also demand a ransom to exploit the vulnerability
Who needs Manufacturing Insurance?
If you operate a business that transforms raw materials or components into finished goods, using a combination of labour, machinery and processes, then Barrack Broking can help you with Manufacturing insurance. Some manufacturing companies we work with include:
- Stockfeed manufacturers
- Wood and paper manufacturers
- Food & beverage manufacturers
- Chemical manufacturers
- Manufacturers of steel, roll-forming and metal products
- HVAC Equipment Manufacturing
- Medical Technology and Assistive Technology Manufacturing
- Renewable Energy Equipment Manufacturers
- Industrial Equipment Manufacturing
- Electrical Power Systems & Compressed Air Systems
Reviewing and Updating your Insurance Coverage
Given the dynamic nature of the manufacturing industry, it is crucial to regularly review and update your insurance coverage. Your business needs can change over time, and staying up-to-date with the appropriate insurance policies ensures you remain protected against evolving risks.
Why Barrack Broking?
Our assessment, analysis and recommendations include:
- Business interruption risks
- Comprehensive premises, equipment and materials damage cover
- Design risk and manufacturing risk (and the intersection of the two)
- High fire hazard (EPS) risks
- Labour hire injury exposures
- Product liability protection for damage or injury arising from defects in design and manufacturing
- Product recall exposures
- Specialist cargo and transit needs
Talk to us about your Manufacturing Insurance needs
Contact us to discuss a tailored insurance solution that best suits your business and company structure.
