If you run a business that involves manufacturing engineering or wholesaling, there will be various risks that you have to think about on top of running your business. Whether you are a sole trader or a large multi-national, we can tailor a commercial combined package policy to provide you with protection for all areas of your business.
We offer a unique new business proposition that has proven to be very effective in saving our clients’ money, without compromising on cover or service. Working in a saturated market means you need a broker with a different approach to get you the most competitive price.
This policy is usually made up of four main sections:
It goes without saying that your stock, contents and property are key to you running your business. This policy would cover the cost of repairing or replacing anything damaged due to insured perils (theft, fire flood etc.). Policies can vary, but the most common way for manufacturers to insure their business interruption is under gross profit. Gross profit for insurance purposes is worked out in a slightly different way than how your accountant would calculate it; Turnover, closing stock and working expenses less purchases, opening stock, work in progress and specified uninsured working expenses. Wage roll should not be deducted as a Specified Working Expense in view of the legal requirements relating to redundancy payments and the possible need to retain key employees during any period of interruption.
When thinking about business interruption, most people only consider what it will take to get the business back in a position to trade, not back to their original turnover prior to the claim.
It is important when thinking about business interruption cover that you consider the indemnity period that is right for your business. If you are going to be relying on a long lead time in order to replace machinery and plant, you will need a longer indemnity period.
Public and Products Liability Including Efficacy
Public Liability insurance provides financial protection in the event that a member of the general public takes legal action against you for damage or injury caused. As a manufacturer it is important that you have the right cover in place in the event that your products fails to meet their standard requirements. For example, if you manufacture fire alarms to a specification that alerts the fire brigade and they fail to do so following a fire, you could be open to claims of efficacy, which some Insurers do not cover you for.
Whether your staff are full or part time, permanent, temporary or voluntary, you are legally obliged to take out Employers’ Liability insurance, which protects your employees if they suffer an injury or loss as a result of your business.
This type of policy can also extend to include; Personal Accident, Specified All risks, Computer and Electric Risks, Money, Goods in Transit, Frozen Food, Loss of Licence, Terrorism, D&O, Professional Indemnity and many more depending on the Insurer.