Business insurance is a crowded field with a great deal of choice, complexity, and nuance. Getting it right means protecting your business in the event of a disaster. Getting it wrong means leaving yourself exposed. The choice is even more complicated for manufacturing businesses. With warehouses, machinery, and staff to think about, insurance is more of a pressing issue than anywhere else.
#1 Employers’ liability insurance
Legal in some parts of the world, employers’ liability insurance is perhaps the most important type of cover for your business to take out. It’s vital for anyone operating in the manufacturing sector. Heavy tools, machines, and labor can all lead to injury. Despite the abundance of safety precautions on a site, manufacturing still carries a set of risks far removed from other businesses. That’s where employers’ liability insurance comes in.
This kind of coverage offers protection should one of your employees become injured or fall ill. Better still, it covers all and any staff, including full-time, part-time, volunteers, and even family or friends who help on site. Some businesses go one step further and add legal protection insurance for an additional layer of cover, but employers’ liability is a necessity. In some areas, you’ll even be fined for not having it.
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#2 Equipment breakdown and tools insurance
These are two different types of policies that most manufacturing businesses combine and take out at the same time. Your business’s equipment and tools are existential. Without them, you can’t work, can’t take jobs, and can’t generate revenue. They’re the lifeblood of your business, but accidents happen, faults occur, and some equipment simply breaks with age. When this happens, you’ll need to have the right protection in place.
This insurance covers everything from simple drills and diggers to more complex hot air tools like those from hotairtools.com. More than just covering you for the cost of new equipment, this type of insurance differs between providers. Some will offer replacements, others will send out technicians to fix your equipment. This insurance protects you against heavy losses but also helps you to replace your tools and equipment fast, guaranteeing ongoing operation.
#3 Business interruption cover
If there’s one thing that the pandemic taught the world, it’s that businesses should be prepared for the unexpected. The idea of a lockdown and widespread cessation of work seemed unthinkable just a few years back but has now become the norm. Of course, there are lots of other reasons that you might not be able to trade. Fires, floods, severe weather, and even problems with your equipment can all bring your factory to a grinding halt. That, of course, means lost income.
Business interruption cover protects you when this happens. It’s one of the simpler kinds of insurance; it pays out to replace the income you would have made had you been able to continue operating. It might be simple, but business interruption cover can be the difference between life and death for a company.