Do you consider it a chore when your manufacturer’s insurance needs to be renewed each year? Perhaps you simply return the renewal notice and pay the premium for the same cover you had the year before. You might even adopt an entirely hands-off approach and let your insurer renew the cover automatically.
These are the responses that might leave you with essential cover that is no longer appropriate to your current manufacturing operations and may also be costing you more than you might otherwise be paying.
Much better, then, to regard your manufacturer’s insurance renewal notice as a golden opportunity to take stock, review the cover you currently have, and consider what, if anything, needs to change and how much you might be paying.
In the course of that review, how might you discover you are potentially able to save money on manufacturers insurance?
Advice and guidance
· did you seek the advice and guidance in this area of insurance before arranging cover for your business – now might be the time to draw on the knowledge and experience of specialists such as ourselves here at Aston Scott;
· as one of the insurance providers in this field, we arrange cover for many types of manufacturing industry – large and small – with the sole objective of providing the cover you need at a competitive price;
· that specialism is also backed by the authorisation and regulation granted by the Financial Conduct Authority (FCA);
Employers’ liability insurance
· the success and viability of any manufacturing operations also relies on its workforce;
· as the employer, you also have a legal responsibility for the health and safety of your workers and may need to meet successful claims from any who are injured at work or who contract a longer-term medical condition;
· that legal responsibility is enforced through your requirement to hold a minimum of £5 million employers’ liability insurance– and the renewal of your manufacturer’s insurance presents the opportunity to ensure that not only are you covered but that you have an appropriate level of this essential insurance;
Machinery and plant
· as well as your workforce, another important area is the plant and machinery you use in your manufacturing processes;
· this needs to run smoothly and without incident, with any breakdowns, loss or damage repaired as quickly as possible and replacements made when necessary;
· manufacturer’s insurance is designed to support your maintenance of the smooth running of operations by potentially providing the financial wherewithal for the repair or replacement of failed plant and machinery;
· nevertheless, the breakdown of plant or machinery – or other significant insured events – might lead to disruption of your normal output and the loss of business revenue that results;
· manufacturer’s insurance may offer compensation for such losses – up to prescribed limits and subject to the actual shortfall in revenue your production might have suffered;
· to save money on manufacturer’s insurance, you may want to use the forthcoming period of renewal as an opportunity to review and reassess your cover for business interruption – so that it is not only appropriate to your current levels of production but is also cost-effective.
If your manufacturer’s insurance is due for renewal, rather than regarding it as just another administrative chore, you might want to consider it a golden opportunity to review and reassess the cost-effectiveness of the safeguards it offers your business.