Manufacturing Insurance in Australia: What Cover Does a Manufacturing Business Need?
Manufacturing businesses face a unique combination of risks. From expensive machinery and equipment to stock, employees, vehicles, premises and supply chain disruptions, a single unexpected event can have a significant financial impact.
Whether you operate a small manufacturing business in Brisbane, a factory in Melbourne, or an established manufacturing operation in Ballarat, Geelong or elsewhere in Australia, having the right manufacturing insurance can help protect your business against a range of unexpected events.
What Is Manufacturing Insurance?
Manufacturing insurance is not usually one single policy. Instead, it can involve a combination of insurance covers designed around the way your business operates.
Every manufacturer is different, which means your insurance program should reflect your premises, machinery, products, employees, customers and specific operational risks.
A manufacturing insurance broker can help identify these risks and determine which types of cover may be appropriate for your business.
Key Insurance Covers for Manufacturers
1. Machinery and Equipment Insurance
Manufacturers can rely heavily on specialised machinery and equipment. If critical machinery is damaged or breaks down, repairs or replacement can be expensive, while downtime can also affect production.
Machinery insurance may help protect important plant and equipment against specified risks, depending on the policy wording, conditions and exclusions.
2. Business Interruption Insurance
A major incident can prevent a manufacturing business from operating normally. Fire, storm damage, equipment damage or another insured event could result in lost revenue while the business recovers.
Business interruption insurance may help cover certain lost income and ongoing expenses following an insured interruption. Choosing an appropriate indemnity period is particularly important for manufacturers because replacing specialised machinery or restoring production can take time.
3. Public and Products Liability
Manufacturers can face liability risks both at their premises and through the products they supply.
Public liability insurance can help address certain claims arising from injury or property damage involving your business. Products liability can be particularly relevant where products manufactured or supplied by the business cause injury or property damage.
4. Commercial Motor and Fleet Insurance
Many manufacturing businesses rely on vehicles to transport materials, products and equipment. This might include commercial cars, vans, trucks or larger fleets.
Commercial motor insurance can be structured around how your vehicles are used and the risks associated with keeping your operation moving.
5. Property and Stock Cover
A manufacturing facility can contain significant amounts of machinery, raw materials, finished products, tools and other business property.
Insurance arrangements should take into account the value of these assets and the potential financial consequences of damage caused by an insured event.
Why Manufacturers Should Review Their Insurance Regularly
Manufacturing businesses change over time. You may purchase new machinery, expand your premises, introduce new products, increase production or take on larger customers.
These changes can affect your insurance requirements.
An annual insurance review can provide an opportunity to check whether your sums insured remain appropriate, whether new equipment has been included and whether your current policies still reflect how the business operates.
Talk to a Manufacturing Insurance Broker
Choosing insurance for a manufacturing business involves more than simply comparing premiums. It means understanding your operations and identifying the risks that could have the greatest financial impact.
Remingtons Insurance Brokers has been helping Australian businesses with insurance since 1982, with local teams serving areas including Brisbane, Melbourne, Ballarat, Geelong, the Gold Coast, Noosa and Tasmania.
If you operate a manufacturing business and want to review your current insurance arrangements, speaking with an experienced insurance broker can help you understand your options and identify potential gaps in cover.
Insurance policies are subject to their terms, conditions, exclusions and applicable limits. This article provides general information only and does not take into account your individual circumstances.