In 2016, the cost of workplace injuries and illness was estimated to be £14.9 billion in the UK alone. With this cost and a loss of working days around 31.2 million per year, it has never been more critical for businesses to protect themselves from the cost of accidents. One of the best ways to help protect your business is through manufacturing business insurance.
What is manufacturing business insurance?
Manufacturing business insurance can be tailored to suit all aspects of your business, with a wealth of cover available to protect your business from a range of risks. Whilst most of these covers are optional, there are some that are compulsory including employers’ liability and vehicle insurance if your company uses vehicles.
Other coverage you can add to your insurance policy can also help to protect your livelihood and help prevent devastating financial losses for your business.
So, why does your business need manufacturing business insurance? Read on for seven reasons explaining why you need to consider your policy and business protection today.
Why you need manufacturing business insurance
The UK law now requires employers to protect businesses from the risk of injuries and illnesses that employees may face during their employment with the company. Employers are responsible for the health and safety of their employees, and with employer’s liability insurance this helps to ensure the business has the protection it needs for any claims they may face from an employee.
With employer’s liability, you can cover the potential cost of compensation without facing financial ruin.
- Protect your customers from financial loss and damages
If your business is alleged to have provided inadequate advice, services or designs to a customer which causes financial loss, your business may face claims of negligence. With professional liability insurance (also known as professional indemnity insurance) you can protect your business against any claims of negligence causing financial loss to your customers. Another form of useful cover to protect your customers is products liability insurance. If your product causes injury or damage to your customer or another third party through incorrect assembly, defective workmanship or faulty parts, then you can have peace of mind that products liability insurance will cover the damages and legal fees incurred.
- Unforeseen circumstances
While you do not want to think about all the potential negative issues your business may face, it is essential to protect yourself from the worst possible situations. For example, fire can be an unexpected event that can destroy not only the premises but can ruin the business as a whole. Property insurance and business interruption insurance can help to protect your manufacturing business from unforeseen events.
- Duty of care
As an employer, you have a duty of care to protect your employees. With employer’s liability insurance, your business can show your commitment to the welfare and protection of your staff. By ensuring you have a high level of insurance coverage, your employees have peace of mind that their safety is prioritised.
- Carrying on
For many manufacturers, tools and equipment are essential for work to continue. By insuring your tools and equipment, you can help to save the cost of extremely expensive equipment by protecting them with insurance. As well as this, the insurance can help to recoup the cost should the tools or equipment be stolen or maliciously damaged.
When you need to get back to work urgently, tools and equipment insurance can help to get you back up and running again.
- From factory to customer
While many businesses remember to protect their premises and what is inside, some neglect to consider what happens to goods once they leave the manufacturing unit. Transportation insurance can help to protect your stock and products from receiving goods to manufacture to delivering products to your customers. Transportation insurance can ensure that if your goods are stolen or damaged while in transit, you will not lose the investment spent on the products.
- General peace of mind
From lawsuits to damage, general liability insurance can help to give you coverage for a range of scenarios that may affect your business. General liability can help to cover all manner of issues such as legal fees, slander, libel and injuries. General liability is a good all-rounder which can help to protect your business in a range of circumstances that could negatively affect your business, reputation, employees or customers.