Don’t Get Caught Out By Manufacturing Liability Insurance Agreements


The manufacturing industry can be a risky business. Having the right level of insurance protection is vital to save your business in situations of significant financial loss. Without insurance, manufacturing businesses can suffer irreparable damage and can disastrously affect your business reputation.

However, with a wealth of different insurance options, it can be hard to find the right one for your business which you are confident will protect you when you need to make a claim. To make sure you do not get caught out by incorrect manufacturing liability insurance, follow our top tips to make sure you have the cover in place for complete peace of mind.

What cover do you need for the best manufacturing liability insurance?

  • Employer’s liability

As for every business, employer’s liability insurance this isn’t unique to manufacturing liability insurance. In the UK, employer’s liability insurance is legally required. By law, you need to protect your business and employees should there be any damages from a claim made by an employee. Employer’s liability covers aspects such as injury in the workplace or damage to property as a result of your business.

The legal requirement for employer’s liability insurance is to have at least £5 million indemnity cover, although this can vary depending on the risk of the business. Many insurers will offer £10 million as standard, but it is important to check that you have the cover that you need in place to protect your business and your workforce.

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  • Product liability

Product liability is essential to protect your livelihood. If the products that you manufacture cause damage to property or injury to people, then you are liable. People can claim legal and compensation costs as a result of your faulty product. With product liability insurance, you have the cover in place to protect your business in the event of a claim.

Product liability insurance does not just cover the products you manufacture; it also includes products that you repair and sell too. Many businesses that you work with will require you to have product liability in place in order to work with you or sell your products. While product liability is not a legal requirement, it may be essential for the successful running of your business.

To ensure your insurer pays out in the event of a claim, you must first be honest about the products you manufacture and comply with their required quality standards. Some insurers will ask for evidence of quality control procedures and mechanisms; you may also be asked to prove the business is compliant with Trading Standards. If you do not comply with the terms of the insurer, they may invalidate your insurance and refuse to pay.

Product liability insurance will also depend on the products that you manufacture as well as the turnover of the business. If you start to manufacture different products, then your insurer must be informed. Similarly, if your turnover changes significantly, then your insurer may need to know to make sure that you have the necessary cover in place.

For manufacturing businesses, product liability is one of the most important aspects of insurance to get right, so make sure that you fully understand the terms and conditions of your policy before purchasing the insurance.

If you need any advice regarding your insurance options, speak to the team at Compare Insurance.

  • Specialist machinery insurance

If your production line  relies on specialist machinery in order to fulfil business requirements, then specialist machinery insurance may be essential for the day to day running of your business. If your specialist equipment breaks down or becomes damaged, then your business may not have the funds on hand to order a repair or replacement.

Specialist machinery insurance covers your chosen equipment to make sure your business can resume manufacturing tasks as fast as possible. If your business relies on the equipment, then make sure it is protected for the sake of your business.

Often, specialist machinery will not be covered by generic factory insurance or content insurance. Many businesses fail to tell insurers about specialist items they use which can mean they are not included when they are needed. When searching for manufacturing liability insurance, it is wise to have a list of your machinery and equipment alongside their estimated worth, that way you can make sure your business is fully covered for every eventuality.

If you would like to find the best manufacturing insurance deal for your business, then talk to our friendly team on 0333 344 3705 who will be happy to search our panel of insurers for you to produce a tailored, competitive quote.

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