Ten Different Types Of Insurance For Manufacturers

For manufacturers and distributors, it can be complicated to know which insurance you need and to make sure that every aspect of your business is covered.
Manufacturing Manufacturing

It can be financially devastating for manufacturers when an incident occurs, and they then realise that insurance does not cover it.

Having the right insurance for manufacturers not only protects the business financially, but it also promotes a strong health and safety culture within the company. Insurance cannot only reassure employees that their wellbeing is taken seriously, but it can also bring peace of mind the customers too. However, to make your insurance a selling point, you need to make sure you have the right policies in place to suit your business.

With many aspects of cover, here are ten areas of insurance that every manufacturer should consider.

Ten insurance options for manufacturers

Employers’ liability

Employers’ liability is a required level of insurance that all businesses need to take out if they have an employee. Employers’ liability is a legal requirement, and while most insurers will include this as standard within their manufacturing insurance policy, it is fundamental that you check you always have this cover in place.

Many insurers will offer a set amount of cover as standard; it may be wise to check this amount as you may need to increase to cover if you have a high-risk work environment.

Product liability

Product liability is an essential aspect of cover for manufacturers. If your product causes damage or harm to people, then your business could have a substantial lawsuit on its hands. If your product is found liable, then it could cost a tremendous amount in compensation as well as legal fees too.

Another aspect of product liability insurance is coverage for recalls which can be a damaging endeavour for manufacturers.

Management liability

Management liability can help to protect directors and senior managers for incidents that can leave them personally liable. To protect the business, as well as personal assets, then management liability can help in cases of mismanagement, misconduct or breach of duty. With insurance in place, you have protection for fines, penalties and legal costs.

Goods in transit

For many manufacturers, it is not enough to simply protect assets in the factory or warehouse. While they are in transit, they may still be under your responsibility. Goods in transit insurance can help to cover the costs of loss, stolen or damaged products when they are in transit in a vehicle owned or operated by your business.


Expensive manufacturing machinery can not only be costly to repair or replace, but that can hinder your production line, costing you further in lost revenue. If you rely on machinery within your manufacturing process, then insurance can help to ensure a quick repair and cover the costs of expensive breakdowns, so you can be up and running again as quickly as possible.


Storms, floods, fire and other hazards can wreak havoc on your building which may make the building unsafe, which can halt your production line and your manufacturing. With building insurance, you have cover to repair and rebuild the premises, so that you can keep your business running.

Employee fraud

Employee fraud insurance for manufacturers can help to protect the business against the malicious acts of employees. If goods or money is stolen from the company by employees, then employee fraud insurance can help you to recoup the losses you have experienced.

Contents and stock

In the event of an unfortunate incident such as fire, floods, accidental damage, theft and vandalism, then businesses can lose a considerable amount of money through damaged stock and contents. Contents insurance is vital to cover the cost of the contents of your premises in the wake of an unforeseen event.

Public liability

Public liability can help to protect your business if there is personal injury or property damage to a member of the public as a result of your business activities. For manufacturers, this can cover dangerous products as well as injuries by suppliers or customers when they visit your business premises.

Business interruption

Many businesses do not consider the cost of lost production time when reviewing the finances of the company. In fact, many businesses cannot afford to continue if they have to shut down for a considerable length of time and may lose customers and contracts in the process. Business interruption can help to cover the costs of lost production to keep your business afloat.

Looking for the right manufacturer insurance for you?

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