Manufacturing & Wholesale Insurance
At Clarke Williams Insurance Brokers, we understand that no two manufacturing or wholesale businesses are the same. Whatever the size, scale, or complexity of your operations, we can arrange a commercial combined policy specifically tailored to your needs.
As independent, award-winning brokers, we work with a wide range of leading insurers to deliver flexible, cost-effective cover and exceptional service.
We proudly assist businesses of all sizes — from small family-run workshops to large-scale manufacturers — helping you manage risk, meet contractual obligations, and protect your assets.
Why Choose Clarke Williams?
- Independent and award-winning insurance brokers
- Specialists in manufacturing and wholesale risks
- Tailored policies for businesses of all sizes and complexity
- Dedicated account managers offering expert advice
- Quick quotes and competitive premiums
- Call us today to arrange a free review or meeting with our specialists
Speak to our team on 01732 252 898 or request a call-back
What type of insurance does a Manufacturer or Wholesaler need?
If you’ve never purchased business insurance before, the process can be quite daunting. Below is a guide to what you might need.
Public Liability Insurance covers you for any bodily injury or property damage which arises in the course of your day today activities, such as visiting a supplier’s premise or when a customer come to your site.
Products Liability Insurance covers the cost of compensating anyone who is injured by a faulty product that your business manufactures or supplies.
If you do not manufacture the product but you distribute it, you should still be covered, as you may need assistance in the following scenarios:
- If the products were faulty when they were supplied to you
- If you did not give customers suitable warnings about misuse and adequate safety instructions.
- If there is no product recourse available and you are effectively treated as the manufacturer
- If you break bulk, repackage or rebrand.
Employers’ Liability Insurance is a legal requirement for all employers within the UK. The minimum required limit is £5,000,000 although most insurers give £10,000,000 as standard. The policy is designed to protect employees’ who sustain an injury or illness during their normal business activities by providing compensation.
Buildings, Machinery & Contents Insurance – cover your machinery,business equipment and other workplace property such as moulds and computers against fire, flood, theft and more so you can have peace of mind that you’re protected against the unexpected.
Business interruption Insurance. We can help you get back to work after a crisis. If the site has a significant loss, business interruption insurance can help soften the blow whilst your property and machinery is repaired or replaced.
It covers loss of income during periods when you cannot carry out business as usual due to an unexpected event, and aims to put your business back in the same trading position it was in before the event occurred. Business Interruption Insurance in available on several different bases, these include Loss of Income, Loss of Gross Profit, Increased Costs of Working and Addition Increased Costs of Working. You can also choose the period you wish to receive indemnity for depending on your needs.
Goods In Transit and Marine Cargo Insurance. A manufacturer or wholesaler’s goods or materials are frequently moved around. Goods In Transit covers goods against loss or damage while in your vehicle or when sent by a third party carrier. Marine Cargo Insurance goes a step further and covers losses arising from damage to goods whilst being transported around the world by road, rail, sea or air. Whether it be materials from suppliers in Asia, to delivering bulk orders to the USA, don’t rely on the carrier to protect your goods.
Engineering Inspection. By law there is a statutory requirement to inspect plant at regular intervals that are open to deterioration over time. The policy covers the cost of an inspection for your plant and machinery, such a mechanical lifting gear, ventilation and compression systems by a qualified insurance company engineers. They visit the location of the plant, inspect and then provide you with an inspection certificate. Cover can also be extended to include insurance for sudden and unforeseen damage to the plant and any surrounding property.
Products Recall Insurance covers the expenses associated with recalling a product from the general market. Product Recall Insurance is typically purchased by mass production manufacturers for items such as children’s toys, electronics, foods and beverages. It covers costs such as customer notification, shipping costs and disposal costs. A badly managed products recall can cause panic and be devastating to your company reputation. Call Clarke Williams for further information on the options available.
Manufacturing & Wholesale Insurance – Frequently Asked Questions
Q1: What insurance covers do manufacturers and wholesalers need?
Answer:
Manufacturers and wholesalers typically need public liability, product liability, employer’s liability, property, and business interruption insurance. Additional cover such as goods-in-transit or machinery breakdown may also be relevant depending on your operations.
Q2: Do I need product liability insurance even if I only wholesale the goods?
Answer:
Yes. Wholesalers can still be held responsible if a product they supply causes injury or damage. If a client bought the insurance through us, they have the right to approach Clarke Williams first. Your insurer will defend any claim or make a payment, and then subrogate costs to the negligent party, which could be another manufacturer or material supplier.
Q3: What does manufacturing business interruption insurance cover?
Answer:
Business interruption covers lost income following an insured event, known as perils, such as fire, storm or flood. It can be provided on a loss of turnover or gross profit basis. The length of cover is called the indemnity period, which specifies how long your business is protected after a loss. Most businesses with heavy machinery should consider longer indemnity periods to account for potential downtime.
Q4: What is “goods in transit” cover and do I need it if I use carriers?
Answer:
Goods in transit insurance protects stock or materials while it’s being transported. You may still need it even goods are transported by third parties, as the compensation you receive may be limited or the time it takes to resolve could take to long. If you import or export goods, marine cargo insurance may be more appropriate. Learn more about Marine Cargo Insurance here. Even if you use third-party carriers, this cover can fill gaps in their liability limits.
How is the cost of insurance for manufacturers or wholesalers calculated?
Answer:
Premiums depend on factors such as turnover, number of employees, types of processes undertaken, security, location, and machinery used. For smaller operations, premiums can be as low as £500.
Q6: If I change my manufacturing process, does that affect my cover?
Answer:
Yes. Any significant changes to your processes, equipment, or supply chain can affect your risk profile. It’s important to notify your broker to ensure your policy remains valid.
Q7: What liabilities arise if a product I’ve supplied causes damage or injury? Answer:
Answer:
You could be liable for compensation, legal costs, or regulatory penalties. Product liability insurance helps cover these costs, protecting your business and reputation.
Q8: Which insurances are legally required in the UK for a manufacturing or wholesale business?
Answer:
Employers’ liability insurance is legally required if you have staff. Other covers, such as public liability and product liability, are not mandatory but are strongly recommended to protect your business.
Q9: How do I make sure I’m not under-insuring machinery, stock, or materials?
Answer:
Regularly review asset values, update your policy limits, and consider professional valuations for machinery or high-value stock to ensure adequate coverage.
Q10: What effect do previous claims or risk history have on my insurance premium?
Answer:
A history of claims or higher risk activities can increase premiums. As your broker, we can assist with risk management advice to help reduce costs over time.
Q11: Should I work with a specialist broker for manufacturing & wholesale insurance?
Answer:
Yes. Specialist brokers understand industry-specific risks and can help tailor policies to suit your business, ensuring you’re neither under-insured nor overpaying.
Q12: What exclusions or limits might apply in manufacturing/wholesale policies?
Answer:
Policies may have exclusions for certain risks, such as unattended processes or products being shipped to the USA. Speaking to a broker about your business can help navigate these issues and ensure you get appropriate cover.
Q13: How do I choose the right indemnity limits for product liability or public liability?
Answer:
Consider the size of contracts, potential claims, and client requirements. Your broker can recommend limits that protect your business while keeping premiums manageable.Remember that product liability limits are aggregated. If you produce a high volume of a product that could cause more risk, you should consider higher limits to ensure adequate protection.
Q14: What additional covers should businesses consider?
Answer:
Depending on your business, you may need:
- Product recall insurance
- Engineering inspection for plant and machinery
- Credit insurance for suppliers and customers
- Cyber insurance for customer data and systems
Q15: How often should I review my insurance policy?
Answer:
Policies should be reviewed annually or whenever your business changes. We encourage an open and continuous dialogue with your broker to ensure your cover remains adequate as your operations evolve.
Q16: Can you cover products made in Asia?
Answer:
Yes. Insurers may ask additional questions regarding quality control, but this is a common request and can be accommodated.
Q17: Can you cover exported goods, including to the USA?
Answer:
Yes. Coverage for exported goods is available. Insurers may request further information about your export operations, but this is a standard requirement for many businesses.
Want to speak to one of our specialists?
Telephone: 01732 252898
or email us.
Know your risks
What activities are considered high risk?
The activities undertaken by manufacturers or wholesalers can be diverse.
Underwriters will be interested in what type of product is being made, where materials are sourced from and where you are sending finished goods to.
- Products sent to the USA/Canada can be of concern due to the size of the compensation settlements awarded by the courts and the perception of it being a more litigious society.
- Materials or products that are made in Asia where there can be very little product recourse against the supplier.
- Safety critical goods or toys carry an increased risk should they fail when being used.
- Perishable or temperature controlled goods such as food or medication can easily be lost in transit or be ineffective once sold if not stored correctly.
- Unattended processes such as 3D Printing are typically an exclusion under most policies due to the risk of fire but cover can be agreed subject to meeting certain condition.
- It goes without saying that solvents, corrosives and explosives can increase the risk of fire at a site.
- Food supplements that contain various ingredients without any proven medical effect.
Businesses we can help insure
Below are a few examples of the types of companies we’ve helped in the past. Not on the list? Don’t worry — the industry is incredibly diverse. We’ve arranged cover for some of the most unique and specialist risks, from 3D printers to perfume ingredient refiners, and everything in between.
Audio/Visual Equipment
Safety Critical Equipment
Building Supplies
Clothing and Textiles
Printing & Print Finishing
Computer Equipment and Accessories
Double Glazing Manufacturers
Fresh and Frozen Food Products
Aerospace Component Manufacturers
Agricultural Machinery & Equipment
Automotive Parts & Vehicle Accessories
Bespoke Joinery & Cabinet Makers
Chemical & Paint Manufacturers
Cosmetics & Personal Care Products
Food & Beverage Packaging Manufacturers
Heating, Ventilation & Air Conditioning (HVAC) Equipment
Industrial Machinery & Tool Manufacturers
Kitchen, Bathroom & Interior Fittings
Timber Merchants & Sawmills
Toy & Educational Product Manufacturers
Electrical White and Brown Goods
Electro Mechanical Goods
Electronic Components
Plastic, Wood and Metal Furniture
Glass and Glassware
Medical Equipment
Metal Fabrication
Office Equipment
Plastics
Scientific Instruments
Lighting & LED Manufacturers
Medical Device & Laboratory Equipment
Paper, Cardboard & Packaging Producers
Pet Food & Animal Feed Manufacturers
Pharmaceutical Ingredients & Supplement Blenders
Recycling & Waste Processing Operations
Renewable Energy Component Manufacturers (Solar, Wind, Battery)
Rubber & Foam Product Manufacturers
Signage & Display Manufacturers
Sports & Leisure Equipment Manufacturers
Stationery & Office Supply Wholesalers
Steelwork & Structural Fabricators
Textile Dyers, Finishers & Upholsterers
Woodwork
Insurance Claim Examples in the Manufacturing and Wholesale Sector
Products Liability – An electronic device manufacturer was sued following a small fire at a home which was the result of the device overheating whilst on charge. The claim covered the legal costs as well as the property damage and compensation. Amount Paid: £126,000
Employers Liability – An employee was injured by another employee using a fork lift truck in the warehouse. Costs included private medical consultation, rehabilitation and compensation for the injury. Amount Paid: £20,000
Product Recall – A food manufacturer found that there were traces of salmonella in a sample taken from batch of food that had be packaged and shipped out. The claim covered the costs of customer notification, shipping costs and disposal costs. Amount Paid: £192,000
Marine Cargo – A loss of temperature controlled goods whilst on route to a supermarket depot. The goods were destroyed when the shipping container lost power. The claim covered the cost of the goods and the reshipping. Amount Paid: £60,000
Property & Business Interruption – a joinery manufacturer suffered a major fire at their workshop caused by an electrical fault in a dust extraction unit. The blaze destroyed key machinery and stock, forcing production to halt for several months. In total, over £485,000 was paid to the client — including £280,000 for property and machinery repairs and £205,000 to cover ongoing staff wages and lost income during the six-month downtime. Because the business had selected an appropriate indemnity period and accurate sums insured, they were able to recover fully without financial strain and return to normal production ahead of schedule.