Manufacturing & Wholesale Insurance
Whatever the size of your business or the complexity of the processes involved, we can arrange a commercial combined policy specifically tailored to your needs.
Clarke Williams are specialist insurance brokers for property and liability insurance to the manufacturing and wholesaler industry.
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.
Additional covers you might need
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.
The best way for us to understand your business and get the best premium back from the market is for you to complete our proposal form.
Alternatively if you renewal is not due yet, register with us now so that we can contact you nearer the time.
Register your renewal date
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 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.
Safety Critical Equipment
Clothing and Textiles
Printing & Print Finishing
Computer Equipment and Accessories
Double Glazing Manufacturers
Fresh and Frozen Food Products
Electrical White and Brown Goods
Electro Mechanical Goods
Plastic, Wood and Metal Furniture
Glass and Glassware
”It will never happen to me”. Still not convinced? Have a look at the below claims examples:
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
Products 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