Insurance for Manufacturers
Comprehensive manufacturers insurance, whatever you produce.
Manufacturing comprises of so many different industries; our team has expertise across these, from food and drink, heavy engineering, precision engineering, and plastics, through to wood machinists, and pharmaceuticals – our experience and knowledge assist us in arranging specialist insurance for manufacturers.
Manufacturers Insurance
Understanding not just the sector in which you work but also the risk profile of your business is key to our work. Our team will spend time to undertake a thorough risk identification and analysis exercise, visiting your manufacturing site(s) to help identify potential exposures and determine the level of protection required as part of your manufacturing insurance cover. With vast experience supporting high-value sites, we have built relationships with key insurers to be able to cater for businesses that have heavily invested capital in their equipment and stock-holding.
Some of the risk areas that separate manufacturing from others, which we will look at, include:
- Supply Chain Interruption
- Stock & Product Transit, including Imports & Exports
- Dependency on bespoke, unique or specially designed machinery
- Credit & Debt risk management
- Product Recall
- Product Guarantee
- Health & Safety
- Business Continuity in the event of a fire or other significant loss
- Patent and other Intellectual Property Infringement
Tailored Business Interruption Cover​
Many businesses can fail after suffering a fire or other major loss, which renders them unable to operate. This is often due to an underestimation of the amount of time it can take to return fully to normal manufacturing operations. When we review clients’ cover for the first time, we often find that their Business Interruption cover is inadequate, either in terms of the sum insured or the indemnity period – sometimes it is both.
Through the thorough understanding we will gain of your business and its operations by working with you, we will be able to advise you on the things to consider when it comes to deciding on your levels of cover and indemnity periods as part of your manufacturing business insurance. This helps ensure you can make informed decisions, enabling you to protect your business accurately, should the worst happen.
What manufacturing insurance should businesses consider?
Public & Product Liability insurance
Public and Products Liability, whilst not a legal requirement, should be a core component of insurance for manufacturers. This cover helps protect your business against the legal costs and compensation that you may be liable for if a third party is injured or if they suffer damage to their property, arising from a product you have supplied or as a result of your business activities. Even the costs of defending such claims can be costly, and when you add any escalating award made by the courts for compensation, in recent years, the appropriateness and adequacy of limits required to protect your business against such eventualities has come into greater focus.Contact Us
Employers' Liability insurance
Employers' Liability insurance is required by law if you employ any staff, so it is a necessity, but equally, a very worthwhile cover. This covers the legal costs and associated compensation should an employee become injured or ill as a result of working for you and make a claim against the business. This can be particularly important when arranging insurance for manufacturing businesses, given the sometimes more hazardous machinery and materials used, as well as more common incidents often being prevalent, such as trips, slips and falls, manual handling incidents, and the like.Contact Us
Machinery Damage and Breakdown insurance
Should a machine become damaged or breakdown, you will naturally want this replaced or repaired as quickly as possible. Machinery damage and breakdown cover can be arranged as part of your manufacturing insurance to pay for the repairs or replacement of such machines. Having the cover in place to pay for unplanned repairs can ensure your business suffers reduced interruption, helping to safeguard both production and profitability. In circumstances where you have temperature-controlled stock (refrigeration units), cover can be arranged to pay for the deterioration of stock.Contact Us
Business Interruption insurance
This covers the loss of income and extra expenses you may incur if you suffer an insured event leading to material damage. For example, if your buildings are affected by fire or flood and cannot be used, in such an instance, business operations would be interrupted, and you may have to pay to work from somewhere else in the interim. Business Interruption insurance for manufacturers can cover loss of income suffered for a predetermined timescale, supporting in paying for things like employee salaries, ongoing contracts and rent for alternative premises. This cover can be the make-or-break for businesses when they suffer such a disruptive loss.Contact Us
Product & Stock in Transit insurance (incl. Import & Export)
Goods in Transit insurance can help to protect items from theft, loss or damage while they are being transported. For manufacturers, this means if items you produce, including fragile or high-value products, suffer from any of the insured circumstances, your losses can be covered. Time-critical deliveries, subcontracted carriers, or complex shipping arrangements can complicate cover, making expert guidance essential. Including this protection in your manufacturing insurance helps minimise financial losses and ensure your business can continue operating smoothly, even if items are damaged or delayed during transport. Contact Us
Product Recall insurance
Product Recall insurance policies are designed to protect manufacturers and distributors against risks arising from defects, errors, or contamination that could pose a threat to consumer safety. This includes issues such as allergen mislabelling, design and manufacturing defects, tampering, or extortion events. The financial impact of recalling a product can be substantial, covering costs for notification, collection, disposal, and legal defence. Including this cover as part of a comprehensive manufacturer’s insurance strategy helps businesses manage risk, protect their reputation, and respond quickly and effectively if a product safety issue arises. Contact Us
Product Guarantee insurance
Product Guarantee insurance is there to cover the costs for dealing with the scenario in which a product you manufacture fails to meet the function or specification for which it was manufactured or supplied. Claims like this could arise from distributors, retailers, or end users who experience defects or functional failures. This cover can be included within manufacturers insurance to help protect against the financial burden of repairs, replacements, or compensation resulting from product failures. It can allow manufacturing businesses to safeguard both their finances and reputation, while assisting in helping maintain customer trust.Contact Us
Cyber insurance
Cyber Insurance is key in today’s digital world, it can protect you from the financial and reputational damage caused by cyberattacks, fraud, data breaches or loss (whether this be client/supplier account details, specialist CAD drawings, the operation of machinery itself or something else); it can cover the costs of restoring systems, notifying customers and regulatory bodies, legal assistance, and compensation for affected third parties. Many cyber policies provide incident response as well as proactive technical support to identify any areas of weakness that may heighten your risk. Learn more about why you should consider cyber insurance here. Contact Us
Ready to protect your manufacturing business?
Other insurance for manufacturers to consider
The financial impact of the failure of one of your creditors can put you in a very precarious position as this can often come out of the blue and can occur with suppliers or trading partners you have previously had a good working relationship with.
Trade Indemnity cover can be included in your wider manufacturing business insurance to provide protection against unpaid debts or following creditors’ bankruptcy or insolvency.
This covers the personal liability and legal costs that you or your directors may face if accused of breaching duties, making wrong decisions, or acting dishonestly. Even if an allegation is untrue, you are going to need to defend yourself or the business, and that comes at a cost. If a director is held personally liable, their personal assets could be at risk, making this cover extremely valuable to individuals as well as the business itself. Having legal representation there on-hand in the time of a crisis is hugely beneficial.
When arranging insurance for manufacturers, integrating this cover can help give peace of mind to business leaders and safeguard the organisation. To understand more about Management Liability Insurance, read our FAQs here.
Businesses spend a lot of time and consideration when it comes to creating a team, so any way in which you can help to protect your employees and provide benefits can be hugely beneficial. Equipsme is a health insurance plan that can provide you and your employees with 24/7 GP access, prompt access to diagnosis, stress support and more. Depending on the nature of the work your team do, this could be particularly valuable to individuals but also to you as a business, supporting staff with their physical wellbeing. This complements your broader manufacturing insurance strategy and helps your business by supporting staff health and mitigating absenteeism.
Professional Indemnity (PI) insurance protects you against allegations of mistakes made when providing professional services or advice. Some clients will require you to have PI insurance in place before you start work with them.
Do You Need Professional Indemnity Run-Off Cover?
This cover is useful should someone claim against you for costs incurred relating to your work, due to a mistake you have made or for providing inaccurate advice, for example.
Cover can be arranged as part of your Business Interruption insurance to provide reimbursement for temporary staff should someone in your team, or a group, win the lottery and resign. This can help support your operations whilst you look to recruit and replace those in the workforce you have lost.
Manufacturer Insurance – making your business our priority
Manufacturing insurance can be very specialised depending on the type of plant and machinery utilised. For example, when it comes to refrigeration breakdown, Deterioration of Stock is a cover that can become critical. Working with an insurance broker that understands the nuances of manufacturing businesses and processes can be the difference in getting your insurance right. We help our clients understand the specific risk issues around loss of a particular process, which includes breakdown as an insurable exposure.
For more in-depth reviews, we can involve exports to report on suppliers of alternative and replacement machinery in the event of a loss and advise on lead-times, which assists with Business Continuity Plans as well as the proper assessment of indemnity periods.
Manufacturing Insurance Claims Support
In the event of a claim, having experienced support can be invaluable to helping protect your manufacturing business and maintaining operational continuity. With direct access to our in-house Claims Team, you can benefit from hands-on support throughout the claims process, from initial notification through to settlement. Â
Our team understands the complexities of manufacturing risks, including machinery breakdown, supply chain disruption, stock losses and business interruption following a major incident. Acting on your behalf, we can liaise directly with insurers, loss adjusters, engineers and third parties to ensure claims are presented accurately. Our focus is on achieving fair and timely outcomes, reducing disruption and helping your business recover and return to full production as efficiently as possible.Â
What our clients say
Contact a manufacturing insurance specialist
You can start your enquiry by filling in the contact form and one of our specialists will be in touch.
Alternatively, you can contact us on 01653 609151.
Insurance for Manufacturing FAQs
What manufacturing insurance should my company have?
Manufacturing companies should consider a number of policies tailored to their specific risks. This can include (but is not limited to) Public & Product Liability, Employers’ Liability, Machinery Damage and Breakdown, Business Interruption, Product Recall, Product Guarantee, Supply Chain Interruption, Trade Credit, Cyber, and Management Liability insurance as part of a complete manufacturers insurance programme.
Why is manufacturers insurance important?
Manufacturers insurance can be vital as it protects your business against risks unique to the sector, such as machinery breakdown, product liability, and supply chain disruptions. Without appropriate cover, unexpected events could lead to financial loss, operational downtime, or in the most extreme cases, business closure.
What can cause a product recall?
Product recalls can occur due to safety concerns, design or manufacturing defects, allergen mislabelling, tampering, or contamination. Product Recall insurance, when included in your overall manufacturing insurance strategy, helps cover the associated costs and mitigates reputational damage.
What is included in machinery damage and breakdown insurance?
This insurance can cover the cost of repairing or replacing essential equipment if it breaks down or is damaged to help minimal disruption to manufacturing operations should machinery fail.
What sets McClarrons apart from other insurance brokers?
McClarrons specialises in manufacturing business insurance, combining sector expertise with strong insurer relationships. We can provide bespoke advice, support with risk assessments, and provide proactive guidance to ensure your business is fully protected.
How can I get a manufacturing insurance review?
Our head office is located in Malton, North Yorkshire, with a second office at Hesslewood Office Park, Hull. Whilst our offices are based in Yorkshire, as independent specialist manufacturing insurance brokers, we work with businesses across the UK.
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