What type of insurance does a manufacturing company need

What type of insurance does a manufacturing company need?

What type of insurance does a manufacturing company need?

The type and level of insurance that a manufacturing company needs will depend on the nature of the business and what is being manufactured. Typically, a manufacturing business will need a commercial combined policy, which will include a range of covers specific to your business operation.

Although every Manufacturing Insurance policy will look different, there are certain covers that are typically found within a manufacturing commercial combined policy. These include:

  • Public and Employers’ Liability Insurance
  • Product Liability
  • Business Interruption
  • Material Damage


Let’s take a closer look at what each includes.

What type of insurance does a manufacturing company need

Insurance for Manufacturers

1. Public and Employers’ Liability Insurance

The Health and Safety Executive’s Employers’ Liability (Compulsory Insurance) Act 1969 means that you must have insurance in place if you employ one or more employees, unless they are related to you and you do not operate as a limited company, or you employ someone who is based abroad.

Employers’ Liability will protect your business financially if one of your employees gets injured as a result of business activities e.g., injuries from manual handling, falls from height or injuries from electric sockets.

While Public Liability is not a legal requirement, it covers your legal liability to pay compensation to third parties in the event of death, bodily injury, or damage to their property, which occurs as a result of your business activities. It also covers people visiting your premises.

2. Product Liability Insurance

Product Liability Insurance helps towards covering the cost of compensation, including any legal fees if someone is injured, or their property is damaged, because of a product that you have designed, manufactured, or sold.

A product liability claim could include anything from injuries or illnesses caused by defective medical devices, medical implants and pharmaceutical drugs, to injuries caused by defective appliances, contaminated cosmetic products or accidents caused by defective vehicles.

Although Product Liability cover is not a legal requirement, it is often required by suppliers and/or vendors and is recommended for every part of a given supply chain. This is because, sometimes when a claim is made, all parties in the supply chain can be named as liable, regardless of whether every part of the chain is at fault.

3. Business Interruption

Business Interruption Insurance is an invaluable cover that will protect your business from loss of income following an unexpected event, for example a fire or a flood, which results in a temporary disruption to your business.

The basis of cover that your Business Interruption insurance can be written on falls into three categories; loss of gross income, loss of gross revenue and increased cost of work. The most suitable one for your business will depend on your business set up.

It’s important that you secure the right cover on the right policy basis to ensure that if disaster strikes, your income is protected, and the longevity of your business is secured whilst you rebuild or repair.

Click the link to find out more about the different types of policy basis

4. Material Damage

Material Damage financially protects your business premises, contents, and equipment against unforeseen circumstances such as fire, storm, or flood. Material Damage cover will reinstate you for the value of the property, at the time of its loss or destruction.

The typical policy covers most accidental damage and destruction of property, and the loss must generally not arise from gradual events like natural wear and tear.

At Barnes Commercial we will take the time to get to know your business so you can rest assured the manufacturing insurance solution you have in place will be right for your business, so you can have complete peace of mind.

We're here to help

As part of our service, our personable, friendly team will work closely with you to create a tailored insurance solution, so if the worst should happen your business can recover quickly.

Through comprehensive risk information gathering, we will look at your business from all angles, striving to ensure that no area is missed. By alleviating your potential for risk, we work to minimise your chances of suffering a loss, avoid disruption to your business, and help to reduce premiums.

Talk to our experienced advisers today to arrange a review of your manufacturing insurance policy. You can call us on 01480 272727 or send us an email at enquiries@barnesinsurancebroker.co.uk and we’ll be pleased to assist.

George Wilkinson

Authored by: George Wilkinson 

Business Development Executive

10th May 2023

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