What should a manufacturers insurance policy cover me for?
Protection for the loss of buildings including accidental damage
Protection for contents and stock including theft
Liability cover such as product, public and employers liability
Specialist niche covers (e.g. Aviation cover)
Business interruption cover, including cover due to damage at your suppliers or customers premises
Goods in transit protection
Manufacturers come in all shapes and sizes, from one man bands to some of the biggest organisations in the world!
Whilst the risks can vary greatly in size, most of the same risks apply, it is just the scale that is different.
That said, some products are very specialist, such as the manufacture of aviation products and components and for these, specialist insurance covers are required.
If your products are exported overseas, you will also need to make sure that your liabilities are adequately covered, especially if your products are destined for North America.
All manufacturers will need to protect their assets but there is a lot more to think about and expertise is definitely required!
Why do you need this insurance?
Can you answer yes to any of these statements?
You have valuable assets that need protection
You need to cover your legal liabilities and have access to a support team to defend you in any court action
You need to protect your income if you are not able to trade as a consequence of a loss
Your products are specialist and their use carries additional risk.
Your products are exported overseas and you have liabilities which extend outside of the UK
Since we were introduced to Glentworth over 10 years ago they have taken time to understand our business and the people within our business. They have provided a thorough and honest appraisal of the risks our business faces and organised a tailored response to those risks. The service given by Glentworth is first class, they take the time to review our needs by attending regular meetings and are always available to answer our queries and provide assistance.
Greg Pigott – Director – Window Widgets
Why use Glentworth for Manufacturers insurance?
Glentworth has access to all major UK insurers providing covers for manufacturers of all shapes and sizes. We also have a vast amount of experience in assessing the risks of businesses, the products they manufacture and the markets they choose for their goods.
We can guide you through what cover you need and what you don’t. A major insurance loss can cause a huge strain on a business and some never recover.
It is so very important that you understand your risks and understand how to reduce them and Glentworth can play an active part in this process.
Do I need Employers Liability Insurance?
It’s not just about PAYE employees
If you have PAYE employees then it is highly likely that you will need Employers Liability cover. However, that is not the end of the story and there are other instances when you will need it – even for volunteers! Read on.
If you employ subcontractors, or workers on a casual basis you could need Employers Liability cover. The main exception is if you engage Bona Fide Subcontractors (BFSC). It is important for our clients to be able to distinguish for insurance purposes, between a labour only sub-contractor and a bona fide sub-contractor. Understanding the fundamental differences is important to ensure that correct cover and pricing is applied to your insurance policy.
Labour only Subcontractors.
A contractor employs a sub-contractor for their labour only. The labour only sub-contractor (LOSC) does not supply any materials, the LOSC is being supervised by the Contractor.
In this context there is a master and servant relationship. The contractor’s liability towards the LOSC, and arising out of the LOSC’s activity when working for them, is considered the same as if the LOSC was a direct employee.
Since this is regarded as a master and servant relationship an Employers Liability and Public Liability exposure exists. Even if the LOSC has their own insurance i.e. Public Liability. The contractor would not be able to subrogate against it. There is case law setting precedents to support this.
Bona Fide Subcontractor (BFSC).
A master and servant relationship would not be considered to be in existence.
The BFSC would be providing materials, labour and supervising their own work and invoicing accordingly. There is no Employers Liability risk but contingent Public Liability cover is required. It is likely that it will be warranted under your own insurance that you check that each BFSC holds adequate Public Liability insurance.