Manufacturing is a fundamental building block of the world’s economy that we know today. China and the United States contribute to 40% of the globals manufacturing output with smaller players such as United Kindom contributing to as little as 1.8%.
Even the smallest player such as the UK employs 2.7 million within the industry with an average earning of £32,500 per year. It just goes to show you that even the smallest percentage of manufacturing output can contribute to millions of livelihoods.
Regardless of the size, industry or nature of your business, manufacturing will always be an integral part of your daily operations. With this in mind, any interruption to this manufacturing can lead to huge losses for the business. Managing this risk is essential.
In this article, we will be breaking down some of the most common risks and claims in the manufacturing industry and the ways in which you can protect your business from these risks.
International Supply Chain Interruption
With the latest constraints caused by the United Kingdom’s departure from the European Union, likely, you have already experienced the impacts an interruption in the supply chain can have upon your business.
Whether this is importing the raw materials needed to manufacture your goods and products or specialist equipment, any interruption can lead to your business being put under unnecessary financial strain. Long-term interruption can also develop into much larger problems which can result in you needing to action a full closure of your manufacturing premise.
Specialist Machinery Damage
From manufacturing small plastic toys to complex electronic equipment with multiple components that need to fit together perfectly, specialist machinery will be present somewhere along your manufacturing line.
If your machinery were to break down or become damaged beyond repair would you have the capital in place to cover the repair or replace the machine? The risks involved with damaged machinery can be detrimental to the future of your business.
Theft of Equipment & Supplies
With the manufacturing companies becoming the prime targets for criminals looking to take equipment and vehicles, this risk must be assessed. A recent study published by the Commercial Victimisation Survey states that theft and vandalism are the two most common types of crime against businesses.
With manufacturing contributing to 1,148 incidents per 10,000 premises. Staying on top of these risks is essential to ensure your business is protected at all times, even when you are not present.
Harm To Members of Staff
Employees are the beating heart of every business, without them it’s practically impossible for the daily functions of the business to go ahead. This being said staff can also cause huge risks to the business. One of the most common forms of risk form staff includes improper training which has lead to an accident. If this does occur, staff are fully entitled to claim against the business which results in substantial costs if we’re to be found at fault.
Claims From A Third Party
The general public can also pose risk to your manufacturing business. The two most common claims that can come from a third party are those made against damage to a property and the people who may be visiting by your work premises.
Claims made from a third party can be extremely costly and often result in a legal case against the business which also creates a huge amount of negative media exposure. Avoiding these claims is essential to achieve total protection. It’s crucial that you have the right measures in place.
Protecting Your Business From Risk
Protecting your business against these common risks is quick and easy. Investing in a dedicated Manufacturing Insurance policy you can provide your business with commencing protection which covers all of the daily risks your business can encounter. Often a manufacturing insurance policy will include:
- Business Interruption Insurance
- Machinery & Plant Machinery
- Public Liability Insurance
- Employers’ Liability insurance
These insurance policies are designed to cover your business at all times ensuring you are never being put at financial risk from something that is not of the fault of the business. Don’t leave it to chance, take the first step to protect your business from the unexpected.