Protect Yourself against Equipment Breakdown with a Manufacturer’s Insurance Policy
Your manfacturers insurance policy is your protection against anything going wrong with your raw materials, machinery or distribution of your products. You may find that from time to time your machinery breaks down, which is an expensive exercise to repair, you want the best cover so that this event doesn’t lower your profit margins.
On average you probably make thousands of products, but is your policy covering you for everything you need? Your policy should include damage or theft of raw materials, machinery breakdown, goods in transit, public liability, employee liability and loss of income.
It doesn’t matter what you manufacture, but one item of machinery breaking down is not only a lengthy and expensive repair process; it can leave you losing out on profits. If that machine can’t make money, you are at a loss. Loss of income can protect you against this, so always ensure that this is included in your policy.
When obtaining protection, get a minimum of three quotes first. You can weigh them up against each other and see what each company offers and which comes in at the better price. Also check if they are flexible and that you can add items to your policy such as loss of income.
Don’t sign a policy until you are sure that you are getting the best cover for the lowest premium. While one company may charge slightly more than another, you may find the cover is superior and you will not be left in financial chaos from machinery breaking down and ruining raw materials in the process.
Your machinery is probably one of your biggest investments, unless you’ve purchased your building. You need to ensure that these machines are serviced regularly to reduce the risk of breakdown, though this can still happen from time to time. Also ensure your staff are fully trained on how to operate this expensive machinery, this will lower the risk of something going wrong.
If you think about it when a machine breaks down while producing a product, chances are the raw materials being used at that point in time are going to get damaged. Double check your policy and make sure that everything is covered to save yourself a lot of stress and money.
Also check and see that your goods in transit are protected. While your machinery may have the cover you need, if your finished products are damaged in transit you will lose important profits, so always make sure your manufacturers insurance policy offers you all the cover you may ever need.