Your business insurance should work as hard as you do, especially in the manufacturing industry. Time and resources wasted is money down the drain and no business can afford costly mistakes or underinsured situations in the current economic climate.
Good risk management and insurance is an operational requirement in a manufacturing business and should never be overlooked. Business owners have the responsibility of ensuring the business can survive in the direst of circumstances and this extends to the insurance schedule and policy they negotiate. Here are some expert tips to make the most out of your manufacturing business insurance.
Fleet Insurance
If you have more than one company vehicle in operation, you will usually qualify for fleet insurance. This type of vehicle insurance covers a range of different vehicles that are used for business purposes. This cover is usually flexible in the number of vehicles covered, but specific policies for specific needs can also be catered for.
The biggest advantage of having your fleet covered under one policy is that you have one premium to pay for all your vehicles which makes the administration of fleet insurance simpler. It is imperative to shop around for fleet insurance quotes as the policies and premiums may differ.
Sum Insured Values
Insurance requirements in the manufacturing industry are usually more complex which means you should always clarify the contents of your policy, read the fine print and understand what you are covered for when insuring your business. No two policies in the manufacturing insurance sphere are similar. Your insurance policy should cater specifically for your unique needs and risks. If you have machinery, ensure the sum insured is adequate and covers everything you need it to. Base the sum insured on the cost of replacement, installation and calibration. Being underinsured in this aspect can mean the financial ruin of your business if you cannot afford to carry the residual amount.
Never Neglect Business Interruption Insurance
If the pandemic has taught business owners one painful lesson, it is that of not having business interruption insurance in place. This type of insurance is usually overlooked and generally misunderstood by business owners. Your building, contents and vehicle insurance policies are great to look after just that, but what about your financial losses should a crisis hit, or a long-term interruption take place? Ensure you have adequate business interruption insurance to cover loss of revenue, rental income or additional HR costs that may arise due to unforeseen circumstances.
Note Your Business Activities on Your Insurance Schedule
Avoid vague business activity descriptions in your policy schedule. All business activities should be noted in your schedule in order for it to be adequately covered. Having the insurance cover you need may come at a higher premium, but you should consider the alternative. If your activities are not comprehensively covered, what will the implications mean to your operations and your fiscal health? Never skimp on this aspect to save a few pounds in the short-term.
Do You Need Professional Indemnity Insurance?
If you are in the design, print or professional advisory industry, you will require professional indemnity insurance. This business insurance can cover you in the event that a misprint, poor design or inadequate advice is given to a client. Insuring your business against financial loss due to accidental errors or quality disputes will be a lifesaver if that opportunity ever presents itself. Consider an insurance policy that covers intellectual property, dishonesty, loss of documents and perhaps defamation too. In today’s age, you can never be too prepared.
Are Your Security Measures Up to Par?
Insurance comes in the form of protecting your business and activities through policies but also physically in terms of on-site security. Ensure you have all the bells and whistles set up for intruders, fires etc. so that you are covered in both aspects. Alarms, CCTV, patrolled security and fencing can prevent you having to submit a claim, pay in excess and deal with the entire process of replacement and installation or fixes. Security systems also affect your premium. Better security measures equal lower premiums which is a win-win situation in any business.
Working towards success whilst preparing for the worst is just one aspect of running a profitable business but with all your insurance ducks in a row, you can rest assured that you are covered if ever you need it. Evaluate your insurance portfolio today and ensure you have the cover you need because you don’t want to be caught without it.
