Manufacturing Insurance
From components to finished products
Manufacturing is the backbone of the Victorian economy, and the state is home to 23,000 manufacturers from small to large.
Collectively, Victorian manufacturers employ 260,000 people.
From equipment breakdowns and workplace injuries to product liability and cybersecurity threats, these risks can lead to significant financial consequences without proper insurance protection.
Key Risks for Manufacturing Businesses
Property and Equipment
Whether you own or lease your location, a manufacturing business cannot operate without its property.
Insurance protection for your property, plant and equipment is critical to the ongoing success of your business.
Business Interruption
Could your manufacturing business survive with revenue for 3 months?
As they say, “Cash is King”
Business Interruption Insurance covers your fixed costs and profit in the event of insurable damage to your business location.
Calculating your Insurable Gross Profit is complex, and we have the experience to assist with this.
Public and Product Liability
Under Australian Law, it is your responsibility to make sure that your products are safe and fit for purpose.
If your products cause injury or property damage to a third party, you may be responsible for this.
Public and Product Liability Insurance covers your legal liability to third parties for product damage and bodily injury caused by your business.
The policy can also cover legal fees you incur to defend yourself.
Cyber Risk
As manufacturers adopt connected technologies, they become more vulnerable to cyberattacks.
Outdated industrial systems, once shielded from cyberthreats, are now susceptible due to integration with modern networks.
Cyber insurance covers the costs associated with cyberattacks, including ransomware, data breaches, and system recovery.
How Tempo Insurance can help
Tempo Insurance Group is a specialist insurance broker for manufacturing businesses.
We understand that every business is unique and we will take the time to build an insurance program that protects your business.
Contact us for a quote or more information
Frequently Asked Questions
Should I have Liability Insurance for my manufacturing business?
Yes! Australia is one of the most litigious countries in the world. Under Australian Law, it is your responsibility to make sure that your products are safe and fit for purpose.
Public and Product Liability Insurance covers your legal liability to third parties for product damage and bodily injury caused by your business. The policy can also cover legal fees you incur to defend yourself.
Additionally, your landlord or customers may request evidence of your Public and Product Liability cover.
Do manufacturers need product recall insurance?
Recall Insurance covers the cost of recalling your products in the event they pose a safety hazard to users. The cost of a product recall can be significant. Product manufacturers should consider this cover.
There are approximately 300 product recalls issued by the Australian Competition and Consumer Commission each year. Recalled products included motor vehicles and Christmas decorations but the bulk of recalls (about a third) were food recalls.
If you import products from overseas then you may be deemed the manufacturer under Australian law. This makes you responsible to follow the laws and regulations in regards to product recall.
Product Recall insurance can cover:
- Fees that you must pay a retailer to remove a product from the shelf
- Advertising fees to alert the public of the recall
- Replacement of item and loss of profit
- Safe disposal of the item
What is machinery breakdown insurance?
Machinery breakdown insurance coverer the cost of repairing or replacing equipment because of unforeseen breakdown or failure. The policy does not cover general wear and tear.
Do I need Marine Cargo / Transit Insurance?
Generally, Property Insurance will not provide cover when goods are away from your place of business. When raw materials or finished goods are on the road you need to make sure they are insured.
Goods in Transit insurance can provide cover on the road, water, rail and in the air. Cover can be Australia wide or global.
Cover can include accidental damage, theft, fire, loading and unloading. Additional cover is also available for spoilage of frozen or chilled goods and for high valued items such as fine art.
What is Trade Credit Insurance?
For many companies, accounts receivable is one of the largest assets on their balance sheet – But what if your client does not pay?
Trade Credit insurance covers bad debts due to insolvency or default.
Trade Credit insurance does not replace good credit management but as we have seen time after time, just one corporate insolvency can have a domino effect and threaten the financial survival of businesses that it trades with.