Insurance is something we all know is important. It can also be something that we overlook. Many manufacturing businesses have fallen foul during insurance claims due to not having correct insurance in place. Steve West, Development Executive at Gallagher, leading insurance broker and risk managers, held a Masterclass with Made in Group to educate manufacturers on what the common insurance pitfalls are for manufacturers.
Made in the Midlands patron Gallagher held an insightful masterclass packed full of information industry leaders need to know. Highlights from the 15 minute presentation included an overview of the insurance market, the meaning of underinsurance and what can lead to underinsurance.
As a result of the pandemic coupled with Brexit and other political changes, many manufacturers have increased their capability and undergone changes. This could mean that their current insurance doesn’t cover them.
Here are some of the common insurance pitfalls for manufacturing businesses and how to avoid them:
- Property - Up to date evaluations are critical. If not annually, this should be done every two years. This applies to changes in the businesses, ensure this is declared so you can make sure you aren't underinsured. Finally, many businesses make the mistake of only insuring the property to the market value, rather than taking into consideration the cost of construction and clearing debris. Ensure to do this on a reinstatement basis.
- Stock & Contents - If you have an old machine that is critical to be replaced, you need to consider the cost of the modern day equivalent. In addition to this, many manufacturing businesses have increased stock holdings due to supply chain issues, this must be declared to your insurance broker.
Check out Steve’s other Common Insurance Pitfalls tips on Plant Machinery and Business interruption by watching the video below