The advancement of innovation and technology across the engineering and manufacturing industries creates an ever changing landscape of risk exposures. You operate in a very competitive globally connected environment where hard built reputation can be destroyed in moments. Some specific key risks are noted below
Product failure, equipment failure and reputational damage
Business interruption via complex global trading activities
Supply chain failure at 1st and 2nd tier levels
There is no point spending money on insurance if it isn’t going to pay out when you most need it. If a loss occurs the financial impact can be devastating, that’s why speed of claims settlement and loss recovery support are absolutely critical.
Our service is geared towards protecting business reputation, balance sheet and cash flow. We do this by implementing a deep analysis of your production, supply chain and distribution systems combined with the general business risks such as manufacturing equipment, employee and IT risks.
We really get in deep to understand every potential risk.
This is our job. We question everything, we challenge long held ways and beliefs and we help you identify and understand where it can all go horribly wrong.
This means talking with you, sharing information, questioning your operating procedures and always watching your back. We keep in regular touch throughout the year to double check any new developments/changes in your business.
Cyber risk is a growing concern for engineering and manufacturing sectors. At the moment, it is estimated that only 2% of manufacturing equipment is connected to the Internet. This is expected to climb to almost 80% within 5 years, creating significant 1st party and 3rd party liability risk. Future financial loss may be significant if this area isn’t considered properly
The knock on effect of primary or secondary supplier failure can very quickly hit your income and profit. It is critical that supply chains are properly considered and the knock on effect, including the potential of contract loss
The average engineering and manufacturing insurance policy contains some 30,000 words of legal jargon; this is about the same length as a small novel. This document is packed full of conditions, warranties and exclusions…each one is landmine that will allow insurers to decline a claim.
Jessica Baker, Managing Director – Chase Plastics Limited
A long established business delivering services to the offshore industry.
The company had embarked on significant a programme of improvement in service delivery, employee quality and premises redesign. It operates to very high standards of quality and safety.
This company had been with its existing broker for over 25 years and had trust in the support it was getting.
In carrying out a conceptual review we uncovered significant errors in policy cover construction, ambiguity between broker and insurer wordings, and considerable under insurance.
The problem they faced was not untypical. The company rarely suffered any claims so therefore the insurance had never really been tested to see if it would respond in a claim situation.
As a consequence of this, the company thought its insurance cover was fine and cost effective.
Our concern was that a large claim could disrupt cash flow and impact on company reputation at a time when the company was pushing on. Lost customers would take time to replace and therefore income protection had to be properly reconsidered.
In addition we had to revisit the company’s liability policy wordings where there were significant gaps that could have had a real hit on cashflow if an incident occurred.
Some warranties under the policy cover were impossible for the company to comply with due to the nature of their engineering works and location. We had to remove these onerous terms.
The company felt that cover was more important than cost, but we are pleased to say that we restructured some cover, changed insurers and reduced their annual cost.
Our current client count within this industry