Why do Manufacturing businesses need insurance?
While you focus on creating great products, we’ll manufacture great business insurance offerings for you. Let Bi-me take care of your business insurance needs by providing multiple competitive quotes from some of South Africa’s leading insurers within minutes.
What should I consider before purchasing insurance for my manufacturing business?
Protecting your business from unexpected events and challenges is where business insurance comes into play, providing cover for when you need it most for things like theft, public liability claims and electronic equipment being damaged/stolen.
Fundamental Insurance for Manufacturers
Regularly selected Insurance for Manufacturers
Insurance for Manufacturers
Electronic Equipment
Electronic Equipment covers manufacturers who depend upon a full range of electronic equipment, including refrigeration systems, air conditioning, office equipment, and more.
These high-value items need to be specifically included in your business insurance policy to protect you in case of accidental damage due to flood, fire, snow, hail, wind, impact, explosion, subsidence, as well as malicious damage or theft and damage caused by power surges or power dips.
Machinery breakdown
Machinery Breakdown assists if one of your machines breaks down, you may not be able to produce and deliver your goods for weeks. This insurance protects your business when your machines stop working.
Motor
Motor vehicles are an important part of doing business for most manufacturers. They are needed for sales reps, delivering goods, and more. South Africa’s roads are dangerous and many businesses face large losses when uninsured vehicles are involved in collisions or are stolen.
Getting good motor insurance will allow you to get right back to work after an accident or theft. Stock that is being transported should be covered under Goods in Transit.
Public Liability Insurance
Public Liability covers for the many possible accidents that could happen in a manufacturing environment.
This insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public is injured or sustains property damage as a result of your negligent business activities.
Product liability insurance can also be found under this section. If you manufacture products that cause harm to members of the public, product liability covers you for legal defence costs and claims.
Buildings
Buildings are usually one of the most important assets for a manufacturer. This insurance can protect your organisation when your buildings are damaged due to fire, storm, earthquake, wind and more. You may also want to cover the Contents of your buildings (office equipment, machines and stock).
Business Interruption
Business Interruption cover is important for the continuity in the food and manufacturing industry. Margins are thin and being unable to operate for an extended period can put the bottom line under serious pressure.
This type of insurance covers your business for financial loss as a result of an interruption to your business caused by an insured event (such as fire, storm, etc.), and can cover riots and strikes, too.
Contents
Contents insurance is designed to provide cover for your office contents (tables, chairs, cabinets), as well as machinery and stock when an insured event occurs – such as fire, storm or theft (only limited theft cover, for comprehensive theft cover see the Theft section).
If you own the building where your business activities take place, you might also consider Buildings insurance.
Goods in transit
Goods in Transit covers for the transporting goods which is an essential part of a manufacturing business. Getting cover for your stock while it is in transit will protect your business from the risk of theft and collision on South Africa’s dangerous roads.
Theft
Theft is one of the most common claims manufacturers file for. Your business might be the victim of theft or fraud from outside of your business or sometimes one of your employees may steal from you and you’ll need Employee Dishonesty cover.
The right business insurance will cover you against acts of theft and fraud, whether these come from your own employees or from outside of your business.
Getting the Right Insurance for Manufacturers
Your manufacturing business is unique, having its own risks and insurance needs. Bi-me gives you access to multiple quotes to compare with some of South Africa’s top insurers, so you can choose the right cover to suit your business.
Our friendly team is only a phone call or a few clicks away to assist with getting your business covered in minutes.
Did you know?
If you are renting your business’s premises, part of your commercial lease may require you to take out glass cover.
Could this happen to your business?
- Breaking it down
An imported machine at a beverage manufacturer in Johannesburg broke down and the business was unable to supply its products to retailers. The insurance company sourced a machine from Durban and delivered the machine to the plant in Johannesburg. The manufacturer was back at full capacity within two days.
- Stolen Stock
A manufacturer’s van was involved in a collision while on the way to deliver goods to a retailer. The vehicle was written off and all of the stock was looted after the accident.
Frequently asked questions
If a claim is made against you and your business and you are legally liable to pay due to bodily injury, death or loss of or damage to property to a third party, public liability will cover these costs.
It depends on the Insurer. Some of our insurance partners require either buildings or contents to be taken, in order to have Public Liability cover – while others allow you to take it standalone.
The obvious factors are your selected sections and amount of cover – more protection means higher premiums. Other major factors include occupation, address and claims history. If other businesses in your occupation or area have had lots of losses in the past, premiums will generally be higher.
If your business has had lots of losses in the past, your premiums will usually be higher. It is very important to be honest when disclosing all of your information – if an insurer finds that you were dishonest, you may not be covered when you have a claim.