Contract Manufacturing Insurance
Who needs Contract Manufacturing Insurance?
If you outsource your products to other companies on a contracted basis than you can face a multitude of risks from not only your suppliers but your customers as well. Similarly, if you run, own or manage a business that agrees to undertake outsourced work, you need to be sure you have your liabilities covered adequately.
While contract manufacturing arrangements have many benefits including cost saving, advanced skills of other companies and a focus on a core product, there are also risks associated with this such as lack of control, intellectual property loss / abuse and, critically, liability arrangements in the event that something were to go wrong. All of these risks need insurance against to protect you and your business.
What cover does Contractor’s Manufacturing Insurance provide?
At Buckingham Insurance we can tailor a policy to suit the exact needs of our clients. We understand that every business is different and therefore every Insurance policy we arrange should be too. A typical Contract Manufacturing Insurance Policy can include cover for:
Intellectual Property – Being clear about who owns intellectual property in a contract manufacturing arrangement is extremely important and ought to be included in the contract warranties. Even with that in place, it’s important that you have adequate IP insurance in place. This will protect any intellectual rights that you have over your designs and products. Conversely, if you are the contracted manufacturer and find yourself accused of IP infringement, Intellectual Property Insurance can help.
Product Liability – This is essential if you sell or supply goods, especially you are not the original manufacturer. Conversely, if you are the original manufacturer, you need to be sure that you can manage should you be held liable for an issue with the product.
You may also wish to consider your options with regards to other covers for your business:
Employers Liability – EL Insurance protects your legal liability towards your employees should they have an accident when at work. EL insurance is a legal requirement by law if you have anyone in your employment.
Public Liability – If you any members of the public visit your place of work then you need PL cover. This will protect you should anyone have an accident or damage their property at your work. This is especially important if you work in a loud fast paced environment where accidents can easily happen.
Stock Insurance – If you keep stock on site or in vehicles then you need to protect it in case it were to be damaged, spoiled or stolen rendering it unsaleable causing you to lose future income having already paid for the stock.
Goods in Transit Insurance – You should also ensure that your stock is insured when outside of your storage facility and when it is being transported.
If you would like to discuss the insurance requirements for your business further, contact a member of our team on 01246 575 625 or contact us here.
Why Compare Contract Manufacturers Insurance with Buckingham Insurance?
Buckingham Insurance has been providing manufacturers across Derbyshire and South Yorkshire with invaluable, trusted advice and service for almost 40 years. With a heavy investment in staff training and leading technology, together with good old fashioned close relationships with both our Insurer partners and clients, we pride ourselves on competitively priced, quality cover backed up by first rate service. These close relationships allow us to fully understand your business and tailor a policy to suit your exact needs so that you’re not paying for cover that you don’t need but are safe in the knowledge that you are fully insured.