As a precision toolmaking business, you face a range of risks that must be reflected in your business insurance policy. No matter whether your end client works in the Aerospace, Rail, Motor Industry, Food processing sector, you risk facing Product liability claims which could be damaging and costly. The high value and specialist equipment that you use may also take longer to get repaired or replaced should something go wrong, leaving the business unable to trade normally. You also risk facing Professional Indemnity claims as it’s likely that you are effectively offering design consultancy as part of your work with customers.
Buckingham Insurance has over 30 years experience advising on toolmakers insurance. With clients in the sector from 2 to 50 staff, we have vast experience working with businesses large and small.
What should be included on a Toolmakers Insurance policy?
Outside of the ‘standard’ covers that you would expect to see on many business insurance policy documentation (Employers’ Liability, Public Liability, Premises, content and stock etc) a toolmaker is very likely to require well thought out cover in three specific areas:
This protects you from legal costs as well as any compensatory payout that is awarded, where there is an allegation made that someone has suffered personal injury of loss as a result of a product that you are deemed to have sold, supplied or manufactured. With constantly evolving safety standards, as well as potentially having to contend with product standards in foreign lands, product liability insurance can be critically important to any toolmaker.
Imagine that a neighbouring business on the industrial estate where your commercial premises is located has a fire. The fire spreads and your property is partially damaged, as is your plant and machinery. Your commercial premises and contents insurance should cover for the costs of repair and replacement of the building and machinery. But how long might that take? As a specialist toolmaker, you may well have very high value and unusual equipment that cannot readily be repaired. What would the impact be if you were unable to trade for a week? A month?
Business interruption insurance can protect your business in this situation. First, it can provide protection from the ongoing fixed costs that your business may have to absorb even though you cannot trade – for example, staff wages and rent. It can also provide cover for the ‘additional costs’ that you will incur in trying to keep the business going. For example, you may need to temporarily relocate the business, or hire in replacement equipment while your own is being repaired.
Toolmakers Professional Indemnity cover
Professional Indemnity insurance is cover designed to protect a business in a situation where professional advice offered is deemed to be wrong – either through negligence or omission – and therefore to have cost a client financially. It’s a type of cover that has long been required by architects, for example. It is often overlooked by Toolmakers. But in the increasingly litigious environment, we find ourselves in, it should be a serious consideration. After all, you will offer clients design and systems design advice as a matter of course.
Why choose Buckingham Insurance for my Toolmakers Insurance policy?
Based in the manufacturing and engineering heartland of South Yorkshire, we have vast experience dealing with toolmakers large and small serving a range of industrial sectors. An independently owned and managed broker, we can offer advice on your precise needs and get quotes from a range of leading UK insurers.