The manufacturing sector encompasses a vast range of businesses, all with different risk profiles, demanding bespoke insurance solutions.
Supply chain dependencies and product recall risks possibly sum up the new challenges for manufacturing businesses. Supply chain management from an insurance perspective is a narrow and potentially difficult area. Insurers’ will often volunteer cover for suppliers’ risks, whilst failing to make it clear that they are only offering limited peril protection with caps on any claim, usually under the Business Interruption heading where you need it most.
Technological advances are creating fresh opportunities in the manufacturing sector, with new and more complex risks continually arising. Changes in market dynamics mean that product recall risk is heightened by advances in electronic systems; cyber and liability risks are on the rise as the virtual now controls the physical, with technology increasingly controlling manufacturing processes.