Does your manufacturing insurance North Brisbane cover you for financial loss? At Insurance Web, we understand that every business is unique and so are the insurance needs! That’s why we make sure that the insurance packages are tailored to each business.
Your business probably already has general public and products liability insurance, which is intended to protect your company against claims for personal injury or property damage to third parties that may arise out of your business activities.
But what happens if as a result of your product or service falling short, your client suffers a financial loss, where there is no personal injury or property damage to a third party?
Talk to us about including Errors & Omissions cover in your Legal Liability policy. A smart way to protect against “pure financial loss” suffered by any of your valued clients as a result of an error or omission on your part.
Manufacturing Insurance – Product Recall Insurance
We can source an insurance extension to a standard liability cover for manufacturing businesses, called “Product Recall”, which is essentially an insurance to cover the cost of recalling a product out in the market. Whilst the cover is not designed to pay for faulty products to be re-made, this extension allows you to claim for things such as labor costs involved in removing items from the shelves, freight and storage costs.
Why would I need Product Recall insurance?
Mistakes happen, no matter how thorough your business might be, there is always a risk of errors occurring. Even if the financial loss is not a result of error on your part, you may need to cover legal fees to prove that your company was not at fault, which errors & omissions coupled with product recall insurance can cover.
Does my type of manufacturing company need this?
Errors & Omissions and Product Recall Insurance is recommended for businesses across these key sectors in manufacturing;
- Clothing and textiles
- Electrical equipment
- Food & Drinks
- Machinery & Equipment
- Metal products
- Soaps & Detergents
- Timber & Wood
Manufacturing Insurance North Brisbane – Case Study
An electrical manufacturer developed and sold a custom light fitting for a build, after the 300+ units were installed by an independent electrician with a non-compatible starter – the lights failed.
The lights were recalled, avoiding further issues, thankfully before anyone was injured or there was any property damage.
The building owner sued the electrical manufacturer for the costs incurred and the manufacturer had to pay for the $12,000 worth of original install costs, plus the cost of uninstalling the recalled products and reinstalling new lights.
As this was purely a financial claim, the manufacturers Public Liability Insurance did not cover the loss – and a prime example of where having the “Errors and Omissions” extensions would have saved the manufacturer tens of thousands of dollars!
A good insurance broker will take you through all the fine print and discuss these types of optional extras that should be considered as part of your insurance program.
If you think your business may need to update your manufacturing insurance cover, Insurance Web can help you. Call us today on 1300 800 091.
Insurance Web is your local manufacturing industry insurance expert. Known for our simple processes, cost-efficiency and trustworthy staff, we’ll help you get the right business insurance cover so you can trade confidently and securely right now!