What is the one thing that every business in the world has in common? Risk. Regardless of the size, sector or nature of your business, there will always be risk present. This being said, there is one industry that stands out from the crowd when it comes to assessing risk. The manufacturing industry. In this environment, daily processes must run like clockwork and the smallest of delays can lead to huge financial costs lying within the hands of the company director. Protecting your business against this risk can be complex, you must first fully understand all where the business is most vulnerable.
In this article, we aim to break down some of the most common risks involved within the manufacturing sector allowing business owners to better protect the business from these risks. With the legal support around these claims becoming increasingly accessible it’s time to take action and help protect your business against the unexpected.
Raw Material & Supply Interruption
It all starts with the raw materials. The beating heart behind the production line are these supplies and if there were to be any interruption to this supply your business may be left in a dormant state. As you may have already experienced first hand with the latest Brexit advancements, no supply chain is invisible and without relevant cover, in place, you may be forced to cover costs until supplies arrive. It’s not just new restrictions on trade that can interrupt these supply chains, natural disasters are also a huge risk to manufacturing companies
Injury or Illness To Members of Staff
Claims against manufacturing businesses are most common amongst current members of staff. If a member of your team were to have a slip, fall and be seriously injured your business may just have to fork out to deal with the claim. Even the most well-managed companies with comprehensive health and safety procedures are not exempt from these risks. Without having suitable cover in the palace you might find yourself having to put the future of your company in jeopardy to cover the legal expenses involved.
Harm To The Public Due To Faulty Products
One of the most obvious risks within the industry is the ones to the public. Even companies with tens of years within the sectors are vulnerable to this form of risk and if not taken seriously you could be putting yourself in a bad position. All it takes for there to be one mistake on the production line and for quality control to miss it and an entire batch of fault products are released to the public. It’s much harder to recall products than it is to catch the problem early.
Breakdown of Essential Production Equipment
Specialist equipment is an essential part of any business within the manufacturing sector. Without it, you are unable to create the products which keep the cash flow running. In the event of this equipment breaking down on you are you sure that you have the funds available to repair or replace it? If the answer to this question is no, take the time to get this essential cover in place.
Breach of The Companies Cyber Security
Gone are the days where everything was recorded on paper. As we move forward the latest technological advancements have forced us all to transition to an online offering that enables us to be more efficient with our operations. Unfortunately, this opens us up to new forms of risk that we have never experienced before, cyber risk. This may seem very alien to you but by taking the time to address this seriously you will find that will the suitable cover in place your business can be kept safe.
Managing Risk Within The Manufacturing Sector
To keep your manufacturing business running you must invest in an insurance policy that protects you from these risks. Regardless of the scale of your current manufacturing business, the correct level of manufacturing insurance is essential. Speak to a local insurance broker and create the perfect level of cover for your needs.
This post has been sponsored by Digital NRG Ltd
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