– MANUFACTURING COMPANY –
Asia and particularly China are know as the factory of the world.
Manufacturing company focus on consumer goods such as garment, electronics, toys etc… got their main risk is focused on products they sell. Here lies their main liability.
Product Liability (or Commercial General Liability (CGL) Insurance) and Product Recall are the principals covers of those businesses.
Manufacturing company working on specified project (i.e.: airplane, boat construction, industrial material etc..) may have to face risk during construction and/or erection. They will be cover through Construction All Risks and/or Erection All Risks.
Besides this, here are a set of cover that shall study any Manufacturing Business to limit their risks.
Property All Risks
Property All Risks Insurance is one of the most basic insurance policy. It is designed to cover your tangible assets from accidents.
It essential to protect your premises, equipment, inventory and vehicles against accidents or risks to your business.
You can also get extension to cover typhoon or earthquake in certain country.
Construction & Erection All Risks
Construction and Erection All Risks Insurance (CAR and EAR) provide a coverage against damage to property that may occur during the construction or erection period: fire, explosion, flooding, storms, natural phenomena….
The policy covers the prime contractor and all subcontractors involved in the construction operation on site.
It comes in addition to Property All Risks and/or Machinery Breakdown Insurances.
Business Interruption policy cover the company when facing a downturn often long resulting in significant financial consequences.
The policy allows the company to offset the impact of lower revenue and covering the fixed charges (depreciation, taxes, rent, staff salaries , loan interest …).
This insurance will also help the company to incur extraordinary costs consequential loss.
Employer’s Liability Insurance Policy covers the liability of employers for injury and disease caused to their employees at work.
Depending on the country where your business is located, the law will imposes duties on employers to protect their employees and third party in the workplace.
Breaching this responsibility which is resulting to injury or disease to an employe can be a criminal offense.
With globalization of exchanges, it becomes important for companies to protect their account from unexpected loss due to non-payment from their clients.
This is the purpose of Trade Credit policy to help facing unpredictable economic cycles.
Trade Credit Insurance protect from loss due to the insolvency but also caused by political events.
It can cover both domestic and export sales but is mainly useful for export companies.
Product Liability Insurance covers injury and damages, tangible or intangible that can be caused to a third party by a product of your company.
It covers goods who depend on it during its operation.
It also covers damages that may occur from the good after their delivery.
Joined with Public Liability, it is also call Commercial General Liability (CGL) insurance.
Product Recall Insurance covers expenses associated with recalling a product from the market.
Product recall insurance is typically purchased by manufacturers and trading such as F&B, consumer goods, toy and electronics companies.
It can be mandatory and requested by a regulatory agency or a government.
Coverage generally applies to your company but can be extended to cover the costs of third parties.
Employee Benefits (EB) are getting more and more attention in Asia where business environment is very competitive.
It includes Accident insurance, Group Medical insurance, Term Life insurance, Critical Illness insurance, hospitalization allowance and maternity.
Those benefits can be extended to your employee’s family.
Fidelity Guarantee Insurance is most often sought by companies where employees are constantly exposed to cash, stocks or other assets.
The coverage has been designed to indemnify the Company for the loss of money/stock/assets sustained as a direct result of acts of fraud, theft or dishonesty by one of its staff.