Businesses in the manufacturing sector come with their own unique risks from everything from cyber-attacks to unskilled workers. Even inflation can present serious risks to manufacturing companies. That’s why it’s essential for manufacturers to carry the right insurance.
Not only will the right plans protect your employees and customers, but they can protect your assets and keep your business operating soundly and efficiently, even in the event of a cyber-attack, injured worker, or supply chain issue.
Manufacturing is often a physically demanding industry. Manufacturing plants are typically bustling with activity, with jobs done under tight deadlines to meet consumer demands. It’s exciting and rewarding work, but it can also lead to accidents and other situations – like faulty equipment, for example, that can result in big losses.
Common risks manufacturers could incur include:
Equipment breakdowns. Many manufacturing companies rely on equipment – whether it’s a small robotic arm or a large machine, to get the work done. When equipment breaks down, it can be costly.
Product recalls. If your product is faulty – or otherwise deemed unsafe for use – it can be costly to pull the product from the shelves to protect your product liability. It can also be damaging your company’s reputation.
Transit issues. Whether you transport your product from one state to another, or across the ocean, there is always the risk that it can be damaged (or even stolen) before it reaches its destination. In the event that your product is damaged, lost, or stolen, it can lead to big losses.
Utility problems. If a powerful storm knocks out power, or the municipal water supply is turned off, it can cause losses for your company.
New risks to manufacturing businesses
The world is changing rapidly. Now, in addition the risks mentioned above, there are new challenges that manufacturing businesses may face. These challenges require business owners and company decision makers to take a closer look at insurance coverage to be protected.
Cyber security. If you own a business – no matter if it’s a small hair salon or a large accounting firm – it’s important that your clients’ information – as well as your own – is protected. The fact is the cyber criminals are getting more savvy by the minute. And the manufacturing industry is the fifth targeted industry today.
Labor. It’s no secret in the manufacturing industry that there’s a growing lack of skilled workers. Couple this with labor costs, labor hoarding, training and retention efforts and technology substitutes and having the right insurance becomes is imperative.
Inflation. Fact: In Worker’s Compensation, medical inflation bumped up by 6.8% in 2022. This is just one example of how inflation is a risk for manufacturers. Other examples of industry inflation include building costs, equipment and vehicle costs, and supplier lead times.
The industrial internet of things (IIoT). The age of digitization is here. Now, more than ever, manufacturing is assisted by smart sensors and actuators to enhance manufacturing and industrial processes. The industrial internet of things, or IIoT, is the use of power of smart machines and real-time analytics to take advantage of the data from machines.
Manufacturers: Roeher Insurance Agency has you covered
Concerned your business lacks the protection it needs to thrive in 2023? Take a look at a presentation prepared by Jeremy Riddle, Roehr Vice President, on new risks for manufacturers through the button link at the top of the article. Or, contact Jeremy at (513) 985-4208 (office), or jriddle@roehrins.com.
Roehr Insurance is an independently owned agency that operates locally with a national reach. We’re entrepreneurial driven and follow a true customer-centric model. We’re ready to help you choose the best, most effective insurance coverage, tailored to your needs.
