“The Challenging Sector” is an increasingly common phrase in the insurance market for companies operating in the industry and manufacturing sectors. High liability limits and nearly certain loss events are the primary reasons for this. The current economic and political situation only exacerbates concerns. Consequently, even if insurance offers are obtained, manufacturers struggle with limited coverage and high policy prices.

However, the market doesn’t have to be so unforgiving. Business owners can have a choice in securing the safety of their operations. This involves several simple yet highly effective actions preceding negotiations with insurers. These actions focus on preventive measures with the support of our team of engineers. As a result, manufacturers enhance their safety levels and protect themselves from potential damages. The insurance market values informed clients, offering a wider array of policy options. This provides the opportunity for advantageous policy selection.

Risk in Industry and Manufacturing

Under the umbrella of “Industry and Manufacturing” lies a multitude of sectors. Including food production, heavy industry, and material manufacturing (risky materials like wood products and prefabricated components). Moreover, the diverse nature of companies in this sector leads to stringent treatment by the insurance market.
Proper insurance coverage for property and equipment (often highly specialized) within industrial buildings is fundamental to protecting manufacturing companies. At STBU, we begin work on safety with Preventive Engineering Support. This involves a set of preventive measures led by our Risk Assessment Manager.

Subsequently, attention must be given to product insurance (e.g., safeguarding through Product Recall insurance in the food industry). Ensuring business continuity (Business Interruption), civil liability insurance, and transportation insurance (especially for companies with their own vehicle fleets).

Inflationary Challenges

It’s crucial for industrial companies to constantly monitor asset valuation. Losses in this sector can be spectacular. With huge fires ravaging production or warehouse facilities, regular flooding, and disasters making headlines. Risky industrial enterprises can incur massive property losses in an instant. In times of rising prices (including construction materials), there’s a risk that even with a good insurance program, the received compensation may be insufficient to cover losses.
Therefore, regular updates to asset values are essential. At STBU, we assist industrial firms in assessing asset values. Especially in key locations for the company, with each insurance program renewal. We utilize both insurer-provided technology and the vast experience and tools of our long-standing employees.