Manufacturers are often seen as producers of finished products. Manufacturers use the raw materials and sub-assemblies made by other producers to create their products, which is ultimately sold to consumers in the market.
Having played an important role in the supply chain, it is important to make sure that these entities are sufficiently protected such that they could continue to deliver value products with a peace of mind.
Who exactly is the manufacturer?
It can be any company or person that makes an unfinished product, finished…. It’s that simple really. It could be the company that produces things you find in the supermarket shelves, retail outlets, car showrooms… or even Japanese restaurants that serves you Ebi Tempura set from prawns they have caught/gotten from the sea/wet markets.
In a nutshell, the manufacturer is someone whom has created a product that delivers value to consumers like us, by transforming raw materials to a finished product that is ready for consumption
What Insurance Do Manufacturers Need?
It all depends what products/ services is rendered by the manufacturer, how the business is conducted, or even how closely intertwined it’s role in the supply chain.
Take for example.
Primitive land farming would require more farmers in the fields as compared to industrial farming which uses agriculture machineries…
Or an industrial factory in suburban areas would demand the use of more factory workers as compared to the use of technology (robotic arms in car assembly factories) for more technologically advanced manufacturers.
We could also determine what insurance cover the manufacturer needs by matching the policy insured activities & policy limits to its business liabilities. Using the same example above, land farming by use of farmers will need to purchase Work Injury Compensation Insurance (WIC) to cover against events of injury/ or death caused by unforeseen accidents in the field, whereas the latter agricultural company will need to buy Machinery All Risk/ Electronic All Risk Insurance to cover your machinery, which is necessary for the running of your business against unforeseen and sudden physical loss or damage.