Manufacturing machinery for your clients can be an ever-changing environment, with production techniques changing, advancements in technology and unique customer demands.
With this constant change you need to ensure you can protect your business from some of the common exposures highlighted below:-
Service Maintenance & Repair
As well as supplying the original machine you will no doubt want to put a maintenance programme in place to provide a regular revenue stream and also ensure the machine is well maintained to avoid potential issues with customers if it shut down.
You will need to note with your insurers the percentage of your turnover and wages dedicated to this as the work will be deemed a different risk to your main function and also one that requires your staff to visit clients premises.
Also watch out for any heat work and ensure this is notifed to insurers at all times.
Always complete a hot work risk permit too.
As part of your production line you may move your own machinery around the help with certain production lines or create space for bespoke orders. As such you will not be covered under your commercial combined insurance and will need to obtain a machinery movement policy instead, all you need to do is work out maximum value of any one machine you will move and how much you would move each year.
Obviously, machines are usually big items of kit and need to be transported to your customers, as such you will need to establish who has responsibility and when for delivery.
Check your contract with your client and just make sure you are both clear on where the responsibility lies to insure the machine in transportation, it is often presumed its the other party and often forgotten about leaving the machine uninsured.
A few scenarios could be:-
4. You are responsible from door to door
5. You are responsible from door to installation
6. They are responsible from door to installation
7. They are responsible on pick up once loaded to transportation
Exporting your machines
Exporting your machines is fantastic for your global exposure as a leader in your field however dependent on what your machinery is looking to do and in what country could have significant implications to your insurance.
This is especially true if you are exporting to the USA, sense check the ramifications to your cover before you explore exportation.
Look here for any help with exportation with Chamber of Commerce https://www.lancschamber.co.uk/export/
Providing training to use your machines
Usually once a machine is installed you will need to train people on how to use it in the correct way. As such you will need to have a small amount of professional indemnity insurance to protect you from any claims against the advice and instructions you provide.