Advanced Machinery

As you compete with global pressures from cheaper foreign competitors your investment into advanced machinery has increased which has changed the nature of your production line.

As such you will have a number of challenges:-

Machinery Movement

You may look to reorganize your production line as the advancements or new machinery becomes available as such you may be moving around expensive items of kit. As such you should always have machinery movement insurance in place if you are moving your items around, you can arrange this on a one off basis or have an annual basis.

Health & Safety

Textile manufacturing whilst semi automated is still one of the most labor intensive industries in the UK. As such your health and safety is paramount to protecting firstly your team and secondly your factory.

Training – with advancements in the technology the need for training becomes an essential skill in the textile industry.

If you arrange training for people outside of your company you may need to have professional indemnity to cover you for any claims against the advice and teaching you have provided.

Textile Cyber Insurance

The number one threat to any business reliant on IT to deliver a product, making sure you have assessed your potential cyber risks is essential to running a modern business.

Below are a few things to look out for when looking at insuring your Cyber exposures.

Cyber crime

Usually you will buy in raw materials in enough quantity to keep your factory running, one area cyber criminals are targeting is to look at social engineering where they pretend to be your supplier hacking into your emails to copy invoices and change bank details. You then pay them and are at a financial loss as your bank won’t refund any money because you have physically made a payment to them. Make sure you have a verification process in place but then also a Cyber Crime Insurance policy to fully protect your business.

Production interruption

If a cyber criminal hacks into your system and shuts down your production line it could lead to a financial loss as you can’t service the orders or you spend additional time in catching up on the production.

Your biggest IT weakness

This is your people, they click on the phishing links, respond to emails. Ask you IT provider to do some tests to try and catch your staff out. Alternatively ask your Cyber Insurance provider to conduct some training, its usually free as part of the policy to help minimise claims.

Stock levels

The move to just in time delivery systems allow you to keep stock levels to a minimum. However there may be scenarios where your stock levels go above the normal parameters such as

Large orders

You may need to retain more stock and raw materials to service a large order, you can usually flex your stock levels for a short period of time.

Off-site warehouse

You may have a regular batch of orders as such want to free up production lines so stock up on your regular products in an off-site warehouse. You can normally float cover across multiple sites allowing you to have confidence that you don’t need to tell insurers every time you move things around.

Stock at customer site

You may store stock at a distributor, wholesaler or a customers property. If they are responsible for the stock then make sure they have noted you as an interested party and have ‘goods in trust’ cover.

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We’re here to help and answer any questions you may have. Get in touch today to discuss how we can help make you risk resilient and provide financial wellbeing.

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The Guide to Risk Resilience During COVID-19

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