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Manufacturing
Manufacturing companies face a host of risks, including some that are frequently overlooked. In addition to the property, business interruption, liability, and product risks, manufacturers must identify and address the indirect exposures that can result in a significant loss, and then consider the options for addressing them.
What sets RMC apart is our approach. Unlike many brokers, we do not consider insurance to be the only or even the best option for every risk. Loss control, duplication of supply sources, redundancy, backup of computer records and files, alternative transportation systems, and analysis of worker injury trends and severity are all crucial to reduce loss and protect your cash flows. Only when these are properly identified and quantified by your financial and operations personnel can a tailored program be developed to minimize the risks.
With that in mind, how would you answer the following?
- Have you considered how your business would be affected by a loss that does not involve your facilities? Do you rely on a sole supplier for some of your raw materials, and if so, have you quantified how your ability to manufacture your product would be affected if that supplier was unable to make its deliveries to you? It may be that contingent business insurance should be purchased to protect you in such a situation, but at what price? The same holds true for retailers who market your final product.
- Is any part of your product manufactured overseas, in plants that are owned by you or others? If so, have you considered the impact of a natural disaster in the area? What about political change or unrest, or even the confiscation or nationalization of your facility. It may be that political risk insurance should be purchased to respond to those risks.
- Do you use products in your manufacturing process that are potentially hazardous to human health or the environment? If so, what steps have you taken to protect your business from loss arising from the use of these materials? Do you have a proper containment system for their storage and ultimate disposal? What steps have you taken to mitigate suits from your employees and customers claiming to have been injured? It may be that environmental insurance should be purchased to respond to these claims.
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