Manufacturing insurance protects your factory, machinery, workforce, products, and income against accidents, breakdowns, fires, recalls, and liability claims, keeping production running when the unexpected strikes.
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Manufacturing insurance combines multiple layers of protection tailored to the unique risks that factories and workshops face. In manufacturing, you're constantly dealing with expensive (and potentially dangerous) plant and machinery, complex supply chains, strict health and safety obligations, and the constant possibility that something you've made could cause harm downstream.
In other words, insurance can be the financial safety net that keeps your business standing when things go awry: When machinery fails, products need recalling, or a fire tears through your facility.
The right cover addresses all of that, and more. In this piece, we’ll look at insurance for manufacturers in greater detail, covering things like cost, types of cover and how to fund your premiums.
Manufacturing business insurance typically bundles several protections into one package:
It's designed around the reality that your operation involves high-value assets, interconnected supply chains, and regulatory requirements that don't leave much room for error.
Beyond protecting your own balance sheet, insurance is often a commercial necessity. Retailers, wholesalers, and other customers routinely demand proof of minimum liability limits before they sign contracts. And lenders will want to see that your assets are properly covered, too.
You’ll be on the hook financially if things go wrong. If a fire guts your factory, you're funding the rebuild yourself. When a machine breaks down and halts production for weeks, you're absorbing that lost revenue. If a product injures someone or damages their property, you're facing legal costs and compensation claims that could run into hundreds of thousands (or more).
A comprehensive manufacturing liability insurance package addresses multiple risk categories. Depending on your industry, you may have some more boutique requirements.
Yes, many insurers offer bundled packages that roll liability, property, and cyber into a single policy. This simplifies admin, but you’ll still need to verify that limits, exclusions, and aggregate caps work across all sections. Watch for business interruption (BI) waiting periods, cyber sub-limits, and whether certain perils or activities are carved out.
Different manufacturing sectors face different risks, and your insurance should reflect that.
Each sector comes with specific warranties – hot-works controls, dust extraction logs, sprinkler maintenance schedules – so make sure you understand and can comply with yours.
Manufacturing insurance cost varies widely depending on your industry, the hazards in your process, and the sums insured. Key pricing drivers include:
You can reduce premiums by improving risk controls: installing or upgrading fire suppression systems, maintaining rigorous dust management, investing in staff training and lockout/tagout (LOTO) procedures, documenting preventive maintenance, and strengthening site security.
Higher excesses, bundling multiple covers, and paying annually rather than monthly also typically lower the total cost.
Our Flexi-Loan can help here, too. Paying your premium annually usually unlocks a discount, but it also ties up working capital at a time when you might need cash for materials, payroll, or equipment. You can borrow what you need, benefit from the annual savings, and repay early without fees when cash flow improves.
Getting accurate, competitive quotes means providing detailed underwriting information upfront. Insurers will want:
When comparing quotes, make sure you're looking at like-for-like cover. Check liability limits (£2 million, £5 million, £10 million, or higher), the BI basis and indemnity period, whether equipment breakdown is included, recall and cyber sub-limits, cover for USA/Canada exports, deductible levels, and any warranties or conditions attached.
For complex processes, hazardous materials, or large BI exposures, consider working with insurance brokers who specialise in your sector. They'll have stronger insurer relationships and claims advocacy when things go wrong.
You'll also want clear evidence for customers and lenders: up-to-date certificates of insurance, policy schedules, endorsements, and BI worksheets for continuity planning.
Simple, lower-risk operations can sometimes find cover the same day. More complex or higher-hazard plants (or if you need large BI limits) may need physical surveys, engineering reports, and multiple rounds of underwriting. That process can stretch from days to several weeks.
Insurance premiums (particularly for comprehensive manufacturing industry insurance) can be substantial. And while paying annually often delivers the best value, tying up five or six figures in a single payment can strain your working capital just when you need liquidity for raw materials, wage bills, or equipment upgrades.
That's where iwoca comes in. Our loans work like a line of credit. We’ll approve you for a limit, and you can draw down on that money as needed. You can pay your insurance premium in full to secure the annual discount, and repay early without penalty when cash flow allows.
Our loans are designed to reflect the realities of running a manufacturing business: lumpy expenses, seasonal peaks, and the constant need to keep capital working efficiently. By working with us, you don’t have to pick between adequate protection and healthy cash flow.
Apply for finance with iwoca. It takes a few minutes. Once you’re approved, the money is ready to use in 24 hours. Apply for iwoca funding today.
