RSA highlights risks for recovering manufacturers
RSA is convinced that economic recovery is on its way and warning UK manufacturing businesses to check out their insurance cover as orders increase.
Since mid-2007, orders have decreased significantly, resulting in substantial job cuts and site closures.
However, new figures from manufacturers’ organisation, EEF, show growth in both output and orders, and the insurer has identified risks that could be facing companies that have downsized during the recession.
Firms may increase their stock of goods and materials, employ casual labour and work longer hours, and with this in mind, RSA recommends:
Business contents insurance may need to be increased to cover additional materials on the premises.
Employer’s liability and product liability cover are essential where tight deadlines may require staff to work longer hours, or at a pace that can lead to accidents and mistakes.
Where temporary staff are brought in, employers should ensure that they are sufficiently trained and abide by health and safety regulations.
RSA’s UK head of communications, Jon Sellors, says: “With news that the manufacturing sector is improving, competition for orders will be fierce and many companies may over-promise to secure contracts.”
He adds: “It is essential that companies approach their insurance broker for risk management advice in order to best take advantage of this current industry growth.”
Category: Business Insurance News, Insurance News, Royal & Sun Alliance News
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