Industries / Manufacturing and wholesale
Manufacturing and wholesale: the covers businesses usually need
Manufacturers, importers and wholesalers make or distribute goods that others use or resell. Their exposures are the products, the plant and stock, and goods on the move.
What can go wrong
The exposures that drive claims in manufacturing and wholesale.
Products that cause harm
A product injures someone or damages property after it is sold. Importers can carry the same liability as the manufacturer.
Recall and contamination
A batch is recalled after a fault or contamination, with costs to withdraw, destroy and replace it.
Plant and stock
A fire or machinery breakdown stops production. Large sites are usually insured under an industrial special risks policy.
Goods in transit and customers who do not pay
Stock is damaged or stolen between supplier, warehouse and customer, and a customer that becomes insolvent leaves invoices unpaid.
NoteProduct recall, machinery breakdown and trade credit are separate covers from general liability. The industry lookup lists the ones that usually apply.
Covers the lookup lists
What the industry lookup lists for typical businesses in this industry.
These are the results of the Cuttleflow industry lookup (release exp-0.7.0) for the businesses below, before any questions are answered. Answers about staff, vehicles, premises, contracts and the state change the list. Covers the lookup lists only as “consider” are left out here. Every class on the Commons wordings is available on Cuttleflow Go; “On Cuttleflow Go” links to the class. A Marketplace class is also placed by brokers through the Cuttleflow Marketplace.
- Furniture makers · ANZSIC 2519 Other Furniture Manufacturing
- Food manufacturers · ANZSIC 1174 Bakery Product Manufacturing (Non-factory based)
- Importers and wholesalers · ANZSIC 3739 Other Goods Wholesaling n.e.c.
| Cover | Lookup tier | Where it is written | Listed for | Why it is listed |
|---|---|---|---|---|
| Workers compensation | Must have Compulsory where it applies | Statutory scheme (depends on state) | All of these businesses | Employers must hold workers compensation cover in every state and territory, apart from limited wage-based exemptions. Depends on: how many employees does the business have, not counting owners. |
| General liability | Recommended | On Cuttleflow Go | All of these businesses | Almost every business deals with customers, visitors or other people's property, so it can be held liable for injury or damage. |
| Business package | Recommended | On Cuttleflow Go · Marketplace class | All of these businesses | The business has premises, stock or equipment that fire, storm, theft or water damage could destroy, and it would lose income while it rebuilds. |
| Motor fleet | Recommended | On Cuttleflow Go · Marketplace class | All of these businesses | Ten or more vehicles can be insured as a fleet, priced partly on the fleet's own claims record. Depends on: how many vehicles does the business own or lease for work. |
| Management liability | Recommended | On Cuttleflow Go · Marketplace class | All of these businesses | Companies and associations have directors or committee members who can be personally liable, and every employer can face employment claims. Depends on: what type of entity is the business. |
| Commercial motor | Recommended | On Cuttleflow Go · Marketplace class | All of these businesses | The business owns or leases fewer than ten vehicles used for work. Depends on: how many vehicles does the business own or lease for work; does the business own or lease vehicles used for work. |
| Industrial special risks | Recommended | Through your usual markets | Furniture makers, Food manufacturers | Larger factories and stock are usually insured under an industrial special risks policy instead of a business package. |
| Machinery and electronic breakdown | Recommended | Through your usual markets | Furniture makers, Food manufacturers | A breakdown of production machinery can stop output. |
| Contaminated products | Recommended | Through your usual markets | Food manufacturers | Food and drink can be contaminated in production, leading to recall and destruction of stock. |
| Goods in transit | Recommended | On Cuttleflow Go · Marketplace class | Importers and wholesalers | Wholesalers move stock between suppliers, warehouses and customers. |
| Trade credit | Recommended | Through your usual markets | Importers and wholesalers | Wholesalers sell on credit terms, so a customer's insolvency can cause a large loss. |
Classes on the Commons wordings
Classes for this industry on Cuttleflow Go.
Brokers
Win clients in manufacturing and wholesale
Put the industry lookup and an indicative price on your own channels, and take leads from the public marketplace when it opens. Place every risk once, with every market in the class, on the same wording.
Underwriting agencies
Write this business on Cuttleflow Go
Your own rates and rules on the Commons wordings, quoted to your brokers from day one and to Marketplace brokers when the class opens.
General information. This page is not advice about any business and does not recommend any insurer or product. The lookup’s rules are a first draft and have not yet been reviewed by an underwriter or a lawyer. Check each cover against the circumstances and the policy wording, and check compulsory insurance with the regulator in the relevant state. Industry classes: Australian Bureau of Statistics, ANZSIC 2006 (cat. no. 1292.0), © Commonwealth of Australia. Professional occupations: APRA National Claims and Policies Database.
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