Risk Management and Insurance for Manufacturers

Risk Management and Insurance for Manufacturers

Insurance is an integral part of any business, and accounts for the success of companies’ worldwide. Without insurance, many businesses would be forced to close their doors due to lawsuits, which would eventually lead to their bankruptcy. But beyond insurance is a need for a solid risk management plan that reduces the risks and exposures associated with claims for faulty products, negligence, and other areas where litigation results.

Here in Southern California, the manufacturing industry is both large and diverse. While the need for insurance for manufacturers is evident because of the enormous amount of issues associated with running these types of enterprises, it is in risk management that problems can be viewed and discussed, and solutions to problems be formulated.

Safety training and risk management go hand in hand

Working in a factory certainly poses some inherent risks, along with dangerous situations that may spring up unexpectedly, which are why having proper precautions and safety procedures in place can ensure a safer workplace. For example, in order to reduce manufacturing workers’ compensation claims, make safety a priority. Having a safety manager, weekly meetings, and allowing workers to chime in with their own concerns and observations can go a long way towards creating a safer, and happier work environment.

Providing safer working conditions

Every manufacturing facility is different, and therefore workplace conditions will likely vary. Depending on the type of facility that you own or operate, specific rules should be in place regarding the safe handling of material and safe practices in general. Instruct workers about the dangers of loose clothing and hair, the wearing of jewelry (that could potentially get stuck in machinery and cause them injury), and open-toed shoes. The proper gear, clothing, and safety wear must be required to be worn at all times in order to reduce worker injury.

Having insurance for manufacturers in place, along with a commitment to sound risk management and a deeper awareness of the changing risk landscape will help ease many of your concerns and put you in a better position to deal with new and growing concerns, both locally and globally, as well as seize opportunities as they emerge.