Plastics Manufacturing Insurance
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20 of the Biggest Risks facing Canadian Plastics Manufacturers
No matter what your manufacturing company produces in Canada, chances are your products touch the lives of every Canadian at some point. Whether they’re intermediate or final products, those products are essential and cost-effective. But manufacturing plastics and plastic products in Canada is sometimes thankless and risky work. Canadian plastics manufacturing insurance brokered by the commercial insurance specialists at ALIGNED is designed to provide you with a comprehensive package of coverages that protect your moulding and casting operations.
This is BDO’s list of the top 20 risk factors facing manufacturers – including plastic manufacturers:
- Supply chain disruptions (suppliers, vendors, distributors)
- Regulations e.g. Canada’s 2021 ban on single-use plastics and plan for zero plastic waste by 2030.
- Labour costs (including retention and outsourcing)
- Economic conditions and disruptions in the market
- Environmental liability
- Threats to international operations
- Failing to successfully execute growth and/or efficiency strategies
- Foreign currency losses
- Mergers, acquisitions, partnerships and joint ventures
- Operational infrastructures such as information systems
- Drop-in demand for products
- Component and raw material costs
- Natural disasters and geopolitical events
- Access to capital, financing and liquidity
- International trade policies
- Innovation and consumer demand
- Litigation and lawsuits
- Product contamination and recalls
Canadian plastic products manufacturing insurance is designed to help manufacturers mitigate those risks that it can, including a majority of the risks on the above list.
How Plastics Manufacturing Insurance in Canada Keeps You Protected
The following are the coverages most commonly included in a Canadian plastics manufacturing insurance package that also address several of the risks mentioned above. The package and the coverages are customizable to fit the needs and budget of your plastics manufacturing company.
Commercial General Liability Insurance(CGL) which can cover your legal fees for lawsuits alleging personal injury, property damage, libel/slander and false advertising. A CGL policy will typically also include Product Liability Insurance for legal claims of bodily injury or property damage caused by the plastics you’ve manufactured. Lawsuits don’t need to have merit to cost you money to defend.
Product Recall Insurance can provide coverage for recall costs including replacement costs, disposal fees, testing costs and brand rehabilitation expense.
Pollution Liability Insurance which can provide your Canadian plastics manufacturing company coverage for cleanup costs, fines and legal expenses related to pollution and waste disposal liability.
Accounts Receivable Insurance can help protect you from losses due to uncollectable receivables. We highly recommend this coverage for plastics manufacturing company who do business outside of Canada as coverage can include losses due to political or other unrest in foreign countries.
Cyber Liability & Privacy Insurance which answers liability concerns facing Canadian plastic products manufacturers who are concerned with cybersecurity. Cyber liability coverage can help offset the costs of a cyber breach including system repairs, data losses, ransomware costs and notification costs.
Property Insurance provides structure and content protection including building, equipment, machinery, supplies, assets, etc., in case of perils such as fires, floods, windstorms, sewage backups and more. You may also want your Canadian plastics manufacturing insurance to include coverage for:
- Business Interruption which can help you manage your operating costs after a named peril; and
- Extra Expense for the costs to set up a temporary plastics manufacturing location while your damaged plant is being repaired.
Boiler & Machinery Insurance / Equipment Breakdown Insurance provides coverage for machinery and equipment failure costs of repair and the losses associated with it. This can include moulds, injection units and other plastics manufacturing machinery as well as HVAC systems and office equipment.
Cargo Insurance protects your shipments from loss or damage of cargo, stock throughput risks and supply chain / trade disruption interruptions, among several other shipping risks.
Directors & Officers (D&O) / Board Insurance for Canadian manufacturers with directors, officers and board members. D&O insurance protects your company leaders from legal claims of negligence and other ‘wrongful acts’.
Commercial Auto Insurance / Commercial Vehicle Insurance fleet protection for your Canadian plastics manufacturing company’s commercial vans, trucks and company vehicles.
What is plastics manufacturing insurance?
Plastics manufacturing insurance is a type of commercial insurance designed with the unique needs of plastics manufacturing operations in mind. Traditional business insurance can leave your business vulnerable to all types of risk. But when you purchase specialty plastics manufacturing insurance, you can be protected against product recalls, pollution and waste disposal liability, uncollectable receivables, foreign currency losses, cyberattacks, and more.
Please note that plastics manufacturing insurance is high risk, given that a fire could destroy an entire project or manufacturing facility, and therefore can be difficult to place. However, the experts at ALIGNED Insurance can help you navigate the insurance industry to find a policy that’s right for your plastics manufacturing business.
What type of coverage do I need as a plastics manufacturing business owner?
As a plastics manufacturing business owner, it is up to you to decide which coverage to include with your policy. Basic coverage may consist of commercial general liability insurance and commercial property insurance. However, you might find it beneficial or even necessary to purchase additional coverage like cyber liability insurance, pollution liability insurance, product recall insurance, equipment breakdown insurance, accounts receivable insurance, commercial auto insurance, and more. If you aren’t sure which coverage to buy for your plastics manufacturing business, contact ALIGNED today.
How can I purchase plastic manufacturing insurance?
You can purchase plastic manufacturing insurance with ease thanks to ALIGNED. We offer customized insurance solutions to all manufacturers in the plastics industry. Get in touch with ALIGNED today or click here for a free quote.