ICA understands the vital risks facing manufacturers of specialty and staple products because professionals at ICA have owned or managed manufacturing businesses in different industries and in different states prior to joining ICA. Manufacturers that operate or transact business within the United States or internationally must face the reality that the global business world is always in a constant state of change, especially as the United States either departs from existing trade agreements or creates new trade agreements. From the threat of unforeseeable changes such as the effects of “trade wars” and supply chain risks that create new exposures, to the expected diminishment of key personnel in the industry at large – further exacerbated by new competition and the use of robotics — manufactures that are not kept abreast of their operational risks for proper management of their exposures may face a troublesome future.
Careful consideration should be given to the processes and procedures implemented by all manufacturers to ensure the safety of their workers be they employees or others. This applies to manufacturers that have their own facilities or contract with third parties to produce their goods. The survival of their organization sometimes depends on a manufacturer or other party staying out of the news and thereby preserving its reputation. In other cases, a manufacturer that utilizes its own designs or plans needs to address the specific risks associated with those designs compared to a manufacturer that produces goods designed by another party. In either situation, the liability imputed to either party could be different if the damages are related to the design of the product, and the company that produced the design was held accountable. Furthermore, recent data indicates that product liability damages awarded to injured plaintiffs over the past decade is the highest category of damages paid, even when compared to medical malpractice, negligence and workers compensation liability damages.
It is not uncommon for vendors and suppliers to these manufacturers to cause these businesses to be interrupted based on physical losses to the businesses of the vendor or supplier. Therefore, the business interruption of the manufacturer is contingent in nature and can be insured by the manufacturer. It is most important to identify in the supply chain those vendors and suppliers that would impact a manufacturer thus caused by a loss of this nature. Other critical components to build into an intelligent risk management program might include preparing for geographic or weather-specific perils, addressing foreign jurisdiction’s procedural risks, addition of or changing of laws, equipment malfunctioning or replacement including parts, proper education of employees in the use of machinery with safety controls, thereby mitigating accidents in the workplace and disaster management. ICA’s Risk Management Consulting – Comprehensive Service have proven vital to the functioning of manufacturing industry Clients, and to those who manage those businesses because ICA’s professionals have visited their operations all around the globe, thereby familiarizing themselves with these risks whenever possible. The following testimonial exemplifies ICA’s value provided to one of its Manufacturing Clients:
“We thought our insurance program was adequately priced… ICA compared our exposures to our existing risk management program, prepared specifications and arranged a competitive marketing strategy including brokers and insurance companies from all over the country who specialized in our risks. The end result was a one-year savings of 35% in premiums alone, yet at the same time our insurance coverage was significantly improved…”
– Manufacturing Industry Client
Contact ICA for a comprehensive list of client references.