Making things is cool, and so is insuring manufacturers

by Alastair Lebo , Vice President, Commercial Lines, Intact

Brokers who specialize in serving manufacturing customers know how diverse this incredible industry is. Also, how large – at $174B, manufacturing makes up 10% of Canada’s GDP and is one of the country’s largest exporters.?

Impressive, right? We love the manufacturing sector at Intact. Every time we underwrite a manufacturer, we’re reminded of how diverse the sector is. And, we think we’ve come up with a very effective way of meeting its range of needs with our EDGE Complete product – as well as our overall “one size does not fit all!” approach to commercial lines insurance.?

How diverse is the manufacturing sector??

Consider these risks, all of which we’ve underwritten at Intact, that fall under the manufacturing umbrella:?

• A commercial bakery that produces bread and exports it across Canada and the US
• A manufacturer of coffee, tea, spices and herbs
• A kitchenware manufacturer
• A custom kitchen cabinet manufacturer
• A fast-growing craft brewing operation?
• A manufacturer of vinyl records?

Does the bakery need the same kind of insurance as the record manufacturer? Of course not. Also, does the any manufacturer need the same coverage in year one or two of operations, when it’s just starting out, versus year 10 in, when it’s expanding its operations? No. What they need is insurance that grows with them.?

We used to have dozens of packages – including manufacturing – at Intact too. By listening to brokers and customers, we found that tailored though these offerings seemed, they were simultaneously redundant and not tailored enough. Here’s the paradox of every business we insure: It’s completely unique… but also, it has some core needs.? Whether it’s a bakery, a commercial pottery or a growing brewery and distillery operation – we’ve underwritten them all – each business insurance quote starts with a property and contents package.??

After that? We customize with EDGE Complete and Liability EDGE.?

How do you customize coverage for manufacturing??

EDGE Complete is Intact’s comprehensive extension package, and Liability EDGE is its sister liability extension package. EDGE works extremely well for manufacturing customers.?

It has extensions specifically designed for manufacturers and assemblers of low- to medium-hazard components and products, as well as manufacturers of all sorts of consumer products, including housewares, metal work, plumbing supplies, food products – like the commercial bakery customer above – and more.??

The customizable property extensions cover moulds and patterns, brands and labels, new generation professional fees, exhibition floaters and precious metals.??

The business interruption extension – so important today – includes multiple options that can be tailored to the risk and the customer.?

Then there’s liability – which includes product recalls and failure to manufacture to written specifications.?

The best thing about EDGE is that it lets each manufacturing customer end up with precisely the insurance package they need – and the ability to add or remove extensions as their business changes.?

Do you have a favourite type of manufacturing risk??

Manufacturing is diverse and complex – that's why we love looking at risks in this sector. They’re exciting and offer a great opportunity for insurer-broker collaboration to get a full picture of each customer’s story and the specifics of each risk.??

Under the broad manufacturing umbrella, we underwrite a variety of risks and we don’t want to close a door on a risk just because we haven’t written it yet.??

We like being a generalist. It means we have a diverse risk base, which is one of the ways we balance our exposure – and why we’re able to take on some larger or more unusual risks. It may take us a little more time to assemble the right quote and package for a new type of manufacturer – but we think EDGE has all the pieces they need. Between that, and the extensive specialty lines coverage Intact offers, we’re in a solid position to underwrite many larger risks without needing to subscribe (that is, ask another insurer to share the risk with us).??

Where can I learn more??

We’ve got a wealth of information about the manufacturing sector and EDGE available on both intact.ca and, exclusively to Intact brokers, on the Intact Portal.?

Intact brokers, you may also enjoy these Pathways courses – available to you at no cost on the Intact Portal – to help you support your manufacturing customers better:?

• Manufacturing Essentials – Ground yourself in the needs of this critical industry (1 hour eLearning)?
• Broad Form Property and EDGE Complete – It all starts here! Learn about base property coverage – and how it can grow for and with your customers (1-hour instructor led session)?
• Introduction to CGL – Commercial general liability is a must in the manufacturing sector! Build your understanding of CGL quickly (1-hour eLearning)?
• CGL Max & Liability EDGE – Take your commercial liability understanding to the next level (choose from 1-hour eLearning or instructor-led session)?