Delta has launched a new manufacturing-risk product for Kiwi companies, which it believes is the most comprehensive coverage available in New Zealand.
Delta casualty manager & senior underwriter Dinesh Murali said manufacturing for the construction industry has grown by 9.5% while meat and dairy has jumped by 8.36% in the last year. He believes our climate makes manufacturing a good strategic choice.
“Across all manufacturing segments we regularly outsource manufacturing processes and source components from overseas suppliers and this supports an efficient global supply chain,” he said. “More competition means increased innovation and creating products in new and more efficient ways. But this also poses new challenges and risks in relation to quality control.
“Outside the food sector, we are also seeing a major trend where manufacturers are embedding technology into items such as equipment and machinery with these products becoming connected to the internet of things. This gives rise to risks such as cyber security which was not previously a concern for these items.”
It is because of this that Delta is providing manufacturing risk cover that is more comprehensive than before.
“We are a SME, middle market country, we don’t have many billion-dollar companies, so to suit the needs of small companies, we have put everything under one policy, as a package,” said Murali. “We’re trying to make it as comprehensive as possible by covering those individual sections under one umbrella.”
The new product, built on a general liability policy, will include product recall (food and non-foods), economic and financial loss and environmental liability among other elements.
“This cover under one umbrella targets both food and non-food manufacturers and insures a range of manufacturing-specific risks including coverage for product recall due to product defects and food contamination, cover for pollution arising from manufacturing process and crisis management cover. It can also be packaged with other coverages such as cyber liability,” Murali added.
“Beyond the direct financial impact, they could also suffer significant reputational damage if they do not have the resources and expertise to be able to manage some of these critical issues, such as product recall of contaminated products.”
Delta Insurance is a New Zealand based Lloyd’s Coverholder, and has an office in Singapore. Delta provide a range of specialty commercial insurance products.
Related stories:
Brother duo launch digital insurance offering
ANZIIF named Educational Service Provider of the Year
