Manufacturing and Wholesale Insurance is protection against the specific risks that this business type can face. Usually alongside the standard business covers like Public Liability, Employers Liability, stock and buildings you also may need to cover the product itself.
Manufacturing Insurance and Product insurance will cover your business against a claim made against the design or a fault in the product. This extends to if you are wholesaling the product and it has your company name on the side.
Looking at the Consumers Protection Act 1987 this is written in law.
Prohibiting the manufacture and supply of unsafe goods
Making the manufacturer or seller of a defective product responsible for damage it causes
Liability is placed on the business who;
Produced the goods.
Added their company name or logo to the goods.
Imported the goods from outside the EU.
Examples of manufacturing insurance claims
Imagine that a staircase you have built collapse and injure a member of the public or third party, your public liability insurance policy will cover you against any claim.
Suppose your business imports a product from outside the EU for resale. The product is faulty and causes injury to a 3rd party. Your products liability can pay damages that may arise from any legal action taken against your business.