Why having the right coverage is crucial for manufacturers

Why having the right coverage is crucial for manufacturers | Insurance Business Canada

Insurance News

Why having the right coverage is crucial for manufacturers

Expert talks shop about manufacturing risks

Insurance News

By
Mika Pangilinan

With the rapidly evolving technological advancements and the increasing use of automated operations, Canadian businesses face new challenges that can significantly impact their operations.

In a recent interview with IBTV, Ryan Jones, associate vice president, equipment breakdown at Sovereign Insurance, discussed the risks facing Canada’s manufacturing sectors and the importance of having the right type of coverage in place.

According to Jones, Canada’s manufacturing sector is a significant contributor to the country’s GDP, with about 10% of GDP coming from this sector.

However, 93% of this sector is made up of small and medium-sized businesses that lack the foundation for research and development and implementing new technologies such as artificial intelligence.

Furthermore, Jones said a quarter of the manufacturing workforce will retire by 2030.

“I think this is where some of the challenges lie for our manufacturing sector in Canada, in the sense that we have to take the next step to digitize and we have to do it in a way that makes it easy for the businesses in Canada,” he said.

During the interview, Jones also emphasized the need for manufacturers to have the right coverage in place.

He specifically identified two types of boiler machinery coverage: one that is added to the property policy and the other that is standalone, adding that standalone equipment breakdown policy has its own definitions and coverages tailored to the manufacturing sector.

According to Jones, it’s crucial for businesses to evaluate their coverage needs carefully and ensure they have business interruption, expediting, and extra expense coverage.

“I talk specifically about expediting in extra expense with our business partners here at Sovereign, because those are the coverages that are going to allow our manufacturers to speed up or mitigate the amount of downtime they have and feel full autonomy and solving the breakdown that they have,” he said.