Your sector

Industry and workshops: anticipating production dependencies

One machine out of action can disrupt your entire production programme.

Starting from what you actually do.

The value of equipment and its importance to production are two different questions. A fully depreciated machine may still be essential, while replacing it requires installation, testing and available expertise. We assess these dependencies against the policies and continuity options.

Your workshop may also receive goods entrusted to it, work at a client's premises or subcontract an operation. These practices need to be reflected in the description of activities and responsibilities, rather than assuming the label 'industry' is sufficient.

In your day-to-day work

Three situations to examine

01
A critical machine breaks down
Distinguish between repair, replacement and the impact on orders. Document alternative production options to assess physical damage and business interruption separately.
02
Maintenance is planned
Clarify who is involved, preparation and work organisation. Suva's maintenance notice highlights this prevention issue; insurance does not replace the technical procedures of competent personnel.
03
A delivered product or part is disputed
Retrieve the order, specifications and traceability records. Separate product defects, damage caused to third parties and replacement commitments before assigning an item to a policy.

Points to watch

Sums insured: check the inventory, optional features, installation and replacement quotations against the basis required by the policy.
Dependencies: identify parts, suppliers, lead times to confirm and the expertise needed to resume production.
Employees and subcontractors: clarify activities, goods entrusted to you and the allocation of responsibilities without implicitly delegating prevention.

How we support you

We organise the review with management, production and administrative managers. Equipment and client commitments form the basis for questions about cover and limits; technical specialists remain responsible for assessing installations. Changes to equipment, sites or subcontracting can then be tracked without starting again from an incomplete inventory.

Documents to prepare

Machinery inventory, optional features, sites and commissioning dates
Replacement quotations and maintenance arrangements
Production dependencies and alternatives
Client contracts, expected quality and subcontracting
Policies, declared values and transport of goods

Frequently asked questions

Your questions

Is net book value enough for a machine?

Not on its own. Clarify the basis required by the policy and document replacement, including the relevant cost items. The machinery breakdown guide helps prepare this review.

Is maintenance solely an insurance matter?

No. Prevention and technical organisation remain essential. Policies then need to be reviewed for the events and liabilities actually covered.

Does liability insurance cover the cost of simply correcting a product?

Do not assume so. Distinguish between the correction itself, damage to third parties and your contractual commitments, then ask how the policy treats them.