Insurance for Manufacturing

Insurance for Manufacturing Companies

Manufacturing in Singapore encompasses precision engineering, electronics assembly, food processing, pharmaceutical production, and more. What these diverse operations share is concentration of physical risk — expensive machinery, high-value raw materials and finished goods, hazardous processes, and a workforce exposed to industrial hazards every day.

The financial exposure for a manufacturer is significant. Your factory, machinery, stock, and work-in-progress represent a massive capital investment. A fire can destroy it in hours. A major equipment failure can halt production for weeks. A product defect can trigger a recall that costs more than the product line itself. Comprehensive insurance isn't optional for manufacturers — it's foundational to operating a sustainable business.

Common Risks

Workplace injuries. Factories are among the highest-risk work environments in Singapore. Machine operators, assembly line workers, and maintenance technicians face risks from moving parts, heavy loads, chemical exposure, and repetitive tasks. MOM requires WICA coverage for all employees, and the manufacturing sector consistently reports some of the highest workplace injury rates in the country.

Fire and explosion. Whether you're handling flammable chemicals, running high-temperature processes, or operating electrical systems in an industrial setting, fire risk is ever-present. A factory fire can destroy production equipment, raw materials, finished goods, and the building itself — and shut down your operations for months while you rebuild.

Production line breakdown. A critical piece of machinery fails, and your entire production line stops. The direct repair cost is one thing; the lost output, delayed customer orders, and potential contractual penalties are another. Machinery breakdown insurance — often paired with business interruption cover — addresses both the repair cost and the revenue impact.

Product liability. If a product you manufactured is defective and causes injury or property damage to the end user, you're exposed to product liability claims. For manufacturers supplying consumer products, food items, or components used in safety-critical applications, this exposure can be substantial.