NIBA / Special Feature
Business continuity plans (BCP) may seem like an obvious must-have – but many businesses, particularly in the SME space – operate without them. In fact, figures from the Australian Small Business & Family Enterprise Ombudsman (ASBFEO) show that three in four businesses don’t have one. And, while the reality may be that the majority of business continuity plans are never needed, it’s smart to have one there just in case. “Many manufacturers, especially smaller ones, still lack a formal plan, often due to a belief that it is not necessary or a lower perceived priority,” says Finianos. DOES YOUR MANUFACTURING CLIENT HAVE A BUSINESS CONTINUITY PLAN? Elizabeth Pace, Marketing & Communications Manager at Ocean Underwriting, says, “Every manufacturer, and every business for that matter, should have a clear, practical business continuity plan that outlines how operations will be maintained, or restarted, after an unexpected interruption. Some key components might include: • Alternative suppliers for critical business operations and/or materials • Clear communication frameworks for employees, partners, and customers • Cross trained staff for key operational roles • Contingency arrangements for plant or equipment failures • Cyber response procedures and secure offline backups • Shutdown and restart procedures tailored to specific machinery and processes
“Right now, three categories stand out: metal fabrication, shopfitting, and food and beverage manufacturing,” says James Tuitavuki, Head of Liability at Ocean Underwriting. “Metal fabrication carries the expected exposures; for example, heat processes, welding, cutting, heavy machinery, where a single failure in maintenance or supervision can spiral quickly. Shopfitting risks might arise from a mix of workshop production and onsite installation, where working conditions can change daily. Food and beverage manufacturers deal with a multi-faceted set of risks tied to hygiene, temperature control, production line reliability, and complexities associated with increasing automation. “Across all three occupations, however, the commonality is operational pressure – tight deadlines, lean staffing, and ageing equipment all contributing to increased exposure if not very carefully managed.” A Floating Sauna... And Other More Unusual Manufacturing Risks Did you hear the one about the floating sauna? No, it’s not the lead in to a comedy club one-liner, it’s just one of a number of new and emerging risks that have come across the desks of insurers and brokers over recent months – and a reminder of the continual innovation going on across the country. Alexandra Merida, Liability Underwriter at Ocean, says, “Although it sounds like something built for Tik-Tok tourism, the underwriting reality is complex. “You’ve got potential fire exposure on water, onboard electricals, public access, and environmental considerations all in one spicy package. It’s a great reminder that manufacturing innovation is alive and well, and insurers need to understand the full operational picture before assessing the risk.” The world of manufacturing is broad, and naturally brings with it a range of risks that you’d never have considered until the time comes to do so.
52 / INSURANCE ADVISER DECEMBER 2025
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