Are Rising Costs Putting Pressure on Your Business? Your Insurance Should Be Working Harder

If you operate a rotomoulding business, you are likely already feeling the impact of higher polymer prices, increased shipping costs and ongoing uncertainty in global supply chains. For many operators, polyethylene and other key inputs represent a major portion of production costs. When those costs rise quickly, it puts pressure on margins, quoting, stock management and cash flow.

While you may not be able to control global resin pricing or freight rates, you can control whether your insurance programme is still competitive. Insurance is often one of the biggest fixed costs for manufacturers. If your renewal has simply rolled over each year without a proper market review, you could be paying more than you need to, or carrying cover that no longer properly reflects how your business operates today.

 

The Market Has Shifted, and That Creates Opportunity

After several years of difficult insurance market conditions, many parts of the commercial insurance market are now more competitive. For manufacturers, this is particularly relevant across property, business interruption, public liability, products liability and certain other commercial lines.

This does not mean every business will automatically receive a cheaper renewal. Insurers still look closely at fire protection, housekeeping, claims history, storage of raw materials, risk management, machinery, business continuity and the nature of products being manufactured. However, where a business is well presented to the market, there is often more room to negotiate than there has been in recent years. That is where the right broker can make a meaningful difference.

 

Why Rotomoulders Need a Specialist Review

Rotomoulding businesses have a unique risk profile. You may be dealing with high value machinery, heat based processes, polymer storage, imported materials, custom moulds, product liability exposure, contract manufacturing, transport risks and business interruption concerns if a key machine or site is damaged. A standard manufacturing insurance review may not go deep enough. At KBI Insurance, we understand the types of questions insurers ask and how to present rotomoulding businesses properly. A strong submission can help insurers understand the quality of your operation, rather than simply treating you as another plastics manufacturer. That can influence premium, excesses, policy conditions and the breadth of cover available.

 

Loyalty is valuable, but complacency can cost you money.

Many ARMA members have long standing broker relationships. That can be a positive thing, but only if the relationship is still delivering value. The risk is that some insurance programmes become stale. The same insurer is used year after year. The same renewal strategy is followed. The same assumptions are made about what is available in the market. In a changing insurance market, that approach can cost you money. A proper review does not mean you need to change broker or insurer immediately. It simply gives you a clear view of whether your current programme is competitive and whether your cover is still aligned with your business. At a time when raw material and freight costs are increasing, finding savings in your insurance programme can make a real difference to your bottom line.

 

What a KBI Review Can Identify

A review with KBI may help identify opportunities to:

• Reduce premiums where the market allows
• Improve policy coverage and remove unnecessary gaps
• Review property, liability and business interruption limits
• Ensure insured values are keeping pace with replacement costs
• Check whether product liability cover matches your actual operations
• Test whether your current insurer is still the right fit
• Present your business more effectively to insurers
• Benchmark your programme against similar rotomoulding businesses

 

For many businesses, the biggest benefit is clarity. You will know whether your current insurance arrangements are competitive, suitable and properly structured for the risks you face today.

 

Now Is the Time to Take a Fresh Look

Rotomoulders are currently dealing with enough cost pressure from polymer pricing, oil market volatility, freight disruption, labour costs and general business inflation. Your insurance programme should not be another area where money is being left on the table.

KBI works with manufacturers across Australia and has specific experience supporting businesses with complex operational, property and liability risks.If you are an ARMA member, now is a smart time to get a second opinion. A short review could uncover savings, improve your cover and give you greater confidence heading into your next renewal.

 

Contact KBI Group today to arrange an insurance review for your rotomoulding business.