Allianz UK has updated its Commercial Select manufacturing proposition, adding higher limits and broader cover for production disruption, supply chain problems and employee injury, giving mid-market manufacturers a clearer view of how insurers are responding to the interconnected risks of automated, just-in-time production.

The proposition targets manufacturers with turnover between £10m and £1.5bn and is the second sector update in Allianz’s mid-market refresh, following wholesale and retail in September, with further sectors due in the second half of 2026.

Employee cover now includes psychological treatment after workplace injury, while environmental cover includes pollution clean-up costs and allows damaged machinery, plant, fixtures and fittings to be replaced with more environmentally friendly alternatives.

Business interruption sections include product liability, financial loss and recall extensions, with an optional machinery damage business interruption cover; limits for operational errors and omissions and faulty workmanship have increased, and the supplier extension has been enhanced to respond to supply chain problems.

Customers also receive reputational support after insured incidents and access to Allianz’s engineering inspection and compliance services, covering lifting equipment, power presses and pressure systems, PUWER assessments and COMAH examinations.

Allianz UK, part of Germany-headquartered Allianz Group, provides commercial insurance to UK businesses through its Commercial Select mid-market proposition.

Rob Carslake, head of Commercial Combined at Allianz UK, said that when something goes wrong, the impact can quickly extend beyond physical damage to employees, production, customer relationships and future plans, and that combining insurance with prevention services lets brokers cover protection and risk management in one conversation.

The update reflects insurers responding to where manufacturers lose most money, with Allianz saying business interruption often costs more than physical repairs as automation, AI and just-in-time processes leave less slack.

Allianz has found the average business interruption claim is now 70 per cent larger than property damage.

For the sector, pricing pressure is driving insurers to compete on cover breadth and services, with UK commercial rates down 8 per cent in the second quarter according to Marsh, giving manufacturers leverage to seek wider cover at renewal.

The wider signal for the sector is that manufacturers’ interconnected risks across people, production and suppliers are now being insured as one proposition rather than separate covers.

Source: Insurance Business UK / Marsh