Business Types
Insurance for Manufacturers & Importers.
Importing a product can leave a business carrying the same liability as the manufacturer, whether or not it made the product itself. Cipher Insurance arranges cover around exactly that kind of exposure.
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This is worth a look if…
Why Cipher
De-ciphering insurance
Wording translated into plain language, not left as fine print.
One broker, always
The broker who places your cover is the one who handles your claim.
Claims fought, not filed
We advocate on the claim itself, not just lodge it and step back.
Registered NSW Government supplier
Corporate Authorised Representative of Metrix Connect Pty Ltd (AFSL 525491)
Claims Scenarios
Situations where cover may respond.
The following are illustrative examples, not a record of actual claims. This is not an exhaustive list and whether cover responds depends on the specific policy and circumstances.
I
An imported component turns out to be faulty
A business imports a component that's later found to have a manufacturing defect, and because importers can carry liability similar to the actual manufacturer, a claim from an injured end user is directed at the importer rather than the factory overseas.
II
A recall is triggered after goods reach the shelves
A contamination or safety issue is identified after a product has already reached retailers, and the cost of retrieving, replacing and disposing of the affected stock falls to the business that put it into the market.
III
A production line machine fails mid run
An internal electrical fault stops a piece of production machinery mid shift, and the cost of repair and the lost production time falls on the business. Machinery breakdown cover may respond to the mechanical failure itself.
IV
A visitor is injured on the factory floor
A delivery driver or visiting client is injured while on site at a factory or warehouse. Public liability cover may respond to the third party claim that follows.
Why this is different
Manufacturing and import risk follows the goods, not just the factory.
Liability that follows the goods, not just the site
A business that imports goods can end up carrying much the same liability as the manufacturer, particularly where the actual maker has no presence in Australia. This applies whether the goods are sold on immediately or built into something else.
Recalls are a recurring cost, not a rare event
The ACCC has reported around 650 consumer product recalls a year in Australia, and only around half of the affected products are ever returned. A product liability claim and a product recall are two different exposures, and cover for one does not automatically include the other.
Two different ways a machine can fail
A production machine that's damaged in an accident is a different exposure to one that fails internally from wear or an electrical fault. Manufacturers who own their equipment often need cover for both, not one instead of the other.
Who we work with
Manufacturers, importers and everything in between.
This is not an exhaustive list. If your business isn't listed here, give us a call.
Metal Fabricators
Cutting, welding and assembling metal components and structures in a workshop or factory setting.
Typically needs: Public Liability · Business Pack · Plant and Machinery · Machinery Breakdown
Machinery & Plant Manufacturers
Designing and producing machinery, plant and equipment for other businesses to use.
Typically needs: Public Liability · Business Pack · Plant and Machinery · Machinery Breakdown
Food & Beverage Manufacturers
Processing, producing and packaging food and beverage products for sale.
Typically needs: Public Liability · Business Pack · Plant and Machinery · Machinery Breakdown
Importers
Bringing finished goods or components into Australia for resale, distribution or use in production.
Typically needs: Public Liability · Business Pack
Exporters
Sending Australian made or sourced goods to overseas markets.
Typically needs: Public Liability · Business Pack
Wholesale Distributors
Warehousing and distributing goods to retailers, trade customers and other businesses.
Typically needs: Public Liability · Business Pack
Key Coverage Areas
Covers that work together, not one policy in isolation.
Public Liability
Often extends to product liability as standard, designed to respond where goods a business manufactures, imports or supplies cause injury or property damage.
Business Pack
Designed to cover stock, premises and the interruption side of running a manufacturing or distribution business.
Plant and Machinery
Designed to cover production equipment against accidental physical loss or damage.
Machinery Breakdown
Designed to cover internal mechanical or electrical failure of production equipment, a different exposure to accidental damage.
Cost & Insurer Panel
What it costs, and who we place it with.
Indicative only. Every business is different, and the only way to get an accurate figure is to talk through your specific situation with us.
What does this typically cost?
Public and Products Liability Insurance
The cost varies significantly depending on the nature of your business. Lower risk businesses can generally pay from around $500 to $1,000 per year for standard cover. Businesses with regular client or site interaction typically pay between $1,000 and $3,000+ annually. Higher risk occupations including construction, labour hire and events can pay well above $10,000 per year.
Full cost breakdown →Business Pack Insurance
Business pack premiums vary depending on the industry, the value of property insured, the business revenue, the sections and limits selected and the claims history. A small office or professional practice with modest contents can attract premiums from $500 to $2,500 per year. Retail, hospitality or trade businesses with larger property values and higher public liability exposure typically pay more.
Full cost breakdown →Plant and Machinery Insurance
Premiums for plant and machinery insurance are often calculated as a percentage of the total sum insured, typically in a range of around one and a half to four percent depending on the type of plant, how it is used and the industry it operates in. A $200,000 excavator could therefore carry an annual premium anywhere from around $3,000 to $8,000. Higher-risk uses such as demolition, mining or civil works, older equipment and a prior claims history all tend to push the rate toward the upper end of that range. These are general market ranges only. An accurate premium requires an underwriter assessment of your specific plant and operations.
Full cost breakdown →Machinery Breakdown Insurance
Machinery breakdown premiums are calculated on the sum insured needed to repair or replace the specific components that could fail, not the full replacement value of the machine, so the insured amount and the resulting premium are typically well below what a total-loss property or plant policy would carry for the same equipment. As a general guide, a well-maintained piece of equipment in a lower-risk industry, such as commercial HVAC, lifts or a generator, can attract an annual premium from around $1,000 to $3,000, while a manufacturing production line or processing plant with higher breakdown frequency or older equipment can range from $3,000 to $10,000 or more. Inclusion of a business interruption extension will also affect the premium.
Full cost breakdown →What drives the premium?
Which insurers do we place this with?
If your situation falls outside standard criteria, we have access to further insurers who can help.
Want a figure specific to your business, not a range?
How We Work
From enquiry to settled claim, one broker throughout.
Tell us what’s going on
A phone call or the enquiry form, straight to a broker, not a queue.
We go to the market
We take your situation to our panel and compare cover and price on your behalf.
We explain it, then bind it
You see the options in plain language before anything is signed off.
We stay the contact if you claim
The broker who placed your policy is who you call when something happens. Advocacy does not stop at settlement.
FAQ
Questions manufacturers and importers ask us.
Every business is different. These answers reflect general market practice. Speak with a Cipher Insurance broker for guidance specific to your situation.
Last reviewed July 2026.
What insurance do manufacturers need in Australia?
Most manufacturers carry public liability insurance for the product liability protection it typically includes, alongside a business pack for stock and premises and plant and machinery or machinery breakdown cover for production equipment. The right mix depends on whether the business owns its equipment, imports components or distributes finished goods.
Am I liable for a product I import even if I didn't manufacture it?
Yes, this is worth understanding clearly. A business that imports goods can end up carrying much the same liability as the manufacturer, particularly where the actual maker has no presence in Australia. This can apply even where the importer had no involvement in how the product was made, and it's worth discussing directly given how it applies to your specific situation.
Does product liability insurance cover product recalls?
No, these are generally separate covers. Product liability responds to a claim that a product caused injury or property damage. A product recall responds to the cost of retrieving, replacing or disposing of affected stock, regardless of whether anyone has been injured. Businesses that manufacture or import physical products often need to consider both.
How many product recalls happen in Australia each year?
The ACCC has reported around 650 consumer product recalls a year in Australia, and only around half of the affected products are ever returned to the seller.
Do importers need public liability insurance?
This is still worth considering. Public liability responds to injury or property damage caused by a business's activities, which can include goods the business imports and supplies, not just physical premises or site work. Many public liability policies extend to this as standard, though the conditions are worth confirming.
What's the difference between product liability and public liability?
Public liability responds to injury or damage caused by a business's activities generally. Product liability responds specifically to injury or damage caused by goods a business manufactures, imports or supplies. Many public liability policies include product liability as a standard extension, though the conditions vary and are worth reviewing, particularly for businesses that import or manufacture goods.
What's the difference between machinery breakdown and plant and machinery insurance?
Plant and machinery insurance is designed to cover accidental physical loss or damage from external causes such as accidents, theft, fire and transit incidents. Machinery breakdown insurance is designed to cover loss or damage caused by internal mechanical or electrical failure. The two covers address different failure modes and are sometimes held together depending on the equipment involved.
Does business insurance cover goods lost or damaged in transit?
This depends on the specific policy and the type of transit involved. Cover for goods in transit between a business's own sites is sometimes included as an extension to other covers, while goods in transit overseas or with a third party carrier typically call for a separate transit or cargo insurance arrangement. This is worth discussing directly given how differently it can apply.
Do I need cover for goods stored in a warehouse I don't own?
This depends on the terms of the storage or warehousing agreement and who holds responsibility for the goods while they're stored there. Standard property cover is generally built around premises a business owns or leases itself, so goods held in a third party warehouse are worth raising directly to confirm how they're covered.
What information do I need to get a quote?
Insurers typically ask for the nature of the goods manufactured, imported or distributed, annual turnover, the value of stock and equipment held, claims history and the cover limit required. A broker can help present this information accurately to the market.
Can I get cover if I've been declined by an insurer before?
A previous decline does not rule out cover elsewhere. Product liability for importers and manufacturers of certain goods is a specialist area, and a broker with access to the right panel can often place risks that a single insurer has turned down.
General Advice Only
The information on this page is general in nature. It does not take into account your individual objectives, financial situation or specific needs and is not personal advice. Before acting on any of this information, consider whether it is appropriate for your circumstances and read the relevant Product Disclosure Statement before making any decision to purchase an insurance policy. If you need advice tailored to your situation, speak with a Cipher Insurance broker directly.
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Fixing or fabricating steel on-site rather than in a workshop? See High Risk Trades →
