5 most common metal manufacturing insurance claims

While metal manufacturers face many of the same risks as those in other manufacturing industries, they have unique risks that are specific to their operations. Understanding these common insurance risks can help you identify what parts of your business are most susceptible to the types of claims the metal manufacturing industry most commonly faces.

1. Products liability

Products liability can be a costly issue for all manufacturers. While the overall frequency of products liability claims has gone down slightly in recent years, the average settlements for claims are on the rise. The litigation involved in determining liability is complex and the costs incurred to prove you are not liable can be astronomical.

A products liability claim can apply to more situations than just when your product doesn’t perform as expected. If your product is combined with materials from another manufacturer, such as screws that form part of an HVAC system, any deficiency in the final product makes determining liability a lot more complex. Some manufacturers involved may not be insured, which further exposes your company as you may be the only manufacturer with recoverable assets. Cross-border trade can further complicate products liability claims as provincial and international laws regarding liability vary widely and your company could end up being the only party in a lawsuit in a given country.

2. Flooding

Heavy rainfall, flash flooding or rivers flooding low-lying areas are quickly becoming a growing issue for many businesses in Canada. For metal manufacturers, unwanted water can cause significant damage or loss to specialized equipment and metals used in metal manufacturing operations. If your workplace is vulnerable to surface water entry, you can face consequences such as work stoppage and lost revenue.

3. Water damage

Plumbing failures, including broken pipes, are other common causes of water-related damage that can result in costly repairs. These situations can range from rust to equipment to electrical controls becoming damaged beyond repair. Replacement costs may be significant and options for repair may be limited.

4. Fire

Educational efforts have significantly reduced the number of fire claims being reported, but this decrease doesn’t mean the risk has disappeared. Fire still poses a massive level of risk, and the costs incurred from this type of damage can affect your equipment and your building.

5. Theft

Instances of theft are quickly increasing and its significance in the metal manufacturing industry is on the rise. Carefully assess your business’s exposure to all theft-related risks including the following:

  • By-product theft and inventory loss
  • Employee theft
  • Cargo theft
  • Identity and data theft 

Insurance coverage

Your insurance broker is a valuable source of information for identifying and mitigating risk within your metal manufacturing business for the types of claims discussed in this article. Contact your broker for additional information or for any questions you have about protecting your business. If you don’t have a broker, use our Find a Broker tool to find one in your area today.


Facts of the Property and Casualty. (2017). Retrieved from Insurance Bureau of Canada: http://assets.ibc.ca/Documents/Facts%20Book/Facts_Book/2017/Fact-Book-2017.pdf

Larger Liability Claims Expected to Become More Expensive and Complex. (2017, March 30). Retrieved from Canadian Underwriter: https://www.canadianunderwriter.ca/insurance/larger-liability-claims-expected-become-expensive-complex-agcs-1004111059/

The content in this article is for information purposes only and is not intended to be relied upon as professional or expert advice.

Copyright in the whole and every part of this site belongs to Aviva Canada Inc., unless otherwise indicated, and may not be used, sold, licensed, copied or reproduced in whole or in part in any manner or form or in or on any media to any person without the prior written consent of Aviva Canada Inc.