Allianz UK has updated its Commercial Select manufacturing proposition, adding higher limits and broader cover for production disruption, supply chain problems and employee injury.
The proposition is aimed at manufacturers with turnover between £10 million and £1.5 billion.
It is the second sector update in Allianz’s refresh of its mid-market offering, following the Wholesale & Retail proposition in September. Allianz has said further sectors will follow during the second half of 2026.
The changes span people, production and the environment. For employees, the cover now includes psychological treatment following a workplace injury. For environmental exposures, it covers pollution clean-up costs and allows damaged machinery, plant, fixtures and fittings to be replaced with more environmentally friendly alternatives.
On production, Allianz has focused on business interruption, which it said often costs manufacturers more than physical repairs. That is especially true as automation, AI and just-in-time processes leave less slack when things go wrong. The business interruption sections include product liability, financial loss and recall extensions, with an option for machinery damage business interruption.
Cover extensions for operational errors and omissions, and for faulty or defective workmanship, have been increased. The supplier extension has also been enhanced to respond to supply chain problems.
Sector-specific extensions are included at no extra cost when the relevant Commercial Combined sections are selected. Customers also get access to reputational support after insured incidents, and to Allianz’s engineering inspection and compliance services, covering lifting equipment, power presses and pressure systems, as well as Provision and Use of Work Equipment Regulations (PUWER) assessments and Control of Major Accident Hazards (COMAH) examinations.
“When something goes wrong, the impact can quickly extend beyond physical damage to employees, production, customer relationships and future plans,” said Rob Carslake, head of Commercial Combined at Allianz UK.
He said combining insurance with prevention services meant brokers could cover protection and risk management in a single conversation with clients.
Allianz said manufacturers are balancing investment and growth with pressure from employment and energy costs, supply chain disruption and workplace health risks. It cited figures showing the sector contributes around £220 billion of output to the UK economy and supports 2.6 million jobs.
Health and Safety Executive (HSE) data cited by Allianz shows an average of 101,000 manufacturing workers suffered work-related ill health each year between 2022/23 and 2024/25, resulting in 2.7 million lost working days.
The update comes as commercial rates continue to fall. UK commercial rates were down 8% in the second quarter, according to Marsh. With pricing under pressure, insurers are increasingly differentiating on cover breadth, sector expertise and services rather than price alone.
The focus on interconnected risks also matches wider research. Hiscox found this week that half of risk managers struggle to co-ordinate across teams and policies when several risks hit at once.
For brokers with mid-market manufacturing clients, the update gives them several points to raise at renewal, particularly the supplier extension, recall and machinery damage business interruption options, and the operational errors and omissions cover.
The soft market makes this a good moment to push for broader cover rather than simply cutting premium. Brokers should compare limits and extension wordings against current programmes, especially for clients reliant on just-in-time production or a small number of key suppliers.
The bundled engineering and compliance services may also help brokers demonstrate value beyond price, though clients will need to check how these fit alongside any existing inspection contracts.
