Known as Chubb Assembly, it will supplement the existing suite of insurance solutions the company currently offers for the manufacturing industry i.e. PremierTech for manufacturers of technology products and Life Sciences Liability for manufacturers of pharmaceutical products and medical devices.
The manufacturing industry is facing its fourth revolution (Industry 4.0) where manufacturers are leveraging technologies and embracing digital transformation to stay competitive and fuel productivity gains. These, in turn, have brought on a set of risks and challenges that manufacturers must be aware of, and be protected against, such as:
- New supply chain risks as manufacturers’ relationships with suppliers and customers become increasingly interdependent.
- Greater exposure to cyber incidents as digitalization rapidly changes the factory floor with automation, robotics, internet-of-things (IoT), artificial intelligence etc.
- Additional risks of being contractually liable for financial losses incurred by customers as manufacturers and customers are more intricately connected for a larger part of the product lifecycle especially if manufacturers add on services like maintenance and/or consulting.
Chubb Assembly is a scalable and modular insurance solution for manufacturers to address these risks and challenges. Key coverage features include:
- Public and Product Liability: Offers broad protection for bodily injury and tangible property damage claims, premises liability claims and injuries to non-employees, as well as first and third-party product recall expense.
- Manufacturing Errors & Omissions Liability: Responds on a manufacturer’s behalf to third-party claims alleging financial or economic injury arising out of actual or suspected product defects, failure of products to perform or failure to perform a service in accordance with a contract.
- Cyber Enterprise Risk Management (ERM): Provides an incident response platform to mitigate and resolve first-party cyber incidents that may entail business interruption, data recovery costs and extortion negotiation, as well as coverage for Third Party Liability arising from a cyber incident.
Mr. Kevin Stevens, Chubb’s Head of Industry Practices in Asia Pacific, said, “Traditional insurance does not adequately address the evolving risks the manufacturing industry faces given the pace of change it is undergoing. Implementing Industry 4.0 will come with increased exposures, and Chubb Assembly can help manufacturers address these risks through insurance coverage and loss mitigation through Chubb’s pre and post-loss services.”
