CANADA POST SERVICE DISRUPTION With rotating strikes, there may be delays in mail delivery. We are dedicated to maintaining seamless service with electronic document solutions. If you have any questions or need assistance, please contact your broker.
Insurance as a competitive advantage for Canadian manufacturers
Many people think of insurance as just another cost of doing business. But if used wisely, insurance can help your company grow and stand out from the competition.
Jen Warman is a senior client executive at Acera Insurance with more than 14 years of experience in the insurance industry. In this article, she explains how smart insurance and risk management can protect your profits, help your business grow and build trust with customers and investors.
Changing how we think about insurance
In the past, insurance has often been seen as a mandatory purchase. You buy it because you have to, often without fully understanding the terms of the policy. After signing the paperwork, you don’t really think about your insurance again until you need to make a claim or renew your policy.
However, your insurance policy should be seen as a business investment that can have significant benefits to your company. A robust insurance policy with strong risk management practices can act as protection for your balance sheets, cash flow and shareholder value.
“Insurance isn’t just protection. It’s a sales tool and a credibility booster.” – Jen Warman
Risk management and insurance go hand-in-hand and should be an essential part of your company’s business planning. Conducting regular risk assessments allows you to identify vulnerabilities that could lead to operational downtime, losses, reputational harm and insurance claims.
The benefit of proactive risk management is that it allows you to take on more risk strategically. This could include expanding into new markets or launching new products since asset protection is in place.
What are the biggest insurance misconceptions for Canadian manufacturers?
There are two key myths that we are always trying to combat in the insurance industry:
Myth 1: “If I don’t make a claim, then insurance was just wasted money.”
Reality: Not having to make an insurance claim is a good thing! It means that you have strong risk management strategies in place. This can be simple things like maintaining your fire equipment, having a robust workplace safety program and staying on top of building maintenance. These steps can help to bring your premiums down overall.
Myth 2: “All policies are the same, so just buy the cheapest one.”
Reality: Insurance policies often have exclusions and limitations. If you’re not carefully reviewing your policy and looking for any potential gaps in coverage, you risk facing a claim that isn’t covered. This is why having a strong broker relationship is so important. We will review your policy and advise on risk management strategies to help prevent losses and save you money. Our role is to get your business the best policy at the best price.
4 essential risk management measures for manufacturing companies in Canada
Workplace safety
If you’re just starting to learn about risk management practices, workplace safety programs are the best place to start. It never hurts to go back to the basics, which include:
Regular hazard assessments
Safety training
PPE compliance
Fire protection and suppression system maintenance
Installing dust collection systems and equipment sensors
Regularly assessing, maintaining and recording your workplace safety protocols not only helps to prevent loss but can help you save on your insurance.
Supply chain management
Don’t forget to regularly assess your supply chains. Relying on a single supplier for key materials increases your risk of supply chain disruptions and insurance claims.
Make sure that you have backup suppliers you can rely on. Having backup in place for a supply chain disruption can minimize the impact on your operations.
Practice good cyber hygiene
Implement cyber protection measures such as multifactor authentication and regular cyber security training. Make sure to develop a cyber breach response plan to help you build a more resilient risk management strategy.
Disaster preparedness
Once-in-a-lifetime weather events are now happening on a regular basis. Having a disaster preparedness plan in place can help protect your employees and bottom lines in the event of a catastrophic loss.
As your broker, I work with you to develop a risk profile. I will also conduct loss control visits to help identity gaps and improve risk management practices. This can help to reduce claims, lower premiums and strengthen your coverage.
Case study: How one Canadian manufacturer used insurance to win new business
A Western Canadian manufacturer upgraded its insurance coverage and risk management practices, which included higher policy limits, contingent business interruption insurance and better documentation to meet strict contract requirements when bidding for business.
The improvements helped them win a major automotive contract, strengthened their financial profile and lowered their insurance premiums —highlighting how insurance and risk management can be both a sales tool and a way to reduce business risk.
How manufacturing insurance and risk management consulting give companies a competitive edge
When people come to me to build their insurance policies, it shows that you take your business seriously. Insurance is required in many contracts, and having established policies and risk management practices may help differentiate your organization from your competitors.
“Good risk management makes your business more attractive to insurers, lenders and customers alike.” – Jen Warman
The key to aligning your insurance strategy with your company’s growth plan is to map your exposures beyond traditional risks like fire or slip-and-falls. They should include emerging threats like cyber exposures, supply chain disruption, business interruption and environmental liability.
Banks and lenders also want to make sure that you can continue operations if something goes sideways. Having detailed records of a strong workplace safety program and robust supply chains will help your company be seen as a good investment.
In my time in the insurance industry, what I’ve seen is that the companies with strong safety protocols and risk management habits have more longevity and profitability, which is a win for everybody.
Conclusion
Insurance is not just a cost — it’s something to celebrate because it shows your business is strong and future-ready.
By investing in risk management and leveraging insurance, you can proactively position your business for growth and resilience in a competitive landscape.
Connect with Jen Warman to discover how insurance can give your manufacturing business a competitive edge.
Jen Warman is a Senior Client Executive at Acera Insurance. With more than 14 years of experience in the insurance industry, Jen specializes in supporting manufacturing companies, contractors and businesses with complex risk profiles. Licensed in both British Columbia and Alberta, she is well-positioned to serve clients across Western Canada. Her mission is simple: to make insurance easy to understand and even easier to manage. Jen takes pride in being a strong advocate for her clients — negotiating the best terms, offering clear advice and delivering a consistently exceptional experience. Whether your business is navigating risk management or looking for a more strategic insurance partner, Jen is committed to helping you thrive. You can connect with Jen at jen.warman@acera.ca or 403.824.2905.
Get weekly tips to protect your business! Subscribe to our LinkedIn Newsletter. Our advisors’ insights will help you Be Risk Ready.
Canadian manufacturers can face major insurance gaps that can disrupt operations. Many cover only their own property but not supply chain delays or long equipment disruption lead times. Most standard policies often exclude machinery breakdowns, cyberattacks that shut down production, or costly product recalls. Contracts may shift hidden liabilities back onto manufacturers, while pollution, outdated property values and low liability limits add further risk. Finally, few businesses plan for the sudden loss of key staff, which can leave their operations exposed.
Your insurance costs are based on risk – the higher the chance of a claim, the higher your premiums will be. If you can show that you’ve taken steps to reduce the likelihood or impact of losses, insurers will often lower your costs. This can be done through loss prevention such as safety, maintenance and training; loss mitigation such as response plans for spills, cyberattacks or disasters; and solid documentation and recordkeeping such as audits, inspections and claims history. Fewer claims improve your experience rating, and strong risk management gives your broker more leverage to negotiate better rates and coverage.
Contracts often require higher insurance limits because they shift risk away from the company writing the contract. Higher limits protect them if a claim is larger than your coverage, especially in high-risk industries like construction or manufacturing. Big organizations also set standard requirements for all vendors, often based on regulations or industry norms. Even if your business is low risk, they usually won’t make exceptions. In the end, pushing for higher limits gives them more protection at your expense.
Information and services provided by Acera Insurance, Acera Benefits and any other tradename and/or subsidiary or affiliate of Acera Insurance Services Ltd. (“Acera”), should not be considered legal, tax, or financial advice. While we strive to provide accurate and up-to-date information, we recommend consulting a qualified financial planner, lawyer, accountant, tax advisor or other professional for advice specific to your situation. Tax, employment, pension, disability and investment laws and regulations vary by jurisdiction and are subject to change. Acera is not responsible for any decisions made based on the information provided.
Get a quote.
Simply fill out a few details in our online form and one of our expert advisors will get your quote started.
