Canadian companies are altering their traditional production in favour of manufacturing much needed items to respond to shifting societal needs during Covid-19.

The health care sectors need for ventilators and personal protective equipment has dominated the headlines and consumer hygiene goods such as hand sanitizer has been in short supply.

It is not purely in response to market demands that Canadian manufacturers are joining the fight against Covid-19. It was the Government of Canada that made a call to action to spur businesses in this direction, enabling them to re-tool manufacturing lines.

This prompted Bombardier to produce 18,000 ventilators out of its Thunder Bay, Ont. plant, Canada Goose is making medical gear and some Canadian distilleries are using their manufacturing capacity to process hand sanitizer.

While this is a great endevour to protect essential workers, Covid-19 patients and the general public, from an insurance perspective it can be risky business if coverage is not altered to suit the needs of these new manufacturing capabilities. Its important to keep in mind that when a companys production changes, its risk profile changes.

Bombardier is a giant in aviation and railway manufacturing. Canada Goose is a high-end winter clothing manufacturer. Distilleries are consumer beverage experts. While their manufacturing capacity may handle the abrupt change in production, their insurance coverage may not.

The Life Sciences sector, which includes manufactures of pharmaceuticals, biologics/biotechnology and medical devices, has to contend with a variety of unique risks. Any changes to manufacturing processes of companies outside that sector will likely need to alter their coverage to include Life Sciences sector specific coverage. This should prompt a detailed discussion with your insurance representative to discuss how it may change the company’s risk profile.

CHES Special Risk advisers are experts in placing unique risks. We support our retail brokers in identifying their clients unique risk exposure through a genuine collaboration with our underwriters, and then engaging with our insurance carriers. Together we help our brokers identify the many ways they can resolve their clients financial risk, leading to inspired solutions.

To find out more about how CHES Special Risk can respond to your Clients changing needs during these tumultuous times, please speak to your CHES underwriter or email us at quotemehappytoronto@chesspecialrisk.ca.