Partner for BiH
Manufacturing & Engineering
Effective control of business risks is essential for manufacturing and industrial companies in several respects: sound risk management leads to a reduction in losses and the associated interruptions to production, and in the event of a loss it ensures minimal impact on the company's overall business.
Today the sector faces a web of overlapping risks — supply chain instability, raw material price volatility, labour shortages, digital transformation, cyber threats, climate change, and geopolitical uncertainty. Machinery breakdown is among the most frequent causes of failures, while fire, burglary, embezzlement, technology theft, and sabotage of machinery and equipment are examples of adverse events with serious consequences.
Manufacturing is one of the industries most frequently targeted by ransomware attacks, so cyber resilience and the protection of critical infrastructure are becoming just as important as conventional property insurance. Proper risk mapping also limits insurance costs, a direct result of the systematic exposure analysis that VIPOX carries out for every client.
Key Risks
Machinery breakdown and damage (the most frequent cause of failures), failures of control and monitoring systems, electrical short circuits, water damage, fire, burglary, embezzlement, sabotage, and technology theft from machinery and equipment; supply chain disruption (shortages of packaging and raw materials, power supply interruptions); natural and catastrophic perils (earthquakes, floods); regulatory requirements and penalties; raw material price volatility; shortages of qualified labour and employee-related risks (health, occupational safety); and reputational risk in the event of a product recall.
Our Approach
As a broker, we analyse the situation at suppliers and recommend measures to reduce the risk of supply failures, advise on measures against unforeseen and catastrophic events, and arrange product recall solutions that minimise financial and reputational loss. We take on claims handling and advisory (claims handling) and carry out risk engineering (the systematic application of technical knowledge for the optimal protection of life, the environment, property, and economic interests). For companies with international operations, we design insurance programmes and, through our partnership with AON for Bosnia and Herzegovina, open access to the international market and to covers that are often unavailable in the local market.
Advanced Solutions for Industry
For manufacturing and industrial clients, we also structure alternative risk transfer (ART) — captives, parametric solutions, and other ART mechanisms that deliver greater flexibility, liquidity, and control over risk. We advise on cyber risk management — embedding cyber awareness into the company's culture and modernising legacy systems — and use risk analytics and quantification (scenario modelling and the integration of operational, financial, and strategic data) to prioritise risks and allocate capital appropriately. We also cover specific sub-sectors such as the automotive, aviation, and space industries, as well as energy and industrial plants, connecting property and liability insurance (broking, risk transfer, D&O, claims) with employee solutions (health and benefits, pensions, talent).
Why It Matters
In the context of the BiH and Croatian markets, the relatively low penetration of non-life insurance means that many manufacturing companies are not adequately protected against unforeseen losses.