FAQ TOY MANUFACTURER INSURANCE
We are AMC Insurance, brokers who specialise in insurance for small toy businesses and toy manufacturers.
AMC INSURANCE PTY LTD
QUICK OVERVIEW
We are a broker experienced with finding insurance solutions for customers selling toys and similar products, including slime. Whether you are handmaking, manufacturing, importing or exporting we work hard to find insurance solutions for our customers.
FAQ (FREQUENTLY ASKED QUESTIONS)
Please note, we are a small insurance brokerage that works hard to provide solutions to our clients in a timely manner, typically with a 24 – 48 hour turnaround.
We are increasingly receiving AI-generated emails, which are many paragraphs long and repeat the same information over and over again. As such, we are requesting that clients who contact us do so themselves, without using an LLM. Your query doesn’t have to be perfectly worded or even grammatically correct – please trust yourself and us to be able to convey the information we need to support you.
Due to the fact that the emails we’ve received are highly repetitive, we have compiled a Frequently Asked Questions below, which you may find helpful for your toy manufacturing business:
TOY MANUFACTURING
QUOTE REQUEST FORM
How quickly can you obtain quotes from insurers?
Upon receiving all information we need from you via our online form we aim to submit your quote requests to insurers the same day it is received. The insurers work hard to quote quickly at times within 1-2 business days. As broker, we then try to send these quotes and recommendations to you the same day they are received. However, sometimes need additional information. So, we recommend allowing up to two (2) weeks to receive your quote and accept the offer to allow for any unexpected delays and avoiding disappointments or frustrations.
How quickly can I receive a Certificate of Currency?
We require annual payment or a first monthly instalment to be received prior to the insurer providing us a Certificate of Currency. We can still request the insurer to place cover from the 4PM future date required (no greater than 30 days in advance), however, in order to obtain the Certificate of Currency from the insurer we need to have received payment in full to our accounts department (after sending you a Tax Invoice), which can take 1-3 business days to clear. The insurer does not offer monthly instalments, however, we can obtain a quote from Arteva Premium Funding via a loan agreement subject to a $60 application fee and approx.. ~9% interest rate. Note the first instalment from Arteva will be drawn on the start date of cover and will need to have cleared before we can obtain the Certificate of Currency.
HANDMADE SLIME QUERIES
Whether handmade slime is an insurable product under your available policies.
Yes. We have secured insurance for other handmade and manufactured slime businesses.
Can interactive slime bars be covered by the insurance?
Yes, depending on certain criteria being met we can secure cover for slime bars from insurers we work with.
Would the insurer consider covering both the interactive slime bar and the sale of squishies?
Yes, in most cases this will be fine, depending on your individual risk exposure.
Can interactive slime bars be covered at MARKET STALLS?
Yes, depending on certain criteria being met we have secured cover for slime bars from insurers we work with that will cover you at market stalls for other clients.
Can interactive slime bars be covered at SHOPPING CENTRES?
Yes, depending on certain criteria being met we have secured cover for slime bars from insurers we work with that will cover you at shopping centres for other clients.
Can interactive slime bars be covered at CHILDREN'S BIRTHDAY PARTIES?
Yes, depending on certain criteria being met have secured cover for slime bars from insurers we work with to cover the slime bars at children’s birthday parties for other clients.
Whether slime related workshops, parties, incursions and sensory stations can also be covered.
Yes, depending on certain criteria being met we have secured cover for slime bars from insurers we work with covering these risk exposures for other clients.
Is homemade children's slime manufactured using borax-based activator is eligible for cover.
Yes, the insurer we work with has accepted this risk exposure for other clients.
Whether you can arrange cover to insure a combination of handmade or manufactured slime products, including mix-ins under the one insurance products?
Yes. Pending review and acceptance of your individual risk by an insurer we can secure cover for handmade and manufactured slime products, including mix-ins, under the one policy.
EXPERIENCE & MATERIALS
How much experience does my business need to obtain insurance?
In many cases, 12 months minimum experience will be required if you are importing any products or materials from overseas. The insurer may consider transferable skills from another business or role in a similar industry segment. Please include these notes on your completed form.
If this insurer cannot accommodate my startup, are you aware of any alternative insurers?
No, not at this stage. We are working hard to identify new insurers over time, but if the current insurers decline to quote we do not have any alternative recommendations for Public & Products Liability insurance.
Some of our components may be sourced from overseas online retailers including Temu, AliExpress, SHEIN or Amazon. Are these covered?
Importing of products, materials, ingredients needs to be disclosed to the insurer via our online form. The insurer will review and consider import exposures on a case-by-case basis. In many cases we are successful in securing cover for our clients import risks, however, not where these supplies are not through online retailers like Shein, Temu, etc. This is because importing products and materials makes you the deemed manufacturer and products and materials sold from Shein, Temu, etc. are often to a lower standard and present a higher risk exposure with no rights of recourse from the insurer against the overseas supplier.
Whether other types of products could be added to the policy later.
Yes, depending on the nature of the product the insurer can consider extending cover to similar or adjacent product ranges introduced by the business. This needs to be reviewed with the insurer on a case-by-case basis.
HOW WILL I BE COVERED
Whether online sales and products shipped throughout AUSTRALIA are covered.
Yes, the policy will cover Australia Wide sales.
Is selling to other retailers and wholesaling included in my coverage or would require a separate policy?
Yes, if declared and accepted by the insurer then these activities can be included on the insurance. Our online form requests information on whether you sell to other retailers and if so to how many stores.
Whether online sales and products shipped throughout AUSTRALIA are covered.
Yes, the policy will cover Australia Wide sales.
Whether online sales and products shipped OVERSEAS are covered.
No, by default exports to other countries or overseas will be excluded. The insurer may consider including cover for overseas sales on a case-by-case basis. Please contact us if your business requires this cover or before commencing the export of products overseas.
Is importing included in my coverage or would require a separate policy?
Importing of products, materials, ingredients needs to be disclosed to the insurer via our online form. The insurer will review and consider import exposures on a case-by-case basis. In many cases we are successful in securing cover for our clients import risks, as long as these supplies are not through online retailers like Shein, Temu, etc.
Would importing directly from reputable overseas manufacturers who can provide appropriate safety documentation and testing reports be acceptable, or would the same restrictions apply as purchasing through Temu, SHEIN or AliExpress?
Importing products from reputable overseas suppliers will increase the potential success of an insurer quoting. It will be difficult to secure quotes from the insurer if you are using online retailers like Temu, Shein, or AliExpress.
Will my packaging, containers, etc. being imported from overseas suppliers be acceptable under this insurance?
Yes, in most cases this should be fine. Please include this information on the application form under the “imports” section.
Would sales through Etsy, Facebook, Instagram and our own website be included?
Yes, the policy will cover the sale of the products Australia wide. This includes online sales or from your place of business.
POLICY LIMITS & COSTS
The approximate / indicative annual premium.
We cannot make any guarantees on premiums, however, in many cases the annual cost is likely to range from $1,300 – $2,500 (inclusive of all charges) for a $20M Public & Products Liability limit. Unfortunately, we are not yet able to secure a more competitive premium from insurers, even if you have a small start-up business with low annual sales
What policy limits are available?
Most insurers will quote $10M and $20M limits. Note, most market stalls will require $20M limits. A $5M limit may be available, depending on the insurer.
Whether $20 million public and products liability is available.
Yes. The insurers can quote $10M or $20M policy limits, and in some cases $5M limits. However, most market stalls will require $20M limits.
Is there a significant difference in cost between $10M and $20M?
It depends on your overall risk exposure, however, in most cases there will be a minimal difference. Note, most market stalls will require $20M limits.
Is the product liability included with the public liability?
Yes, the insurer will quote these as a packaged policy. We only provide quotes including BOTH Public & Products Liability.
What’s the quote cost for public liability only?
Unfortunately, we are not quoting clients for Public Liability insurance only. We are only reviewing clients that need both Public & Products Liability. If you require Public Liability only cover may be available from other insurers in the market.
Can I take out a lower product liability limit, while retaining the required $20 million public liability cover, and will this reduce the premium?
No. The limit for both Public & Products Liability must be the same.
The approximate excess.
We cannot make any guarantees on excesses, however, in most cases either a $250, $500, or $2,500 excess applies. If your business engages contractors, which is not common for businesses operating slime bars, then a higher excess will apply to worker-to-worker injury claims.
Whether you can provide cover for a short period of three months.
No. Unfortunately, we are only accepting review of risks that require 12 months cover.
EXCLUSIONS & PRODUCT TESTING
Any significant exclusions.
We cannot make any guarantees on exclusions without a formal quote, however, the insurer outlined all standard exclusions in their policy wording. They may also add endorsements to the policy that further exclude or limit cover. When quoting we will provide you with a copy of the insurer quote, insurer policy wording, and also provide an email overview of the non-standard or higher risk exclusions that might impact your ability to claim against the insurance.
If sourcing these components from Australian suppliers instead would make a difference to the availability of cost of the insurance.
Yes, if you purchase all supplies and materials used to make slime from Australian suppliers it will decrease your risk exposure to the insurer. This is because importing products and materials makes you the deemed manufacturer. It may reduce the cost of the insurance slightly.
Would purchasing products through an Australian-based retailer or wholesaler be acceptable, even if those products were originally manufactured overseas?
Yes, if you purchase products and materials from another Australian-based retailer or wholesaler then they are the deemed manufacturer, at law, not you. This means that your insurer may have legal recourse for personal injury or property damage claims against the supplier in the event their product/materials were used in your product.
Are there any particular ingredients, add-ins or materials the insurer would prefer me to avoid?
The insurer will not make requests for you to use certain products, materials, or ingredients. However, the use of certain materials or products (for example small products which pose a choking hazard risk) may prevent you from being quoted cover by the insurer.
Can you confirm any exclusions or conditions relating to children's products?
Yes, but only upon receiving formal quotes from the insurers. We will provide all these details to you from the insurer and outline any non-standard exclusions that may exclude or limit cover connecting to children’s products.
Can you confirm any exclusions or conditions relating to chemical ingredients?
Yes, but only upon receiving formal quotes from the insurers. We will provide all these details to you from the insurer and outline any non-standard exclusions that may exclude or limit cover connecting to chemical ingredients.
Can you confirm any exclusions or conditions relating to product testing?
Yes, but only upon receiving formal quotes from the insurers. We will provide all these details to you from the insurer and outline any non-standard exclusions that may exclude or limit cover connecting to product testing obligations.
Whether you can confirm the covered products, activities, and exclusions in writing.
Yes. We will provide you with a copy of the insurer quote, insurer policy wording, and also provide an email overview of the non-standard or higher risk exclusions that might impact your ability to claim against the insurance.
Do you need product safety documentation in order to quote?
No, not specifically. The insurer may still require certain risk management processes to be undertaken by your business. For example, batch coding systems, the ability to track the source and destination of individual batches of product, whether you have full recovery rights against suppliers of materials and/or products used, whether you have a documented quality control procedure in place.
Whether any product testing certificates or safety documentation are required before cover can commence.
No, not specifically. The insurer may still require certain risk management processes to be undertaken by your business. For example, batch coding systems, the ability to track the source and destination of individual batches of product, whether you have full recovery rights against suppliers of materials and/or products used, whether you have a documented quality control procedure in place.
Would the insurer require product testing or compliance documentation before approving coverage?
No, not specifically. The insurer does not impose this requirement because it is your responsibility, at law, to ensure that products you manufacturer adhere to Australian Standards that may apply.
Do I need to make adjustments to my products and suppliers to ensure the business meets the insurer’s requirements?
This is a hard question to answer. It is best to present your business and risk to the insurer in the way the way you intend to operate. If they raise a concern (e.g. decline to quote) due to a specific risk or product we may be able to renegotiate quotes by excluding these products, if this remains suitable for your needs.
Whether product liability covers injury associated with the finished slime product itself.
Yes. Products Liability insurance covers the exposure of personal injury and property damage claims to a third-party. If your slime product causes a third-party injury or property damage then the policy will respond to defend or settle third-party legal demands, subject to the terms and conditions of the insurance policy.
OTHER ITEMS
What documentation you need from us to assess the risk
We require our online Toy Manufacturer form to be fully completed. Please do not request a formal quote unless you require cover within the next thirty (30) days otherwise it will expire.
I would like to understand whether any additional cover is needed as we grow the business.
Yes, outside of the Public & Products Liability insurance there are other covers you may wish to consider (e.g. Property Damage, Theft, Equipment Damage, Transit Cover, etc.).
Can I cancel my policy if it is no longer required?
Yes, you can cancel your policy during the cooling-off period offered by the insurer. Otherwise, from the forward date requested, subject to any cancellation fees or charges.
Will I receive a refund on premiums if I cancel the policy mid-term?
The policy can be cancelled per the insurers individual cancellation policy (outlined in their wording). Subject to any cooling-off period, once you have paid your premium you will receive a refund of the pro-rata premium remaining on the policy from the insurer, less any cancellation fees from the insurer. Note, all broker and underwriter fees and/or commissions are considered fully earned and are non-refundable and will be deducted (if applicable) from any refund.
Alex Conlon
Director | M: 0409 092 947 | E: alexc@abterrace.com.au
Alex Conlon established AMC Insurance Pty Ltd in 2016 and is a Qualified Practicing Insurance Broker (QPIB).
He supports various industry segments with specialisations in Labour Hire, Recruitment, Manufacturing (Toys), and financial lines products (Professional Indemnity, Management Liability, Cyber Liability).
His insurance career began in 2008 as a commercial insurance underwriter within the Suncorp Group Limited. Transitioning to work with multi-national broker Marsh Pty Ltd in their financial lines broking team whilst completing his Diploma of Insurance Broking in 2011.
In 2015 he won the regional (SA/NT) Young Professional Broker of the Year award, prior to commencing a senior role with a nationally operating broker specialising in Architects & Engineering risks.