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THE ALUMINIUM MANUFACTURING INSURANCE CHECKLIST — BUILDINGS, PLANT, LIABILITY & DOWNTIME
Why Aluminium Manufacturers Need a Joined-Up Insurance Programme
Aluminium manufacturing is rarely “one simple trade”. A single business might combine cutting, machining, welding, finishing, heat treatment, assembly, storage of high-value stock, and dispatch — sometimes across multiple sites. Your insurance needs to protect you from two types of loss: physical events (fire, flood, theft, breakdown) and commercial fallout (lost output, rejected batches, contract penalties, product liability disputes).
The challenge is that these risks don’t sit neatly under one heading. A single incident can trigger multiple sections: a machine failure can cause engineering damage, halt production leading to business interruption, create urgent outsourcing costs under increased cost of working, and if product is late or off-spec it can escalate into a contractual dispute. Getting the structure right is what separates “a policy” from “real protection”.
This page is a practical checklist: the covers aluminium manufacturers typically need, when they matter, and the key decisions that affect claim outcomes and premium. Insure24 specialises in manufacturing insurance and helps you present the risk in a way underwriters understand — improving appetite and reducing delays.
The Core Insurances Most Aluminium Manufacturers Need
Every business is different, but most aluminium manufacturers and fabricators build the programme around six “core” covers. From there, we add specialist extensions depending on your processes (hot works, furnaces, powder coating, CNC, installation, export, audited sectors).
1) Property (Buildings, Contents, Plant & Equipment)
- Buildings (if you own the premises) and/or tenant improvements
- Contents including racking, tools, fixtures and office equipment
- Plant & machinery where insured under property (subject to schedule)
- Perils typically include fire, flood, storm, escape of water and theft (wording-dependent)
Property insurance is the base layer for major disasters, but it must be correctly valued. Underinsurance can reduce claim payments. For aluminium risks, insurers also focus on ignition sources, hot works, dust/fume management, waste handling and fire protection measures.
2) Business Interruption (BI)
- Loss of gross profit following an insured property damage event
- Increased Cost of Working to keep customers supplied (outsourcing, overtime, extra freight)
- Indemnity period chosen to reflect realistic rebuild / lead times
For many manufacturers, BI is more valuable than the property claim itself. Replacing a machine is one thing; keeping the business trading during the recovery is what protects your balance sheet. The critical decision is the indemnity period — especially if you rely on specialist kit.
3) Employers’ Liability (EL)
- Protects against employee injury/illness claims arising from their work (subject to policy)
- Key for manual handling, moving plant, cutting, machining, welding and heat processes
- Often a legal requirement where you employ staff (with limited exceptions)
Aluminium manufacturing can involve high-risk areas: forklifts, cranes, sharp edges, high temperatures, fume, noise and repetitive work. Underwriters like to see strong H&S controls, training records, PPE compliance and documented risk assessments.
4) Public Liability (PL) & Products Liability
- Public Liability – third-party injury/property damage from your premises/operations
- Products Liability – injury/property damage caused by products you supply
- Often extended to include tools away, off-site work and installation (where needed)
If you supply components into larger assemblies, your exposure can travel. Insurers will ask about end-use, sectors supplied, quality controls, traceability and whether you supply safety-critical parts.
5) Engineering / Machinery Breakdown
- Designed for sudden and unforeseen breakdown (mechanical/electrical) of insured equipment (wording-dependent)
- Common for CNC machines, compressors, extraction, cranes/hoists, and critical production kit
- Often paired with machinery breakdown BI if downtime is the main threat
Property insurance may not respond to “internal” failures. If a bearing seizes, a drive fails, or a control cabinet burns out, engineering cover is usually the section that matters. The schedule, valuations and deductibles need to reflect reality.
6) Stock, Materials & Work-in-Progress (WIP)
- Raw aluminium stock: sheets, billets, extrusions, castings and coils
- High-value WIP: machined parts, assemblies, treated batches awaiting dispatch
- Optional cover for customers’ goods (goods in trust/custody) where you work on customer materials
Many businesses underestimate peak values. Underwriters will look at storage methods, racking, separation of combustibles, security and whether WIP is exposed to heat processes, contamination or fire spread.
Specialist Covers Depending on Your Aluminium Process
Once the foundations are in place, the next step is tailoring. Aluminium manufacturing spans very different risks: casting vs extrusion, architectural fabrication vs aerospace machining, in-house heat treatment vs outsourced processing, installation vs build-to-print. Below are common add-ons we arrange for aluminium businesses.
Furnaces, Kilns & Heat Treatment
- Engineering cover for furnaces/ovens, burners, controls, quench systems and instrumentation
- Machinery breakdown BI if the furnace is a single point of failure
- Utilities / power disturbance extensions where surges/outages are a realistic trigger
- Consideration of batch / WIP exposure and customer quality requirements
Heat treatment is often where quality disputes begin. Even if insurance doesn’t cover every form of non-conformance, the right structure protects physical damage, downtime, and the costs of recovery.
Hot Works, Welding & Fabrication
- Hot works controls and risk management evidence to support fire underwriting
- Adequate public liability for on-site work and installation (where applicable)
- Protection for tools and equipment off site (if you do site work)
- Contract works (where you have responsibility for works in progress on site)
If your business installs or works on customer sites, make sure your liability territory includes your real operations and that you can evidence hot works procedures.
CNC & Precision Machining
- Machinery breakdown for CNCs, spindles, drives, control systems and coolant damage (wording-dependent)
- Business interruption aligned to realistic repair lead times
- Optional cover for hired-in plant or specialist equipment
- Computer / electronic equipment cover where CAD/CAM and servers are critical
CNC-heavy businesses are often exposed to downtime more than fire. Underwriters will ask: what happens if your key machine fails tomorrow?
Design Responsibility & Contract Risk
- Professional Indemnity if you provide drawings, specifications, tolerances, advice or calculations
- Review of fitness for purpose wording, uncapped indemnities and consequential loss clauses
- Support for tender / audit evidence and insurer-friendly declarations
Many aluminium firms assume they are “build-to-print” until a dispute reveals that the customer relied on their advice or design input. PI is the cover designed for financial loss allegations arising from professional mistakes.
Goods in Transit & Marine Cargo
- Protects dispatched goods in your vehicles or third-party carriers (subject to terms)
- Useful for high-value machined parts, architectural assemblies and export shipments
- Options for UK-only or worldwide transit depending on your sales
If you supply time-critical OEM customers, transit delays and damage can be expensive. Correct packaging, methods of carriage and values matter.
Cyber & Operational Technology (OT)
- Response to ransomware, business email compromise and data restoration (coverage varies)
- Options for business interruption from cyber events (where offered)
- Support for incident response, forensics and recovery services (policy dependent)
Manufacturing is increasingly targeted because downtime is expensive. If you rely on ERP, CAD/CAM, email, or networked plant, cyber cover can be a practical backstop.
We had the basics, but it was the “bottleneck” cover that saved us — machinery breakdown BI and increased cost of working meant we could outsource, keep key customers supplied and protect cashflow while repairs were completed.
Director, Aluminium Fabrication & CNC ManufacturingHow to Build an Insurer-Friendly Aluminium Manufacturing Insurance Submission
Premium and insurer appetite are heavily influenced by the quality of information you provide. Aluminium is underwritten as an industrial risk: insurers want clarity on processes, ignition sources, quality controls, and business continuity. The goal is to reduce uncertainty and demonstrate good governance.
Information That Speeds Up Quoting
- Clear business description: casting, extrusion, machining, fabrication, finishing, heat treatment, installation
- Turnover split by activity and sectors supplied (construction, marine, automotive, aerospace, OEM, etc.)
- Site details: construction, floor area, fire protections, neighbours, security, housekeeping
- Plant list: key machines, furnaces/ovens, replacement values and maintenance regime
- Stock/WIP values: average and peak, storage methods and segregation of combustibles
- Claims history plus any near-misses (power events, breakdowns, quality incidents)
If you can provide an asset schedule and a simple process map, quotes are faster and often more competitive.
Controls That Often Improve Terms
- Documented hot works permits, fire watch, segregation and extinguishers
- PPM servicing and calibration records (especially for furnaces and critical machines)
- Dust/fume extraction maintenance and housekeeping routines
- Quality controls: inspection records, traceability, batch control and non-conformance process
- Power resilience: surge protection, UPS, controlled shutdown procedures
- Contract review process for liability caps, fitness for purpose and consequential loss wording
Underwriters price uncertainty. Strong, documented controls reduce uncertainty — and reduce premium pressure.
FREQUENTLY ASKED QUESTIONS
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What are the minimum insurances most aluminium manufacturers start with?
Most start with employers’ liability (if you employ staff), public/products liability, and property cover for premises, contents and stock.
Business interruption is then added to protect profit and cashflow if a serious event stops production.
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Do I need machinery breakdown cover if I already have property insurance?
Often yes. Property insurance usually responds to insured perils like fire or flood (depending on wording). Machinery breakdown is aimed at sudden
internal mechanical/electrical failure of insured equipment. Many aluminium losses are breakdown events, not fire events.
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When should an aluminium manufacturer consider professional indemnity?
If you provide drawings, specifications, tolerances, CAD/CAM input, advice, measurements or design changes — even occasionally — professional
indemnity may be relevant. It’s designed for financial loss allegations arising from professional errors/omissions.
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How do I insure stock and work-in-progress properly?
Use accurate average and peak values, confirm where items are stored, and ensure the policy includes the correct stock/WIP categories.
If you hold customer materials, consider customers’ goods cover depending on contract responsibility. Underinsurance is a common problem.
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What’s the best way to protect against downtime?
Business interruption is the main tool, but it must be aligned to the real downtime trigger. If your biggest threat is a furnace or CNC failing,
consider machinery breakdown BI and increased cost of working to fund outsourcing, overtime and recovery logistics (subject to policy terms).
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What information do insurers need to quote aluminium manufacturing insurance?
A clear process description, turnover split, site details (construction, fire protection, security), plant list with values, stock/WIP values,
contracts/sectors supplied, and claims history. Good maintenance and quality control evidence often improves insurer appetite.
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Can the covers be combined into one policy?
Often, yes — many businesses place a combined manufacturing package for property, BI and liabilities, with engineering and cyber either included
or placed separately depending on insurer appetite and the complexity of the plant. Insure24 will advise on the cleanest structure.
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How can an aluminium manufacturer reduce insurance premiums?
Improve fire risk controls (hot works permits, housekeeping, separation), maintain plant with documented PPM, strengthen security, provide accurate
values, choose deductibles sensibly, and document quality controls and contract review. Better information and better controls usually reduce premium pressure.