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INSURANCE THAT POWERS YOUR PRODUCTION
Why Electrical Manufacturers Need Specialist Cover
Electrical component manufacturing carries serious downstream risk. A single PCB fault, overheating transformer, defective switchgear panel or wiring harness failure can lead to fire, system shutdown, major infrastructure loss or injury. Your insurance must reflect the technical exposure, export profile and contractual liabilities within your supply chain.
Product Liability Insurance
If your component causes damage once integrated into a finished product or installation, you may face significant claims. Electrical manufacturers often supply into construction, renewable energy, automotive, rail and defence sectors — increasing exposure.
- PCB and circuit board failure
- Switchgear malfunction
- Transformer overheating
- Short-circuit fire claims
- Power surge damage liability
Common Risks for Electrical Component Manufacturers
Manufacturing Risks
- Soldering defects
- Batch contamination
- Clean room fire risk
- Machinery breakdown
- Component overheating
Contractual & Export Risks
- OEM contractual penalties
- US & Canada liability exposure
- Product recall obligations
- UL certification disputes
- Design specification claims
Compliance & Regulatory Exposure
Electrical manufacturers must comply with CE, UKCA, RoHS, REACH, EMC and Low Voltage Directives. Failure in compliance can invalidate insurance or trigger recall.
- CE & UKCA marking
- RoHS compliance
- REACH substance controls
- ISO 9001 requirements
- UL certification for export
After a defective batch of voltage regulators triggered a major OEM shutdown, Insure24 managed the claim and protected our business reputation.
Managing Director, UK Electrical ManufacturerFREQUENTLY ASKED QUESTIONS
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Do electrical manufacturers need product recall insurance?
Yes. A defective electrical batch can cause significant downstream damage and contractual penalties. Recall insurance protects notification, replacement and crisis costs.
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Does insurance cover exports to the USA?
Yes, but exports must be declared. Higher product liability limits are usually required for US exposure.
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How much liability cover is recommended?
Most manufacturers carry between £2m and £10m depending on contracts and export markets.
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Does this cover machinery breakdown?
Yes. Engineering inspection and machinery breakdown extensions can be included.
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How long does it take to get a quote?
Typically 1–2 working days while we present your manufacturing risk to specialist underwriters.