Connectors, Cables & Wiring Harness Manufacturing Insurance

Who Needs Connectors, Cables & Harness Manufacturing Insurance?

This cover is designed for UK businesses involved in designing, manufacturing, assembling, testing, or distributing:

Common Risks in Cable, Connector & Harness Manufacturing

Underwriters look at your end-use, testing, traceability and contractual obligations. The following risks commonly drive claims, premium increases, or policy restrictions if not presented properly:

Product Liability Insurance for Connectors & Harnesses

Product liability is often the cornerstone of manufacturing insurance. For harness and connector businesses, the key issue is that your components are typically integrated into larger assemblies. A failure may not be discovered until the OEM’s production line, end-user testing, or (worst case) during operation in the field.

A well-structured liability programme can address:

• Injury or property damage caused by your products
• Legal defence and investigation costs
• Worldwide sales and export exposures (where required)
• Vendor and contract requirements (including principal’s indemnity)
• Manufacturing and supply chain documentation expectations

Underwriters will expect evidence of quality management and process control – such as documented crimp standards, pull tests, electrical continuity tests, insulation resistance tests, and clear quarantine procedures for non-conforming product.

Product Recall, Rectification & OEM Chargeback Risk

Many connector and harness claims are not classic “injury or damage” cases. Instead, the financial pain comes from: OEM chargebacks, rework programmes, returns logistics, replacement labour, line-down costs, expedited shipping, and specialist testing.

Depending on your market and contracts, you may need:

• Product recall and withdrawal cover
• Rectification / remediation extensions (where available)
• Financial loss protections tied to contractual obligations
• Contingent cover for supplier-caused defects

Your policy structure should reflect how failures are discovered and who bears the cost. We help you present contracts, supply chain position (OEM/Tier 1/Tier 2), and testing regimes so insurers can offer appropriate terms.

Professional Indemnity for Harness Design & Specification

If you provide design input, engineering drawings, prototype builds, or specify materials and routing for a harness assembly, you may be exposed to allegations of design error or negligent specification – even if the build quality is excellent.

Professional indemnity (PI) can be relevant where you:

• Create harness layouts or drawings for OEM integration
• Advise on shielding, grounding, EMI/EMC requirements
• Recommend connector types, pin-outs or material selections
• Provide test certification, inspection reports or conformity statements
• Supply bespoke assemblies for critical applications

PI is particularly important for aerospace, rail, defence, medical devices and industrial automation where design documentation and traceability are heavily scrutinised.

Property, Stock & Fire Risk for Cable and Connector Facilities

Cable and harness operations often hold high volumes of raw materials and finished goods: copper, aluminium conductors, insulation polymers, resins, adhesives, heat shrink, mouldings, terminals, housings, reels, and packaging. Stock values can rise quickly – especially when you’re holding customer-owned materials or building kits for staged deliveries.

A robust property programme typically considers:

• Buildings and tenant improvements
• Stock and materials (including seasonal peaks)
• Customer goods / goods held in trust (where required)
• Fire, theft, flood and storm exposures
• Sprinklers, compartmentation and fire loading
• Security and out-of-hours protections

If you operate processes involving heat, soldering, overmoulding, ultrasonic welding, or solvent-based cleaning, insurers may ask about fume extraction, hot works control and housekeeping standards.

Machinery Breakdown & Production Equipment Cover

Connector, cable and harness manufacturing relies on specialist production equipment. A single failure can stop an entire line: cutting and stripping machines, crimping presses, injection moulders, ultrasonic welders, test rigs and automated inspection stations.

Engineering / breakdown cover can help address:

• Sudden and accidental mechanical failure
• Electrical breakdown (motors, drives, PLCs)
• Damage to calibration-sensitive test equipment
• Repair costs and replacement parts
• Optional business interruption from breakdown (where available)

Insurers will often ask about planned maintenance, spares strategy, calibration logs, and whether critical machines have single points of failure.

Business Interruption & Contractual Performance

Even a short interruption can have an outsized impact when you supply just-in-time assemblies to OEMs. Line-down penalties and expedited recovery costs can exceed the direct property damage. Business interruption insurance is designed to protect your gross profit, helping you stabilise cashflow while recovering.

We typically consider:

• Gross profit / revenue basis (aligned to your accounts)
• Indemnity period (often 12–24 months; sometimes longer)
• Increased cost of working (expediting, outsourcing, overtime)
• Denial of access and utilities interruption extensions
• Supplier / customer dependency (where your business relies on a single source)

The goal is to avoid being underinsured at the point it matters most: when you’re trying to keep customers supplied and protect key contracts while repairs and replacements are underway.

Employers’ Liability & Workplace Safety

Employers’ Liability (EL) is compulsory in the UK for most businesses with employees. For cable and harness operations, EL risk drivers often include manual handling, repetitive strain from assembly tasks, machine guarding, noise, solder fumes, adhesives, and forklift / warehouse activity.

Good risk presentation to insurers includes:

• Documented health & safety procedures and training
• Machine guarding and lock-out / tag-out controls
• PPE and fume extraction for soldering and chemicals
• Manual handling assessments for reels and stock
• Incident reporting and near-miss process

Cyber, Data & IP Risk for Manufacturing Businesses

Manufacturing businesses are increasingly targeted by cyber criminals because disruption is expensive. Attackers know that halting production schedules, locking ERP systems, or corrupting QC records can create immediate pressure to pay.

Cyber insurance can support:

• Incident response and forensic investigation
• System restoration and data recovery
• Business interruption from cyber events (where covered)
• Liability for data breaches and regulatory response
• Ransomware negotiation and recovery support

For connector and harness manufacturers, this also includes risks around design files, customer drawings, and contractual confidentiality obligations.

Compliance, Contracts & Standards That Affect Insurance

Connectors and harness assemblies are often supplied into highly regulated environments where documentation and change control matter. Underwriters may ask which standards you work to and how you manage traceability.

Common frameworks include:

Presenting these controls clearly helps you secure broader cover, better terms and fewer exclusions.

Typical Coverage Options (Tailored to Your Operation)

We build policies around your real exposures: the sectors you supply, contract terms, export territories, and the value of stock and equipment. Below are example structures (limits and availability vary by insurer and underwriting):

How to Get Connectors, Cabling & Harness Insurance