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INSURANCE FOR POWER ELECTRONICS MANUFACTURERS
Why Specialist Cover Matters
Power supply and power electronics manufacturers operate in one of the most technically demanding and high-risk areas of electrical component production. Whether you design switch-mode power supplies (SMPS), DC-DC converters, UPS systems, inverters for renewable energy, EV charging units, transformers or custom industrial power systems, the consequences of failure can be catastrophic.
Your products may power hospitals, data centres, telecom infrastructure, aerospace systems, rail networks, manufacturing plants and renewable energy installations. A voltage spike, thermal runaway event, PCB defect or firmware issue can result in fire, system shutdown, large-scale financial loss or even injury.
Standard manufacturing insurance is rarely adequate. You need cover built around electrical risk, product performance exposure, recall risk, CE/UKCA compliance, export liability and high-value business interruption exposure.
Core Covers for Power Electronics Manufacturers
- Product Liability – injury or property damage arising from defective power units
- Product Recall Insurance – design defect or batch failure
- Professional Indemnity – design & specification error cover
- Employers’ Liability – compulsory UK cover
- Public Liability – site visitors & contractors
- Manufacturing Plant & Machinery Cover
- Business Interruption & Loss of Revenue
- Cyber & Firmware Liability
- Export & Worldwide Liability Extensions
Common Risks in Power Supply Manufacturing
Thermal & Fire Risk
- Overheating transformers
- Capacitor failure
- PCB short circuits
- Lithium battery integration risks
- Arc flash incidents
Design & Specification Errors
- Incorrect load calculations
- Voltage tolerance miscalculations
- EMI / EMC non-compliance
- Software-controlled power regulation faults
- Integration failures in OEM environments
Supply Chain & Component Failure
- Counterfeit semiconductors
- IGBT / MOSFET defects
- Transformer winding inconsistencies
- Raw material contamination
- Component shortage delays
Regulatory & Certification Exposure
- CE / UKCA marking issues
- RoHS non-compliance
- Electrical safety certification failure
- Export regulatory breach
- Contractual penalty exposure
Business Interruption in Electronics Manufacturing
Power electronics facilities often rely on automated SMT lines, wave soldering, transformer winding machines, testing rigs and climate-controlled environments. A fire, machinery breakdown or electrical surge can halt production for weeks.
We structure indemnity periods correctly — often 18 to 24 months — to reflect realistic rebuild and re-certification timelines.
- Gross profit protection
- Increased cost of working
- Supplier dependency extensions
- Utility failure cover
- Machinery breakdown extension
FREQUENTLY ASKED QUESTIONS
+-Do power supply manufacturers need product recall insurance?
Yes. If a batch of converters, transformers or power units is found defective, recall insurance covers collection, replacement, labour, logistics and reputational mitigation costs.
+-Does product liability cover fire caused by a defective PSU?
Yes, provided the claim arises from bodily injury or property damage caused by your product. Adequate indemnity limits are critical due to high-value exposure.
+-Is professional indemnity required for power electronics design?
If you design custom power systems, yes. Specification errors may not trigger product liability but can lead to pure financial loss claims.
+-Can insurance cover worldwide exports?
Yes, policies can extend to EU, USA and worldwide jurisdictions, though US exposure requires careful underwriting.
+-How much does power electronics manufacturing insurance cost?
Premium depends on turnover, export split, testing procedures, claims history, certifications and product application sector. We negotiate specialist manufacturing rates.