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FACTORY & BUILDINGS INSURANCE THAT HELPS YOU TAKE OFF
Why Property, Factory & Buildings Insurance Matters
If you manufacture electrical components, assemblies, harnesses, PCB sub-assemblies, passive components, connectors, sensors, control modules or related parts, your premises is not just an address — it’s your production capability. Your factory may include test labs, ESD-controlled zones, warehousing, curing ovens, soldering areas, coating rooms, compressors, extraction systems and specialist electrical infrastructure. A single insured event such as fire, flood, storm damage, theft, escape of water or machinery failure can stop production immediately.
Manufacturing losses typically escalate because the premises is linked to multiple dependencies: incoming materials, work-in-progress, customer delivery windows, quality controls and contractual obligations. Even a small incident in a plant room can knock out power, compressed air, chilled water or ventilation — which can force downtime across the whole site. And in electronics manufacturing, smoke contamination, water ingress or humidity spikes can destroy stock and sensitive components even where the building itself is repairable.
Insure24 arranges specialist property, factory and buildings insurance for electrical component manufacturers across the UK. We help you protect your building, fixtures, contents, stock, specialist equipment and — critically — your continuity of production.
Factory Property Cover Built Around Real Manufacturing Risks
Standard “shop and office” property insurance often misses the exposures that matter in manufacturing. The right policy needs to reflect your building construction, electrical load, plant rooms, storage methods, hazardous processes, and how quickly you could realistically recover production after a loss.
- Buildings Insurance – Factory, warehouse, offices, mezzanines, loading bays, ancillary structures and outbuildings (where declared).
- Contents & Plant – Fixtures, racking, benches, extraction, compressors, ovens, test equipment and general factory contents.
- Stock & Materials – Raw materials, finished goods, packaging, spare parts and (where required) high-value electronic stock.
- Work in Progress – Protection for part-finished items, assemblies and components in production (subject to underwriting and sums insured).
- Theft & Malicious Damage – Cover designed for factories with higher target attractiveness (copper, tools, electronics, laptops and test kit).
- Escape of Water – Damage from sprinkler discharge, burst pipes and leaks (risk-managed with maintenance and frost controls).
- Storm, Flood & Subsidence – Protection against severe weather losses (subject to flood mapping and terms).
- Equipment Breakdown – Optional cover for sudden and unforeseen breakdown of insured plant and equipment (often paired with BI).
Common Property Risks for Electrical Component Manufacturers
- Electrical fires from high-load distribution boards, test rigs, ovens and charging systems
- Dust, fumes and extraction failures (including soldering fumes and particulate risk)
- Solvents, coatings, resins and chemical storage incidents
- Sprinkler activation or water leaks damaging sensitive electronics and packaging
- Flooding to ground-floor storage, goods-in bays and warehouse racking
- Theft of copper, cable drums, tools, laptops, test equipment and high-value stock
- Power surge damage to calibrated test equipment and precision instrumentation
- Compressor / plant room failures causing site-wide downtime
- Arson and malicious damage (especially on industrial estates)
- Vehicle impact at loading bays, shutters and perimeter fencing
- Roof leaks, storm damage and water ingress affecting production areas
- Business interruption from supplier dependency and delayed reinstatement
Why Choose Insure24
- Manufacturing-first approach – We build the property submission around how your site actually operates (utilities, plant rooms, processes, storage, fire protection and security).
- Insurer appetite matching – We place you with markets suited to industrial risks, not generic retail property schemes.
- BI aligned to recovery reality – We help select correct indemnity periods and sums insured, including seasonal peaks and lead times.
- Practical claims support – Clear documentation, valuations and reinstatement planning reduce disputes and delays.
How to Get Property, Factory & Buildings Insurance
- 1. Tell us about the site – Address, construction, floor area, occupancy, processes and any hazardous storage.
- 2. Confirm sums insured – Buildings reinstatement value, contents/plant, stock levels and WIP.
- 3. Set business interruption correctly – Gross profit, indemnity period and key dependencies.
- 4. Arrange cover – Receive documentation suitable for landlords, lenders and customer tender requirements.
Property & Factory Insurance for Your Type of Facility
Electrical component manufacturing premises vary significantly. We tailor the cover presentation to your building type, processes and the critical utilities that keep production running.
Light Industrial Assembly & Test Facilities
- Protection for test benches, calibrated instruments and ESD-controlled areas
- Stock cover aligned to high-value small-item electronics and storage methods
- Theft and security focus for portable, target-attractive equipment
- Power surge protection considerations and electrical maintenance presentation
- BI structured around quick reinstatement and temporary relocation options
Heavy Process, Coating, Curing & Production Lines
- Fire risk presentation for ovens, curing rooms, resins, solvents and extraction
- Machinery and utility dependency planning (compressors, chillers, ventilation)
- Environmental controls where moisture, dust or contamination affects stock
- Hot works management, housekeeping and waste disposal controls
- Longer BI indemnity periods where reinstatement is complex
Multi-Unit Industrial Estates & Shared Sites
- Landlord/tenant responsibilities (who insures what)
- Sprinkler and fire compartmentation considerations
- Third-party exposures such as neighbouring tenant fire spread
- Security requirements: alarms, shutters, CCTV, access control
- Loss prevention aligned to estate-level risks (arson, theft, vandalism)
Warehousing & Distribution with Manufacturing
- High-value stock and racking layout considerations
- Loading bay vehicle impact and goods-in controls
- Goods in transit and storage in transit extensions (where required)
- Flood risk review for low-lying storage zones
- BI aligned to supply commitments and just-in-time delivery demands
Understanding Factory Property Insurance for Electronics Manufacturing
Property insurance for manufacturers is not just about “brick and mortar.” It’s about protecting the systems, the environment, and the dependencies that allow your operation to meet production output and delivery targets. Electrical component manufacturing has characteristics that make property risk different from many other sectors: sensitive stock, high reliance on utilities, strict QA environments, and often high concentrations of value in small spaces (for example, reels of components, test instrumentation, copper, specialised connectors, or high-value parts ready for shipment).
Below we break down the key cover parts in plain English, and explain how insurers typically look at these risks so you can put the best information forward and secure appropriate terms.
Buildings Insurance: Reinstatement vs Market Value
Buildings insurance is normally set on a reinstatement basis — the cost to rebuild your factory or premises if it were destroyed, including professional fees, debris removal and compliance with modern building regulations. This is often very different from the market value of the property.
If your premises includes mezzanine floors, reinforced slabs, specialist electrics, plant rooms, ventilation ducting, extraction, bespoke storage or internal partitioning for controlled environments, these can increase reinstatement cost significantly. Underinsuring buildings is one of the most common and expensive mistakes in property insurance because insurers may apply “average” (proportional settlement) where sums insured are inadequate.
- Rebuild cost includes demolition, professional fees and regulatory compliance
- Mezzanines, loading bays, shutters and internal fit-out add to rebuild cost
- Landlord/tenant split must be clear (who insures roof, structure and services)
- If you lease, make sure your lease terms match your insurance arrangement
Contents, Plant & Stock: The “Silent Loss” Problem
In electronics manufacturing, the most painful losses can be the ones that don’t look dramatic: smoke contamination, water vapour, sprinkler mist, humidity changes, dust ingress or small roof leaks. These can make electronic stock, packaging, labels and work-in-progress unusable. Even if the building can be repaired, you may still face a major stock write-off and rework programme.
The way you store stock matters to underwriting and claims: racking height, palletisation, fire separation, cage storage for high-value items, and whether sensitive goods are kept off the floor (critical for flood or escape of water exposures).
- Define stock correctly: raw materials, finished goods, packaging and high-value components
- Consider seasonal peaks: some manufacturers have order surges and higher stock levels
- Ensure WIP is included where it’s material to the business
- Security measures (alarm, CCTV, keyholding) can materially affect theft terms
Business Interruption: The Cover That Saves Companies
Business interruption (BI) covers the loss of gross profit and/or increased costs of working following an insured event (such as a fire). This is often the difference between a business surviving a major property incident and suffering long-term damage.
The key is setting the sum insured and indemnity period realistically. If your lead times are long, replacement machinery is specialised, or reinstatement requires specialist contractors, a short indemnity period can leave you uninsured for the second half of the recovery. BI should reflect not only rebuild time, but also the time to re-qualify processes, recalibrate equipment, restore QA documentation, rebuild inventory and regain customer confidence.
- Gross profit should reflect real margins and fixed costs
- Indemnity period should match realistic reinstatement and ramp-up time
- Increased Cost of Working supports outsourcing, overtime and temporary premises
- Consider dependencies: critical suppliers, utilities and key customers
Equipment Breakdown: When “No Fire” Still Means No Production
Property insurance responds to defined perils (fire, flood, storm etc.). But many production-stopping events are mechanical or electrical breakdowns: compressors fail, chillers trip, extraction motors burn out, or a critical test rig fails suddenly. Equipment breakdown cover can be arranged to fill this gap.
This cover is especially valuable where a single piece of plant is a bottleneck. Pairing equipment breakdown with BI can be powerful: it helps cover the immediate repair cost and the income loss during downtime. Underwriters will look at maintenance routines, inspection schedules, and spare parts resilience.
- Covers sudden and unforeseen breakdown (subject to policy definition)
- Useful for compressors, electrical panels, boilers, chillers, extraction systems
- Can be extended to include deterioration of stock (where applicable)
- Best paired with BI to protect production revenue during repairs
Fire Protection: Sprinklers, Compartmentation & Hot Works
Fire is still the biggest severity driver in factory insurance. Insurers will pay close attention to fire alarms, detection type, sprinkler protection, extinguishers, housekeeping, waste controls, and hot works management (welding, grinding, cutting, roofing works). In electronics manufacturing, additional attention is often paid to extraction and the handling of flux, solvents and coatings.
Even if you don’t consider your processes “hazardous”, small operational factors can change insurer perception: overnight charging of devices, density of combustible packaging, use of space heaters, storage close to electrical distribution boards, and whether plant rooms are kept clear and maintained.
- A maintained alarm and clear monitoring arrangements are critical
- Sprinklers can materially improve terms and capacity for larger risks
- Hot works permits reduce loss severity and protect insurer confidence
- Housekeeping and waste removal schedules matter more than most expect
Flood & Water Damage: Storage Discipline is Key
Water damage claims are extremely common: burst pipes, leaking roofs, sprinkler discharge and surface water flooding. For electronics manufacturers, water damage is often worse than it looks because it can destroy packaging, labels, barcodes, and moisture-sensitive components.
Underwriters will often ask about flood history, nearby watercourses, floor levels, and what you store at ground level. Simple practical controls — like storing high-value electronics off the floor, bunding where chemicals exist, and keeping roof maintenance records — can improve both terms and claims outcomes.
- Keep high-value stock off the floor and away from roller shutters
- Maintain roofs, gutters and downpipes and record inspections
- Have a winter freeze plan for unoccupied periods
- Where flood exposure exists, consider resilience planning and BI extensions
The Real Cost of Property Incidents in Manufacturing
The visible damage is often only part of the story. For manufacturers, the real cost includes lost output, missed delivery commitments, re-qualification of production, scrapped work in progress, premium freight and customer retention efforts. A well-designed property and BI programme is built to address both the immediate repair cost and the operational impact.
Direct Financial Losses
- Building repairs, contractors and professional fees
- Replacement of damaged stock, packaging and calibrated equipment
- Debris removal and clean-up (including specialist contamination clean)
- Repair/replacement of plant room equipment and critical utilities
- Temporary site security, boarding and safety compliance works
- Claims preparation and loss adjuster interaction time/cost
Indirect & Hidden Costs
- Lost gross profit from downtime and reduced output
- Overtime, outsourcing and premium freight to catch up
- Re-testing and re-certifying batches after disruption
- Contractual pressures and customer relationship damage
- Increased lead times and supply chain knock-on effects
- Time to rebuild inventory and restore normal delivery cadence
Real-World Impact
Many factories reopen quickly after an incident, but operate below capacity for months while equipment is repaired, stock is rebuilt, and QA baselines are restored. BI cover that is too short or too low can leave a business “open but uninsured” during the most financially damaging stage of recovery. Our approach is to structure cover around the recovery journey, not just the first few weeks.
Assess Your Property & Facility Risk
To access the best terms, insurers need a clear view of your building, processes and protections. We help you prepare a strong submission that underwriters can price accurately and competitively.
Facility Assessment Areas
- Building construction (roof type, wall type, age, cladding details)
- Fire protection (alarm, sprinklers, extinguishers, compartmentation)
- Processes on-site (soldering, curing ovens, coating, chemicals)
- Electrical inspection and maintenance routines
- Security (alarm, CCTV, access control, keyholding)
- Stock values and storage layout (racking, segregation, off-floor storage)
- Plant rooms and critical utilities (compressors, chillers, extraction)
- Housekeeping, waste management and hot works controls
Risk Factors Insurers Evaluate
- Total sums insured and adequacy of valuations
- Claims history and near-miss incident records
- Flood exposure and previous water damage
- Reliance on a single site and resilience planning
- Age/condition of electrics, plant equipment and roof
- Combustible materials, packaging load and storage discipline
- Neighbouring occupancies (risk of fire spread)
- Ability to continue trading after a partial loss (temporary working plans)
How Property Insurance Helped Real Manufacturers
Case Study: Small Fire in Plant Room
Situation: A small electrical fire damaged a plant room distribution board and knocked out site utilities.
Impact: Production stopped immediately, and stock in the affected area risked smoke contamination.
Resolution: Property cover supported repairs and clean-up, while business interruption helped protect cash flow during reduced output.
Case Study: Escape of Water Damages Stock
Situation: A burst pipe overnight caused water damage to packaging and moisture-sensitive components.
Impact: Significant stock write-off plus delays to customer deliveries.
Resolution: Stock cover responded for damaged goods and BI supported the cost of working to catch up with production.
Case Study: Storm Damage & Roof Ingress
Situation: Storm damage led to roof leaks above a production zone.
Impact: Temporary shutdown, clean-up and urgent repairs to prevent further contamination.
Resolution: Buildings cover supported reinstatement and BI helped manage lost output during recovery.
Case Study: Theft of High-Value Equipment
Situation: A break-in targeted portable test equipment and laptops.
Impact: Operational disruption plus cost to replace specialised equipment.
Resolution: Theft cover responded subject to security terms, helping the business return to normal quickly.
Factory Risk Management Best Practices
Strong risk controls can reduce losses and improve insurer terms. These are practical measures commonly expected for manufacturing premises.
Fire & Property Controls
- Maintain fire alarm systems and keep inspection records
- Hot works permits and contractor controls for welding/roofing
- Good housekeeping and safe waste storage/removal routines
- Electrical inspections and thermal imaging where appropriate
- Separation of combustible packaging from ignition sources
- Plant room discipline: clear access, tidy cabling, clean floors
- Secure chemical storage and spill containment where required
- Regular roof, gutter and downpipe maintenance inspections
Security & Continuity Controls
- Monitored intruder alarm, CCTV and access control
- Secure storage cages for high-value electronics and tools
- Keyholding arrangements and perimeter lighting
- Stock stored off-floor where water risk exists
- Spare parts strategy for critical plant and bottleneck equipment
- Documented business continuity plan (temporary working, outsourcing)
- Backup suppliers identified for critical materials and packaging
- Testing and calibration resilience to avoid extended quality delays
Property Insurance Coverage Levels
We arrange cover scaled to your premises size, stock values and recovery needs. The right level is less about labels and more about adequacy of sums insured and BI design.
Starter Coverage
Ideal for: Smaller sites with lower stock and simpler processes
- Buildings and contents on a core perils basis
- Stock cover aligned to average holding levels
- Basic BI with sensible indemnity period
- Theft cover subject to security conditions
- Optional equipment breakdown where critical plant exists
Standard Coverage
Ideal for: Growing manufacturers with utility dependencies
- Buildings, contents and stock with broader extensions
- Improved BI including increased cost of working
- Equipment breakdown for key plant room equipment
- Goods in transit options for distribution risks
- Higher limits and improved claims practicalities
Premium Coverage
Ideal for: Higher stock values, complex processes or single-site dependency
- Enhanced BI with longer indemnity periods
- Supplier/customer dependency (contingent BI) where suitable
- Higher sums insured with evidence-based valuations
- More tailored wording for specialist equipment and utilities
- Broader extensions for temporary relocation and resilience
Enterprise Coverage
Ideal for: Multi-site groups, high-output factories, critical supply chains
- Customisable programme design across multiple premises
- Advanced BI, utility interruption and resilience planning
- Bespoke claims handling protocols and reporting
- Capacity built for high-value stock and specialist fit-out
- Policy architecture aligned to lender and customer requirements
After a water leak threatened our electronics stock and halted production, Insure24 helped us arrange cover that actually reflected our factory risks. The support was excellent during a stressful incident
Operations Manager, UK Electronics ManufacturerPROTECT YOURSELF
- The cost to repair or rebuild your factory premises
- Replacement of damaged stock, tools, fixtures and equipment
- Loss of gross profit following an insured incident
- Overtime, outsourcing and premium freight to keep customers supplied
- Damage caused by fire, flood, storm, escape of water or theft
Compliance & Regulations
Our factory and buildings insurance arrangements are designed to support manufacturing businesses working to meet expectations including:
- Landlord and lender insurance requirements
- Health & safety obligations for industrial premises
- Fire risk assessment expectations and documented controls
- Customer audit expectations around continuity planning
- Security and access control requirements for valuable stock
FREQUENTLY ASKED QUESTIONS
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What does property, factory and buildings insurance cover for manufacturers?
Property and factory insurance can cover your buildings, contents, plant, tools and stock against events such as fire, flood, storm, escape of water, theft and malicious damage (subject to policy terms). Many manufacturers also add business interruption to protect gross profit while the premises is repaired and operations recover.
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How do I calculate the right buildings sum insured?
Buildings are usually insured on a reinstatement basis (rebuild cost), not market value. This should include demolition, debris removal, professional fees and compliance with building regulations. For leased properties, check whether the landlord insures the structure and whether you need to insure tenant improvements and fit-out.
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Do I need business interruption insurance as a factory?
In most manufacturing cases, business interruption is essential. Property repairs can take weeks or months, and production can take longer to return to normal even after the building reopens. BI can cover loss of gross profit and increased costs of working (such as outsourcing, overtime or temporary premises) following an insured event.
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Will property insurance cover damage to electronic stock caused by water or smoke?
Stock cover can respond to damage caused by insured events such as escape of water or fire/smoke, subject to policy wording, exclusions and conditions. Because electronics can be sensitive to moisture and contamination, it’s important to insure realistic stock values and present storage methods clearly to underwriters.
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What security measures do insurers expect for factories with high-value stock?
Insurers commonly expect a maintained intruder alarm (often monitored), robust physical security such as shutters and locks, CCTV, access control, and good key management. High-value items may need locked cages or secure rooms. The exact requirements depend on the insurer and the risk profile.
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How quickly can Insure24 arrange factory and buildings cover?
For straightforward premises we can often provide options quickly. For larger factories, higher sums insured, complex processes (ovens, coatings, solvents) or flood exposures, allow 1–2 working days so we can present the risk properly and secure the best terms from insurers.
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Can equipment breakdown be added to factory property insurance?
Yes. Equipment breakdown (sometimes called engineering inspection or machinery breakdown cover) can be arranged to cover sudden and unforeseen breakdown of insured plant such as compressors, electrical panels, extraction systems, chillers, boilers and certain production equipment. It is often paired with BI to protect income during downtime.
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What information do you need to quote for factory and buildings insurance?
Typically we’ll need your site address, construction details, floor area, occupancy and processes, fire and security protections, buildings/contents/stock sums insured, claims history, and the BI requirements (gross profit and indemnity period). Photos, valuations and risk assessments can help improve underwriting outcomes.
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Does factory property insurance cover leased buildings?
It can. Many landlords insure the main structure and recharge the premium to tenants, while tenants insure their contents, stock, tenant improvements and business interruption. The correct setup depends on your lease. We’ll help you align your insurance with your contractual responsibilities.