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INSURANCE FOR MACHINERY MANUFACTURERS THAT KEEPS YOU MOVING
Why Industrial Equipment Manufacturing Insurance Matters
Industrial equipment and machinery manufacturers face a unique combination of high-value physical assets, complex production processes, and long-tail product risks. A single incident — fire, flood, theft, machinery breakdown, or a product failure — can trigger multiple losses at once: repair and replacement costs, missed delivery dates, contractual disputes, and third-party injury or property damage claims. Insure24 arranges specialist cover designed around how engineering manufacturers actually work: design, fabrication, assembly, testing, dispatch, installation/commissioning, and after-sales support.
Core Cover for Industrial Equipment & Machinery Manufacturers
The right policy for an engineering manufacturer isn’t a generic “factory package”. It needs to reflect your true exposures: high-value machinery and tooling, work in progress, supply chain delays, customer acceptance testing, and products that can cause severe losses if they fail in the field. We build manufacturing insurance around your operations and contracts.
- Property (Buildings, Contents & Stock) – cover your premises, equipment, materials, and finished goods against fire, flood, theft, and malicious damage.
- Plant & Machinery / Tooling – insure high value CNC machines, test rigs, jigs, fixtures, and specialist tooling (including realistic peak values).
- Machinery Breakdown (Engineering) – sudden mechanical/electrical failure cover for production machinery, drives, motors, controls, and critical equipment.
- Business Interruption – protect gross profit and standing charges if you can’t operate following an insured event (with suitable indemnity periods).
- Employers’ Liability – compulsory cover for staff injuries and work-related illness within a manufacturing environment.
- Public & Products Liability – protect against third-party claims arising from site visits and from machinery/equipment supplied into the market.
Common Risks for Industrial Equipment & Machinery Manufacturers
Machinery manufacturing risk is rarely “single cause”. Losses often cascade: a breakdown stops output, delays a contract, triggers liquidated damages discussions, and increases outsourcing costs. Meanwhile, a product defect can lead to property damage at a customer site, injury claims, recall or retrofit programmes, and reputational damage. The sections below outline the risks insurers focus on — and how cover is structured to respond.
- Fire & Hot Works Risk – welding, cutting, grinding, and fabrication can increase ignition risk and smoke damage to stock and WIP.
- Machinery & Electrical Failure – CNC downtime, motor failure, drive faults, control panel issues, and damaged tooling can halt production.
- Work in Progress Accumulation – value builds over weeks/months; damage during assembly/testing can be expensive and delay deliveries.
- Transit & Loading – finished equipment can be damaged during loading/unloading, haulage, or internal forklift movements.
- Installation / Commissioning – on-site testing and integration can create risk before customer acceptance and handover.
- Product Failure in Use – defective parts, design/specification issues, or integration failures can lead to injury/property damage claims.
- Supply Chain Disruption – delayed components or specialist parts can create contractual exposure and cashflow pressure.
- Cyber/IT Disruption – CAD files, CNC programs, and ERP systems are operationally critical; outages can stop production even without physical damage.
Why Choose Insure24
Insure24 is built for UK commercial risk. For engineering and manufacturing clients, the goal isn’t just a certificate — it’s a policy structure that stands up to real loss scenarios and contract requirements. We help you avoid underinsurance, missing endorsements, and “surprise” exclusions by aligning cover to your manufacturing workflow and customer expectations.
- Manufacturing-Specific Advice – we understand plant values, breakdown risk, production downtime, and products exposures.
- Contract-Ready Limits – we can align public/products liability limits and wording to meet OEM/integrator customer requirements.
- Business Interruption Done Properly – realistic indemnity periods and sums insured to reflect replacement lead times and re-qualification needs.
- Clear, Practical Quoting – we focus on the information insurers actually need, avoiding unnecessary delays.
- Claims Support – evidence capture guidance and insurer coordination when it matters most.
How to Get Industrial Equipment & Machinery Manufacturing Insurance
Getting the right policy is about accurately presenting your risk. The most competitive outcomes happen when insurers clearly understand what you manufacture, how you test and validate equipment, and whether you install/commission on customer sites. We keep it simple and structured.
- 1. Describe what you manufacture – product types, end uses, safety critical features, and typical customer industries.
- 2. Confirm operations – fabrication processes, hot works, testing/commissioning, subcontracted elements, and QA procedures.
- 3. Values & limits – premises, plant/tooling, WIP/stock, turnover, and liability limits required by customers.
- 4. Review & tailor – we explain cover options, key exclusions, and recommend a robust structure for your risk profile.
- 5. Bind cover – once approved, cover is put in place and documentation issued for your contracts and compliance.
Coverage Considerations for Machinery & Equipment Manufacturers
Many industrial equipment manufacturers supply bespoke machinery or integrate multiple components, which can create grey areas if the policy structure is not well defined. We commonly discuss the points below during placement to ensure cover responds to real-world claim scenarios.
Products Liability & Contract Terms
- Territory & Jurisdiction – where you supply and where claims could be brought (UK only vs worldwide).
- Indemnity Limits – common requirements include £5m/£10m+ depending on customer and equipment type.
- Installation Responsibilities – if you commission on site, ensure cover includes work away / contract works.
- Acceptance Testing – clarify when risk transfers and whether pre-handover testing is included.
- Recall / Retrofit – consider optional cover if a defect could require widespread modification or retrieval.
Business Interruption & Downtime
- Indemnity Period – choose 12/24/36 months based on lead times for specialist machinery and re-qualification.
- Single Points of Failure – key CNC machines, compressors, electrical systems, or utilities that can stop production.
- Increased Cost of Working – overtime, outsourcing, temporary premises, or expedited shipping to maintain delivery schedules.
- Stock/WIP Dependencies – if value builds over time, BI and stock/WIP values must match peak exposures.
- Utilities – cover for losses arising from interruption to power, water, or communications where applicable.
“After a major breakdown halted production, Insure24 helped us structure the right cover and guided us through the claim. We were able to restart quickly and avoid severe cashflow pressure.”
Operations Director, UK Engineering ManufacturerPROTECT YOUR BUSINESS
- Damage to buildings, plant, tooling, and stock from insured events
- Sudden machinery breakdown and costly production stoppages
- Loss of gross profit and standing charges due to downtime
- Third-party injury or property damage claims arising from your products
- Liability exposures from installation, commissioning, and work away
- Your legal defence costs and damages you are legally liable to pay
Compliance & Contract Requirements
Industrial equipment manufacturers often need insurance to satisfy customer contracts, tender requirements, and on-site access conditions. Typical requirements relate to Employers’ Liability, Public/Products Liability limits, and evidence of cover during installation and commissioning. If you export, territories and jurisdictions may also be required to match contractual terms.
- Employers’ Liability compliance (UK compulsory requirements where applicable)
- Public & Products Liability limits aligned to customer contracts
- Evidence of cover for site work, installation, and commissioning
- Insurance wording considerations for bespoke/OEM supply chains
- Export territories and contractual jurisdictions (where needed)
FREQUENTLY ASKED QUESTIONS
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What does Industrial Equipment & Machinery Manufacturing Insurance cover?
Cover is typically built as a package for machinery manufacturers. It can include property (buildings/contents/stock),
plant and machinery, machinery breakdown, business interruption, employers’ liability, and public/products liability.
Optional extensions may include contract works/installation, goods in transit, cyber cover, and product recall or remedial costs
where relevant to your operations and contracts.
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Do machinery manufacturers need Products Liability insurance?
In most cases, yes. If your equipment causes third-party injury or property damage after it has been supplied, Products Liability
helps protect your business against the cost of claims, legal defence, and damages. Machinery and industrial equipment can create
high-severity losses, particularly if it integrates into a customer production line or safety-critical environment.
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Can the policy cover installation and commissioning at customer sites?
Yes, subject to underwriting and the scope of your work. If you install, test, or commission machinery at a customer site,
you may need contract works / installation cover and appropriate “work away” liability. This helps protect you before handover,
during testing, and while equipment is being integrated into a wider system.
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What is Machinery Breakdown insurance and why is it important?
Machinery Breakdown insurance covers sudden mechanical or electrical failure of insured plant — for example motors, drives,
CNC machinery, compressors, control panels, and other production-critical equipment. Breakdown can be expensive and disruptive:
repair costs, specialist labour, and downtime. It’s often a key component of manufacturing risk management.
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How do you calculate Business Interruption cover for manufacturers?
Business Interruption is usually based on your gross profit (or revenue basis where appropriate) and a realistic indemnity period.
For manufacturers, the indemnity period should reflect replacement lead times for specialist machinery, repair timelines,
re-qualification of processes, and how long it would take to return to normal output — not just “clean-up time”.
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Do you cover export / overseas supply for machinery manufacturers?
Often yes, subject to underwriting. Exporting can change territory, jurisdiction, and contractual expectations.
We can help structure liability cover to match where you supply and where claims could arise, and ensure documentation aligns to customer
requirements where possible.
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What information do you need to provide a quote?
We typically need: turnover, staff numbers, premises details, plant/tooling and stock/WIP values, a clear description of the machinery/equipment
you manufacture, whether you install/commission, export territories (if applicable), and your claims history. If you have key contracts,
sharing liability limits and wording requirements helps us align cover correctly.
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How can manufacturers reduce premiums without reducing protection?
Insurers respond well to strong risk controls: documented hot works procedures, housekeeping, maintenance schedules, PAT/testing regimes,
quality assurance and traceability, staff training records, and robust security and fire protections. Clear presentation of your processes and
realistic sums insured also helps avoid loading due to uncertainty or underinsurance concerns.