My Account
We arrange cover with specialist manufacturing insurers
What Is Engineering Manufacturing Insurance?
Engineering manufacturing insurance is a broad term used to describe a combination of insurance covers designed to protect manufacturers from operational, financial, legal and catastrophic risks. Unlike simple business insurance, manufacturing risks are driven by machinery, processes, people, contracts, supply chains and regulatory obligations.
A well-structured manufacturing insurance programme does not rely on a single policy. Instead, it brings together property, engineering, liability and specialist covers so that the business can survive serious incidents such as fires, machinery failure, product claims, cyber attacks or major production downtime.
This guide explains the main insurance sections manufacturers typically need, how they fit together, and where businesses often find gaps or underinsurance.
Core Insurance Covers for Engineering Manufacturers
Most engineering and manufacturing businesses require a core set of covers. The exact structure depends on size, processes, contracts and risk appetite, but the following sections form the foundation of most programmes.
Property, Buildings & Contents Insurance
Property insurance protects physical assets such as buildings, plant, machinery, fixtures, tooling and contents against insured perils like fire, explosion, flood and storm damage.
- Factory buildings and offices (rebuild cost, not market value)
- Plant, machinery, tooling and equipment
- Contents, fixtures and fittings
- Debris removal and professional fees
- Alternative premises costs (where selected)
Machinery Breakdown & Engineering Risks
Standard property insurance often excludes mechanical or electrical breakdown. Engineering covers are used to protect critical production equipment.
- Sudden mechanical or electrical failure
- Control systems, motors and panels
- Consequential damage options
- Inspection and maintenance alignment
- Support for high-value or specialist machinery
Business Interruption Insurance
Business interruption (BI) is often the most valuable cover for manufacturers. It protects income and cashflow when production is disrupted following insured damage.
- Loss of gross profit during shutdown
- Increased cost of working to maintain output
- Indemnity periods aligned to rebuild timelines
- Customer and supplier dependency options
- Claims preparation costs
Public & Products Liability Insurance
Liability insurance protects against claims for injury or property damage caused by your operations or products.
- Public liability for premises and operations
- Products liability for manufactured or supplied goods
- Contractual liability extensions
- Worldwide / export territories where required
- Legal defence costs
Additional & Specialist Covers
Beyond the core policies, many engineering manufacturers require specialist extensions depending on products, processes and contractual obligations.
Employers’ Liability
Employers’ liability is a legal requirement in the UK for most businesses with staff. It protects against injury or illness claims from employees.
- Mandatory cover (subject to limited exemptions)
- Typically £10m limit in the UK
- Covers legal defence and compensation
- Applies to employees and labour-only subcontractors
Cyber, IP & Operational Technology (OT)
Manufacturing cyber risk is often operational rather than data-driven. Cyber and OT insurance can protect against ransomware, downtime and recovery costs.
- Cyber business interruption
- Incident response and forensics
- Payment fraud and social engineering
- Support for IP and sensitive data incidents
How to Structure Manufacturing Insurance Correctly
The most common problems we see in manufacturing insurance are underinsurance, unrealistic business interruption periods, and gaps between policies.
Insure24 helps engineering manufacturers structure insurance programmes by:
- Identifying maximum values at risk (buildings, machinery, stock, WIP)
- Mapping production dependencies and downtime exposure
- Aligning liability limits with contracts and exports
- Selecting insurers with manufacturing expertise
- Reviewing cover annually as the business evolves
FREQUENTLY ASKED QUESTIONS
+-
Is engineering manufacturing insurance a single policy?
No. It is usually a combination of policies such as property, engineering,
business interruption and liability, structured together to protect the business.
+-
How often should manufacturing insurance be reviewed?
At least annually, and whenever there are major changes such as new machinery,
increased turnover, new products or exports, or changes to premises.
+-
Can insurance be tailored for growth?
Yes. Limits, sums insured and policy sections can be adjusted to reflect growth,
new contracts and evolving risk exposure.