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ENGINEERING MANUFACTURING INSURANCE THAT KEEPS PRODUCTION MOVING
Why Mechanical Engineering Manufacturing Insurance Matters
Mechanical engineering manufacturers operate with high-value machinery, tight tolerances, strict delivery deadlines, and contractual obligations that can create significant financial exposure when something goes wrong. A single CNC breakdown, a fire in a fabrication bay, a defect claim after a component failure, or an injury on the shop floor can disrupt operations and trigger costly claims. Insure24 arranges specialist insurance designed for precision engineering, machining, fabrication, assembly and production environments.
Core Cover for Mechanical Engineering Manufacturers
We build policies around how your engineering business actually operates — from incoming raw materials and subcontracted processes to finishing, packaging, installation and aftersales support. Cover can be arranged for small workshops through to multi-site manufacturers with production lines and specialised plant.
- Public Liability – protection for injury or property damage arising from your premises, site visits, demonstrations, loading/unloading and day-to-day operations.
- Products Liability – protection if a component or assembly you manufacture causes injury or damage after it leaves your control.
- Employers’ Liability – legally required cover (UK) for employee injury/illness, including manual handling, machinery accidents and occupational exposures.
- Property & Contents – cover for your buildings (if required), fixtures, tooling stores, office kit and workshop contents.
- Business Interruption – protects gross profit and ongoing costs if an insured event forces a stoppage or reduced output.
- Money & Theft – cover for theft (including stock and certain tools), plus cash handling exposures where relevant.
Engineering-Specific Covers You May Need
Many mechanical engineering businesses need more than standard liability + property cover. If you design parts, work to client drawings, supply into critical industries, or rely on high-value plant, we can add specialist sections to match your risk profile.
- Engineering / Machinery Breakdown – cover for sudden and unforeseen mechanical/electrical breakdown of CNC machines, lathes, presses, mills, compressors and production equipment.
- Deterioration of Stock / Temperature – for processes relying on controlled environments (as applicable).
- Tool & Portable Equipment – cover for specialist tools, calibration instruments, metrology equipment and portable engineering gear.
- Goods in Transit – cover for components, raw materials and finished goods whilst being transported.
- Professional Indemnity – recommended where you design, specify, advise, prototype, or modify engineering drawings/specifications.
- Contract Works – if you install or commission equipment at client sites.
- Cyber & Data – protection for CAD/CAM files, production networks, email compromise and ransomware.
- Management Liability (D&O) – protection for directors/officers against claims related to management decisions.
Common Risks in Mechanical Engineering Manufacturing
Engineering manufacturers can be exposed to high-severity losses because defects can travel downstream, incidents can halt production, and contracts often include strict delivery and quality requirements. Here are typical exposures we build into the insurance conversation:
- Machinery downtime – spindle failures, motor issues, power supply faults, control system failures, and unplanned outages that stop output.
- Fire and hot works – welding/cutting, flammables, dust and extraction risks, and ignition sources on the shop floor.
- Defect / tolerance disputes – components outside tolerance, incorrect materials, heat treatment issues, or finishing errors that trigger rejection and rework.
- Downstream liability – a failed component causing damage to other equipment or injury, especially when supplied into OEM supply chains.
- Manual handling and injury – lifting, rotating parts, pallet movement, and interaction with heavy plant.
- Theft of tools and metals – high-theft items such as copper, stainless, specialist tools and portable equipment.
- Supply chain disruption – delays in raw materials, outsourced processes, or logistics affecting delivery commitments.
- Cyber disruption – ransomware affecting scheduling, CAD/CAM files, ERP systems and machine connectivity.
What We Need to Quote (And Why It Matters)
Getting engineering manufacturing insurance right is about accurately matching cover to your processes, contracts and output risks. The more clearly we understand your operation, the better we can position you with insurers and reduce coverage gaps.
Operational Details
- Turnover split (manufacture / fabrication / installation / design)
- Number of employees and use of labour-only subcontractors
- Processes: CNC, milling, turning, welding, pressing, laser cutting, assembly, testing
- Largest contract value and key customers / sectors
- Quality systems (e.g. inspection, traceability, calibration, QA documentation)
- Material and product types (metals, alloys, composites, bespoke parts)
Assets & Controls
- Machinery schedule (CNC, lathes, mills, presses, compressors, production lines)
- Tooling and portable equipment totals
- Premises construction, security, alarm, shutters and CCTV
- Fire protections (extinguishers, extraction, hot works controls)
- Business interruption needs (indemnity period, key dependencies)
- Claims history and risk improvements
Why Choose Insure24 for Engineering Manufacturing Insurance?
Manufacturing risks aren’t generic. We help you present your engineering operation to insurers properly, so you get the right cover sections, sensible deductibles, and terms that fit your contracts and production reality.
- Specialist guidance – we understand engineering workflows, machinery values, QA, and supply chain realities.
- Insurer access – we compare options across leading markets for manufacturing and engineering risks.
- Contract-aware cover – we help align policy terms with customer requirements (limits, indemnities, extensions).
- Claims support – practical help when incidents happen, including documentation and insurer coordination.
- Competitive pricing – we aim for strong cover and good value, not just the cheapest headline premium.
Our CNC spindle failed unexpectedly and production stopped. Insure24 helped arrange cover that responded quickly and kept our cashflow stable while we repaired and caught up on orders.
Operations Manager, Precision Engineering FirmPROTECT YOUR BUSINESS
- The costs of repairing or replacing key manufacturing machinery
- Loss of gross profit after a fire, flood, theft or insured breakdown
- Your legal defence costs and damages you are liable to pay
- Claims arising from defective products or manufacturing errors
- Stock, materials and components on site and in transit (where selected)
Compliance & Contracts (Engineering Manufacturing)
Many engineering manufacturers need insurance to satisfy client onboarding, audits and contractual requirements. We can help align cover to:
- Minimum Public / Products Liability limits required by customers
- Employers’ Liability statutory requirements
- Design responsibility and PI obligations (where applicable)
- Contractual liability clauses and insurance evidence needs
- Risk management expectations (security, fire controls, hot works procedures)
FREQUENTLY ASKED QUESTIONS
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What does mechanical engineering manufacturing insurance cover?
Cover typically includes Employers’ Liability, Public Liability and Products Liability, plus options for property, stock, tools, goods in transit, business interruption, and machinery breakdown. The right combination depends on your processes, machinery values, contracts and exposure to defect claims.
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Do I need Products Liability if I only manufacture to client drawings?
Usually, yes. Even if you work to customer specifications, you can still be alleged to have contributed to a failure (materials, workmanship, tolerance, finishing, packaging, or batch traceability). Products Liability helps protect you if a component causes injury or damage after supply, subject to policy terms and exclusions.
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Is Employers’ Liability insurance legally required?
In the UK, Employers’ Liability insurance is legally required for most businesses that employ staff (including many labour-only arrangements). It protects your business if an employee is injured or becomes ill due to work activities.
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Can you insure CNC machines, lathes and production equipment?
Yes. We can arrange cover for workshop and factory machinery (including CNC equipment) for damage and, where selected, machinery breakdown. Insurers may request a machinery schedule, maintenance information, security and fire protections depending on values and site risk.
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Do engineering manufacturers need Professional Indemnity insurance?
If you design parts, advise on specifications, produce prototypes, or make changes to drawings/material selections, Professional Indemnity is strongly recommended. It helps protect against claims arising from design or specification errors that cause financial loss, subject to policy terms.
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How much does mechanical engineering manufacturing insurance cost?
Cost depends on turnover, staff numbers, processes (e.g. welding/hot works), product risk, claims history, premises risk, and machinery/tool values. The best way to get an accurate premium is a tailored quote — call us or use the online form and we’ll compare markets for you.