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A PRACTICAL CHECKLIST FOR OEMs & MACHINERY BUILDERS
Why a Checklist Helps You Get Better Terms
Industrial equipment manufacturing sits in the middle of multiple risk worlds: product liability, engineering exposures, high-value property, contract works during installation, and (often) complex contracts with acceptance criteria and performance expectations. Insurers price and structure cover based on how clearly you explain where each exposure starts and ends.
This checklist is designed to help you present the risk cleanly and avoid the most common “grey area” disputes — for example, whether damage to the works during installation should fall under contract works, whether testing/commissioning conditions apply, or whether a loss is simply defect rectification which may be excluded.
Industrial Equipment Manufacturing Insurance Checklist (UK)
Use this page as a practical checklist to (1) confirm which insurance sections are typically considered by UK OEMs and machinery builders, (2) spot the common gaps we see between policies, and (3) gather the key underwriting information that helps insurers quote sensibly.
Insure24 supports industrial equipment manufacturers with submission structure, evidence-led risk presentation, and programme design that aligns liabilities, project covers and property protection around how you actually deliver work (supply-only vs install/commission/service).
- Confirm your delivery model and contractual boundaries
- Map cover sections: liability, property/BI, transit, contract works, engineering, cyber
- Spot grey areas: testing/commissioning, defects, performance guarantees
- Prepare underwriter-ready information: values, durations, processes, controls
- Improve insurer confidence with practical evidence (RAMS, FAT/SAT packs, change control)
- Reduce restrictive conditions and improve claim defensibility
Checklist 1: Your Operations & Delivery Model
Underwriting starts with clarity. Two manufacturers can build similar machinery but have completely different insurance needs depending on whether they install, commission, modify software/controls, or subcontract site work. Start by documenting the reality of your delivery model.
Confirm the basics
The aim is a short, accurate “risk story” an underwriter can understand quickly — without guesswork about who does what, where, and under which contract terms.
- What do you manufacture/build (e.g., automation lines, material handling, CNC systems, hydraulics, packaging)?
- Are you supply-only, or do you also install, test, commission, service and maintain?
- Typical project duration and longest project duration
- UK-only work or overseas shipments / overseas site work?
- Do you use subcontractors for install, electrics, pipework, lifting or civils?
- How is handover defined (acceptance tests, SAT sign-off, warranty start point)?
- Any heat work, confined spaces, working at height or hazardous environments?
Checklist 2: Core Liability Covers
Liability covers protect you against claims from third parties. For OEMs, the key is aligning public liability (operations/site work) and products liability (post-handover/product in use) — and being clear on your contractual responsibilities.
What to review
Pay particular attention to any pollution, vibration/noise, heat work, overseas work, work away, and any contractually assumed liabilities.
- Employers’ Liability: correct wage roll, labour-only subcontractors, and site activities
- Public Liability: install/site work scope, max depth of work, and third-party property exposures
- Products Liability: territories/jurisdictions, exported products, and high-hazard applications
- Contractual Liability: caps, indemnities, hold harmless, and “fitness for purpose” promises
- Professional Indemnity (if relevant): design/spec, controls/software, financial loss triggers
- Environmental/ Pollution extensions: if oils/chemicals/fuels could contaminate drains/land/water
Checklist 3: Projects, Installation, Testing & Commissioning
This is where most OEM disputes happen. Public liability usually isn’t designed to insure damage to the works itself, and many policies apply strict testing/commissioning conditions during energisation and functional testing. Review this section carefully if you install or commission.
Focus areas
The underwriting goal is clear boundaries: what’s in transit, what’s in storage, what’s “the works”, what’s third-party property, and what happens during FAT/SAT and energisation.
- Transit / Marine: max shipment value, packing method, hauliers, routes, storage in transit
- Contract Works / Erection: max contract value, project duration, temporary storage on site
- Testing / Commissioning: FAT/SAT steps, energisation sequence, sign-off controls, defined test periods
- Lifting risk: LOLER compliance, appointed persons, lift plans, subcontractor crane ops
- Defects & rectification: understand exclusions; plan for how rework costs are handled
- Contract terms: acceptance criteria, liquidated damages, warranties, performance guarantees
Checklist 4: Property, Stock, Tools & Business Interruption
Many OEMs focus on liability and project risk, but a workshop fire, flood or theft can be the event that actually puts the business under pressure. Review your property and interruption exposure with the same detail as your contract work.
Think beyond buildings
Consider materials, part-finished work, customer goods, jigs/fixtures, and single points of failure (specialist machines or test rigs).
- Buildings (if owned) and tenant’s improvements (if leased)
- Contents, tools, jigs/fixtures, laptops and diagnostic equipment
- Stock: raw materials, components, part-finished goods and finished machinery
- Customer goods / goods held in trust (if applicable)
- Machinery breakdown (critical plant) and resulting loss of production
- Business interruption: realistic indemnity period and key supplier dependency
Checklist 5: Cyber, Data & Operational Technology (OT)
OEMs increasingly carry both IT and OT exposure: CAD/CAM data, PLC/controls software, remote access support, and customer networks. Cyber isn’t just “data breach” — it can be downtime, ransomware, supplier compromise, and allegations that software changes caused loss.
What to document for insurers
Cyber underwriting is evidence-led. Even basic controls (MFA, backups, access management) materially influence terms, pricing and appetite.
- Do you provide remote access, remote commissioning or remote support?
- MFA, endpoint protection, patching approach and admin access control
- Backups: frequency, offline/immutable copies, and restore testing
- CAD/CAM/PLC code change control and versioning
- Supplier risk: key IT providers, email security, payment verification process
- Incident plan: who does what, and how you contain OT/plant impacts
What We’ll Ask For (Underwriter Checklist)
If you want faster quotes and fewer follow-up questions, the list below is the most useful “minimum viable submission” we see for industrial equipment manufacturers. Even bullet points are fine — clarity is what matters.
- Turnover and split by activity (manufacture vs install/commission/service)
- Headcount, wage roll and labour-only subcontractor use
- Premises details (construction, security, sprinklers, storage and processes)
- Max contract value, max shipment value and longest project duration
- Territories: UK, EU, USA/Canada, worldwide exports and site work
- Example contract terms: acceptance, LDs, warranties, liability caps
- Controls evidence: RAMS, lifting plans, FAT/SAT packs, change control, QA
- Claims history (5 years) and what you changed afterwards
“Once we documented our delivery model, max shipment values and SAT sign-off controls, the insurer removed restrictive testing conditions. The checklist stopped us missing the ‘grey area’ between contract works, transit and liability.”
Operations Director, UK OEM & Machinery BuilderPROTECT YOUR BUSINESS
- Programme design to align liability, projects, transit and property
- Submission support to reduce follow-up questions and improve terms
- Help evidencing controls: RAMS, lifting plans, FAT/SAT packs and change control
- Advice on contract wording risks (LDs, caps, acceptance criteria)
- Claims support and practical incident guidance
FREQUENTLY ASKED QUESTIONS
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What insurance is usually essential for industrial equipment manufacturers?
Most UK OEMs start with Employers’ Liability and Public & Products Liability. Depending on your setup, you may also need
property and business interruption (premises, stock and tools), transit, and (if you install/commission) contract works/erection
and appropriate testing/commissioning terms. The right structure depends on your delivery model and contracts.
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What are the most common policy gaps for OEMs and machinery builders?
Common gaps include damage to the works during installation/testing (not covered by public liability), restrictive testing/commissioning
conditions during energisation, defect rectification exclusions, transit-to-site boundary issues, and contractual liabilities such as
liquidated damages not covered by standard policies.
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What information do insurers typically need to quote accurately?
A clear activity description, turnover split (manufacture vs install/service), max contract and shipment values, premises and processes,
territories, claims history, and evidence of controls—such as RAMS, lifting plans, FAT/SAT packs, QA procedures and change control.
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Does product liability cover faulty workmanship or rework costs?
Generally no. Products liability typically responds to third-party injury or third-party property damage caused by the product, not the
cost to repair, replace or rework your own product. Defect rectification and performance/guarantee issues are commonly excluded unless
specifically insured.
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Can Insure24 help us present the risk to get better terms?
Yes. We help you structure submissions around your delivery model, evidence practical controls (RAMS, lifting plans, FAT/SAT, change control),
and align covers to reduce grey areas—so insurers can offer clearer terms with fewer restrictive conditions.