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EMPLOYERS’ LIABILITY FOR SAFETY-CRITICAL MANUFACTURING ENVIRONMENTS
Why Industrial Equipment Manufacturers Need Specialist EL Cover
Industrial equipment manufacturing can involve machining, fabrication, welding, lifting operations, test rigs, electrical work, paint/finishing, forklifts, overhead cranes and subcontract labour. When injuries happen, claims can be severe — particularly where there are allegations of inadequate supervision, guarding, training, RAMS, maintenance, or contractor control.
Employers’ Liability (EL) is legally required for most UK employers, but the difference between a “standard” EL policy and a properly presented manufacturing risk can be substantial. Insurers price and underwrite this class based on your activities, payroll split, claims history, and the credibility of your safety management.
Insure24 helps industrial equipment manufacturers secure EL cover that reflects the reality of modern production — including multi-shift operations, labour-only contractors, site installation/service work and high-severity injury pathways.
1) What Employers’ Liability Insurance Covers
Employers’ Liability insurance can cover your legal liability if an employee is injured or becomes ill because of their work. It typically includes compensation and legal defence costs arising from allegations that the employer failed to provide a safe workplace.
For manufacturers, claims can arise from single-incident accidents (crush injuries, falls, burns) as well as longer-tail conditions (respiratory exposure, repetitive strain, noise-induced hearing loss).
Typical EL claim categories
- Manual handling injuries – lifting components, repetitive tasks, awkward frames and assemblies.
- Machinery & guarding – pinch points, entanglement, cutting operations and rotating equipment.
- Slips, trips & falls – production floors, spillages, cable runs, poor housekeeping.
- Hot works – burns, eye injuries, fire events, fume exposure during welding/cutting/grinding.
- Vehicle movements – forklift collisions, loading bays, pedestrian segregation failures.
- Noise / dust / fume – respiratory exposure, hearing loss, dermatitis and sensitisation.
Practical tip: insurers respond best when you clearly show how incidents are prevented (training, supervision, maintenance, permits, segregation) and how you evidence it (records, inspections, near-miss reporting, audits).
Common policy features to review
- Limit of indemnity – commonly £10m, but contract requirements vary.
- Territorial / jurisdiction – important if employees travel or work overseas.
- Working away – installation/service work at customers’ premises needs declaring.
- Labour-only / bona fide subcontractors – clarify how contractors are treated.
- Claims-made vs occurrence – confirm how the policy responds over time (especially for long-tail disease).
- Conditions & risk improvements – ensure any warranties are realistic and trackable.
We’ll sanity-check EL wordings and endorsements so you don’t get caught by exclusions or unrealistic conditions at claim time.
2) Manufacturing Injury Hotspots Insurers Focus On
Underwriters will usually zoom in on the injury pathways that drive high frequency (regular incidents) and high severity (life-changing injuries). Industrial equipment manufacturing can trigger both, especially where lifting, guarding and traffic risk overlap.
High-frequency risks (that push premiums up)
- Manual handling – repetitive component movement, poor lift planning, lack of mechanical aids.
- Hand tool injuries – grinders, cutters, deburring tools, drills, slips and lacerations.
- Housekeeping – offcuts, swarf, fluids, trailing leads, cluttered work areas.
- Inadequate supervision – particularly in overtime, rush jobs, or new starter periods.
- PPE gaps – incorrect eye/hand/respiratory protection or inconsistent enforcement.
Practical tip: a simple “what changed” narrative after near misses (layout change, additional guarding, revised RAMS, new training) can materially improve how an underwriter views your trajectory.
High-severity risks (that make insurers nervous)
- Lifting operations – overhead cranes, slings, forklifts, attachments and suspended loads.
- Machine entrapment – conveyors, rollers, presses, rotating equipment and pinch points.
- Working at height – mezzanines, access platforms, racking work, test rigs.
- Electrical work – panel builds, testing, commissioning, fault finding and isolation discipline.
- Hot works / fire – welding bays, cutting, grinding, extraction and permit controls.
We’ll help you present these as managed risks: lift planning, LOLER controls, guarding standards, isolation procedures, hot works permits, training and inspections.
3) Contractors, Labour-Only Workers & “Working Away” Exposures
Industrial equipment businesses often use subcontract welders, fitters, electricians, riggers, CNC operators and installers. If you direct, supervise or control how they work, insurers may treat them as “employees” for EL rating and claims purposes.
The same applies if your team does installation, servicing or commissioning at customer sites. That “work away” exposure can change the risk profile significantly — and must be declared properly.
Where EL problems typically appear
- Unclear contractor status – labour-only vs bona fide subcontractors (and who controls the work).
- Inadequate onboarding – missing inductions, permits, RAMS briefings and competence checks.
- Multi-employer sites – unclear responsibility where multiple contractors operate in one area.
- Site work hazards – unfamiliar environments, customer traffic, changing conditions, access constraints.
- Overtime pressures – fatigue, rushed lifts, shortcuts and reduced supervision.
Practical tip: a basic contractor checklist (insurance, competence, RAMS, supervision, permits) can help you evidence control and reduce disputes.
How we present it to underwriters
- Payroll split (manufacturing vs installation vs service) so the EL rate is fair, not “worst case for all”.
- Clarity on labour-only usage: average headcount, supervision level, and tasks performed.
- Proof of competence and training approach (FLT, slinging/signalling, welding quals, electrical competence).
- Risk controls for site work (permits, lift plans, RAMS, toolbox talks, customer coordination).
- Accident/near-miss learning loop and any improvements implemented.
The goal is to show insurers you’re not “hoping for the best” — you run a controlled operation with documented standards.
4) H&S Controls That Improve EL Terms
EL is underwritten on trust and evidence. You don’t need a huge corporate system — you need a credible baseline and records that show it’s real. The controls below are the ones that most consistently improve insurer confidence and reduce premium volatility at renewal.
Operational controls insurers like to see
- Inductions + training matrix – documented onboarding and role-based competence records.
- Machine guarding + inspections – formal checks, maintenance logs and corrective action tracking.
- Traffic management – segregation, marked walkways, FLT rules, loading bay controls.
- LOLER discipline – lifting equipment inspection regimes and lift planning (where applicable).
- Hot works permits – welding/cutting controls, fire watch, extraction, housekeeping and storage.
- Near-miss reporting – evidence that lessons are learned before a claim happens.
Practical tip: one page with “our top 10 controls” plus examples of records often outperforms a 100-page manual nobody follows.
Documentation that reduces claim friction
- Accident reporting – consistent incident logs, investigation notes, corrective actions.
- RAMS – simple, role-appropriate risk assessments and method statements.
- Maintenance logs – evidence equipment is maintained (and defects are addressed promptly).
- PPE issue records – what was supplied, when, and how it’s enforced.
- Contractor packs – proof of competence, supervision and permit processes.
- Toolbox talks – short, practical talk records tied to your highest risks.
We’ll help you package what you already do into an underwriter-ready summary that supports stronger EL terms.
“The EL claims that hurt most aren’t always the biggest injuries — they’re the ones where documentation is missing, supervision is unclear, and contractors blur into ‘employees’ overnight. Getting the story right upfront makes renewals and claims smoother.”
Insure24 Manufacturing Team5) How to Get a Quote (and what we’ll ask for)
To quote Employers’ Liability accurately for industrial equipment manufacturing, insurers want clear information about your activities, workforce profile, and how you control risk. Don’t worry — we’ll help you present it in a way that underwriters can actually use.
Workforce information
- Total staff numbers and annual payroll (and any split: shop floor vs office vs site work).
- Use of contractors / labour-only (typical headcount, tasks, supervision level).
- Key activities: machining, fabrication, welding, assembly, electrical, paint/finishing, testing, installation/service.
- Shift patterns and any peak production periods that affect supervision/fatigue.
Practical tip: accurate payroll split can prevent your EL being rated as “all high-risk shop floor” when part of the payroll is office-based.
Risk controls & claims history
- Claims/incidents over the last 3–5 years and what changed afterwards.
- H&S approach: inductions, training matrix, supervision, RAMS, inspections, maintenance.
- Key exposures: lifting operations, FLT traffic, guarding, working at height, hot works.
- Any external accreditations (or internal equivalents) that show discipline and control.
If you’re unsure what to provide, call us — we’ll guide you through a “minimum viable” submission that still presents well.
FREQUENTLY ASKED QUESTIONS
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Is Employers’ Liability insurance legally required for industrial equipment manufacturers?
In most cases, yes. If you employ staff (including many casual and part-time arrangements), UK law generally requires EL insurance.
There are limited exceptions, but most manufacturing businesses need it as a core policy section.
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Does EL cover labour-only contractors and temporary workers?
Often, yes — but it depends on the relationship and the policy wording. If you supervise/control the work, insurers may treat labour-only
contractors similarly to employees for rating and claims. We’ll help you present contractor usage correctly so there are no surprises.
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What EL limit do industrial equipment manufacturers usually buy?
£10m is common in UK manufacturing, but contract requirements can vary. Some customers ask for higher limits, especially where
work is safety-critical or involves installation/service. We’ll align the limit with your contracts and realistic worst-case exposures.
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Will EL cover employees working at customer sites (installation/service work)?
Usually, yes — but the insurer needs to understand the “working away” exposure and the nature of site activities. If you do commissioning,
rigging, electrical work, or operate lifting equipment on site, this should be declared so the EL section is underwritten correctly.
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What information do insurers need to quote Employers’ Liability for manufacturing?
Typically: staff count and payroll (with split), activities (machining/fabrication/welding/assembly/installation), contractor usage,
claims history, key risk controls (training, guarding, traffic management, RAMS, maintenance), and any high-risk processes like
lifting operations or hot works.
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How can we reduce Employers’ Liability premiums in a factory environment?
The biggest drivers are claims performance and risk control evidence. Improvements that often help include: better guarding and inspection
records, traffic segregation, lift planning/LOLER discipline, hot works controls, training matrix/inductions, and showing how you respond
to near misses. We’ll help you present these credibly to insurers.