My Account
We compare quotes from leading insurers
INSURANCE BUILT FOR OEM & MADE-TO-ORDER MACHINERY
Why OEM & Bespoke Equipment Is a Different Insurance Risk
OEMs and bespoke industrial equipment manufacturers don’t just “make products” — they design, engineer, build, test and often install complex machines that sit at the heart of a client’s operations. That concentrates liability: a defect, design error, software/controls issue or commissioning failure can cause injury, property damage, downtime, rejection costs and contractual disputes.
Underwriters price three things heavily: the severity potential (what the machine could cause if it fails), the contractual framework (warranties, caps, indemnities) and the maturity of your quality/testing controls. A well-structured programme can protect the business while keeping cover aligned across PL, products, PI, contract works, transit and property/BI.
OEM & Bespoke Industrial Equipment Manufacturers Insurance (UK)
This guide covers the most common insurance needs for UK OEMs and bespoke machinery builders — including custom production equipment, materials handling systems, process plant, packaging machinery, automation cells, conveyors, guarding systems, and specialist industrial machinery supplied to order.
Insure24 helps you structure cover around the real exposures: build and stock values, prototype/testing risk, delivery and installation, design/spec responsibility, products liability, contractual penalties, and the knock-on costs when a machine failure stops production.
- Combined programmes aligning property/BI, engineering and liability
- Products & public liability for high-severity machinery incidents
- Professional indemnity (design/spec/software/control logic) where relevant
- Contract works / installation and testing & commissioning exposures
- Transit and off-site risks for high-value equipment deliveries
- Submission support to present QA, testing and contracts clearly
What Insurance Covers Do OEMs and Bespoke Machinery Builders Typically Need?
Most OEMs need a combination of property/BI, liability and (often) specialist extensions that reflect project work and design responsibility. The “right mix” depends on whether you only manufacture in-house, or also install/commission and provide ongoing service contracts.
Core covers commonly arranged
A typical programme may include combined property and BI, plus public/products liability. Many OEMs also explore engineering cover (for plant at their own premises) and PI where design/spec/programming responsibility sits with them.
- Commercial property (buildings, contents, stock, spares, work-in-progress)
- Business interruption (gross profit/revenue) incl. increased cost of working
- Public liability and products liability (including overseas/export where needed)
- Professional indemnity (design/specification, controls/software, advice)
- Contract works / installation / erection all risks (project delivery exposure)
- Goods in transit for high-value equipment and components
- Engineering / machinery breakdown (site plant, test rigs, critical utilities)
- Cyber insurance where connected equipment/remote access creates exposure
Products Liability: High-Severity Risk for Industrial Equipment
When your equipment is installed in a factory, warehouse or processing environment, the severity potential can be significant. Claims may involve injury, property damage, fire, or consequential losses alleged to flow from a defect or failure.
Underwriters focus on safety and quality evidence
Insurers look for credible controls: documented design reviews, hazard analysis, guarding and interlocks, validation/testing, and a clear record of how changes are approved and released. Strong evidence can improve insurer appetite and reduce restrictive terms.
- Clear product description and intended use (including operating environments)
- Design review and sign-off process (including safety considerations)
- Testing regime: FAT/SAT, load tests, safety validation and documentation
- Traceability: components, suppliers, batch/serial numbers and build records
- Installation/commissioning controls and handover documentation
- Claims history with corrective actions and lessons learned
Professional Indemnity for OEMs: Design, Specification & Controls Risk
If you design equipment, specify performance, produce drawings, write control logic, advise clients, or take responsibility for system integration, professional indemnity can be relevant. PI is typically aimed at losses arising from professional services rather than pure third-party injury/property damage.
Where PI claims can arise
Common triggers include specification errors, software/PLC logic issues, performance shortfalls, commissioning failures, or design decisions that require costly rectification or lead to downtime allegations. Contracts often decide whether PI is required and at what limit.
- Scope clarity: what you design vs what the client specifies or supplies
- Change control: versioning, approvals and who can alter code/drawings
- Acceptance criteria, sign-off and commissioning evidence
- Contract review: liability caps, fitness-for-purpose wording, indemnities
- Document retention: drawings, calculations, test reports, handovers
- Subcontractor management (programmers, installers, specialist engineers)
Installation, Testing & Commissioning: Where Claims Often Happen
For bespoke equipment, risk doesn’t stop when the machine leaves your workshop. Delivery, lifting, installation and commissioning are frequent loss points — and the financial impact can include rework, replacement parts, delays and knock-on contractual costs.
Matching cover to the lifecycle
Depending on your business model, contract works/erection all risks, transit cover and specific testing/commissioning extensions can be important. The objective is to avoid “grey areas” where property/engineering/liability covers don’t respond cleanly.
- Project values, durations and scope (supply only vs install/commission)
- Lifting plans, method statements, RAMS and competence of contractors
- Transit method: own vehicles, hauliers, specialist transport, packaging
- Testing approach: FAT/SAT, load tests, phased commissioning controls
- Delay and liquidated damages (LDs): what the contract says and your exposure
- Handover packs, operator training and maintenance manuals
Property & Business Interruption for OEM Workshops and Build Facilities
OEMs often hold high values in work-in-progress, specialist components, test rigs and tooling. A fire, flood or major equipment incident can delay deliveries and hit cashflow. BI is often under-selected or mismatched to real lead times for replacing equipment and rebuilding capability.
Underwriter-ready values and resilience
Clear sums insured, robust housekeeping and hot works controls, documented maintenance, and realistic recovery planning can all improve underwriting outcomes. Where production is “one-off”, BI planning should consider lead time to recreate tooling and re-run builds.
- Sums insured: buildings, contents, plant, WIP, stock and spares
- Fire risk controls: housekeeping, waste management, hot works permits
- Electrical safety: inspection/testing and (where used) thermography
- BI indemnity period matched to rebuild/replacement reality
- Contingency planning: outsourcing routes, overtime, alternative premises
- Evidence: photos, site plan, maintenance logs, prior surveys and actions
“We build bespoke equipment for high-value manufacturing lines. Insure24 helped align PI and products liability with our contracts, and structured transit and contract works cover for installations — the insurer was comfortable and the terms improved.”
Managing Director, UK OEM & Machinery BuilderPROTECT YOUR BUSINESS
- Access to specialist markets for OEM and bespoke machinery risks
- Cover aligned across products/PL, PI and project delivery exposures
- Help presenting QA, testing and contractual controls to underwriters
- Programme design to reduce gaps and avoid duplicated cover
- Claims support and practical incident guidance
FREQUENTLY ASKED QUESTIONS
+-
Do OEMs need professional indemnity as well as products liability?
Often, yes — if you design, specify, programme or advise. Products liability is typically aimed at third-party injury or property
damage caused by a product. PI is more aligned to design/specification and professional service errors that create financial loss,
rework or performance issues. Your contracts usually determine what’s required.
+-
Does insurance cover equipment during installation and commissioning?
It can, depending on how the programme is arranged. Contract works/erection all risks (and sometimes project-specific covers) can
protect machinery during delivery, installation and testing/commissioning, subject to terms, declared values and scope.
+-
What are insurers most concerned about with bespoke machinery?
Severity potential, contracts and quality controls. Underwriters focus on safety design, validation/testing, change control, traceability,
and how liabilities are limited or transferred contractually (caps, indemnities, warranties and acceptance criteria).
+-
What information helps Insure24 get the best terms?
A clear product description and sectors, turnover split (manufacture vs install/service), export territories, contract terms (caps/LDs),
QA/testing process (FAT/SAT), safety documentation, project details, values and claims history with improvements.
+-
Can this sit within a combined manufacturing policy?
Yes. Many OEMs run a combined programme aligning property/BI with liability and (where required) PI, plus contract works and transit
options — to avoid gaps between sections and keep cover consistent with contracts.
+-
Do you cover exports and overseas installations?
Usually, yes — but it needs to be declared properly. Export territories, local jurisdiction, contract terms, installation scope and
transit methods all affect insurer appetite, limits and wording. We’ll help present this clearly to markets.