My Account
We compare quotes from leading insurers
BUILDING THE RIGHT INSURANCE PROGRAMME FOR ENGINEERING RISK
Insurance for Metal Fabrication & Engineering Manufacturers
Metal and engineering manufacturing is a broad sector — from small fabrication workshops and machine shops to large industrial equipment manufacturers supplying mission-critical components. The right insurance programme depends on what you do, how you do it, where you work, and what you’ve agreed to contractually.
Many businesses buy “combined liability and property” cover without fully reviewing their design exposure, contractual obligations, hot works, pollution risk or supply chain dependencies. This page provides a structured overview of the main covers most metal and engineering manufacturers should consider, how they interact, and where common gaps arise.
At Insure24, we tailor cover to reflect your real-world operations — not just your SIC code. Below is a practical breakdown of what insurance you may need.
1️⃣ Employers’, Public & Products Liability
Liability insurance forms the foundation of most engineering insurance programmes.
Employers’ Liability (EL)
Usually legally required if you employ staff. Covers injury or illness claims from employees arising from their work.
- Machinery and manual handling injuries
- Noise-induced hearing loss (NIHL)
- Vibration-related conditions (HAVS)
- Fume and dust exposure allegations
Payroll and risk controls heavily influence premium.
Public & Products Liability (PL/Products)
Protects against third-party injury or property damage claims arising from your operations or products (subject to policy terms).
- On-site work and installation risks
- Hot works fire exposure
- Product failure causing property damage
- Legal defence costs for covered claims
Important: liability assumed under contract may be restricted — contract review is critical.
2️⃣ Professional Indemnity (If You Design or Advise)
Many engineering manufacturers “creep” into design responsibility — modifying drawings, specifying tolerances, advising on integration, or taking performance responsibility. That creates professional exposure.
- Design errors or miscalculations
- Specification advice leading to system failure
- Performance shortfalls linked to design assumptions
- Fitness-for-purpose disputes
If you provide drawings, calculations, or performance commitments, PI insurance may be essential.
3️⃣ Property, Plant & Business Interruption
Property Insurance
- Buildings and tenant improvements
- Plant and machinery
- CNC equipment and precision machines
- Stock, raw materials and WIP
- Tools and equipment
Fire, theft, flood and accidental damage exposures can be significant in workshops.
Business Interruption (BI)
BI protects gross profit and helps fund recovery if operations are disrupted following insured damage.
- Loss of revenue during rebuild/repair
- Outsourcing and temporary relocation costs
- Extended indemnity periods for specialist equipment lead times
- Dependency extensions (wording dependent)
Many businesses underestimate recovery time after a major machinery loss.
4️⃣ Additional Covers Often Needed in Engineering
Machinery Breakdown
- Electrical/mechanical failure of plant
- CNC and control system damage
- Boilers, compressors and pressure systems
- Inspection services (where included)
Not all breakdown is covered under standard property policies.
Environmental & Pollution Liability
- Spills of oils, coolants and solvents
- Clean-up and remediation costs
- Regulatory investigation response
- Gradual pollution exposure (wording dependent)
Public liability often restricts pollution — specialist cover may be required.
Contract Works / Installation Risks
- Work in progress on-site
- Materials awaiting installation
- Transit between premises
- Hired-in plant
Cyber Insurance
- Ransomware and system disruption
- Data breach response costs
- Operational technology (OT) risks
- Business interruption from cyber events
Engineering operations increasingly rely on networked CNC and ERP systems.
FREQUENTLY ASKED QUESTIONS
Is Employers’ Liability compulsory?
In most cases, yes — if you employ staff. There are limited exemptions, but most engineering businesses require EL cover.
Do we need Professional Indemnity if we only fabricate?
If you strictly build to customer drawings with no design input, PI may not be required. However, even minor specification advice can create design exposure.
Does liability insurance cover product recall?
Standard liability may not cover recall and rectification costs. Specialist extensions or separate cover may be needed.
What limit of liability should we buy?
Limits should reflect contract requirements, sector expectations and worst-case scenarios — particularly where large third-party property damage could occur.
Can we combine all covers into one policy?
Many insurers offer combined packages, but specialist risks like PI, pollution and cyber may require separate policies depending on your activities.