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PCB Manufacturing Insurance Explained
PCB manufacturing is high-precision, compliance-driven, and often contract-led. Whether you fabricate bare boards, assemble PCBs (SMT / through-hole), build control panels, or supply electronics into industrial, automotive, power, medical or consumer markets, your insurance needs to reflect the real risk profile: high-value stock in small physical volume, specialist equipment, strict QA documentation, and significant downtime costs when a line stops.
“PCB manufacturing insurance” isn’t one product — it’s a programme. The right solution typically combines property and stock, business interruption, employers’ liability, public/products liability, and (often) equipment breakdown. Depending on how you trade, you may also need professional indemnity for design/specification exposure, cyber/OT cover for operational continuity, goods in transit, and specialist options such as product recall/rectification (availability depends on underwriting).
Insure24 specialises in niche commercial insurance. We help UK PCB fabricators and electronics manufacturers present their risks clearly to insurers, reduce coverage gaps, and structure policies that make sense when real incidents happen — not just when a certificate is needed.
Who Needs PCB Manufacturing Insurance?
This page is designed for UK businesses involved in PCB fabrication and electronic manufacturing — including single-site workshops and multi-site operations. Your insurance requirements will vary depending on whether you fabricate, assemble, design, test, or provide full box-build services.
- PCB fabricators – bare board manufacturing, multilayer boards, prototypes, specialist substrates, quick-turn production
- PCB assembly (PCBA) – SMT lines, pick-and-place, reflow, wave solder, selective solder, hand soldering and rework
- Box build / electromechanical assembly – enclosure assembly, wiring looms, integration, test and commissioning
- Design & engineering – PCB layout, DFM support, component selection, prototyping, specification and consultancy
- Testing & calibration – functional test, in-circuit test, AOI, X-ray inspection, environmental testing
- Specialist processes – conformal coating, potting/resins, clean-room handling, ESD-sensitive build environments
- Contract-led suppliers – OEM supply chains with contractual limits, quality audits, and delivery penalties
Key Risks in PCB Fabrication & PCB Assembly
Underwriters don’t just insure “a factory”. They insure the risk pattern. PCB manufacturing has a distinct set of exposures that can cause large losses: contamination and smoke damage, water ingress, fire from electrical loads, theft of compact high-value stock, equipment breakdown, and downstream liability when a faulty board causes damage in a customer’s equipment.
A strong insurance programme starts by identifying how a loss could occur and what the financial impact would be: repair costs, stock write-offs, downtime, urgent outsourcing, expedited freight, and contractual pressure from customers who need deliveries on time.
Property & Operational Risks
- Fire and smoke contamination (electrical faults, reflow ovens, extraction issues, battery incidents, hot works)
- Escape of water / roof leaks damaging moisture-sensitive components and WIP
- Theft of compact high-value stock (ICs, boards, reels, test equipment, laptops)
- Power surge / electrical supply problems causing damage to test rigs and calibration equipment
- Equipment breakdown stopping output (pick-and-place, reflow, compressors, extraction, AOI/X-ray, utilities)
- Contamination risk: smoke, dust, residues, humidity and handling issues affecting yields
- Single-machine bottlenecks and long lead times for replacement parts
- Supplier disruption delaying critical components and forcing schedule changes
Liability & Contract Risks
- Products liability claims if boards/components cause third-party property damage or injury
- Design/specification allegations (wrong component choice, layout error, thermal design issues) if you advise or design
- Rework, scrap and yield loss where processes drift or contamination impacts batches
- Compliance and audit failures leading to shipment holds and urgent corrective actions
- Contractual delivery penalties, chargebacks and loss of approved supplier status
- Export territories and jurisdiction risks (worldwide supply, USA/Canada exposure where applicable)
- Cyber/OT disruption (ERP, production planning, QA records, remote access) halting production
- Environmental exposures (chemicals/solvents, waste management) where relevant to your process
What Does PCB Manufacturing Insurance Usually Include?
Most PCB manufacturers need a practical “combined” approach. The aim is to build a policy structure that protects your premises and cash flow, while meeting landlord/lender/customer requirements. Below is a typical structure (your final cover depends on your exact operation and insurer appetite).
Core Covers
- Property / Buildings – buildings (if insured), contents, fixtures, racking, and improvements
- Stock & Work in Progress – components, reels, boards, WIP, finished goods, packaging (set to realistic peak values)
- Business Interruption (BI) – loss of gross profit after an insured event; includes increased cost of working options
- Employers’ Liability – statutory cover for employee injury/illness claims
- Public & Products Liability – legal liability for injury or third-party property damage arising from operations/products
- Theft / Security-Driven Cover – where required, aligned to alarm/CCTV/access conditions
Common Add-ons for PCB Operations
- Equipment Breakdown – sudden breakdown of insured plant; crucial where one line stoppage drives big losses
- Goods in Transit – protection for shipments to customers or between sites (limits set to realistic consignments)
- Professional Indemnity – if you design, specify, advise, or provide engineering consultancy
- Cyber / OT Cover – where system interruption, ransomware or data compromise could halt operations
- Product Recall / Rectification – where available, to support controlled withdrawal/rectification costs
- Engineering Inspection – statutory inspections for certain plant (where applicable)
- Environmental / Pollution – where chemicals/waste processes require specific protection
- Legal Expenses – contract and employment dispute support (scope varies)
Property, Stock & WIP: Getting the Sums Insured Right
PCB manufacturing losses are often driven by stock and contamination. A fire that stays in one corner of the building can still destroy large amounts of stock if smoke and residues affect reels, boards, packaging and ESD-sensitive areas. Water damage can be equally severe because components and assemblies may be unusable even if they look intact.
The biggest claim-time issue is underinsurance. Stock values can fluctuate heavily depending on customer schedules and component availability. Work in progress is also frequently overlooked: half-built assemblies, boards in test, coated batches, and customer-owned consignment stock.
When we arrange cover, we look at: peak stock levels, single-item values (e.g., one AOI machine), storage methods (off-floor, humidity control), and how quickly you could restore production after an incident. That information helps insurers price correctly and reduces unpleasant surprises later.
What to Include in Your Values
- Buildings – if insured, use reinstatement cost (rebuild), not market value
- Contents – benches, racking, IT, tools, fixtures, office equipment, improvements
- Plant & machinery – SMT lines, reflow ovens, wave/selective solder, AOI/X-ray, test rigs, compressors, extraction
- Stock – components, boards, reels, consumables, packaging, finished goods
- Work in progress – WIP values and peak values during major builds
- Customer-owned goods – consignment stock, customer tools, jigs, fixtures (where held)
- Single item values – any one machine or line value that could exceed policy sub-limits
Loss Drivers to Discuss With Us
- Smoke contamination exposure (how production and storage areas are segregated)
- Water ingress exposure (roof, drains, sprinklers, proximity to plant rooms)
- Security posture for compact high-value stock (alarm/CCTV/access, shutters, keyholding)
- ESD controls and how failures are detected and contained
- Waste storage and housekeeping (packaging load influences fire severity assumptions)
- Electrical inspection regime and hot works controls
- Supplier dependency and component lead times (influences BI and continuity planning)
- Whether you can outsource output temporarily after a loss
Business Interruption for PCB Manufacturers
Business interruption is often the difference between “a bad incident” and a business-threatening event. PCB operations can recover slowly because recovery isn’t just fixing a building: it can include replacing specialist machinery, re-commissioning lines, re-qualifying processes, restoring QA records, and rebuilding WIP schedules. Customers may also require additional evidence and audits before accepting product again.
BI is also where many manufacturers get caught out. The wrong gross profit figure or a short indemnity period can leave you absorbing the costs of downtime yourself. The right solution aligns BI with your realistic recovery timeline and includes increased cost of working where it makes sense (overtime, outsourcing, temporary premises, premium freight).
BI Checklist (Underwriting-Friendly)
- Confirm annual gross profit and whether there are seasonal peaks
- Choose an indemnity period aligned to rebuild + ramp-up (often 12–24 months in manufacturing)
- Identify bottlenecks (single pick-and-place, AOI, compressor, extraction, reflow)
- Consider supplier dependency and whether contingent BI is relevant
- Discuss increased cost of working strategy (overtime, outsourcing, extra shifts)
- Confirm how you would restore QA/testing and traceability evidence after a disruption
Where Equipment Breakdown Fits
Many PCB operations are more likely to be disrupted by breakdown than by a major fire. If a key machine fails, output can drop immediately. Equipment breakdown cover can be arranged to cover sudden and unforeseen breakdown of insured plant (subject to policy terms), and is often paired with BI so the programme protects both repair costs and the income impact of downtime.
If your profitability depends on one line, one inspection machine, or one test capability, it’s worth addressing this explicitly in the policy structure. We’ll help you identify where a standard property policy ends and where engineering-style cover should begin.
Our customer demanded higher liability limits and evidence of business interruption cover. Insure24 helped us present our PCB process and protections properly, and put together a combined package that matched our contracts.
Managing Director, UK PCB Assembly ManufacturerLiability Insurance for PCB Manufacturers
Liability is not just about “someone tripping in your warehouse”. In PCB manufacturing, the biggest exposures often sit downstream. If an assembled board fails and causes damage to a customer’s equipment (or triggers a safety incident), you can face investigation costs, legal defence, and potential damages — especially if you supply into industrial, power or regulated environments.
Equally, if you provide design or specification support (component selection, PCB layout, DFM guidance, thermal advice, integration engineering), the nature of the claim may shift from products liability to professional indemnity-style allegations. The right programme accounts for what you actually do, not just what you call your service.
Employers’ Liability (EL)
- Covers employee injury/illness claims arising from work activities
- Relevant hazards: machinery, manual handling, solder fumes, chemicals, electrical work, forklifts
- Helps demonstrate statutory compliance and supports contract/landlord expectations
- We’ll confirm staff numbers, labour-only subcontracting, and onsite contractor controls
Public & Products Liability
- Public liability: injury/property damage to third parties arising from your operations
- Products liability: injury/property damage to third parties caused by your products supplied
- Territories matter (UK/EU/worldwide) and USA/Canada exposure can materially change terms
- We’ll align liability limits to your customer contracts (common: £2m / £5m / £10m)
Professional Indemnity (PI) for Design & Advice
PI can be relevant if you provide design, specification, application engineering, consultancy or advice that could cause financial loss, project failure, or costly rework. Many PCB manufacturers offer “helpful engineering support” that customers treat as professional advice — and that can influence the claim type if something goes wrong.
If you’re strictly build-to-print with no advice, PI may be less relevant. We’ll assess the reality: what you promise, what contracts say, and how customers rely on your input.
Recall / Rectification (Where Available)
If a manufacturing issue is discovered after shipment, the immediate cost is often containment: quarantine, investigation, retrieval, repair/replace, and urgent resupply. Standard liability policies may not respond to purely “your product” costs unless there is third-party property damage/injury.
Product recall/rectification insurance may be available depending on your products, end markets, QA controls, traceability and claims history. Insurers can be selective, particularly for high-volume or safety-critical supply chains. If this exposure is important to you, we’ll position it carefully.
Cyber & Operational Technology (OT) Risk for PCB Manufacturers
PCB production is operationally dependent on systems: ERP/MRP, production scheduling, QA documentation, design files, customer data, calibration records, and sometimes remote access to machinery and test environments. A cyber incident can be more than a data problem — it can be a production stoppage.
Cyber/OT insurance can help where ransomware, malicious access, or system interruption triggers downtime and additional costs. It can also support incident response, forensic investigation, and notification obligations if personal data is involved. If your contracts require cyber controls or you handle sensitive customer data, it’s worth addressing this explicitly in your programme.
Common Cyber/OT Loss Patterns
- Ransomware halts access to production schedules, QA records, and shipping documentation
- Email compromise leads to invoice diversion or fraudulent payment instructions
- Loss of critical design files, customer BOMs, or build instructions
- Remote access vulnerabilities affecting production network integrity
- System outage stopping label printing, traceability, and goods-out processes
- Third-party/supplier IT issues disrupting cloud tools or hosted ERP platforms
Underwriters Like to See
- MFA on email and remote access, plus sensible password policies
- Offline or immutable backups with tested restore procedures
- Network segmentation between office and production where practical
- Patch management and supported systems
- Access control and supplier/vendor management
- A simple incident response plan (who does what when something happens)
What Affects PCB Manufacturing Insurance Premiums?
Premiums are driven by a mix of exposure (values and turnover), severity drivers (fire load, stock concentration, bottlenecks), and risk controls (protections and procedures). A well-presented risk with good evidence can attract better insurer appetite and more stable terms.
Key Rating Factors
- Turnover and end markets (industrial/automotive/medical can influence liability perception)
- Territories supplied (UK/EU/worldwide) and whether USA/Canada exposure exists
- Buildings/contents/stock/WIP sums insured (including peak values)
- Construction and fire protection (alarm, sprinklers, compartmentation, housekeeping)
- Security (alarm grading, CCTV, access control, shutters, keyholding)
- Claims history and any quality incidents
- BI setup (gross profit accuracy + indemnity period)
- Critical plant reliance and whether equipment breakdown is required
How to Improve Terms
- Provide clear process descriptions and an honest risk narrative (avoid underwriter uncertainty)
- Supply photos and basic site information (stock storage, plant rooms, fire doors, exits)
- Keep valuations up to date and document peak stock/WIP values
- Show evidence of fire/security maintenance and electrical inspection
- Document QA/testing controls, traceability and change control where relevant
- Align liability limits and territories to actual contracts (avoid last-minute fixes)
- Build a continuity plan for bottlenecks (spares, outsourcing, alternative capacity)
- Use a combined programme approach to reduce gaps between covers
PROTECT YOURSELF
- Protect buildings, contents, SMT lines, test equipment, tooling and fixtures
- Insure stock and WIP realistically (including peak values and compact high-value items)
- Safeguard cash flow with business interruption and increased cost of working options
- Cover legal liability exposures (EL/PL/products) aligned to your contracts and territories
- Add equipment breakdown where downtime is driven by machine failure
- Address design/specification exposures with PI where your services require it
- Support operational resilience with cyber/OT cover where system interruption is a key risk
Compliance & Contract Requirements
PCB manufacturers are often measured by customer audits and contract clauses. Insurance needs to align to that reality: liability limits, territories, evidence of BI, and clear policy documentation for tenders.
- Landlord / lender requirements (property, BI, liability)
- OEM and tender requirements for liability limits and certificates
- Quality and traceability expectations influencing risk presentation
- Contract review for warranties, indemnities, chargebacks and penalty clauses
- Export territories and jurisdiction clarity (especially if USA/Canada is involved)
FREQUENTLY ASKED QUESTIONS
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What insurance does a PCB manufacturer typically need?
Most PCB manufacturers need a combined programme including property/stock, business interruption, employers’ liability, and public/products liability.
Many also add equipment breakdown (where downtime is driven by machine failure), goods in transit, and sometimes professional indemnity if they provide
design/specification advice. The right structure depends on your processes, premises, territories and contracts.
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Will property insurance cover smoke contamination of PCB stock?
Stock cover can respond to damage caused by insured events such as fire and resulting smoke, subject to policy terms, exclusions and conditions.
The key is insuring realistic stock and WIP values and explaining storage/segregation controls so insurers can underwrite the exposure properly.
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Do PCB manufacturers need business interruption insurance?
In most manufacturing cases, yes. BI can protect gross profit and increased costs of working after an insured event disrupts operations.
PCB businesses can have long recovery timelines due to specialist machinery, re-commissioning, re-qualification and customer approval cycles.
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Does products liability cover a faulty PCB that damages a customer’s equipment?
Products liability is designed to respond where you are legally liable for bodily injury or third-party property damage caused by your product,
subject to policy terms and exclusions. If the allegation relates to design/specification advice, professional indemnity may also be relevant depending
on the facts and how your services are provided.
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Can equipment breakdown be included for SMT lines and test equipment?
Often, yes. Equipment breakdown can be arranged to cover sudden and unforeseen breakdown of insured plant (subject to underwriting and policy terms).
It’s commonly paired with BI so the programme protects both repair costs and the downtime impact if a critical machine fails.
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Is product recall or rectification insurance available for PCB manufacturing?
It may be available depending on your products, end markets, QA/testing regime, traceability, territories and claims history. Insurer appetite varies
and some risks are more difficult to place than others. If this exposure is important, we’ll assess suitability and approach the right markets.
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What information do you need to quote PCB manufacturing insurance?
Typically: products and processes, turnover and export split, premises details (construction, protections, security), buildings/contents/plant/stock/WIP values,
BI gross profit and indemnity period, required liability limits and territories, plus 3–5 years claims history. Photos and a short QA/testing overview can help.
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How quickly can Insure24 arrange cover?
For straightforward PCB risks we can often progress quickly. For complex operations (higher values, exports, higher limits, specialist plant, or recall/PI considerations),
allow 1–2 working days so we can present the risk properly and approach the most suitable markets.