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WHAT DRIVES PCB INSURANCE PREMIUMS?
PCB Insurance Costs: How to Estimate Your Premium
PCB insurance isn’t priced off a single number. Insurers rate different parts of your programme separately — property/stock is driven by values and protection, liability is driven by turnover and product exposure, BI is driven by gross profit and recovery timelines, and specialist add-ons depend on your specific risk controls.
This page explains how insurers typically think about pricing PCB risks, what information affects the premium the most, and how to estimate costs before you approach the market. Final pricing always depends on underwriting, the insurer’s wording, and the exact facts of your business.
If you’d like an underwriting-ready quote, call 0330 127 2333 or click “Get a Quote” — we’ll help you present the risk properly to suitable insurers and avoid the common value/coverage mistakes.
The Building Blocks of PCB Insurance Pricing
Think of your insurance programme like a set of “modules”. Each module has its own rating basis and key underwriting questions. Your final premium is the sum of those modules (sometimes with package credits/adjustments).
The most important thing to remember: insurers can’t price what they can’t understand. A clear description of your processes, values and controls often makes more difference than trying to “guess” a cheap number.
Module 1: Property / Buildings / Contents
Property pricing is driven by the insurer’s view of “severity” at your premises. Fire and water damage are the big ones. Insurers look at construction, protections, housekeeping and the total values at risk.
- Sum insured for buildings and contents (replacement basis)
- Construction and fire compartmentation
- Fire protection (alarms, sprinklers where present, extinguishers, extraction controls)
- Security (alarm type, locks, CCTV, storage practices for high-value parts)
- Loss history (fire, theft, escape of water, flooding)
Module 2: Stock & Work In Progress (WIP)
Stock and WIP are often the most “sensitive” part of PCB pricing because values can be high, compact, and variable. Insurers want peak exposure, segregation of high-value stock, and confidence that theft/fire protections match reality.
- Average and peak stock/WIP values (peak matters most)
- Mix of stock (raw materials vs high-value components vs finished assemblies)
- High-value storage controls (locked cages, access control, inventory discipline)
- Waste/scrap handling and housekeeping (fire load management)
- Any customers’ goods stored on site (often separate rating/limit)
Module 3: Business Interruption (BI)
BI is priced off your gross profit exposure and the insurer’s view of how long you could be down after a serious incident. The indemnity period is a key driver: longer periods usually cost more, but they protect against the most expensive outcome — running out of cover before you recover.
- Gross profit (or agreed basis) and turnover
- Indemnity period (often 12–24 months; longer for complex risks)
- Bottlenecks and long lead-time equipment
- Ability to outsource production temporarily
- Business continuity plan and recovery strategy
Module 4: Public & Products Liability
Liability is typically rated on turnover, product type, end markets, and territories supplied. Limits required by contracts also influence premium. The biggest rating swing is often where your products go and what they could damage.
- Turnover and split by product/service type
- End markets (consumer vs industrial vs automotive/critical systems)
- Territory/jurisdiction (UK/EU vs worldwide; USA/Canada can be material)
- Limits required (e.g., £2m/£5m/£10m)
- Claims history and quality/traceability controls
How Specialist Add-ons Affect PCB Insurance Costs
The add-ons below can materially change premium, but they’re often essential for PCB businesses because they address “real world” loss drivers: customer consignment stock, machine dependency, and high-value shipments.
Underwriters will usually price these based on the limit, the controls, and how frequently the exposure arises.
Customers’ Goods (Consignment Components)
Pricing is driven by the limit (especially peak exposure), security/storage controls, and how customer goods are recorded and segregated. High-value ICs and modules can make this one of the most important parts of your programme.
- Peak customer goods value at any one time
- Locked storage / access control / CCTV and alarm set-up
- Inventory discipline and audit trails
- Contract terms regarding responsibility/liability
Equipment Breakdown
Typically rated on the machinery schedule, replacement values, maintenance regime, and claims history. Insurers like to see service contracts, planned maintenance records, and a sensible spares strategy.
- Machinery list with values (pick-and-place, AOI/X-ray, reflow, test)
- Maintenance and inspection regime
- Critical spares and service-level agreements
- Alignment with BI if downtime is a major exposure
Goods in Transit
Transit is driven by maximum single consignment values, destinations, carriers used and packaging/handling controls. If you ship high-value assemblies, this can be one of the simplest ways to prevent a “small event” becoming a big financial loss.
- Max single shipment value and frequency of shipments
- Territories shipped to (UK only vs worldwide)
- Carrier controls, tracking and packaging standards
PI & Cyber
PI is driven by the scope of professional services and contract requirements; cyber is driven by revenue, data/IT dependence and security posture. Both can be cost-effective if structured properly — but scope varies widely, so clarity matters.
- PI: design/spec advice, consultancy scope, limits required, claims history
- Cyber: backups, MFA, patching, endpoint controls, incident response readiness
- Operational dependency: how quickly IT outage stops production
A Simple Way to Estimate Your PCB Insurance Costs (Before Quoting)
You can create a “ballpark” view of premium by focusing on the information insurers care about most. The aim isn’t to guess a price — it’s to avoid surprises by identifying which modules are likely to be expensive and why.
Step 1: Get Values Right (Peak Matters)
- Buildings and contents replacement values
- Average and peak stock and WIP
- Average and peak customers’ goods (if held)
- Machinery schedule with replacement values (for breakdown)
- Maximum single shipment value (transit)
Step 2: Map Your “Worst-Case” Downtime
- Identify your single biggest bottleneck machine/capability
- Estimate replacement lead time + commissioning + QA validation
- Consider customer approvals and requalification timelines
- Decide a realistic BI indemnity period (often 12–24 months)
- Document how you would keep shipping (outsourcing / overtime / alternative site)
Step 3: Clarify Contract & Liability Requirements
- Minimum liability limits required by customers
- Territories supplied (UK/EU/worldwide; USA/Canada matters)
- Your role: manufacturer, assembler, design input, specification sign-off
- Any contractual penalties (often not insurable under standard covers)
Step 4: Present Controls (To Improve Terms)
- Fire protection and housekeeping (including extraction where relevant)
- Security and access control for high-value components
- QA/traceability systems; incident and CAPA process
- Maintenance and inspection records for critical machines
- Cyber basics: backups, MFA, patching, endpoint protection
Once we documented peak consignment values and our true recovery timeline, the quote became realistic — and the cover matched how our business actually works. Insure24 helped us present it clearly and avoid underinsurance.
Managing Director, UK PCB Assembly BusinessGET A QUOTE THAT’S PRICED CORRECTLY (AND COVERS WHAT YOU EXPECT)
- Translate your values into underwriting-ready stock/WIP and customer goods figures
- Structure BI around realistic downtime and bottleneck recovery timelines
- Align liability limits and territories to contracts and exports
- Add equipment breakdown where breakdown drives downtime
- Present controls clearly to improve insurer confidence and terms
- Compare multiple insurers to find best-fit pricing and cover
FREQUENTLY ASKED QUESTIONS
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How much does PCB manufacturing insurance cost?
It depends on your values (buildings/contents/stock/WIP), turnover, end markets, territories, protections and claims history. PCB businesses often have
compact high-value stock and customer goods exposure, which can materially influence premium. The quickest way to a realistic price is to present peak values
and downtime drivers clearly.
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What information affects the premium most?
The biggest drivers are usually peak stock/WIP values, customer goods exposure, fire/security protections, BI indemnity period and gross profit,
liability territories (especially USA/Canada), and claims history. Clear documentation of controls can improve terms.
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Is underinsuring stock/WIP a common problem in PCB?
Yes. Because PCB value can sit in compact components and multi-stage WIP, businesses often set values to averages. If values don’t reflect peaks,
claim settlements can be reduced under average conditions. Keeping values current helps avoid this.
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Does adding equipment breakdown increase premium a lot?
It depends on the machinery schedule, values and maintenance regime. For many PCB businesses it’s cost-effective because it targets a real downtime driver.
If aligned with BI, it can materially improve resilience — subject to underwriting and policy terms.
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How can we reduce PCB insurance premiums?
Insurers respond well to strong fire protection and housekeeping, disciplined security for high-value stock, documented maintenance, clear BI recovery planning,
and robust QA/traceability. Comparing markets and presenting the risk clearly can also improve pricing.
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How quickly can Insure24 quote PCB manufacturing insurance?
Straightforward risks can progress quickly. For complex operations (high values, exports, customer goods exposure, specialist plant, higher limits),
allow 1–2 working days so the risk can be presented properly and approached with suitable markets.