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THE PCB MANUFACTURER’S INSURANCE CHECKLIST
Why You Need a PCB-Specific Insurance Checklist
PCB manufacturing is a specialist risk class. You may have high-value machinery, chemically intensive processes, controlled environments, sensitive customer data (Gerbers, stack-ups, BOMs), and contracts that demand specific liability limits and wording. A standard “manufacturing” policy can leave gaps if it doesn’t reflect how PCB losses occur: contamination after smoke, water ingress causing corrosion, yield collapse after equipment faults, requalification delays after incidents, and disputes over whether a defect is “your product”, “your advice”, or “your process”.
This checklist is designed to help you structure a programme that is underwriter-ready and claim-resilient. It focuses on the things that most commonly cause problems at claim time: underinsurance, unclear stock and WIP definitions, BI periods that are too short, missing covers for customer-owned goods, and liability gaps where contracts impose obligations that insurance doesn’t automatically follow.
Use it as a practical audit. If you tick every box, you will not only reduce risk — you will usually improve quote quality and speed, because insurers receive the information they need to price confidently.
Quick Start: The 12 Questions That Drive Your PCB Insurance Programme
Before you dive into the detailed checklist, answer these 12 questions. They highlight the factors that most strongly influence cover structure and premium for PCB manufacturers. If you can answer them clearly, insurers can usually quote faster and more accurately.
Operations & Exposure
- What is your turnover and what customer sectors do you supply (industrial, automotive, medical, defence, aerospace, etc.)?
- Are you prototype/high-mix, low-volume, or volume production? What are your maximum batch sizes?
- Which processes do you run (plating, etch, lamination, drilling/laser, imaging, solder mask, surface finish, test)?
- Do you hold customer-owned goods (prototypes, materials, tooling) and what are typical/peak values?
- Do you do any design, DFM advice, engineering sign-off, or specification input?
- Do you install/commission/repair boards or equipment on customer sites (work-away exposure)?
Risk Controls & Resilience
- What is your building construction and fire protection (alarms, compartmentation, sprinklers if any)?
- What are your peak stock and WIP values, and how are they stored (including clean/controlled areas)?
- What is your maximum credible loss scenario (fire, flood, major equipment loss, cyber outage)?
- How long would it take to recover after a major loss (equipment lead time + requalification + customer audits)?
- What cyber controls do you have (MFA, backups, patching, remote access controls) and how IT/OT dependent are you?
- What liability limits do customer contracts require (often £2m/£5m/£10m) and do they impose special indemnities?
1) Property & Material Damage Checklist (Buildings, Contents, Plant)
Property insurance is the backbone of disaster recovery. The biggest claim problems come from undervaluation (leading to average clause reductions), unclear descriptions of what is insured, and exclusions that conflict with how PCB factories operate. For example: smoke contamination affecting controlled areas, water ingress causing corrosion damage, or “machinery” that is not properly declared.
Use this checklist to validate that your policy actually reflects your factory and the equipment that generates your turnover.
Buildings & Site
- Rebuild value is current and supported (avoid outdated reinstatement values).
- Construction type is correctly declared (roof type matters for storm/water losses).
- External areas included where needed (yards, fences, loading docks, external plant).
- Services included (HVAC, extraction, compressed air infrastructure, electrical distribution).
- Perils include fire, lightning, explosion, storm, flood, escape of water, impact, malicious damage.
- Flood terms (deductibles/sub-limits) reviewed against site exposure.
Insurers price heavily on construction, protection and flood exposure. Better clarity can reduce friction at renewal.
Contents, Plant & Machinery
- All key machines listed/declared (plating line, drill/laser, imaging, AOI, test systems, lamination press).
- Sums insured reflect replacement cost (including installation, commissioning, duties/lead time risk).
- Electrical panels/control cabinets included (damage often concentrates here).
- Computer/IT equipment treated appropriately (servers and production control systems can be critical).
- Portable tools and specialist tooling included where material.
- Any leased/financed equipment arrangements understood (insurable interest and ownership clarity).
If a machine is “essential” but not valued correctly, recovery becomes slow and BI risk increases.
Clean Areas & Contamination Considerations
PCB factories often have controlled or “clean discipline” zones even if they are not formal cleanrooms. This changes how losses play out: smoke and soot can render materials unusable, water can introduce contamination, and dust from contractor work can impact yields.
- Policy treats smoke/soot contamination as physical damage (or includes suitable extensions).
- Specialist cleaning costs after insured events are addressed (sub-limits checked).
- Segregation of chemical areas and controlled zones documented for underwriters.
- Stock storage method supports resilience (raised storage for flood risk, sealed packaging, humidity control).
- Contractor controls (hot works permits, dust control) documented to reduce claim disputes.
2) Stock, Materials & Work in Progress (WIP) Checklist
For PCB manufacturers, stock and WIP values can spike dramatically — especially where you run high-mix production, prototypes, or hold customer materials. The most common insurance failure is undervaluation (using average values instead of peak) and unclear definitions of WIP. If the policy doesn’t clearly include part-processed boards, insurers may treat WIP unexpectedly at claim time.
This checklist helps ensure you have realistic declared values and that your policy wording matches how PCB manufacturing inventory actually exists.
Values & Definitions
- Peak stock value identified (not just “average”).
- Peak WIP value identified (panels in process can exceed finished stock value).
- Stock definition includes raw materials, consumables and finished goods.
- WIP definition includes part-processed boards at all stages (drilled, plated, masked, tested, etc.).
- Valuation basis clear (replacement cost vs cost price; treatment of labour value in WIP).
- Seasonal/contract peaks reflected (some policies allow seasonal uplift declarations).
If values are wrong, the average clause can reduce claim payments even when the loss is valid.
Storage & Resilience
- Critical materials stored off the floor where flood/escape of water is possible.
- Humidity and temperature controls in place for moisture-sensitive materials.
- Segregation between chemicals and sensitive stock/WIP.
- Incoming inspection and traceability controls documented.
- Packaging integrity and sealed storage for controlled environments.
- Waste/scrap controls (to reduce fire loading and contamination).
Insurers often ask about storage because it changes the size of a probable water or fire loss.
Customer-Owned Goods & Goods in Trust
Many PCB manufacturers hold customer property: prototypes, materials, components, or tooling. If it is not insured explicitly, you may still be contractually liable for it. This is one of the most common “silent gaps”.
- Customer-owned goods cover in place (or clear contractual transfer of risk).
- Typical and peak values disclosed to insurers.
- Storage and security controls described (access control, segregation, traceability).
- Transit responsibilities understood (who is responsible when goods move?).
3) Business Interruption (BI) Checklist
BI is where factories survive or fail after a major loss. PCB recovery time can be longer than standard manufacturing because replacement equipment may have long lead times and production cannot simply restart — it often requires cleaning, validation, trial runs, and customer requalification or audits. The most common BI errors are: selecting an indemnity period too short, underdeclaring gross profit, and failing to include realistic increased cost of working for outsourcing and emergency logistics.
Use this checklist to ensure your BI cover reflects how long it would really take to restore turnover — not just repair a building.
BI Structure & Limits
- Gross profit calculation is correct (includes fixed costs that continue during downtime).
- Indemnity period matches worst-case realistic recovery (often 12/18/24+ months depending on plant).
- Increased cost of working limit set to fund outsourcing, overtime and expedited freight.
- Claims preparation costs addressed (if available and valuable for your size).
- Alternative premises option considered if applicable.
- Denial of access extension reviewed (wording dependent; useful near shared estates/incidents).
BI should be a cashflow tool. If it’s too small, it becomes “nice to have” rather than survival insurance.
Recovery Timeline Reality Check
- Machine lead times confirmed (including install and commissioning time).
- Requalification time estimated (trial batches, validation, documentation rebuild).
- Customer audit/sign-off delays considered (especially in regulated/high-reliability sectors).
- Supplier lead times for critical materials considered (laminates, chemicals, special finishes).
- Single points of failure identified (one machine controls the bottleneck).
- IT/OT dependency considered (production release may depend on systems even if machines run).
BI fails when it’s based on optimism. Underwriters respect realistic plans supported by facts.
4) Liability Checklist (Public, Product, Environmental, PI & Recall)
PCB liability risk is not “one cover”. It’s a group of covers that respond to different triggers. Public liability relates to injury or damage arising from your premises and activities. Product liability relates to injury or damage caused by products you supply. Environmental liability addresses pollution and clean-up exposures that are often restricted under standard liability policies. Professional indemnity is for financial loss allegations arising from advice, design input, or negligence claims that don’t involve property damage. And recall/rectification covers address the cost of replacing or correcting your products in the field (which standard product liability doesn’t usually pay).
The checklist below helps you align the correct covers to your contracts, products and customer requirements.
Public & Product Liability
- Limit meets contract requirements (£2m/£5m/£10m commonly requested).
- Business description accurately reflects activities (manufacture, assembly, test, work-away if any).
- Territory/jurisdiction correct (UK/EU/Worldwide) based on where products are supplied.
- Products description accurate (rigid/flex, high-reliability, special finishes, regulated use-cases).
- Contractual liability language reviewed (insurers won’t automatically mirror broad indemnities).
- Work away / site visit exposure included where applicable.
Many disputes arise from territory, jurisdiction and whether the activity was disclosed (especially if you do any installation/service work).
Environmental, PI & Recall / Rectification
- Environmental/pollution cover considered where chemicals, effluent or spill exposure is material.
- PI considered if you provide DFM advice, design support, spec input or engineering sign-off.
- Recall/rectification considered if you supply high-reliability sectors where field action is plausible.
- “Pure financial loss” exposures identified (product liability usually needs injury/property damage).
- Contract review process in place (don’t accept unlimited liability by default).
The most expensive disputes are often “no property damage” disputes — and they sit outside standard product liability unless PI/recall structures exist.
5) Cyber & IP/Data Liability Checklist (IT + OT Exposure)
PCB manufacturing is increasingly vulnerable to cyber disruption. Even if you do not hold large volumes of personal data, you likely hold commercially sensitive customer files (designs, stack-ups, test results) and you rely on digital systems to run production: scheduling, CAM, file servers, traceability systems, label printing, and shipping. Ransomware and business email compromise can stop the business just as effectively as a fire — and recovery can take time.
Cyber insurance is most valuable when it provides rapid incident response and (where arranged) cyber business interruption. But insurers expect basic controls. The checklist below helps you confirm both the insurance structure and the controls that support it.
Cyber Insurance Structure
- Incident response/forensics included (breach coach, IT forensics, restoration support).
- Cyber extortion/ransomware section understood (sub-limits and conditions checked).
- Cyber business interruption considered (waiting periods, triggers and indemnity match your exposure).
- Data and network security liability included (third-party claims and defence).
- Regulatory defence addressed where applicable (wording dependent).
- Policy matches your reliance on OT/production systems (describe how production is controlled).
The most common cyber disappointment is assuming “BI will just pay” — triggers and waiting periods matter.
Controls Insurers Expect
- Multi-factor authentication (MFA) on email, remote access and admin accounts.
- Backups segregated/immutable with tested restores.
- Patch management and endpoint protection across servers and endpoints.
- Remote access management for vendors (least privilege, logging, and time-limited access).
- Access control for customer design data (secure file transfer, permission management).
- Incident response plan and business continuity procedures documented.
Strong controls improve insurability and can reduce premium and exclusions.
6) People, Compliance & “Often Forgotten” Covers Checklist
Beyond the headline covers, PCB businesses often need “supporting” policies that reduce the severity of incidents and protect directors. Employers’ liability is legally required in most cases, but the detail still matters (contractors, work-away, overseas). You may also need engineering inspection, management liability, goods in transit, and legal expenses. These are often overlooked until a claim occurs.
This checklist helps you identify additional covers that can prevent operational and financial stress.
People & Workplace Covers
- Employers’ liability in place and limit meets requirements.
- Workplace risk assessments and training documented (helps claims defensibility).
- Contractors and labour-only arrangements reviewed (status affects EL exposure).
- Health & safety processes for chemicals, PPE, ESD and manual handling.
- Company vehicles and business travel exposures considered (if applicable).
EL is mandatory for most UK employers — but still needs correct business description and activities.
Supporting Covers Often Needed
- Engineering inspection for pressure systems/lifting (where required) and to satisfy compliance.
- Goods in transit cover if you deliver boards/prototypes or move high-value items.
- Legal expenses cover for contract disputes and debt recovery (optional but valuable).
- Management liability / D&O for directors (especially where you have investors or complex governance).
- Trade credit insurance considered for concentration on a few large customers.
These covers can be the difference between “annoying issue” and “business distraction” — especially during growth.
7) The Underwriter Pack: What to Prepare for Faster Quotes & Better Terms
Underwriters don’t just price “a PCB manufacturer” — they price your processes, values, controls, and loss potential. The better your information, the more confidently insurers can quote, and the more likely you are to secure strong wording without overly restrictive warranties.
If you want fast turnaround and strong cover, prepare the pack below. Insure24 can help you present it in an underwriter-friendly format.
Documents & Data
- Turnover split by product/customer sector and export territories.
- Simple process description (what you do, not just “PCB manufacturing”).
- Schedule of key plant and machinery with values and criticality.
- Declared values for buildings, contents, stock and peak WIP.
- Loss history (even if nil) and any near-miss learnings.
- Copies of key customer contracts/requirements (limits, indemnities, insurance clauses).
Clear information reduces the need for back-and-forth and speeds up underwriting decisions.
Controls & Risk Evidence
- Fire protection details (alarms, extinguishers, hot works controls, sprinklers if any).
- Flood and water resilience measures (raised storage, drainage maintenance, leak detection).
- Quality system summary (traceability, inspection/testing, change control).
- Chemical handling and pollution controls (bunding, spill kits, procedures).
- Cyber controls (MFA, backups, patching, vendor access control).
- Business continuity plan (outsourcing options, key supplier alternatives, recovery steps).
Underwriters like evidence of maturity. It helps pricing, and it helps when negotiating wording.
We assumed our manufacturing policy was “fine” until a water incident exposed gaps around WIP values and recovery time. Insure24 used a checklist approach to rebuild our programme — stock/WIP definitions were clear, BI matched our requalification timeline, and underwriters understood our maximum loss scenario.
Managing Director, UK PCB ManufacturerFREQUENTLY ASKED QUESTIONS
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What is the single most common insurance issue for PCB manufacturers?
Underinsurance and unclear definitions — especially for stock and work in progress (WIP). Many businesses declare average values and forget peak exposure,
and some policies don’t clearly define part-processed boards. This can reduce claim payments through average clause or cause disputes about what is insured.
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How do I choose the right business interruption (BI) indemnity period?
Base it on worst-case recovery time after a major insured event: repairs, equipment lead times, installation, cleaning, validation, trial runs and customer audits.
Many PCB manufacturers need longer than 12 months depending on equipment criticality and customer qualification requirements.
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Do I need both product liability and professional indemnity?
Many PCB businesses need product liability, and some also need professional indemnity. Product liability generally responds to third-party injury or property damage
caused by your products. PI is for negligence or advice/design-related claims that can involve pure financial loss without property damage.
If you provide DFM advice, engineering sign-off or specification input, PI may be important.
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Is smoke contamination treated as physical damage on property insurance?
Often yes, but wording matters — especially for controlled areas and sensitive stock/WIP. It’s important to confirm that smoke/soot contamination is treated appropriately,
that specialist cleaning costs are addressed, and that WIP definitions support claim settlement.
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We hold customer prototypes and materials — how do we insure them?
You typically need customer-owned goods / goods held in trust cover (or clear contract terms that transfer risk). Disclose the typical and peak values to insurers,
and describe storage and security controls. This is commonly overlooked until a claim occurs.
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How quickly can Insure24 arrange PCB manufacturing insurance?
Many risks can be quoted quickly once values, processes, customer exposure and controls are clear. Complex risks, higher values, flood exposure or specialist hazards
may require underwriter review. As a guide, allow 1–2 business days once core information is provided.
UNIQUE INSURANCE
TAILORED FOR YOU
This checklist is a strong starting point — but the best results come from tailoring cover to your specific processes, contracts and maximum loss scenario. Speak to Insure24 to review your current programme, identify gaps, and build a PCB manufacturing insurance package that is designed to perform when you need it.
PROTECT YOURSELF
- Buildings, contents and plant values aligned to real replacement cost
- Stock & WIP definitions and peak values structured to avoid claim disputes
- Business interruption aligned to equipment lead time and requalification reality
- Liability covers matched to contracts, territories and product exposures
- Cyber and data liability aligned to IT/OT dependency and customer data sensitivity