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THREE LIABILITY POLICIES — THREE DIFFERENT “TRIGGERS”
Why This Comparison Matters in PCB Manufacturing
PCB manufacturing sits in a unique risk position. You’re a manufacturer (products risk), you operate a site with visitors and contractors (public risk), and many PCB processes involve chemicals, effluent and regulated waste (pollution risk). These exposures can overlap — but the insurance policies designed to address them are not interchangeable.
The most common insurance mistake we see is assuming one liability policy covers everything. Another is buying all three without understanding what each policy is for — which can lead to gaps, duplicated premium, or cover that is misaligned to actual operations and contracts.
This page explains the practical differences between Products Liability, Public Liability and Environmental/Pollution Liability for PCB manufacturers, with real-world examples and “which policy would usually be expected to respond” guidance (always subject to insurer wording and claim facts).
If you want this assessed against your own process, call 0330 127 2333 or request a quote online.
Definitions in Plain English
Let’s strip this back. Each liability policy has a different “trigger” — the thing that must happen for the policy to respond. While policies vary by insurer, the core logic usually looks like this:
Products Liability
Covers your liability for injury or property damage caused by products you manufacture, supply or sell (subject to policy terms).
- Trigger: your product causes damage after it leaves your control
- Typical PCB example: defective board causes damage to equipment
- Key drivers: end use, territory, limits, contracts, traceability
Note: standard policies may not automatically cover recall, rework, or “pure financial loss” unless specifically arranged.
Public Liability
Covers your liability for injury or property damage to third parties arising from your business activities (subject to policy terms).
- Trigger: your premises/operations cause damage to a third party
- Typical PCB example: visitor injured on-site; contractor damaged property
- Key drivers: premises risk, activities, visitors, contractors
Many policies treat products liability as part of the overall liability policy — but the “product” and “premises” exposures are still evaluated differently.
Environmental / Pollution Liability
Covers certain pollution-related liabilities and clean-up costs arising from contamination events (subject to wording and insurer acceptance).
- Trigger: a pollution incident causes contamination requiring clean-up and/or third-party claims
- Typical PCB example: chemical spill reaches drains; contamination clean-up required
- Key drivers: chemicals, storage, bunding, drainage, effluent, location
Environmental cover often exists because standard liability policies can be restrictive for pollution clean-up and statutory obligations.
Real-World PCB Scenarios: Which Liability Policy Usually Sits Closest?
The table below is a practical guide. The “closest” policy depends on cause, wording, and claim facts — but these examples help you see the differences. If you want, Insure24 can map your actual process and contracts to insurer language and identify where a gap could exist.
- Defective PCB causes short circuit and damages an inverter: usually a Products Liability discussion (property damage caused by product), subject to territory/limits.
- Visitor slips in production area and is injured: usually a Public Liability discussion (premises/operations injury).
- Chemical leak reaches external drain requiring clean-up: typically an Environmental/Pollution Liability discussion (clean-up + contamination costs), plus possible PL if third parties affected.
- Contractor damages a customer’s property while working on your site: usually a Public Liability discussion (operations), and potentially contractor’s own cover too.
- Batch defect triggers quarantine and retesting but no property damage: may be a quality / contractual cost; insurance may be limited unless specific recall/remediation solutions apply.
- Firefighting run-off contaminates external areas: could be an Environmental discussion depending on wording; some property covers have limited pollution extensions but this varies widely.
- Board built to wrong spec causes line stoppage costs for OEM: often becomes a contract / pure financial loss dispute; PI may be relevant if advice/design responsibility exists, subject to terms.
The key takeaway: each policy has a different “trigger” and different exclusion pressure points. The best programme is structured to meet your real-world failure modes.
Common Gaps and Misunderstandings (PCB Edition)
Insurance disputes often happen not because the business had “no insurance”, but because the policy was structured for a different assumption. Below are the most common gap patterns we see in PCB manufacturing.
Gap 1: Territory Doesn’t Match Where Products End Up
You may invoice a UK customer, but the finished equipment may ship worldwide. If your liability cover excludes certain territories or limits are not aligned to customer requirements, a defective board claim can become a serious problem.
Solution: map distribution realistically and structure territory/limits accordingly (especially where US/Canada exposure exists).
Gap 2: Pollution Clean-Up Not Properly Addressed
Many businesses assume Public Liability covers pollution. In practice, pollution clauses can be restrictive, particularly for clean-up costs and statutory obligations. Wet-process sites often need environmental cover discussions.
Solution: assess chemical/waste/drainage exposure and structure environmental/pollution liability where appropriate.
Gap 3: Recall / Rework / Pure Financial Loss Expectations
Some of the largest PCB “losses” are commercial and contractual: rework, retesting, expediting, line stoppage claims, warranty disputes. Standard liability policies are usually built around injury/property damage, not all commercial consequences.
Solution: clarify contract positions and explore specialist recall/remediation or PI solutions where appropriate (subject to appetite and controls).
Gap 4: Product Description and End Use Not Clear
“PCBs” can mean consumer boards or high-reliability, safety-critical assemblies. Underwriters price and restrict based on end use. If the description is vague, you may pay more or face claim disputes.
Solution: present product types, sectors, QA controls and traceability in an insurer-friendly way.
“Once we saw the difference between product, public and environmental liability, we realised our programme had a pollution gap. Insure24 helped us restructure it and explain it to our customers.”
Director, UK PCB ManufacturerWhy Choose Insure24 to Structure Liability Cover for PCB Manufacturing?
Liability insurance only works when it reflects reality: what you make, where it goes, how it’s used, and what can go wrong. Insure24 helps PCB manufacturers build joined-up programmes across product, public and environmental exposures — without buying cover you don’t need.
- PCB-specific risk presentation: wet-process, high-reliability and downstream damage themes
- Territory and limits mapping aligned to OEM/customer requirements
- Environmental gap assessment for chemicals, effluent and waste streams
- Clear explanations: what’s usually covered vs what is contractual/commercial
- Competitive insurer access for manufacturing and environmental solutions (subject to appetite)
Get a Quote: Liability Insurance for PCB Manufacturers
For insurers to quote accurately, they need a simple, clear picture of your products, premises and pollution exposure. Provide what you can — we’ll help you turn it into a clean submission.
- 1. Product types and end uses (sectors, safety-critical exposure)
- 2. Territories (where products end up, incl. any US/Canada exposure)
- 3. Required limits (customer/OEM contract requirements)
- 4. Premises profile (visitors/contractors, landlord requirements)
- 5. Chemical/waste profile (storage, bunding, drainage, effluent)
- 6. Claims history and quality controls/traceability
- 7. Any design/advice responsibilities (PI discussion)
Call 0330 127 2333 or use our online form to start.
FREQUENTLY ASKED QUESTIONS
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Can one policy cover product and public liability together?
Often yes. Many liability policies include both public and products liability under the same policy, with one overall limit and sub-structures (subject to wording).
The important point is understanding the different triggers and ensuring product description, territories and limits fit your real exposure.
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Why do PCB manufacturers often need environmental/pollution liability?
PCB manufacturing often involves chemicals, wet-process lines, effluent and regulated waste. Standard liability policies can be restrictive for pollution clean-up costs
and statutory obligations. Environmental cover is designed for pollution incidents and can complement public/products liability, subject to wording and insurer acceptance.
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Does products liability cover recall, rework or customer line stoppage?
Not automatically. Products liability is usually built around injury or property damage caused by your product (subject to terms). Recall, rework, retesting, expediting
and pure financial loss may be limited unless specific solutions are arranged. Cover varies significantly by wording and insurer.
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How do territories affect PCB liability claims?
Liability exposure can follow the end product. If your boards are built into equipment exported by OEMs, claims can arise in the country where the equipment is used.
Policies may restrict certain territories (particularly US/Canada) unless disclosed and agreed. Territory should be based on where products end up, not just who you invoice.
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What’s the best way to avoid gaps between these three policies?
Start with a simple risk map: products/end use/territories, premises activities, and chemical/waste/drainage exposure. Then structure limits and wordings to match.
Clear disclosure, traceability evidence and sensible contracts reduce claim friction and improve insurer appetite.
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How quickly can Insure24 obtain terms?
With clear product/end-use information, territories, required limits, and a summary of chemical/waste controls, indicative terms can often be obtained quickly.
High-reliability or worldwide exposures may take longer for specialist underwriting review.