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Insurance for Aerospace Precision Engineering Manufacturers
Aerospace precision engineering sits at the highest end of manufacturing risk. Components are safety-critical, tolerances are measured in microns, documentation and traceability are mandatory, and contracts often impose strict liability, recall obligations and overseas jurisdiction exposure.
Standard manufacturing insurance is rarely sufficient. Aerospace suppliers require carefully structured cover that reflects certification regimes, customer flow-down requirements and the true cost of downtime or non-conforming parts.
Key Risks in Aerospace Precision Engineering
Insurers underwriting aerospace risks focus on process control, quality systems, contract wording and the potential severity of downstream loss. The sections below highlight the most critical exposures.
Products & Completed Operations Liability
Even small component failures can ground aircraft or trigger costly investigations. Liability exposure can extend far beyond the value of the part supplied.
- Aerospace products liability (B2B supply chains)
- Worldwide territories including USA/Canada where required
- Contractual liability and flow-down clauses
- Legal defence costs in specialist jurisdictions
Precision Machinery & Equipment
CNC machines, multi-axis mills, EDM, grinding and inspection equipment represent major capital investment and long replacement lead times.
- High-value CNC and specialist machinery
- Machinery breakdown and engineering risks
- Consequential damage and downtime exposure
- Calibration and inspection equipment
Business Interruption & Contract Penalties
Aerospace customers plan production years in advance. A single incident can interrupt supply chains and trigger penalty clauses or loss of approved supplier status.
- Loss of gross profit following insured damage
- Extended indemnity periods for specialist rebuilds
- Increased cost of working to maintain supply
- Customer and supplier dependency extensions
Quality, Traceability & Recall Exposure
Non-conforming parts may require batch tracing, investigation and withdrawal, even where no injury has occurred.
- Product recall / rectification options
- Batch traceability and documentation costs
- Customer notification and investigation expenses
- Reputation and relationship management
Additional Covers Commonly Required
- Employers’ Liability – Mandatory UK cover for skilled engineering staff.
- Cyber & OT Insurance – Protection against ransomware and production disruption.
- Goods in Transit – High-value components shipped domestically and overseas.
- Directors & Officers – Protection for management decisions and governance risk.
- Tooling & Customer Property – Cover for jigs, fixtures and customer-owned assets.
Why Use Insure24 for Aerospace Precision Engineering Insurance?
Aerospace risks demand specialist understanding. Insure24 works with insurers experienced in regulated manufacturing and international supply chains.
- Experience with aerospace and precision engineering risks
- Understanding of customer flow-down requirements
- Support with exports and overseas liability exposure
- Practical guidance on improving insurability and terms
- Ongoing support as contracts and production evolve
FREQUENTLY ASKED QUESTIONS
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Is standard manufacturing insurance suitable for aerospace?
Usually not. Aerospace suppliers typically require higher liability limits,
wider territories and cover aligned to strict contractual obligations.
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Do I need USA products liability cover?
Many aerospace contracts require worldwide cover including the USA/Canada.
This must be disclosed and priced correctly due to increased exposure.
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Can insurance cover recall and rectification costs?
Product recall or rectification cover may be available depending on
processes, quality controls and insurer appetite.
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How quickly can cover be arranged?
Aerospace risks are underwriting-led. Clear information on processes,
contracts and controls helps insurers quote efficiently.