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Factory & Workshop Property Insurance for Precision Engineering Manufacturers
Your premises are the backbone of your manufacturing operation. Whether you run a precision machining workshop, a multi-bay fabrication unit, a clean assembly facility, or a mixed-use factory with offices and stores, a single property loss can stop production and create severe financial pressure.
Factory, Workshop & Property Insurance from Insure24 is designed for precision engineering and manufacturing businesses that need more than a basic “commercial property policy”. Manufacturing sites often involve higher fire load, complex machinery layouts, combustible packaging, oils/coolants, extraction systems, higher electrical demand and time-critical delivery schedules — all of which influence how insurers rate risk.
Insure24 arranges tailored property insurance packages that can include buildings, contents, stock and work-in-progress, plant and equipment, and business interruption — built around your site, processes and contractual obligations.
Who This Factory & Workshop Insurance Is For
- Precision machining and CNC engineering workshops
- Toolmaking, jigs, fixtures and automotive component manufacturers
- Prototype and R&D engineering facilities
- Assembly, kitting and light manufacturing sites
- Metalworking and fabrication premises
- Specialist production facilities with high-value equipment
- Businesses operating from industrial units, trade parks or freehold factories
- Multi-site manufacturers needing a consistent insurance programme
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What Factory, Workshop & Property Insurance Can Cover
Property insurance for manufacturing businesses is typically arranged as a package. The right structure depends on whether you own or lease the premises, the value of your equipment and stock, the fire and security profile, and whether you need business interruption protection.
Common sections of cover
- Buildings Insurance – for owned premises (rebuild cost basis, not market value)
- Tenants Improvements – fixtures and fit-out you’re responsible for in leased units
- Contents – office equipment, furniture, IT and non-production equipment
- Workshop Fixtures – racking, benches, compressors, extraction, tool cribs and stores
- Stock & Materials – raw materials, consumables, finished goods and packaging
- Work-in-Progress – part-machined components, assemblies and items awaiting inspection
- Plant & Machinery – major machines (often combined with breakdown options)
- Business Interruption – loss of income following insured damage
The most common causes of major manufacturing property claims include fire, flood, escape of water, theft, and accidental damage — and the indirect impact often comes from the interruption to production and delivery.
Key Underwriting Factors Insurers Look At
- Construction and occupancy – how the building is built, and who occupies neighbouring units
- Fire protections – detection, extinguishers, sprinklers (where present), and compartmentation
- Hot works exposure – welding, grinding, cutting and related procedures
- Housekeeping – waste management, swarf and dust control, storage practices
- Security – alarm grade, monitoring, CCTV, locks, perimeter control and keyholding
- Electrical risk – inspection regimes, PAT testing and condition of installations
- High-value machinery – values, maintenance records, spares strategy and breakdown history
- Claims history – frequency and severity, plus corrective actions taken
Buildings, Tenants Improvements, Contents & Stock — Getting Values Right
Underinsurance is one of the biggest hidden risks for manufacturers. Property claims may be reduced if declared values are too low. It’s important to insure buildings on a rebuild cost basis, and to ensure contents, machinery and stock values reflect realistic replacement costs and peak trading periods.
Common value mistakes
- Insuring buildings at market value instead of rebuild cost
- Missing tenants improvements (fit-out, partitions, electrical work, extraction systems)
- Under-declaring machinery replacement value (including installation and commissioning costs)
- Stock and work-in-progress declared at average levels rather than peak levels
- Not including specialist tooling, gauges and fixtures
If you are unsure about valuations, we can help you identify practical ways to estimate values and present them properly to insurers.
Business Interruption for Manufacturing Premises
Property damage is only half of the loss story. Many manufacturing claims become expensive because production stops. Business interruption insurance can cover loss of gross profit and certain increased costs of working after insured damage, subject to the policy wording.
For precision engineering, the key questions are usually:
- How long would it take to rebuild or reinstate the premises after a major fire?
- How long would it take to replace key CNC machinery (including delivery lead times)?
- Can production be subcontracted or moved temporarily?
- What is the realistic period before revenue returns to normal?
These answers help determine the appropriate indemnity period (often 12, 18 or 24 months), and the correct gross profit sum insured.
Risk Management That Improves Property Insurance Terms
- Fire prevention – housekeeping routines, waste removal, safe storage of combustibles
- Hot works permits – formal controls for welding/cutting and contractor management
- Extraction maintenance – filters, ducts, swarf and dust controls where relevant
- Electrical inspections – periodic testing and maintenance records
- Security upgrades – monitored alarm, CCTV coverage, perimeter fencing, secure stores
- Site layout – sensible separation of ignition sources and combustibles
- Business continuity – documented recovery plans and alternative production options
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Why Choose Insure24 for Factory & Workshop Insurance?
- Specialist manufacturing and precision engineering insurance knowledge
- Access to insurers familiar with CNC and machinery-heavy risks
- Support presenting risk improvements and underwriting information
- Advice on valuations, sums insured and business interruption structure
- FCA-regulated UK commercial insurance brokerage
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FREQUENTLY ASKED QUESTIONS
What does factory and workshop property insurance cover?
It can cover buildings (if you own them), tenants improvements, contents, stock and work-in-progress against insured events such as fire, flood, storm, theft and accidental damage, subject to policy terms and conditions.
Do I need buildings insurance if I rent my unit?
Usually the landlord insures the building, but you may be responsible for tenants improvements, fixtures, glass, or specific reinstatement obligations. It’s important to check your lease.
How do I calculate the rebuild cost of a factory?
Rebuild cost is different from market value. It should reflect the cost to demolish, clear and rebuild the property to a similar specification, including professional fees. We can guide you on practical ways to estimate this for insurance.
Does property insurance include CNC machinery?
CNC machinery can be included under contents/plant sections, but machinery breakdown is typically a separate or optional cover. It’s important to disclose machine types and values to ensure correct cover.
Is business interruption included automatically?
Not always. Business interruption is usually an optional section and should be arranged with a suitable indemnity period and sum insured to reflect your recovery timeline.
Do insurers care about hot works procedures?
Yes. Welding, cutting and grinding are key underwriting considerations. Documented hot works procedures and housekeeping can improve terms and reduce the risk of restrictions.
What security measures do insurers expect?
Expectations vary by location and values, but common requirements include a maintained intruder alarm, good physical locks, CCTV, secure storage for tools/metals, and robust keyholding procedures.
Can I insure stock and work-in-progress at peak levels?
Yes. It’s often recommended to set stock and work-in-progress sums insured to reflect peak exposure, or use a declaration-based approach where available, to reduce underinsurance risk.
What is the biggest reason manufacturing property claims are reduced?
Underinsurance is a common cause of reduced settlements. Ensuring accurate sums insured for buildings, machinery, stock and BI is critical.
How quickly can I get a quote?
Many workshop risks can be quoted quickly, but higher sums insured, specialist processes or complex premises may require additional underwriting information.
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