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THE COMPLETE INSURANCE CHECKLIST FOR SEMICONDUCTOR MANUFACTURERS
Semiconductor manufacturing is one of the most complex and capital-intensive industrial sectors in the world. From wafer fabrication and cleanroom environments to specialty chemicals, global supply chains and high-value equipment, the insurance programme must reflect technical risk, financial exposure and contractual obligations.
This checklist has been designed specifically for semiconductor manufacturers, wafer fabs, foundries, cleanroom operators, packaging and test facilities, and advanced electronics businesses. Use it to review your current insurance structure and identify gaps before they become costly problems.
1. Property & Engineering Insurance
Semiconductor facilities often hold extremely high values in buildings, cleanroom fit-out and specialist fabrication tools. Standard commercial property cover may not be sufficient without engineering extensions.
- Buildings insured at correct reinstatement value (including specialist cleanroom construction)
- Cleanroom fit-out, ducting, filtration and environmental systems declared
- Fab equipment values listed accurately (EUV, DUV, CMP, etchers, deposition tools)
- Machinery breakdown / engineering inspection cover in place
- Electrical surge and power disturbance cover included
- Tool calibration and reinstallation costs considered
- Spare parts and critical component stock declared
- Automatic reinstatement provisions reviewed
2. Business Interruption (BI)
Recovery timelines in semiconductor manufacturing are often underestimated. Requalification, validation and tool recalibration can significantly extend downtime.
- Gross profit / revenue correctly calculated
- Indemnity period realistic (12, 18 or 24+ months where needed)
- Requalification and validation time factored into recovery plan
- Increased cost of working limits sufficient
- Utilities failure extension included
- Denial of access and non-damage extensions reviewed
- Contingent BI for named suppliers/customers arranged
3. Contamination & Cleanroom Failure
Cleanroom excursions can result in batch loss without visible physical damage. Standard policies may not respond without specialist extensions.
- Contamination extension or specialist cover arranged
- WIP and wafer lot values declared
- Requalification and restart costs considered
- Monitoring and alarm procedures documented
- Preventive maintenance evidence retained
- Incident response plan aligned with insurance notification terms
4. Environmental & Pollution Liability
Chemical handling, wastewater and abatement systems create environmental exposure. Pollution is often restricted under standard liability policies.
- Dedicated environmental liability policy considered
- On-site clean-up costs covered
- Gradual pollution exposure reviewed
- Wastewater treatment and discharge risk assessed
- Contractor pollution exposure evaluated
- Regulatory investigation defence included (where available)
5. Public, Products & Employers’ Liability
Liability limits must reflect contractual requirements and worst-case scenarios, especially where chips are used in automotive, aerospace or medical devices.
- Public liability limit aligned to contracts (£2m / £5m / £10m+)
- Products liability sufficient for downstream risk
- Recall exposure assessed
- Care, custody & control clauses reviewed
- Employers’ liability compliant with UK requirements
- Overseas exposure declared where applicable
6. Supply Chain & Critical Dependency
Supplier shutdowns can halt production overnight. Identify single points of failure before renewal.
- Named suppliers listed for contingent BI
- Critical component lead times reviewed
- Cargo / transit cover arranged
- Strategic spares inventory documented
- Alternative supplier qualification plan in place
Need Help Reviewing Your Insurance?
This checklist is a starting point — not a substitute for specialist advice. Semiconductor manufacturing insurance should be tailored to your facility, process and risk appetite.
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FREQUENTLY ASKED QUESTIONS
Why do semiconductor manufacturers need specialist insurance?
The combination of high-value equipment, contamination risk, chemical handling and global supply chains creates exposures that standard commercial policies may not fully address.
Is contamination usually covered under property insurance?
Not always. Where there is no physical damage, contamination events may require specialist extensions or tailored policies.
What is contingent business interruption?
It is cover that protects your income when a key supplier or customer suffers an insured event that disrupts your operations.
How often should we review our insurance programme?
At least annually, and whenever there are major capital investments, new contracts, or process changes.
Can Insure24 review our existing policies?
Yes. We can provide a structured review against this checklist and highlight potential gaps or improvement areas.