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A SINGLE, COMPREHENSIVE INSURANCE PROGRAMME FOR SEMICONDUCTOR RISKS
What Is a Combined Semiconductor Insurance Package?
A combined (or comprehensive) semiconductor insurance package brings multiple key covers together into a single co-ordinated programme — typically including property damage, business interruption, machinery breakdown, liability (including product/device liability), optional product recall/withdrawal expense, cyber/OT, employers’ liability, public liability, transit and specialist extensions.
Semiconductor manufacturing is unusually exposed to “cascading losses” — an incident rarely stays in one box. A power disturbance can cause equipment breakdown, which leads to downtime, which leads to missed shipments, which escalates into customer claims and contractual disputes. A water leak can damage stock and cleanroom environments, cause contamination, and trigger expedited shipping and rework costs. A cyber incident can stop production systems, corrupt test data, and delay shipments. When your cover is fragmented across multiple policies or insurers, the gaps tend to appear in the handover points — and claims can become slower and more contentious.
Insure24 helps semiconductor manufacturers build integrated insurance programmes designed to work together in real loss scenarios. We coordinate policy wordings, deductibles, territorial scope, limits and claims processes — so that when something happens, the programme responds efficiently and your business can stabilise faster.
Core Covers Typically Included
Every semiconductor business is different. A wafer fab has different critical assets to an OSAT packaging and test facility, and both are different to an electronics manufacturing site producing modules or power electronics. A combined programme is built around your real risk profile — not a generic checklist.
That said, comprehensive semiconductor packages commonly include a set of “core” covers, with optional extensions added depending on customer contracts, territories, hazardous processes and operational dependencies. The goal is to protect balance sheet (assets), cashflow (profit interruption), and liability (claims), all in one joined-up structure.
Core Covers
- Property damage (buildings, plant, cleanroom fit-out and contents)
- Stock & WIP (including customer-owned items where agreed)
- Business interruption (loss of gross profit and increased cost of working)
- Machinery & equipment breakdown (engineering cover)
- Public & employers’ liability
- Product / device liability (worldwide exports where required)
- Optional: product recall / withdrawal expense (where appropriate)
- Cyber / OT and network interruption (where relevant)
Common Extensions
- Transit / cargo for high-value shipments
- Utility interruption and contingent business interruption
- Expediting costs and temporary equipment hire
- Contamination and cleanroom reinstatement considerations
- Engineering inspections and statutory plant requirements (where applicable)
- Contractors works / installation risks for tool moves and upgrades
- Directors & officers (D&O) for leadership risk (optional)
- Trade credit / debtor protection (optional, for certain models)
Why Combined Cover Reduces Gaps & Improves Claims Outcomes
Many semiconductor businesses build insurance incrementally: a property policy here, a liability policy there, then an add-on cyber policy later. Over time, the programme can become inconsistent — different definitions, different exclusions, and different assumptions about what “counts” as an incident. This is where gaps appear, particularly around downtime scenarios, contamination, and losses triggered by equipment breakdown or cyber events.
With a coordinated combined programme, we align the moving parts: one insurer’s definition of “damage” does not undermine another insurer’s BI cover; breakdown events trigger the right downtime extensions; stock/WIP and customer-owned goods are handled consistently; and claims reporting and response is streamlined.
The result is typically faster incident stabilisation, clearer documentation requirements, and less time lost to disputes over which policy should respond.
- Aligned definitions and fewer grey areas between policies
- Co-ordinated deductibles and waiting periods
- Better handling of cascading losses (breakdown → BI → liability)
- Clearer treatment of stock/WIP and customer-owned goods
- Reduced duplication and improved value for money
- More consistent approach to exports and jurisdiction
- Streamlined claims notification and documentation
- Improved underwriting narrative (stronger overall risk presentation)
Building the Right Package: Fab vs OSAT vs Electronics Manufacturing
Comprehensive semiconductor insurance should reflect your stage in the supply chain and your critical path. Fabs often prioritise high-value property, cleanrooms and utilities resilience, with complex business interruption and contamination considerations. OSAT operations are throughput businesses where stock custody, ATE/tool availability and global customer contracts can dominate. Electronics manufacturing sites may have broader premises and logistics exposures, with greater reliance on suppliers and product liability across assembled systems.
We tailor programmes using a “critical dependency” approach: identify what stops production, what causes batch loss, what triggers claims, and what creates cashflow shocks. Then structure cover around those points.
Fab Priorities
- Cleanroom property and reinstatement costs
- Critical utilities: chillers, vacuum, gases, DI water
- Breakdown and long lead-time equipment planning
- Contamination and WIP vulnerability
- Complex BI with realistic indemnity periods
- Supplier dependency exposures
OSAT / Test Priorities
- High-value ATE, handlers and packaging equipment
- Customer-owned stock/WIP custody and valuation
- ESD/humidity controls and incident response
- Throughput BI and extra expense to catch up
- Worldwide product/device liability for exports
- Cyber/OT exposure in test data environments
Key Underwriting Information (What You’ll Need for Quotes)
Combined packages are most competitive when insurers receive a clear, structured submission. Semiconductor risks can look “difficult” on paper unless the controls are properly explained. We help you present your maintenance, environmental controls, traceability, quality systems, redundancy, and incident response processes in a way underwriters understand.
If your aim is to achieve broad cover with workable deductibles and minimal exclusions, the submission matters as much as the insurer. We’ll also review customer contracts to ensure limits, territories and endorsements match procurement requirements.
Information Commonly Required
- Site description, processes, and stage in the supply chain
- Values: buildings, fit-out, plant & machinery, critical utilities plant
- Stock/WIP maxima and any customer-owned goods custody terms
- Turnover, key customers, contract requirements and territories
- Quality systems: traceability, change control, testing and failure analysis
- Maintenance strategy and critical plant redundancy
- Cyber/OT controls where production systems are connected
- Claims history and major incidents (including near-misses and improvements)
How Insure24 Improves the Submission
- Structured risk narrative focused on critical dependencies
- Policy wording alignment to avoid coverage gaps
- Deductible and indemnity period modelling for realistic downtime
- Territory and export review (including USA/Canada where required)
- Contract review to flag uninsured obligations
- Practical options to reduce premium via risk improvements
- Market negotiation to reduce exclusions and improve clarity
- Claims-readiness advice to speed response if something happens
We moved from fragmented policies to a single, coordinated programme. When an incident hit our utilities plant, the cover responded cleanly — property, breakdown and downtime all aligned.
COO, Semiconductor Manufacturing GroupONE PROGRAMME. MULTIPLE PROTECTIONS.
- Buildings, cleanrooms, plant, equipment and critical utilities
- Stock, WIP and customer-owned goods (where agreed)
- Downtime cover with realistic indemnity periods
- Machinery breakdown and expediting costs
- Liability and optional recall for device risks
- Cyber/OT cover where production systems are exposed
LESS ADMIN. FEWER GAPS.
- Aligned definitions and coordinated policy wordings
- Clearer claims escalation and documentation process
- Better value vs multiple overlapping policies
- Reduced risk of exclusions undermining downtime cover
- Support with certificates for customer procurement
- A clear renewal plan and risk improvement roadmap
Compliance, Procurement & Documentation
Semiconductor customers and partners often require evidence of insurance as part of onboarding and ongoing supplier governance. A combined programme can simplify compliance by providing clear certificates, consistent limits, and policy language that aligns with contract frameworks.
- Certificates of insurance aligned to customer requirements
- Territory and limits designed for export and end-use risk
- Documented governance: maintenance, traceability and incident response
- Environmental and hazardous substances considerations where relevant
- Cyber/OT controls and data protection expectations
- Clear policy wording to reduce disputes during claims
FREQUENTLY ASKED QUESTIONS
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What is a combined semiconductor insurance package?
It’s a coordinated insurance programme that brings key covers together for semiconductor manufacturers — typically property, business interruption, machinery breakdown, liability (including product/device liability), and optional extensions like recall, cyber/OT, transit and contingent BI.
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Why not just buy separate policies?
Separate policies can create gaps where incidents cascade across covers (e.g., breakdown leading to downtime and then customer claims). A combined programme aligns wordings, deductibles, territories and claims processes to reduce grey areas and improve response during real-world incidents.
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Can you include customer-owned stock and WIP?
Often yes, but it needs careful structuring. We review custody arrangements, maximum values, valuation basis and contractual responsibilities (including bailment terms) so the programme aligns with your obligations to customers.
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Can the package include worldwide product liability and USA/Canada cover?
Yes. Worldwide product/device liability can be arranged, including USA/Canada where required by customer contracts or export exposure. We’ll help ensure territories, limits and endorsements match procurement frameworks.
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How much does a combined semiconductor insurance programme cost?
Cost depends on values at risk (property, equipment, stock/WIP), turnover and end-use exposure, territories, resilience and controls, claims history, and the limits/deductibles selected. Combined programmes are typically individually underwritten — request a tailored quote for accurate pricing.
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What do you need from me to quote?
Typically: site/process overview, values (buildings, plant, utilities, stock/WIP maxima), turnover and territories, customer requirements, quality/traceability controls, maintenance and redundancy measures, cyber/OT controls where relevant, and claims history.