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Industry Practice · Heavy industry & manufacturing

Electrical & Electronics Manufacturing

Cover for electrical and electronics manufacturers, process fire, product liability, marine cargo and machinery breakdown.

Process fireProduct liabilityCargo & supply chain
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The sector

Process risk that destroys the asset; product risk that survives the warranty period.

Electrical and electronics manufacturing combines a fire-vulnerable plant environment (electronic assemblies, solvents, soldering operations) with product-liability exposure that follows the goods well after they have left the factory. The insurance programme needs both, and the cargo cover that connects them to the supply chain.

Risk profile

Where the exposure lives.

Electrical and electronics units face fire, breakdown, stock and product-liability exposure together. We scope these four.

01
Process fire
Electrical faults, soldering operations and solvent storage drive fire claims. PCB assembly lines are vulnerable to total-section loss.
02
Product liability
Defective products causing third-party injury or property damage, long-tail exposure that survives the sale.
03
Cargo & supply chain
Inbound component shipments and outbound finished goods are typically high-volume, with concentrated transit risk.
04
Machinery breakdown
SMT lines, testing equipment and high-tech process machinery carry significant breakdown exposure and long parts lead-times.
Recommended cover

The programme we typically place.

Each cover below is a link to the policy page. The combination, the limits and the wording are what we negotiate on your behalf.

01
Fire & Burglary
IPP Fire cover for production lines, raw stores and finished goods warehouses.
Learn about this cover →
02
Public Liability
Combined public and products liability with worldwide jurisdiction extension where exporting.
Learn about this cover →
03
Marine Insurance
Inbound component cover (CIF) and outbound finished-goods cover (CIP / DDP).
Learn about this cover →
04
Plant & Machinery
Machinery breakdown for SMT, AOI and testing equipment with extended indemnity period.
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Claim reality

What a claim tends to look like here.

A frequent claim is fire or an electrical short that damages both premises and sensitive stock, or a product-liability claim where a defective component causes downstream loss. Breakdown of specialised equipment is the other common trigger.

Questions

Questions we get in this sector.

On a reinstatement basis, cover pays to replace with new; on a market-value basis it pays depreciated value. For fast-moving electronics we recommend a reinstatement basis with an agreed stock-declaration method.
Yes, where your components or products can cause injury or damage in use. Product liability responds to third-party claims arising after the goods leave your premises, which general property cover does not.
Usually. Electronic components and assemblies are high value, compact and easily damaged by water and smoke, so a fire in one part of a unit can write off stock far from it. Sprinkler discharge damage is a real exposure for this trade.
Almost always, and increasingly the OEM's contract requires it with a stated limit. A component failure that damages the assembled product creates a claim considerably larger than the value of the component.
Yes, particularly for SMT lines, reflow ovens and testing equipment, where a failure stops output and replacement is imported. The fire policy excludes the machine's own electrical or mechanical failure.

Need a sector-specific risk review?

Speak with an advisor who has arranged cover for electrical before.

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