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Essential Machinery Insurance for Manufacturing: An In-depth Analysis

By Dean Laming on July 21st, 2023

The manufacturing industry is a complex and dynamic sector, encompassing a wide range of businesses from small-scale workshops to multinational corporations. This industry is exposed to a variety of high-risk factors, including machinery breakdowns, workplace accidents, and business interruptions.

As a result, having the right insurance coverage, such as machinery insurance, is crucial for the stability and growth of a manufacturing business. In this blog, we cover the importance of machinery insurance in the manufacturing industry.

Understanding Machinery Insurance

Machinery insurance, a type of specialist insurance, is specifically designed to protect manufacturing businesses from the financial implications that arise when machinery breaks down. Whether it’s a mechanical failure or an electrical fault, machinery insurance covers the cost of repairing or replacing the affected machinery. 

For manufacturing companies, where machinery is the lifeblood of operations, this insurance is not just important; it’s essential. It ensures the continuity of operations, thereby mitigating the risk of business interruption – a scenario that can have devastating financial consequences.

Key Components of Machinery Insurance

Machinery insurance typically encompasses several key components: 

Products Liability covers the cost of compensation claims if a product manufactured by the business causes injury or damage. This is particularly important in the manufacturing industry, where the products produced can range from small components to large machinery –  each with its own set of potential risks. 

Employers Liability insurance protects the business against claims from employees who have been injured or become ill due to their work. This is particularly relevant in an industry where employees often work with heavy machinery and hazardous materials.

Property insurance covers property damage to buildings, equipment, and stock. 

Public Liability insurance covers claims made by third parties for injury or damage caused by the business, protecting the business from potential legal costs and compensation claims.

The Importance of Machinery Value

When it comes to machinery insurance, the value of the machinery plays a pivotal role. It’s not just about knowing the cost of the machinery but also understanding its value in the context of business operations. This machinery value is a critical factor in determining the level of manufacturing insurance cover required. 

Underinsurance, or insuring for less than the actual value, can lead to significant financial losses in the event of a claim. Therefore, it’s essential to conduct regular evaluations of machinery and update the manufacturing insurance policy accordingly. This ensures that the manufacturing insurance coverage accurately reflects the value of the machinery, providing adequate protection for the business.


In conclusion, machinery insurance for manufacturing is vital for any manufacturing business. It provides financial protection against a range of risks, ensuring that businesses can continue to operate and grow even in the face of unexpected events.

Brisco Business’s Plant and Machinery Insurance

At Brisco Business, we understand that machinery is the lifeblood of a manufacturing business. That’s why we offer comprehensive plant and machinery insurance that’s designed to protect these vital assets. 

Our business insurance covers a wide range of plant and machinery, from small tools to large industrial business equipment. Whether it’s a mechanical breakdown, accidental damage, or theft, our insurance provides the financial protection businesses need to get their operations back on track quickly. 

With Brisco Business, we help you compare quotes to ensure you have the coverage you need at the best possible price. 

Dean Laming

Dean is a Chartered Insurance Broker with more than 25 years insurance experience. Through various underwriting, operational and management roles, Dean has built up extensive knowledge of how to run a business and is now Managing Director of Brisco Business, part of the wider Henry Seymour Group.

All articles by Dean Laming

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