Aerospace Manufacturing Insurance

We see the aerospace industry very much like a spiders web with the main manufacturer in the middle supported by allied engineering firms providing all sorts of different products.

This creates massive opportunities for both large and small firms allowing quality to rise to the top rather than size of company.

This breeds a great culture in the industry and one where insurers want to help protect the risks you face.

Once you have reviewed you products liability insurance and activities you may want to look at the following also:-


If you export your products outside of the UK ensure you have established where the end user is. This is especially important if you are supplying into the USA.

Aviation liability

If you are making safety critical parts or anything that has a mechanical nature in aerospace you may need to purchase aviation liability insurance.


A word most insurers don’t want to hear from their client is Nuclear Insurance.

The good news is that we have a number of clients dealing with the Nuclear industry in various formats.

The main advice here is to fully review the activities you are undertaking, even though there is the word Nuclear in front of the work due to the strict measures in place within the industry it is bizarrely less of a risk for insurers to take in some circumstances.

Always look to team up with a Broker and Insurer who have practical Nuclear experience and can apply a common sense approach to a complex problem.

Do you have any Occupational Health in place?

As with health and safety one area we see that has a huge impact on engineering firms is having a good occupational health regime in place.

This not only helps you look after your team, reduce sickness but also provides a good evidence base for any employers liability claims in the future.

Advanced Machinery

Inward investment in the latest technology, new machines and operation techniques keeps the UK engineering sector as a key global player in quality and efficiency. Investing in this advanced machinery can bring with it a number of challenges:-

Machinery Movement

You may look to reorganise your production line as the advancements or new machinery becomes available as such you may be moving around expensive items of kit. As such you should always have machinery movement insurance in place if you are moving your items around, you can arrange this on a one off basis or have an annual basis.

Health & Safety

Looking after the health & safety of your people is paramount in running a successful engineering company. It is a dangerous workforce but with the right attitude, culture and procedures you can minimise risks and keep your people safe.


With advancements in technology, the need for training becomes an essential skill in the engineering sector. If you arrange training for people outside of your company you may need to have professional indemnity to cover you for any claims against the advice and teaching you have provided.

Engineering Cyber Insurance

The number one threat to any business reliant on IT to deliver a product, making sure you have assessed your potential cyber risks is essential to running a modern business.

Below are a few things to look out for when looking at insuring your cyber exposures.

Cyber Crime

Usually you will buy in raw materials in enough quantity to keep your factory running, one area cyber criminals are targeting is to look at social engineering where they pretend to be your supplier hacking into your emails to copy invoices and change bank details. You then pay them and are at a financial loss as your bank wont refund any money because you have physically made a payment to them. Make sure you have a verification process in place but then also a Cyber Crime Insurance policy to fully protect your business.

Production interruption

If a cyber criminal hacks into your system and shuts down your production line it could lead to a financial loss as you can’t service the orders or you spend additional time in catching up on the production.

Your biggest IT weakness

It is your people, they click on the phishing links, respond to emails. Ask you IT provider to do some tests to try and catch your staff out. Alternatively ask your Cyber Insurance provider to conduct some training, its usually free as part of the policy to help minimise claims.

Stock Levels

The move to just in time delivery systems allow you to keep stock levels to a minimum. However there may be scenarios where your stock levels go above the normal parameters such as

Large Orders

You may need to retain more stock and raw materials to service a large order, you can usually flex your stock levels for a short period of time.

Off Site warehouse

You may have a regular batch of orders as such want to free up production lines so stock up on your regular products in an off site warehouse. You can normally float cover across multiple sites allowing you to have confidence that you don’t need to tell insurers every time you move things around.

Stock at customer site

You may store stock at a distributor, wholesaler or a customers property. If they are responsible for the stock then make sure they have noted you as an interested party and have ‘goods in trust’ cover.

Do you do any stand alone design work?

If yes then you may need Manufacturing Professional Indemnity Insurance. A standard liability insurance wouldn’t protect you against design only work you carry out leaving your business exposed.

As such having Manufacturing Professional Indemnity Insurance in place protects you against legal action taken against negligence of your designs and or advice you have given out.

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