Machinery and tooling
CNC equipment, tooling, fixtures and inspection gear.
Business Insurance
Machine shop insurance for precision work.
CNC equipment is expensive, customer material sits on your floor, and a part machined out of tolerance can fail somewhere else entirely.
Machine shops combine high-value plant with work performed on other people's property. Customer material in your possession, precision parts supplied into other products, and equipment whose failure stops the shop are the three defining exposures.
Customer property and parts in service
Material and components belonging to customers sit under care, custody and control, which standard general liability generally excludes. A bailee endorsement covers property you are working on rather than only property you own.
Products and completed operations covers a part that fails after delivery. For shops supplying into aerospace, energy or automotive work, contract requirements are usually specific about limits and endorsements.
What it covers
The parts of a machine shop insurance policy
Customer property
Material and components in your care while being worked on.
Products liability
Parts that fail after they leave the shop.
Equipment breakdown
Machine failure and the production stoppage that follows.
Working with us
What we do differently
We are an independent agency, so we place your machine shop insurance across several carriers rather than fitting you to one company's product. That means a genuine comparison, and someone to call who is not a call centre.
- Add bailee cover for customer material — general liability excludes it
- Check contract requirements before taking aerospace or energy work
- Value tooling and fixtures separately from the machines themselves
Common questions
Machine Shop Insurance, answered
Is customer material in my shop covered?
Not under standard general liability, which excludes property in your care, custody and control. A bailee endorsement covers material and components you are working on.
What if a part I machined fails later?
Products and completed operations responds to resulting damage or injury. The cost of remaking the defective part itself is generally not covered, which is the standard boundary.
Does the policy cover a CNC breakdown?
Mechanical and electrical failure is equipment breakdown rather than a property peril, and it can include the lost production. For a shop dependent on one or two machines it is important cover.
Related cover
Often arranged alongside this
Manufacturers Insurance
A production line stopping costs more per day than most of the equipment on it. That is where the cover has to be strongest.
Read moreProduct Liability Insurance
Everyone in the chain can be named — maker, importer, distributor and the shop that sold it. Being the last link is not a defence.
Read moreEquipment Breakdown Insurance
Property insurance covers what happens to your equipment. It does not cover your equipment simply failing.
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