Lithium Cells, Clean Rooms, and Boards That Can't Fail.
Protecting component makers, assemblers, and contract manufacturers
Electronics manufacturers build components, printed circuit boards, consumer products, and assemblies — and increasingly do it for other companies as electronics contract manufacturers (EMS) — and their defining risk is a product that fails in the field. The sharpest version of that risk is thermal: a lithium-ion cell in runaway starts fires that cause property damage, injury, and recalls, and the plant itself holds high-value equipment and inventory with real fire exposure of its own. Add embedded software to nearly every modern product and the liability picture now includes technology E&O and cyber. This is a specialized corner of manufacturing insurance built for how electronics makers actually get hit.
Properly structured coverage protects the plant, its equipment, and the products it powers.
The Electronics Manufacturer's Signature Exposures
Product liability is the defining exposure, and lithium-ion is its hardest edge — a cell or battery pack in thermal runaway can ignite a fire that causes severe property damage and injury, and because batteries ship inside countless products, a single defect scales into a mass recall fast. Fire is also a property peril on the plant side: clean rooms, automated lines, and dense inventory represent high values concentrated under one roof, and a process or electrical fire there is costly. Contract manufacturing adds a distinct wrinkle — an EMS building to someone else's design still gets named when the product fails, so the allocation of liability between designer and builder has to be managed by contract and coverage. Embedded software and connectivity create technology E&O and cyber exposure, while clean-room contamination, electrostatic-discharge damage, and solder-and-chemical employee exposure fill out the risk.
Key Risks in Electronics Manufacturing
Electronics manufacturers face exposure related to:
A component or product fails and causes a fire (lithium-ion thermal runaway) or injury
A recall of a defective product or component across a large installed base
Contract-manufacturing liability for building to another company's design
Intellectual-property and product-warranty exposure
Clean-room contamination or electrostatic-discharge damage to product
Fire loss to high-value equipment and concentrated inventory
Solder, flux, and chemical exposure to employees
An embedded-software or cybersecurity defect in a connected product
The lithium-ion fire and the field product failure are what most define the business.
Core Coverages for Electronics Manufacturers
A properly built electronics program typically includes:
Product Liability & Completed Operations — Covers components and finished products that fail in the field, including lithium-ion fire and injury claims.
Product Recall — Responds to the withdrawal and replacement costs when a defective product or battery is recalled across the installed base.
Commercial Property — Covers the building, clean rooms, automated equipment, and inventory, with attention to concentrated fire values.
Equipment Breakdown — Repairs or replaces production equipment after sudden mechanical or electrical failure that property policies exclude.
General Liability — Covers premises and ongoing operations exposure at the facility.
Technology E&O — Addresses defects in embedded software and firmware that cause a customer financial or performance loss.
Cyber — Protects against breaches and operational-technology exposure tied to connected products and plant systems.
Inland Marine — Covers high-value stock and finished goods in transit and at off-site locations.
Workers' Compensation — Provides legally required coverage for solder, chemical, and line-injury exposure.
Umbrella / Excess Liability — Adds higher limits above the primary program given battery-fire and mass-recall severity.
What's Commonly Overlooked
Electronics programs are most often weakened by:
Product-liability limits too low for lithium-ion fire and mass-recall exposure
No technology E&O for embedded software and firmware defects
Contract-manufacturing agreements that leave the builder exposed for others' designs
No equipment-breakdown coverage for automated lines and process tools
Property values that understate concentrated clean-room and inventory exposure
The gap that hurts most is inadequate product-liability coverage for a battery fire that scales into a recall.
Real-World Claim Examples
A lithium-ion battery in a product enters thermal runaway and starts a fire
A defective component triggers a recall across a large installed base
A product built to a customer's design fails and the EMS is named in the suit
An electrical or process fault ignites a fire in high-value production equipment
An embedded-software defect disables a connected product and the customer sues for loss
Any one of these can be severe, and a battery-fire recall can reach seven or eight figures.
Regulatory & Safety Context
Electronics manufacturers operate under the FCC for electromagnetic compatibility and emissions, UL and comparable product-safety listings for electrical safety, and the restricted-substances regimes — RoHS and REACH — that limit hazardous materials in products and components. Consumer products fall under the Consumer Product Safety Commission (CPSC), which drives recall and reporting obligations, and lithium batteries are subject to UN/DOT hazardous-materials transport rules governing how cells are packaged and shipped. Underwriters expect these controls in place, and compliance documentation is part of a clean submission.
Why Proper Placement Matters
Underwriters weigh revenue, product mix, and especially end use — components destined for medical, aerospace, or automotive applications raise product-liability weight sharply — along with whether lithium-ion is manufactured or integrated, contract-manufacturing scope, embedded software, and loss history, and they scrutinize fire protection: sprinklers, battery storage and testing controls, clean-room discipline, and electrical maintenance. Routine electronics assembly can be written in standard markets, but lithium batteries and high-consequence end uses push the account toward E&S, where limits and terms are tailored. Presenting the product end use and the fire controls clearly is what drives appetite and price.
Our Approach
At Cory Washington & Co., we insure electronics makers around product failure, battery fire, and embedded-software risk. We size product-liability and excess limits to end use, coordinate property and equipment breakdown around concentrated fire values, add technology E&O and cyber for connected products, and present battery and fire controls the way underwriters reward. We also insure related manufacturers, including plastics manufacturing, and structure standalone product liability and product recall and contamination coverage, within the broader manufacturing category.
When a single cell can start a fire and a single defect can become a recall, product-liability, recall, and fire coverage are everything — we build them to hold.
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.
See the coverages an electronics manufacturing business may carry — core, prevalent, and situational — plus the gap most often missed, in the Electronics Manufacturing Coverage Checklist.
Complete the Electronics Manufacturing Supplemental online in a few guided steps, download the fillable PDF, or browse all applications.
Frequently Asked Questions
How do I get electronics manufacturing insurance through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate electronics manufacturing insurance across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
What drives the cost of electronics manufacturing insurance?
It depends on your exposure. Electronics manufacturing insurance is priced on factors like your industry, size, prior claims, and the limits and deductibles you select — so two businesses rarely pay the same. We shop your account across competing carriers and present the trade-offs in plain English.
Do I need electronics manufacturing insurance?
It depends on your situation. Some coverage is required by law; more often, electronics manufacturing insurance is required by a contract, lease, lender, or client before they will do business with you — and even when it is not mandated, it guards against exposures that can be severe. We review your operations and obligations and tell you plainly what you need and why.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
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