Tool & Die and Precision Machining Insurance Coverage Checklist
The coverages a tool & die and precision machining business may carry — core, prevalent, and situational — why each matters, and the gap most often missed.
Pull out your current policy and check the box next to any coverage you can confirm is already in place — anything unchecked is worth a quick conversation with your advisor. Coverage checklist for tool and die makers, mold builders, and precision tooling shops. Priorities reflect typical exposure for this class; confirm against your actual tooling and customers.
Tick each coverage you can confirm you carry — anything left unticked is a good question for your next policy review.
| Have it? | Coverage | Why this business needs it | Priority |
|---|---|---|---|
| Property (Building & Machinery) | Covers CNC, EDM, grinders, presses, and the shop. | Core | |
| Bailee / Customer-Owned Tooling | Covers customers' dies and molds in your care — often worth more than your equipment. | Core | |
| General Liability (incl. Products) | Covers injury and damage from tooling and parts you supply. | Core | |
| Workers' Compensation / Employer's Liability | Covers toolmakers and press operators — amputation risk is high. | Core | |
| Equipment Breakdown | Covers machine and press breakdowns. | Prevalent | |
| Professional / Design E&O | Covers tooling design errors that cost customers money. | Prevalent | |
| Business Income | Replaces income after a fire or major breakdown. | Prevalent | |
| Product Recall | Covers recalls of parts made with your tooling where you are responsible. | Situational | |
| Aviation / Medical Products Liability | Needed if your tooling or parts go into aircraft or medical devices. | Situational | |
| Umbrella / Excess Liability | Adds limits customers in auto and aerospace require. | Prevalent |
The coverage gap most often missed
The gap most often missed by tool and die shops is customer-owned tooling. Dies and molds you build or repair for customers can be worth millions, and standard property policies cover only your own equipment — a fire can leave you owing for tooling you don't own. Design errors and late tooling that stop a customer's line are a second gap, excluded from GL. Schedule customer tooling at full value and add design E&O if you engineer the tools.
Send us the checklist and we'll review your tool & die and precision machining coverage line by line, then market it across multiple carriers that compete for your account.
Related: Tool & Die / Precision Machining Insurance · Tool & Die and Precision Machining Supplemental (apply) · All coverage checklists
Frequently asked questions
What insurance does a tool & die and precision machining business need?
The core coverages for a tool & die and precision machining business are Property (Building & Machinery), Bailee / Customer-Owned Tooling, General Liability (incl. Products), Workers' Compensation / Employer's Liability. This checklist also lists the prevalent and situational coverages worth considering, with a plain-English note on why each matters.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my tool & die and precision machining coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.