skip to main content

With many intersecting, overlapping, and simultaneous changes taking place in the manufacturing industry, companies require new strategies to manage and mitigate risks so they can free up resources to better take advantage of emerging opportunities.

To help manufacturers close gaps typically inherent in traditional insurance programs, Chubb has introduced Chubb Assembly, an industry vertical solution which offers scalable insurance enhancements and modular, liability-driven insurance solutions.

Coverage Highlights

Public and Product Liability

  • Offers broad protection for bodily injury and tangible property damage claims irrespective of whether you designed, manufactured, installed or distributed the final product or stemming from software that fails to perform.
  • Premises liability claims and injuries to non-employees.
  • First and third-party product recall expense.

Manufacturing Errors & Omissions Liability

  • Respond on a manufacturer’s behalf to third-party claims alleging financial or economic injury arising out of actual or suspected product defects, failure of products to perform or failure to perform a service in accordance with a contract.

Cyber Insurance

  • Provides an Incident Response platform to mitigate and resolve First Party Cyber Incidents that may result in business interruption, data recovery costs and extortion negotiation, as well as coverage for Third Party Liability arising from a Cyber Incident.

Claims Scenarios

Manufacturing Errors & Omissions

Mislabeling of Consumer Products

A claim was made by retailers against a costume jewelry manufacturer that failed to comply with labeling requirements of consumer product safety laws. The retailers incurred costs to remove the non-compliant product from their shelves, and also lost revenues.

Manufacturing Errors & Omissions

Embedded Sensors and “Internet of Things”

In an initial effort to capitalise on the “Internet of Things,” an advanced manufacturer embedded sensors into automated processes that provided real-time data on production output. Unfortunately, a flaw in the software controlling the sensors enabled an unauthorised user to access the data. Several end users of the sensors filed a lawsuit against the manufacturer for damages sustained from the unauthorised access.

Product Liability

Defective Product

Several suppliers and retailers filed lawsuits against an electronic household appliance manufacturer, seeking compensation for financial losses incurred and lost revenue when they were unable to fulfil orders. There were several news reports that rice cookers from the manufacturer were malfunctioning, causing short circuits, fire and damaging property. After investigation, the manufacturer discovered that 10 out of each batch of 1,000 rice cookers are defective and launched a product recall exercise.

Product Liability

Property Damage

A claim was made against a fire protection system manufacturer when the fire sprinkler system in a F&B establishment did not activate during a fire, causing property damage, business interruption and financial loss.


Ransomware Attack

A F&B manufacturer was targeted by cyber criminals in a ransomware attack, via a malicious file which infected the company's servers. With servers down, production work at the factory came to a standstill as the manufacturer was unable to access their clients’ order details or fulfil any orders. Operations were only restored 5 days after ransom was paid.

The company incurred business interruption costs and financial loss, and clients sued them for loss from non-fulfilment of orders.

Product Liability

Environmental Pollution

A claim was made against a manufacturer of storage tanks for environmental pollution liability. A chemical plant purchased several tanks from the manufacturer for storage of industrial solvents. However, due to a manufacturing defect, one of the tanks ruptured, releasing solvents into the ground.

Download the Manufacturing Errors & Omissions (E&O) Infographic for more claims scenarios.

Frequently Asked Questions

The needs of manufacturing companies vary by industry. However, manufacturing companies in Singapore are recommended to have traditional insurance such as General Liability, Commercial Property, Business Income, Professional Liability (Errors & Omissions) and Work Injury Compensation insurance. Manufacturers should also consider Cyber insurance

Product Liability offers broad protection for bodily injury and tangible property damage claims irrespective of whether a manufacturer designed, manufactured, installed or distributed the final product. Manufacturing Errors & Omissions Liability (Professional Liability) offers protection against financial loss claims arising from defective products or stemming from products that fail to perform.

Product recall expense insurance will cover the costs associated with regaining possession of defective products in the market that could cause bodily injury or property damage. 

Yes, Chubb Assembly is designed to close the gaps in traditional insurance programs. However, manufacturing companies are still recommended to purchase traditional insurance such as Commercial Property, Business Income and Work Injury Compensation insurance.

General Liability insurance covers bodily injury and property damage claims relating to your operations, premises, completed operations and your products. Product Liability insurance applies to claims relating to your products.

Yes, Chubb Assembly is designed for manufacturing companies and distributors of the manufacturing products as they might have similar exposures. Companies positioned in the manufacturing supply chain as a distributor or wholesaler will be eligible for Chubb Assembly as they have the same exposures as a manufacturer.

In some countries, these distributors are also deemed to be manufacturers of the products if the manufacturer does not have a presence in the country.

We will evaluate the types of product(s) and solutions that the subcontractor offers to determine whether Chubb Assembly or a monoline General Liability and Professional Liability (E&O) would best suit the subcontractor's needs.

There is no minimum premium amount as Chubb Assembly is a package policy tailored to individual clients’ needs. There are several factors to be considered which would influence the premium, including but not limited to:

a.       Coverage sections required;
b.       Size of company;
c.       Nature of business (e.g. products manufactured);
d.       Limits of Insurance; and
e.       Exposure levels.

Premiums are based on individual components of the policy – Product Liability, Recall, Errors & Omissions (E&O) and Cyber. Our underwriters will review your company’s requirements and price the risks based on coverage and limits of each component, before combining them into one package solution. Premiums can cost less than S$10,000 for a small manufacturing company.

Please refer to the policy contract for the full details of benefits, terms and exclusions that are applicable. The information provided here is a brief summary for quick and easy reference. The exact terms and conditions that apply are stated in the policy contract.

Why Chubb

  • Ability to write business in 54 countries and territories
  • Award-winning claims performance
  • Deeply engrained local underwriting expertise within a global network
  • Over 400 risk engineers around the world to help identify and mitigate risk for our clients


Webinar Playback

Webinar Playback

Get ahead of Industry 4.0: Manufacturing risks and insurance

Kevin Stevens, Chubb's Head of Industry Practices for Asia Pacific, shared about trends shaping the Singapore manufacturing industry, types of emerging digital risks faced by manufacturers in this evolving landscape, and ways to address these risks through loss mitigation and risk transfer.

Have a question or need a quote?

Contact us to find out how how Chubb Assembly can help you get covered against potential risks