Machine Shop Insurance Quebec 2026 — CNC, Welding, Mechanical

IN BRIEF

Machine Shop Insurance

Machine shops (CNC, lathe, milling, welding) must insure heavy machinery (often $100,000 to $1 million each), raw material inventory, product liability (defective parts delivered to the customer) and breakage.

Critical Product RC: A defective part delivered to an OEM (aerospace, automotive) customer can cause a recall costing millions. Product recall warranty recommended for Tier 1/2 suppliers.

CNC and high-value machine tools

Mazak, Haas, DMG Mori 5-axis machining center: $800,000 to $2.5 million. Okuma CNC lathe: $400,000 to $1 million. Approved value coverage + breakdown of electronic machinery.

Fire hazard — welding and chips

TIG/MIG welding, plasma, flame cutting, combustible aluminium and magnesium shavings, cutting oils: high fire exposure. Building limit + contents + extended operating losses.

Critical Product Responsibility

Aerospace, automotive, defense, medical parts: a defect can cause a $500,000+ recall, accident or injury. Product liability $5 million to $25 million depending on the sector.

Machinery breakdowns and breakdowns

CNC down = production stopped. Coverage for machinery breakdown (controls, spindles, servo motors) + resulting operating losses .

Tools and measuring instruments

High-value cutting tools (carbide inserts, drills, solid cutters), coordinate measuring machines (CMMs), jigs and molds. Tooling fleet often $100,000+.

Cyber – client plans and IP

Solidworks, AutoCAD, STEP: confidential plans. Ransomware can block production. Cyber insurance for restoration, breach notification, loss of revenue.

Building and content

Workshop, material warehouse, offices. Reconstruction, snow load, storm, water damage.

CNC Equipment Machinery

Approved value per machine, electronic machinery breakdown, programming costs.

Tools and stocks

Cutting tools, CMMs, raw material, customer stock in production (property of others).

General liability and products

Covers injuries to third parties, damage to customer equipment, recall of defective products.

Business interruption

Disaster revenue maintenance — often 6 to 12 months to replace a CNC.

Cyber and Privacy

Ransomware, leaked plans, NDA confidentiality clause, Law 25 notification.

Broker advice — Agreed value vs. overnight value

For an $800,000 Mazak CNC, the difference can be $200,000 in the event of a total loss. Always demand an expertly documented agreed value , not an overnight value with depreciation. The premium surcharge is marginal but protects your true replacement cost.

Shop Burns and Cyberattacks — High-Impact Risks

A shop fire can cost $2 million to $10 million (building, machinery, customer inventory, operating losses). Ransomware blocking your CNCs stops production for 2 to 6 weeks (recent studies: average cost $300,000 per incident for a manufacturing SME). A defective aerospace part can trigger a $500,000+ recall. Don’t neglect cyber insurance or product liability.

CNC Machining

3, 4, 5-axis centers, CNC lathes, multi-function milling, prototyping.

Conventional machining

Lathe, milling machine, grinding machine, drill press, custom tasks.

Welding and manufacturing

TIG, MIG, plasma, robotic welding, metal frame, tanks.

Tooling and moulds

Injection molds, dies, jigs, repair and modification.

Industrial mechanics

Repair of pumps, gearboxes, conveyors, agricultural and mining machinery.

Aero / Medical Suppliers

AS9100, ISO 13485 certified, critical parts with high added value.