Parts made to spec, risks made to fit.
Product liability, property, equipment breakdown, workers' comp and customer-goods coverage for machine shops, CNC shops, metal fabricators and parts makers.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
Spindles, sparks and finished parts
Machine shops face injuries from lathes, presses and saws, fire from grinding and cutting, and CNC equipment that halts production when it breaks. Once a part leaves the shop, a defect can surface years later inside someone else's product.
Insurers want to know what your parts end up in. Bolts for furniture rate very differently from components for aircraft, vehicles or medical devices, so I place shops by end use, with product liability and workers' comp written to match.
- Product liabilityDefective parts in customers' products.
- Equipment breakdownCNC machines, compressors and controls.
- Workers' compMachine, cutting and lifting injuries.
- Bailee coverageCustomers' materials in your shop.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Shop: address, building and sprinklers.
- Products: what you make and what it goes into.
- Customers: industries and largest accounts.
- Equipment: machines and replacement values.
- Payroll: shop floor and office, by job.
- History: claims and Cal/OSHA visits.
Machine shop insurance, answered
Why does end use matter so much?
A failed part in an aircraft or vehicle can cause severe injury, so insurers price and limit those parts differently. Some markets exclude aerospace or medical work entirely.
Is a broken CNC machine covered?
Equipment breakdown often covers sudden mechanical or electrical failure and lost income during repair, subject to the policy terms. Wear and tear isn't covered.
Do customers require additional insured status?
Many do, along with product liability limits written into supply agreements. Send me the contract language.
What about customer-owned materials?
Coverage for others' property in your care can be added. Without it, a fire may leave their stock uninsured.
Do you offer machine shop insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in 48 states and Washington, DC and places policies there directly. In Florida and Washington, where Sam's licenses are still being issued, a partner agency in your state helps in the meantime. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Official sources
Send what you make. I'll shop it.
Products, end uses, payroll and equipment value are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.
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(877) 711-4545Answered 24/7 · CA License #4348151
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