How to insure tooling at a Chinese factory
Ask a UK commercial insurance broker to confirm in writing that your interest in the tooling is covered at the named Chinese factory, both in storage and during operation. Agree valuation, exclusions and who can claim before relying on cover. Factory evidence can be coordinated by Cambridge China Bridge.
Give the broker a tooling and location brief
Prepare a register identifying each mould, die or jig, its purpose, condition, identifying marks and exact factory address. Include photographs, payment records, the ownership agreement and details of who holds and operates it. Explain whether it stays idle between orders, moves between buildings or goes to subcontractors. For ownership and release arrangements, see protecting your tooling.
Ask the UK broker whether it can arrange suitable cover for property kept and used in China. Request the policy wording, schedule and any endorsement identifying the tooling, location and cover start date. Ask for insurer-backed written confirmation of storage and operating cover, with the relevant clauses identified. Resolve unanswered points before treating the tooling as insured.
Confirm whose interest is insured
Explain who paid for the tooling, who owns it and whether the factory has any financial interest in it. Ask the broker to confirm how your business is identified in the policy, what interest is protected and who receives a settlement. If tooling payments are still being made, ask when your cover begins and what evidence supports the amount at risk.
If relying on the factory's insurance, obtain the relevant wording and schedule for broker review. Ask whether customer-owned tooling is included, whether your interest is recognised and whether you can claim directly or must depend on the factory. Request an explanation of any shared limits, competing claims and other insurance arrangements. A certificate saying the factory is insured leaves these questions unanswered.
Agree value using replacement evidence
Provide tooling invoices, payment evidence, drawings, acceptance records and current replacement quotations. Separate the original purchase cost from the cost of recreating a usable tool. Ask whether design work, manufacture, transport, installation, trials and validation are included. Agree the currency, valuation basis, settlement method, limits and excess in writing.
Ask how age, wear, partial damage and repairability affect settlement, and what happens if the declared value is below the replacement cost. Keep quotations and condition evidence current after modifications. Use the tooling maintenance guide for upkeep records; insurance valuation needs its own broker confirmation.
Test exclusions against actual factory use
Ask for written answers covering fire, flood, theft, accidental handling damage and damage while the tool is running in a machine. Separately ask about breakdown, wear, corrosion, poor maintenance, defective design and operator error. Have the broker identify what is covered, excluded or subject to an extension, rather than accepting an 'all risks' label.
Ask about idle storage, maintenance work, movement to another site and subcontractor use. Confirm security, maintenance and notification conditions, and who will provide evidence of compliance. Ask separately about lost production and replacement qualification costs. Keep refusal to release tooling or factory closure on the enquiry list. For transport cover when tooling moves, use the cargo insurance guide.
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Agree the claims route before a loss
Record who notifies the broker or insurer, who submits the claim and whether notification through the factory is necessary. Obtain the claims contact, policy deadlines, survey instructions and document requirements. Agree who can arrange local access, translation and a repair assessment, and whether survey, translation or recovery costs are covered.
After damage, make the area safe, prevent further loss where safe and retain the tool and damaged parts for inspection. Notify the agreed contact promptly and ask before non-urgent repair or disposal. Assemble the tooling register, ownership and payment evidence, dated photographs, operating and maintenance logs, incident account and replacement quotation. Cambridge China Bridge can help coordinate factory records through its staff in China; the broker and insurer confirm cover and settlement.
Frequently asked questions
Does cargo insurance cover tooling left in China?
Do not assume it does. Ask the broker to confirm ongoing storage and operating cover at the named factory. Check transport cover separately whenever the tooling moves.
Can I rely on the Chinese factory's insurance?
Have your broker review the wording and schedule for customer-owned tooling, your insured interest, limits and claims access. Ask whether you can claim directly or depend on the factory.
What value should I insure a mould for?
Give the broker invoices and current replacement quotations. Agree how manufacture, installation, trials, wear and partial damage affect the insured value and settlement.
Who claims if my tooling is damaged in China?
Confirm this before a loss: identify the claimant, notification contact, local evidence owner and survey arrangements. Keep ownership, payment, condition and maintenance records accessible.