Mercantile / Medical device
Surgical Equipment Insurance
Businesses supplying surgical instruments, theatre equipment and reusable or single-use surgical products. Review products liability, professional services and recall exposures with Mercantile Insurance Brokers.
Businesses supplying surgical instruments, theatre equipment and reusable or single-use surgical products.
Where the sector’s exposures differ
Instrument breakage, sterility allegations, inadequate instructions and failures during procedures can expose several businesses in the supply chain. Reusable instruments raise questions about cleaning and maintenance; single-use products raise different questions about packaging, shelf life and lot traceability.
Insurance covers to assess
Review products liability, design or technical advice, installation and maintenance services, and recall expenses. An insurer needs to know whether equipment is invasive, powered, sterilised, reprocessed or supplied under your own label. Your own equipment and stock need property or transit consideration rather than relying on liability insurance.
Policy features to discuss
We can discuss the insured activities, insured entities, territorial limits, defence costs, excesses and aggregate limits offered by insurers. If a customer requests particular insurance, let us know so we can consider the available cover. Legal interpretation, drafting and negotiation of contracts should be handled by your legal adviser.
An illustrative exposure
A reusable instrument is alleged to fail during surgery. A customer’s demand for replacement stock and a patient’s injury allegation need separate review.
This is a hypothetical example to explain cover questions, not a Mercantile client case or a paid claim. The proposed policy must be assessed before assuming any response.
Information needed for a quotation
Instrument types and intended uses; reusable or single-use status; sterilisation and reprocessing roles; import and manufacturing arrangements; training and maintenance services; hospital contracts.
Also provide turnover, wages, subcontractor and labour-hire costs, the legal entities to insure, existing schedules and wordings, claims or known circumstances, and planned changes. A clear activity breakdown helps us approach suitable markets and compare the terms offered.
Common questions
Does supplying instruments include the surgeon’s malpractice cover?
No. A supplier’s product and service exposures differ from the treating practitioner’s medical indemnity. Training or clinical involvement must be disclosed.
Can Mercantile review existing insurance?
Yes. Send the schedule and wording together with a description of your activities and key contracts. We can examine significant gaps and approach suitable insurers, subject to their appetite and acceptance. We assist Australian businesses from our Norwest NSW office.
Related insurance sectors
Our service focuses on insurance placement and policy cover. Product classification, approvals and regulatory compliance are matters for your regulatory adviser or the relevant authority.
Return to medical device insurance or explore all Life Science insurance sectors.
Prepared by Mercantile Insurance Brokers. Updated 30 September 2026. General information for Australian businesses. Availability and cover depend on insurer acceptance, policy terms, exclusions, limits and deductibles.
