Factory Insurance

Overview

Running a factory involves many risks, from machinery breakdowns and fires to theft and natural disasters. Factory insurance is a specialized policy designed to protect manufacturing units, industrial plants, and production facilities from financial losses due to unexpected events. This type of insurance covers buildings, machinery, stock, and liability risks, helping factory owners focus on business growth with peace of mind.

What is Factory Insurance?

Factory insurance is a comprehensive plan that safeguards your factory’s physical structure, contents, and operations. It covers various risks that can lead to loss or damage of property, disruption of operations, and legal liabilities. Whether you run a textile mill, a chemical plant, or a packaging unit, having the right factory insurance can prevent huge financial setbacks.

Key Features of Factory Insurance

Property Coverage This covers damage or loss to the factory building due to fire, explosion, lightning, short circuits, storms, floods, earthquakes, or accidental damage. The coverage includes the structure itself, along with fixtures, fittings, and boundary walls.
Machinery Breakdown Factories rely heavily on machines. If one breaks down, it can cause production delays and loss. Factory insurance covers the repair or replacement costs of essential machinery due to mechanical or electrical breakdown.
Business Interruption In case of a major accident or disaster, the production may stop temporarily. Business interruption coverage compensates for lost income and operating expenses during this downtime.