Factory Insurance

Factory insurance is an insurance policy that provides financial coverage to the factory owners against unforeseen loss or damage caused to the structure of the factory as well as the stored goods. However, it depends on the type of coverage the buyer has opted for. Factory owners should consider purchasing this insurance plan as it not only provides coverage for damages caused to the goods kept inside the premises but also outside the premises.

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*Premium varies on the basis of Occupancy, Business Activity & Coverage Type

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By clicking on "" you agree to our Privacy Policy and Terms of Use, and also provide us a formal mandate to represent you to the insurer and communicate to you the grant of a cover.

*Premium varies on the basis of Occupancy, Business Activity & Coverage Type

Benefits of Factory Insurance

Here are some of the benefits of fire insurance for Factory:

  • Policyholders can enhance the coverage by purchasing add-ons provided by the insurer
  • Portable electronics can also be covered for specific losses such as breakdown, short-circuit, theft, etc. while traveling to another country
  • Replacement cost of damaged property is also provided instead of book value. This can be done through reinstatement and escalation value clauses
  • SFSP policy can cover the alternate accommodation expenses is the factory is damaged

Factory Insurance: Inclusions

Factory fire insurance provides coverage for the following perils:

  • Loss or damage caused due to fire to the structure of the building or the content is covered
  • Loss or damage caused due to natural calamities such as earthquakes, floods, storms, etc. is covered
  • Loss or damage caused due to implosion, explosion, etc. is covered
  • Loss due to theft, mechanical or electronic breakdown are also covered (Additional coverage is provided)

*Policy buyers can refer to the detailed list of coverage in the policy wording at the time of purchasing this policy.

Factory Insurance: Exclusions

Factory fire insurance does not provide coverage for the following perils:

  • Intentional loss or damage is not covered
  • Loss or damage caused due to any illegal activity is not covered
  • Any consequential loss or damages are not covered
  • Normal wear and tear is not covered
  • Deterioration is also not covered under the policy
  • Loss or damage due to pollution is not covered
  • Loss or damage due to war or radioactive contamination is not covered

*Policy buyers can refer to the detailed list of coverage in the policy wording at the time of purchasing this policy.

How to Keep Factory Insurance Premium Low?

There are several factors that can help you keep the factory insurance premium lower while purchasing the insurance plan:

  • Lower claim history in the last 3 years
  • Security measures such as CCTV cameras, 24*7 security guard on duty
  • Fire safety measures such as water sprinklers, hydrants, fire extinguishers, etc. are installed on the premises
  • Having AMC for the equipment and machines
  • Lower or no basement exposure

Factory Insurance: Claiming Process

Follow the steps given below to raise a claim under the online factory insurance policy:

  • First of all, call the fire brigade in case of the fire accident
  • Then call the insurer within 24 hours of loss or damage
  • Insurer will send a surveyor to inspect the loss or damage caused
  • Assist the surveyor while the inspection
  • Once the surveyor is satisfied, he will inform the insurance company
  • Then the insurer will begin the process of settlement

Documents Required to Raise Claim under Factory Insurance

Here are the following documents that you will have to submit along with the claim form to raise claim:

  • Claim form
  • FIR, if any
  • Final investigation report
  • Fire brigade report, in case of fire
  • Invoice copy of damaged asset
  • Forensic report, if required
  • Cost of repair or lost products
  • Any other documents as per insurer’s requirement

Factory Insurance: FAQs

Written By: PolicyBazaar - Updated: 24 January 2023
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