Factory and Warehouse insurance policy does not cover the following:
- Short-Circuiting: Any mishap including fire due to short circuits is not covered in the particular policy.
- Deterioration: As we know everything has a time limit and depredation is a natural process. Hence the gradual deterioration of the machinery or the loss due to seepage and pollution over the years is not covered under this insurance.
- War & Allied Perils: Any damage to the factory or the warehouse due to an ongoing war or an event that is caused by an ongoing war is excluded.
- Radiation Damage: Damage to equipment or goods due to radiation and ionization.
Apart from the perils, some types of goods may also be excluded from the policy:
- Manuscripts (can be insured by declaration and additional premium)
- Cold storage stock damaged due to changes in temperatures
Click here to know what is covered under factory and warehouse insurance
Case on Factory & Warehouse Insurance Exclusions
Surjeet Chouhan runs three warehouses in one of the most fertile regions of Haryana and Punjab. Two of these warehouses have cold-storage facilities to store vegetables and other perishable goods before they are moved out for sale.
Last month, Chouhan Storage Facilities Pvt. Ltd. Filed a claim under factory and warehouse insurance for the damaged items inside the warehouse, which was rejected after an investigation by the insurance office on the following grounds:
- Approximately 50% of the damaged goods were due to faulty storage. Which caused the temperature around the goods to remain high turning them stale.
- The remaining material was damaged because the five days of the storage facility had multiple temperature changes. And these goods were the most affected ones. Temperature change did not result from any fault of machinery but because of an erroneous judgment of the night guard.
About The Author
Shivani
MBA Insurance and Risk
She has a passion for property insurance and a wealth of experience in the field, Shivani has been a valuable contributor to SecureNow for the past six years. As a seasoned writer, they specialize in crafting insightful articles and engaging blogs that educate and inform readers about the intricacies of property insurance. She brings a unique blend of expertise and practical knowledge to their writing, drawing from her extensive background in the insurance industry. Having worked in various capacities within the sector, she deeply understands the challenges and opportunities facing property owners and insurers alike.
