Factory and warehouse Insurance Policy is a valuable benefit in an industrial setup used for the manufacturing and storage of goods. It considers any financial loss due to damage to goods, building, or machinery in and outside premises.
The following is covered under Factory and Warehouse Insurance:
Goods Covered Under Factory & Warehouse Insurance Policy
Factory and warehouse insurance considers certain perils that are primarily covered under the Insurance claims, that are:
The coverage may vary based on the type of the policy bought:
- Comprehensive Cover: Includes all types of covers available for Factory & Warehouse premises
- Valued Policy: Issued for materials for which market value cannot be ascertained
- Floating Policy: Issued when the same property frequently changes location
- Replacement & Reinstatement Policy: Pays the cost of replacement or reinstatement of the
Insured asset
- Specific Policy: Provides cover only up to a specific amount, usually less than the property value
Perils like Theft and burglary are not included in factory and warehouse Insurance because there are separate policies available for them.
Click here to know what is not covered under factory and warehouse insurance
Case for Factory & Warehouse Insurance Cover
Arnab Sengupta and his wife Sweta Sengupta run a factory of woolens in Kolkata. Mr. Sengupta learned from one of his friends who had a factory of garments that it is important to avail of Factory and warehouse Insurance. Therefore, it should be treated as a prior commitment to the factory and running a secure business.
In the year 2009, Mr. Arnab had already been running a business worth 50 crores. The more successful it was, the more prone it was towards loss or perils. Due to a severe hail storm, the entire warehouse got affected and the water seepage led to a production loss of 2 crores.
Luckily, Mr. Arnab and Mrs. Sengupta had insured themselves under the comprehensive coverage of Factory and warehouse Insurance. They recovered the maximum amount and soon recovered the marginal loss.
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.
