Factory and warehouse Insurance is a valuable benefit in an industrial set up used for manufacturing and storage of goods. It considers any financial loss due to damage of goods, building or machinery in and outside premises.

The following is covered under Factory and Warehouse Insurance:

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Goods Covered Under Factory & Warehouse Insurance

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Factory and warehouse insurance considers certain perils that are primarily covered under the Insurance claims, that are:

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The coverage may vary based on the type of the policy bought:

  1. Comprehensive Cover: Includes all types of covers available for Factory & Warehouse premises
  2. Valued Policy: Issued for materials for which market value cannot be ascertained
  3. Floating Policy: Issued when same property frequently changes location
  4. Replacement & Reinstatement Policy: Pays cost of replacement or reinstatement of the

Insured asset

  1. 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 as 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 learnt from one of his friends who had a factory of garments that it is important to avail Factory and warehouse Insurance. It should be treated as a prior commitment to the factory and run 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 cover of the factory and warehouse Insurance policy. They recovered the maximum amount and soon recovered the marginal loss.

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