ImageFactory Insurance - Warehouse Stock Insurance Policy for Godown India

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  • > The Benefits of Factory & Warehouse Insurance
  • > Quick Guide to Factory & Warehouse Insurance
  • > Frequently Asked Questions
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The Benefits of Factory & Warehouse Insurance

Comprehensive Cover

Offers wide range of insurance cover to your assets across warehouse, factory, and office. Cover available for physical damage to assets, loss of profits due to business interruption, and third party legal liability.

Multiple Location Coverage

A single factory & warehouse insurance policy can cover contents at various locations across the country. Variation in sum assured across locations can be accounted via floater coverage for fire insurance

Customized Cover

We will customize the policy to fit your requirements. You will get assistance from our experts who perform a thorough risk assessment and suggest factory insurance plans suitable to your business needs.

Easy Documentation

Issuance of factory insurance requires minimal paperwork. You could submit the Fixed Asset Register maintained for your book-keeping. Unit wise serial numbers are needed only for portable equipment.

Quick Guide to Factory & Warehouse Insurance

What Is Factory and Warehouse Insurance?

Factory and Warehouse Insurance is a comprehensive insurance policy that provides coverage for losses arising due to damage to the structure of the factory/warehouse, the goods stored or even the machinery stored/used in it. This insurance can also offer coverage for the loss of profits arising out of the damage. Factory insurance in India is of utmost importance as it not only provides cover for warehouses and manufacturing units of business-owners, but also provides coverage against any monetary loss faced as a result of damage of goods, property or machinery, both inside and outside of the premises.

Warehouse insurance policy is specifically designed to cover for the contents and stocks against varied named and unnamed perils.

What is the need for Factory and Warehouse Insurance in India?

Running and maintaining businesses involving operations and activities with a warehouse or factory is difficult. It requires the business to ensure safety for the workers and employees as well as factory/warehouse premises from various risks. However, a lot of businesses often overlook the importance of securing their structure and assets with insurance.

A factory and warehouse insurance in India can cover for any material damage to the assets due many named and unnamed perils such as fire, natural calamities, burglary and theft, loss or damage to a third-party, etc. Such an insurance policy can also pay for profit losses and cover for business interruptions. A factory insurance in India is highly essential as reinstating a whole running factory and getting back to routine operations can be challenging and loss or damages also eat out of the profits of a business. As your insurance advisor, we suggest you have factory and warehouse insurance in place to protect your business from many unforeseen situations. Insurance as such costs as low as 1% of the value of your factory/warehouse but has immense utilities in the long-term.

Different Type of Factory and Warehouse Insurance Policies

Below are the types of factory and warehouse policies available in India.

Comprehensive Cover:this policy includes covers for all risks applicable for premises of factories and warehouses.

Floating Policy: this policy is issued for cases where the location of the property is not fixed or you want to cover multiple properties under one floater policy. Based on the cumulative value of the property, a sum assured is decided on floater basis (applicable for all the properties).

Valued Policy:this policy is issued based on the market value of property when the sum assured cannot be ascertained by the insured.

Replacement & Reinstatement Policy: this policy is designed to pay for the cost of reinstatement or replacement of any insured asset.

Specific Policy: this policy provides coverage only up to a specific amount as decided by the insured, which is generally less than the value of the property.

Benefits of Warehouse Insurance Policy

Below are the benefits of factory insurance policy:

Wider Array of Risks

  • Insurance covers damage due to fire, lightning, burglary, theft and natural catastrophes such as flood, and earthquake
  • Cover could be enhanced by opting for add-ons such as impact damage due to the insured’s own vehicles, and terrorism
  • Portable electronic equipment could be covered for specific losses such as short-circuit, breakdown and theft while traveling abroad

Indemnification for Increased Expenses

  • Factory and warehouse insurance can provide replacement cost of damaged property instead of the book value. This can be done through the escalation and reinstatement value clauses
  • Standard fire and special perils policy can pay rent for alternate accommodation in case the factory is damaged
  • Air freight add-on can help expedite the arrival of replacement materials.

Comfort to Lenders

  • Bank clause can be added to stock insurance policy; in case of damage to mortgage assets, lenders are indemnified
  • Business interruption loss or Fire Loss of Profit insurance will reimburse the standing expenses and net profits for the period of disruption; this ensures debt is serviced regularly
  • FLOP insurance could be extended to cover disruption in a supplier’s premises

Factory and Warehouse Insurance Coverage

Factory and warehouse insurance coverage offers insurance for all your contents and stocks by various risks such as: fire, explosion, implosion, natural calamities like earthquake, flood, storm.

There are additional coverages also provided under this insurance policy such as: burglary & theft, mechanical & electronic breakdown, all risk laptop insurance and money insurance.

This is just an indicative list, details of the inclusions or coverage will be part of the policy wording.

What’s not covered in Factory and Warehouse Insurance?

There are items which are not covered in factory insurance such as: intentional damage to the property, damage to the property due to illegal activities and consequential loss. Normal wear and tear due to deterioration are also excluded from the policy.

Other common exclusions include damages due to war, radioactive contamination and pollution.

This is just an indicative list, details of the exclusions will be part of the policy wording.

How to Compare and Buy Factory and Warehouse Insurance Policy Online in India?

Warehouse insurance also known as factory insurance or factory and warehouse insurance is a very personalized policy. Insurance companies have to analyze a lot of factors such as value of fixed assets, value of equipment present, industry of operation and so on to be able to provide you with effective insurance. So, insurers are not able to fulfill this product end-to-end online.

SecureNow, as your insurance advisor, understands that every business has its own requirements and so a factory and warehouse insurance policy opted by business will vary. We offer you a platform where you can fill your details, in the form provided above, and you’ll be provided with a quote to give you an idea of the price. When you opt to buy the insurance by clicking on the “buy now” an insurance expert will get in touch with you to understand your requirements and provide you with the competitive insurance quotes.

What factors can help reduce premiums under Factory and Warehouse Insurance?

The factors which would result in getting a low price for a factory and warehouse insurance premium are as follows:

  • No or low claim history in last three years
  • Having fire safety measures at the site such as Hand-Held Equipment, Hydrants, Sprinklers and extinguisher
  • Other security measures like CCTV cameras, 24*7 security guards
  • Having low or no basement exposure
  • Having AMC for machines and equipment.

How to claim Factory and Warehouse Insurance Policy?

Claim process under factory or warehouse insurance policy is easy with SecureNow. As soon as there is a claim, you’ll first have to inform the insurer and write to us about the same over an email at’ll also take it up with the insurer and make sure you have a hassle-free claim process. The insurer will need all the documents mentioned in the below section, and we’ll guide you with this. After the insurance company has received the documents, they’ll appoint a surveyor to verify the damage or loss. Based on the surveyor’s report, your claim will be settled. SecureNow will facilitate the conversation between you and the insurer, and will make sure you have a trouble-free claim settlement process.

Documents Required for Factory and Warehouse Insurance Policy in India

The common documents required for factory and warehouse insurance policy to be claimed in India are:

  • Duly filled claim form
  • First information report
  • Final investigation report
  • Invoice copy of the damaged asset
  • Forensic report, in select cases
  • Fire brigade report (in case of fire)
  • Estimate cost of repair or lost product

In addition to these documents, the insurer can ask for some additional documents based on the type of claim.

Frequently Asked Questions

A warehouse insurance will best suit your needs in this case as such an insurance policy covers for stocks, machinery and furnitures of your factory and warehouse from a lot of known and unknown perils including natural calamities. If we see, factory and warehouse insurance will cost you less than 1% of your total factory/warehouse value but the benefits are unmatched and can protect you from a lot of unanticipated perils.
This insurance policy, as the name suggests, will insure any loss or damage to the structure of your factory or warehouse along with the goods stored or even the machinery stored or used in it.
Loss or damage to the factory or warehouse or even the machineries and equipment can bring out huge losses and eat up from the profit. Renovating the infrastructure and/or purchasing or fixing equipment and machinery can be nerve-wrecking for businesses, especially small scale enterprises. So, it’s important to have factory and warehouse insurance to protect our businesses from a lot of unforeseen situations and a smooth functioning of it.


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