Factory insurance - The 'knight in shining armor' for your factory

Factory insurance is just a modified version of business insurance. It is intended to protect any company or business, which manufactures products in a factory. Mass manufacturing takes place in a factory. The assortment of machines necessitates maintenance. In case of any mishap or negligence, the factory insurance will serve its purpose, since such a policy covers the building, plants, machineries and stocks that are involved.

Coverage offered by factory insurance - When it comes to use

Hazards are usually not accompanied with premonitions. Factory insurance provides protection in cases of unpredictable mishaps, which hampers the smooth flow of production. It serves its purpose in the following scenarios:

1. When the factory incurs losses due to lightning, fire, explosion of machinery like gas or boilers etc.
2. It provides coverage during leakage from water tanks or pipes.
3. It offers assistance during floods or storms.
4. It even provides protection during special circumstances like riot, and for damages due to aircraft or road and rail vehicles.
5. During any other occurrence which causes breakdown of machinery or hampers the production process, for e.g. electrical failures.
6. In some cases, employer's liability insurance and product liability insurance etc. are also included in the factory insurance policy.
7. The loss of business or financial assistance for business interruption is usually offered as optional coverage, in case of factory insurance.
8. Business owners can also buy coverage for goods during transit.
9. Sometimes coverage for personal accidents, or assaults to staffs are also included in the policy.

Types of contents that can be insured

Factory insurance policies provide coverage for the following contents in manufacturing units of a company or business:

1. The building or the plant where the production unit is established.
2. The machineries which are used for production.
3. The raw materials which are stored for future usage.
4. The finished goods and stocks.

Facts to know about factory insurance

The following details define insurance coverage for factories:

1. The best feature that can be associated with factory insurance is that, it provides a wide range of coverage. It provides financial assistance during almost all types of accidents, whether man-made or natural.
2. You'll need to provide all the details about your business while buying a factory insurance policy. The details would include information regarding the type of products you deal in, the suppliers, and also about other business parties you deal with.
3. You'll also need to provide details about the building and property, like the type of construction or roofing material used etc.
4. The insurance company will also seek details about the general contents of the company, including the furniture, machineries etc. as well as of the stocks, materials and all.
5. The insurer will try to ensure that the staffs as well as the machineries are well maintained.
6. The insurer will also take note of the security arrangements of the factory, and other mechanical or electrical equipments like the sprinklers or building heaters etc.

A lot of details have to be provided to your factory insurance provider, depending on the type or extent of coverage you seek. It is crucial to provide all the facts and figures correctly, as factory insurance ensures renovation of the manufacturing unit of a business after any mishap.