What is Factory Insurance & Do You Need It?
Factory insurance is a type of insurance that provides coverage for businesses involved in manufacturing, production, or processing of goods. It is designed to protect against losses and damage that may occur to the factory premises, equipment, stock, and employees.
Having factory insurance is essential for any business operating in the manufacturing sector. The manufacturing industry is vulnerable to a wide range of risks, including fire, theft, equipment breakdown, and product liability. Without the correct insurance, a factory owner may face significant financial losses in the event of an unforeseen incident.
Whether you’re making small plastic components or large industrial parts, the use of a large workforce and dangerous high-flow equipment often demands specific insurance protections. While regular business insurance may protect your business premises and employees from some risks, it’s unlikely to cover all eventualities when your business’s manufacturing processes are taken into account.
What are the benefits of having factory insurance?
Insurance for factories needs to be well designed and comprehensive. It’s no use relying on existing insurance policies if they leave gaps in your coverage, with all potential risk factors needing to be analysed and addressed on their own merits. Benefits include:
1. Protection Against Losses and Damage: Factory insurance provides coverage for the factory premises, including the building, machinery, and equipment, against losses and damage due to fire, theft, vandalism, and other risks. This coverage helps ensure that the business can recover from losses quickly and efficiently.
2. Product Liability Cover: Factory insurance can also provide product liability coverage, which protects the business from liability claims resulting from faulty products that cause injury or damage to the end-user. This coverage is crucial in the manufacturing industry, where product defects can have severe consequences.
3. Business Interruption Cover: Factory insurance can provide coverage for business interruption, which protects against lost income and other expenses due to a covered loss that interrupts your business operations. This cover is essential for any manufacturing business that has on-going commitments, like rent or employee wages etc.
4. Workers’ Compensation: This cover protects employees in the event of an injury or illness resulting from their work. It helps pay for on-going medical expenses and lost wages, which can be significant in the manufacturing industry, where accidents are more likely to occur. This can be catered under an employer’s liability policy.
5. Peace of Mind: Perhaps the most significant benefit of factory insurance is the peace of mind it provides to business owners. Knowing that their business is protected against unexpected incidents and potential losses can allow owners to focus on running and growing their business without having to worry about the risks involved.
Why choose 1st Choice?
Working with some of the biggest factory insurance companies in the insurance industry, we have access to a wide range of insurance for manufacturing businesses. We can offer no-obligation quotes and instant cover. We offer excellent service at 1st Choice Insurance, and we are here to help.
Call our friendly team today on 01743 770500, or fill out our get a quote form.