What Is Factory Insurance?

Factory insurance is a specialist type of business insurance designed for companies operating production facilities. It typically bundles essential covers such as public liability, employers’ liability, machinery and equipment cover, stock insurance, and business interruption cover. With these protections in place, your business can be safeguarded from the financial impact of accidents, damage, or disruptions.

Who needs Factory Insurance?

Factory insurance is suitable for a wide range of businesses, including:

• Small workshops producing bespoke goods

• Large-scale industrial factories with multiple production lines

• Food and drink manufacturers

• Textile and clothing factories

• Furniture and materials processing sites

Why do factories need insurance?

Factories are high-risk environments. Having the right insurance helps you:

• Comply with legal requirements (employers’ liability if you have staff)

• Protect against liability claims if a visitor or employee is injured

• Safeguard machinery and equipment from damage or theft

• Cover stock and raw materials against fire, flood, or theft

• Maintain cashflow if an incident forces you to temporarily close operations

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What Does Factory Insurance Typically Cover?

A tailored factory insurance policy may include:

1. Public Liability Insurance – Protects against claims of injury or property damage from third parties.

2. Employers’ Liability Insurance – Legally required if you employ staff; covers workplace injuries and illnesses.

3. Machinery & Equipment Cover – Ensures costly factory equipment is protected against damage, breakdown, or theft.

4. Stock & Raw Materials Cover – Safeguards goods in storage and during production.

5. Business Interruption Insurance – Covers loss of income if an insured event halts production.

6. Buildings Cover – Protection for your factory premises against fire, flood, storm, or vandalism.

7. Legal Expenses Cover – Helps with the cost of legal disputes or claims.