Of all types of small business insurance, Factory and Warehouse Insurance is the most complex. The reason for this complexity is due to the wide range of possible risks that both employees and members of the public can be exposed to in a factory or warehouse environment. Because of this, a typical Factory and Warehouse Insurance policy will be comprised of many types of cover, the main ones include:

• Public liability insurance, to cover the business for damages claimed through some form of injury caused to a member of the public.
• Employers liability insurance, to cover the business for damages claimed through some form of injury caused to one of its staff.
• Product liability insurance, so that any damages claimed through injury or loss caused by one of the factories products is covered.
• Building insurance, to cover the cost of damages to the factory or warehouse in the event of fire, flood or accident.
• Stock and equipment insurance, to cover the costs of damages or loss of stock, equipment and tools.

These are the main types of insurance cover that a Factory and Warehouse Insurance policy would most normally include, although this is by no means an exhaustive list of all the possibilities.

Who needs Factory and Warehouse Insurance?

The simple answer to this question is that every factory or warehouse needs this kind of insurance. Factories and warehouses are legally required to have both public liability insurance and employers liability insurance. Most factories will also be legally required to have some form of product liability insurance. Combine this with the fact that stock and equipment will make up a major investment for the company, which needs to be insured, and we can see that this kind of small business insurance should be deemed compulsory in almost every case.

Things to look out for when procuring Factory and Warehouse Insurance

Factory and warehouse operators face a specific problem when seeking suitable Factory and Warehouse Insurance. No two businesses will operate in entirely the same fashion. Some may operate a fleet of vehicles, others may not. Some may use harmful chemicals in the production of their products, whilst others may not. Indeed, the combination of types of risks which factories and warehouses face is almost infinite. It is imperative that the company ensures that it is insured against all possible risks to an adequate degree, and that the Factory and Warehouse Insurance policy they are considering purchasing covers every requirement.