Factory Buildings Insurance
Factory Buildings Insurance is a specialist commercial property insurance solution designed to protect factory buildings, manufacturing premises, production facilities, industrial units, engineering properties, and other specialist industrial buildings against a wide range of property, liability, and financial risks.
Factory buildings often have unique insurance requirements due to their size, construction, machinery installations, industrial activities, storage arrangements, and exposure to risks such as fire, flood, theft, escape of water, and accidental damage.
A tailored Factory Buildings Insurance policy can help protect the building, landlord-owned assets, rental income, and property owners’ liabilities, subject to the policy terms, conditions, exclusions, and limits.
Whether you own a single factory building, a manufacturing facility, an industrial estate, or a portfolio of industrial properties, specialist cover can be tailored to your property’s individual requirements.
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- UK Wide Cover
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INTRODUCTION
What is Factory Buildings Insurance?
Factory Buildings Insurance is specialist commercial property insurance designed for factory owners, commercial landlords, property investors, property companies, pension funds, and organisations that own industrial and manufacturing premises.
Factory properties may include:
- Manufacturing facilities
- Production plants
- Industrial factories
- Engineering workshops
- Assembly plants
- Processing facilities
- Fabrication units
- Packaging factories
- Industrial warehouses
- Multi-unit industrial developments
- Manufacturing estates
A specialist policy can help protect the physical building together with the financial interests of the property owner.
Depending on the policy selected, cover may include:
- Factory Buildings Insurance
- Property Owners’ Liability
- Loss of Rent Insurance
- Landlord-Owned Contents
- Legal Expenses Cover
- Terrorism Cover
- Accidental Damage Cover
- External Structures Cover
The level of cover required will depend on the building’s construction, occupancy, tenant activities, rebuild value, location, security arrangements, and overall risk profile.
COVERAGE
What Does Factory Buildings Insurance Cover?
The exact cover, limits, exclusions, excesses, and conditions will vary between insurers.
Who Needs This
Who Needs Factory Insurance?
Why Is Factory Buildings Insurance Important?
Factory properties can face a range of risks due to their size, construction, industrial use, and the activities carried out within the premises.
Potential risks may include:
- Fire and smoke damage
- High electrical loads
- Manufacturing processes
- Flooding
- Escape of water
- Storm damage
- Structural damage
- Theft
- Malicious damage
- Machinery-related incidents
- Tenant-related risks
- Loss of rental income
- Property owners’ liability claims
A significant insured event may result in extensive repair or rebuilding costs and leave the factory premises unusable for an extended period.
Factory Buildings Insurance can help protect both the physical property and the financial interests of the building owner, subject to the policy terms and conditions.
Protecting Your Factory Building
Buildings Insurance is designed to protect the physical structure of a factory or industrial building against insured events.
Depending on the policy, cover may include:
- Roofs
- Walls
- Foundations
- Floors
- Permanent fixtures and fittings
- Electrical installations
- Plumbing systems
- Heating systems
- Ventilation systems
- Loading bays
- Roller shutters
- Industrial doors
- External structures
- Boundary walls
- Shared access roads
- Car parks
- Security gates
- Fencing
Factory buildings should generally be insured for their full rebuild or reinstatement cost rather than their market value.
An accurate reinstatement valuation can help reduce the risk of underinsurance and ensure that the declared sum insured reflects the potential cost of rebuilding the property following a major insured event.
Protection Against Third-Party Claims
Property Owners’ Liability Insurance can help protect factory owners and landlords if a tenant, contractor, visitor, delivery driver, or member of the public suffers an injury or property damage connected with the insured premises.
Potential incidents may include:
- Slips and trips
- Damaged flooring
- Unsafe communal areas
- Falling building materials
- Defective access routes
- Loading bay incidents
- Shared car park accidents
- Faulty external lighting
- Damage affecting neighbouring properties
The available level of liability protection will depend on the policy selected.
Protecting Factory Rental Income
Factory buildings are often occupied by manufacturers, engineering businesses, wholesalers, logistics companies, storage operators, and other commercial tenants.
If an insured event causes serious damage and the premises become partially or completely unusable, tenants may be unable to continue operating from the property.
Loss of Rent Insurance may help protect eligible rental income while repairs or rebuilding work are completed following an insured event.
This cover may be particularly valuable for:
- Factory landlords
- Manufacturing property investors
- Industrial estate owners
- Commercial property companies
- Portfolio landlords
- Industrial property investors
The selected indemnity period should reflect the likely time required to repair or reinstate the property.
Specialist Cover for Manufacturing Properties
We can help arrange insurance for a wide range of factory and manufacturing properties, including:
- Manufacturing plants
- Engineering factories
- Food production facilities
- Packaging factories
- Assembly plants
- Processing facilities
- Textile factories
- Fabrication workshops
- Pharmaceutical manufacturing buildings
- Automotive manufacturing facilities
- Electronics production buildings
- Industrial production units
- Multi-unit industrial developments
Every factory has different construction methods, occupancies, tenant activities, and operational characteristics.
This makes it important to consider the property’s individual circumstances when arranging suitable insurance.
How Factory Occupiers Can Affect Insurance
The activities carried out within a factory can have a significant impact on the property’s insurance risk.
Relevant considerations may include:
- Manufacturing processes
- Type of machinery used
- Storage of raw materials
- High electrical consumption
- Heat-producing equipment
- Chemical storage
- Flammable materials
- Waste management
- Fire-protection systems
- Production methods
- Hours of operation
The tenant’s activities should be accurately disclosed when arranging insurance.
A property owner’s policy generally protects the building and the owner’s property-related interests. Factory occupiers will normally require separate insurance for their machinery, stock, equipment, products, employees, and business operations.
Insurance for Vacant Factory Buildings
Vacant factory properties can present increased insurance risks, particularly where premises are left unoccupied for an extended period.
Potential concerns may include:
- Theft
- Vandalism
- Fire
- Escape of water
- Malicious damage
- Unauthorised access
- Squatting
- Deterioration of the property
- Delayed discovery of damage
Standard commercial property policies may apply restrictions once a factory has been unoccupied for a specified period.
Specialist Unoccupied Commercial Property Insurance may be required where premises are vacant, awaiting tenants, undergoing refurbishment, being prepared for sale, or awaiting redevelopment.
The property’s occupancy status should always be accurately disclosed when arranging insurance.
Insurance for Multiple Factory Properties
Owners of several factory or industrial buildings may benefit from a portfolio insurance arrangement.
Portfolio Insurance may provide:
- One renewal date
- Simplified administration
- Coordinated cover
- Tailored protection across multiple locations
- Flexible policy management
Availability will depend on the number, value, location, construction, occupancy, and overall risk profile of the portfolio.
Protection for Factory Building Systems
Factory buildings can contain a range of specialist building systems and installations that require ongoing maintenance and inspection.
Depending on the property, these may include:
- Boilers
- Pressure systems
- Goods lifts
- Hoists
- Mechanical systems
- Electrical installations
- Heating equipment
- Ventilation systems
- Air-conditioning systems
- Industrial doors
Engineering Inspection Cover may be available to support inspection requirements for eligible equipment and systems.
Equipment Breakdown Insurance may also be considered separately where appropriate.
What About Factory Machinery?
Factory Buildings Insurance generally focuses on the building and the property owner’s insured interests rather than automatically covering machinery used by a tenant or manufacturing business.
Machinery owned by a factory occupier may require separate Machinery Breakdown or Engineering Insurance.
Examples may include:
- Production machinery
- Manufacturing equipment
- CNC machinery
- Industrial presses
- Conveyor systems
- Packaging machinery
- Processing equipment
- Specialist production equipment
Where machinery is owned by the property owner and forms part of the insured property, its ownership and value should be accurately disclosed when arranging insurance.
What About Stock and Materials?
Factory Buildings Insurance does not automatically cover stock, raw materials, finished products, or other goods belonging to tenants or occupiers.
Separate stock or contents insurance may be required depending on who owns the goods and the contractual arrangements in place.
Examples may include:
- Raw materials
- Finished products
- Packaging materials
- Components
- Industrial supplies
- Spare parts
- Stored goods
The nature and quantity of materials stored at the premises can also affect the property’s insurance risk and should be accurately disclosed.
HOW WE ARE DIFFERENT
Why Choose WS Insurance?
Frequently Asked Questions
Factory Buildings Insurance is specialist commercial property insurance designed to protect factory and manufacturing buildings against a range of insured property, liability, and financial risks.
Depending on the insurer, cover may be available for manufacturing plants, engineering factories, production facilities, assembly plants, processing buildings, packaging factories, industrial units, and other specialist manufacturing properties.
Not automatically. A property owner’s policy generally focuses on the building and the owner’s insured interests. Machinery owned by a tenant or manufacturing business will usually require separate machinery or equipment insurance.
Not necessarily. Stock, raw materials, finished products, and other goods may require separate contents or stock insurance depending on ownership and the circumstances.
Loss of Rent Insurance may be available to protect eligible rental income following an insured event that makes the factory premises partially or completely unusable.
Property Owners’ Liability Insurance may be included or available as an optional section of a commercial property policy. It can help protect against eligible third-party injury or property damage claims arising from the insured premises.
Yes, specialist insurance may be available for vacant factory buildings. However, unoccupied properties can have different risks and policy requirements, so the insurer should be informed about the property’s occupancy status.
Potentially. Owners of multiple factory or industrial properties may be able to arrange portfolio insurance, depending on the number, location, value, construction, occupancy, and overall risk profile of the properties.
Engineering Inspection Cover may be available depending on the insurer and the equipment or systems present at the property. Separate engineering or equipment insurance may also be appropriate for certain risks.
Get Your Factory Buildings Insurance Quote
Whether you own a manufacturing plant, engineering workshop, production facility, industrial estate, or a portfolio of factory buildings, WS Insurance can help you explore suitable insurance options.
Compare specialist Factory Buildings Insurance and arrange tailored protection for your buildings, rental income, liabilities, and long-term commercial property investment.