Factory insurance is an insurance policy that provides financial coverage to the factory owners against unforeseen loss or damage caused to the structure of the factory as well as the stored goods. However, it depends on the type of coverage the buyer has opted for. Factory owners should consider purchasing this insurance plan as it not only provides coverage for damages caused to the goods kept inside the premises but also outside the premises.
Benefits of Factory Insurance Here are some of the benefits of fire insurance for Factory:
- Policyholders can enhance the coverage by purchasing add-ons provided by the insurer.
- Portable electronics can also be covered for specific losses such as breakdown, short-circuit, theft, etc. while traveling to another country.
- Replacement cost of damaged property is also provided instead of book value. This can be done through reinstatement and escalation value clauses.
- SFSP policy can cover the alternate accommodation expenses is the factory is damaged.