Factory Insurance

Factory insurance allows you to protect every aspect of your business including building, contents, employees, products and members of the public. Whether you own or run a factory, warehouse or workshop, we can help find the best factory insurance quote to suit your company’s needs. With lots of production and staff, there are several things that can go wrong, but having quality cover means that you can have peace of mind and focus on the daily running of the business.

At Be Wiser, we can help you put different types of cover all on the same policy. No need to constantly renew lots of little policies and worry about all the administration involved. We can put everything under one account so that you have one fee to pay each year and one set of documentation. Simple.

Our advisors are on hand to take your calls, so why not get a free and no obligation quote today on 0333 999 0802. We are based locally in Hampshire and will ask you a few questions about your factory and line of work to provide you with a competitive quote today. We work with a number of leading insurance providers in the UK so will be able to compare the different prices available to get you the best deal. We can offer factory insurance for the following:

  • Manufacturing
  • Wholesalers
  • Foodstuff
  • Engineering
  • Printers
  • Assembly lines
  • Raw materials
  • Software
  • Workshops
  • Warehouses
  • Mills

What are the Types of Factory Insurance?

Business Premises

This cover is necessary to protect your workspace and the property, also known as buildings insurance. In the event that any physical fixtures such as walls, floors and ceilings are damaged, you can have any rebuilding costs paid for by an insurance claim. It is common for there to be damages in a factory environment due to accidents in the workplace, fire, flood, vandalism and other perils. But since this can interrupt your business and stop production, having this kind of insurance will allow you to make quick repairs and get your business moving again without leaving you exposed financially.

Not included in this cover is any damage to the building caused by wear and tear or acts of terrorism, with the latter requiring additional cover. Also, if your factory is left unoccupied for several weeks, months or years, you will not be able to claim for any damages as this will increase risks and lead to natural wear and tear due to lack of upkeep.


To run a successful factory will likely require the use of specialist machinery to produce your goods. This will include assembly lines, robots, printers, mechanics and computers. In the event that a key piece of machinery is stolen or damaged due to a fire or flood, you can have this replaced or repaired by your insurance policy. This means that you do not need to suffer any downtime and you can have your existing models fixed or a new piece of equipment available to use.

Whilst it is not compulsory to cover your machinery, the potential losses to replace these or the halt to your productivity could cause huge financial losses. However, with the right cover from Be Wiser, you can protect your equipment and your financial position.


Several factories will rely on their stock to run their business successfully. This includes all the materials they require to make their products (such as food or electronics) and the finished product once it has been made. Other forms of stock include packaging, labelling and documents.

However, with valuable stock likely to be kept on premises and vital to your business, you cannot afford for this to be unavailable - if it is lost, stolen, destroyed in a flood or fire or even spoiled due to a broken fridge. Provided you have kept a record of your stock and the amount you use, you can claim for any damaged stock from your factory insurance policy. This will allow your inventory to be replaced or the value of the stock can be reimbursed to your company.

Public Liability

When running a big production line, you need to consider how this will impact the members of the public. This includes any neighbouring towns or individuals that come into contact with your business activity. What if your factory was causing pollution to the local area? What if your factory caused a fire that spread to the local village? As the owner of the business, you would be held responsible or ‘liable’ for any damage to the public and this could involve some serious legal action.

By having public liability insurance, your policy will be able to contribute to any legal fees you incur and above all, any damages and compensation to the victims. Cover starts at £1 million for factories and can be extended up to £10 million depending on the size of the company and potential risks.

Products Liability

Any products made and manufactured in your factory must be ‘fit for purpose.’ However, there is always the risk that your goods might be defective or ruined in transit and this could have a negative impact on the customer. As the producer, you are legally responsible for any damage or injury that a product you supply may cause, even if you only partly manufactured the item. With cover in place, you will be able to provide an indemnity against any claims made in relation to your product.

Employers Liability

This is a compulsory requirement for all companies in the UK and is essential for factories with a lot of staff. Business owners have a responsibility to protect their employees from any potential harm and damage. In the event that a worker is hurt whilst using machinery or carrying out their business activity, the employer has a responsibility to look after the injured person.

With employers liability insurance, the policy can pay for medical bills, sick pay, loss of income and also any further compensation. It is not uncommon for employers to face legal action for a lack of health and safety - but having insurance means that you can claim for any legal fees if you have carried out the right procedures.

Policyholders will be required by law to provide documentation upon request stating their employers protection insurance, otherwise they may face daily fines that can run in the thousands of pounds. You do not require this cover if you only employ family members or are self-employed.

Other Cover Available

Additional cover to add to your factory insurance includes business interruption for any mishaps that occur that lead to your factory stopping production. Whether it is broken machinery or a fire that destroys part of your premises, your insurance can pay out for any lost business and loss of income.

Goods in transit insurance looks after your products once they have been transported or shipped off after leaving your premises. Creating your goods is one thing but how they are packaged and handled can have an important impact on the finished product that the customer receives. To account for any mishandling or damages in transit, this insurance can pay for any replacements.

How Much Does Factory Insurance Cost?

The cost of insurance for factories depends on several factors. Our underwriters will need to consider the potential risks involved such as the use of light or heavy machinery, perishable goods and the scale of your business. Factors that affect premiums include:

  • Annual turnover
  • Types of products
  • Size of your factory
  • Number of employees
  • Types of machinery

We appreciate that there is no one-size-fits-all policy for all factories which is why we are able to speak to you on the phone or you can complete an online quote here to provide us with more information. We will always look at ways to save you money on your premium such as adding security features such as CCTV and fences will reduce the risk of vandalism and theft. We can also look at introductory bonuses or paying a higher excess in order to bring down the cost of your initial quote. Simply call us today on 0333 999 0802 to speak to one of our certified advisors.