Factory Insurance
Protect your factory with innovative and customized insurance strategies, so you’re prepared when you need it most. Factory insurance is designed to help protect manufacturing buildings, machinery, inventory, and liability exposure tied to production operations. Whether you run a small fabrication shop or a large industrial facility, the right coverage helps keep one incident—fire, equipment failure, product claims, or a workplace injury—from becoming a major financial setback.
Below are common coverages factories and manufacturers choose to include. If you need coverage not listed here, don’t hesitate to reach out—we can help you build a program that fits your facility, operations, and risk.
Commercial Property Coverage (Building & Contents)
Helps protect your factory building (if owned), tenant improvements (if leased), raw materials, finished goods, tools, and on-site contents after a covered loss such as fire, wind, theft, or vandalism (coverage depends on the policy). We help set limits based on realistic replacement costs and peak inventory.
Equipment Breakdown (Machinery & Electrical Systems)
Factories rely on production equipment—compressors, CNC machines, conveyors, motors, boilers, electrical panels, and more. Equipment breakdown coverage can help with covered repair or replacement costs when mechanical or electrical failure occurs, helping reduce downtime and unexpected repair bills.
Business Interruption (Lost Income After a Covered Loss)
If a covered property claim forces production to pause, business interruption coverage can help replace eligible lost income and help pay continuing expenses while repairs are completed—critical for manufacturers with tight delivery schedules.
Extra Expense Coverage (Speeding Up Recovery)
When downtime is costly, extra expense coverage can help with eligible costs to restart production faster—like temporary equipment rentals, expedited shipping, overtime labor, or alternative facility arrangements.
General Liability (Premises & Operations)
Factory operations involve vendors, drivers, visitors, and contractors on-site. General liability helps protect your business if someone is injured at your facility or if you’re accused of causing property damage to others.
Product Liability (Manufactured Goods Claims)
If your company makes, assembles, or distributes products, product liability helps protect against claims alleging your product caused bodily injury or property damage. This is a key part of many manufacturing insurance programs.
Worker’s Comp / Worker’s Comp (Employee Injury Protection)
Manufacturing environments have higher injury exposure—machinery, lifting, repetitive motion, slips, and more. Worker’s comp helps protect your business when employees are injured on the job.
Commercial Auto / Fleet Coverage (If You Have Vehicles)
If your business owns vehicles for delivery, service, or transport, commercial auto coverage helps protect against auto-related liability and physical damage exposure.
Crime Coverage (Theft, Employee Dishonesty, Fraud)
Factories often handle valuable materials and high-dollar transactions. Crime coverage can help protect against certain theft and fraud-related losses—including employee dishonesty and financial crimes.
Umbrella / Excess Liability (Higher Limits)
Severe claims can exceed base limits. An umbrella policy adds extra liability limits above underlying coverage—helpful for manufacturers with higher exposures, larger contracts, or complex supply chains.
Quick Answers People Search For:
What does factory insurance cover?
Typically: factory property (building, equipment, inventory), equipment breakdown, liability, and business interruption—plus options like product liability and umbrella coverage. Coverage depends on the policy and endorsements.
How much factory insurance do I need?
A strong starting point is insuring buildings and machinery to replacement cost, inventory to realistic peak levels, and adding business interruption based on revenue and continuing expenses.
Do manufacturers need product liability insurance?
In many cases, yes. If you manufacture, assemble, or distribute products, product liability is often essential and may be required by contracts or customers.
At StarNet Insurance Group, we make factory insurance clear and practical — so you can protect your facility, your production, and your long-term business success with confidence.