Industrial Property Insurance

Heat, dust, flammable materials and hot work raise the fire risk, and each process carries different hazards. Insurers rate the process carefully, so describe it fully when you ask for quotes.

Check the lease. Many leases put buildings insurance on the landlord and recharge the cost, while others make the tenant responsible. Either way, you are likely to need cover for your plant, stock and income.

Plant and machinery can be covered against events such as fire, flood and theft. Sudden mechanical or electrical breakdown is a separate section on many policies, so check whether it is included.

Cover for sudden mechanical or electrical failure of plant, such as a motor burning out. It can include the cost of repairs and, where added, lost income while the machine is out of action.

Boilers, pressure systems and lifting equipment can need regular inspection by a competent person. Some insurers offer inspection services alongside engineering cover, so ask when you compare quotes.

If a fire or breakdown stops production, income can stop while costs continue. Specialist machinery can take a long time to replace, so choose an indemnity period that allows for it.

If you make or supply goods, products liability covers injury or damage they cause. It is often paired with public liability, so check the limits suit your customers and contracts.

If you employ staff, employers’ liability is normally needed. Industrial work involves machinery, lifting and hot work, so insurers can ask about training and safety.

Rules for welding, cutting and grinding, such as permits, clearing combustibles and checking the area afterwards. A fire where the conditions were not kept could affect a claim.

It can. Cladding with a combustible core is a known fire risk, so insurers may ask about the material, set conditions or charge more. Any evidence about the cladding helps.

Yes. An owner of several units can insure them on one policy, with each tenant’s trade rated. A neighbouring tenant’s process can affect the risk to the whole building.

Tell the insurer. Empty units can carry conditions such as inspections and extra security, and cover may change once a unit has been empty for the period the policy sets.

Theft following forcible entry is covered on many policies, often subject to security conditions. Metal, tools and plant left outside can have limits or exclusions, so check the wording.

For larger or higher-risk premises, insurers can survey before or after cover starts. Findings can lead to risk improvements, such as better fire separation or dust extraction.

Look beyond the price to the building, plant and stock cover, machinery breakdown, business interruption, the conditions, liability limits and the excess you would pay.