It’s a policy that protects factories and industrial premises against losses due to fire, explosions, and other fire-related perils.

The policy covers fire, lightning, explosion/implosion, bush/jungle fire, and damage from fire-fighting efforts. Optional covers may include natural calamities and machinery breakdown.

Factory owners, manufacturers, warehouse operators, and anyone managing industrial or production units should opt for this policy.

While not legally mandatory in all cases, many factories require fire insurance for safety, compliance, and to obtain loans or approvals.