Property, Facilities & Stock Insurance

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Specialist buildings, contents and stock cover for food and drink manufacturers, processors, and production facilities

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We compare quotes from leading insurers

  • Allianz
  • Aviva
  • QBE
  • RSA
  • Zurich
  • NIG

PROPERTY & STOCK INSURANCE THAT HELPS YOU TAKE OFF

Why Property, Facilities & Stock Insurance Matters

Food and drink production sites are complex environments. You’re not just insuring “a building” - you’re protecting a working facility with specialist plant rooms, chilled areas, hygiene-critical fit-outs, bunded chemical stores, packaging lines, labs, warehouses and dispatch bays. Your stock is also time-sensitive: raw ingredients can be expensive, finished goods may have short shelf-life, and seasonal peaks can multiply your exposure.

A serious fire, flood, escape of water, equipment incident or theft can stop production instantly. The right property and stock cover helps you rebuild, replace assets and recover faster. When paired with business interruption, it can also protect cashflow while you get back to full output.

What is Property, Facilities & Stock Insurance for Food Manufacturers?

This type of insurance is designed to protect food and beverage businesses against physical loss or damage to buildings, production facilities and stock. In most cases it includes cover for buildings (if you own them), contents (equipment, fixtures, office items), and stock (ingredients, packaging, work-in-progress and finished goods).

For manufacturers, it’s crucial that the policy reflects the reality of your site: processing areas with high hygiene requirements, temperature-controlled rooms, specialist drainage, and significant capital investment in fit-out. It’s also important to insure stock correctly - including peak seasonal levels - and to consider extensions that address food-specific exposures such as deterioration following refrigeration failure.

Insure24 can arrange tailored cover for manufacturers, processors, co-packers, bottlers, bakeries, dairies, cold stores and wholesalers. We can also integrate machinery breakdown, goods in transit and business interruption so your policy works as a coherent package.

  • Buildings – factories, units, warehouses, cold stores (owned buildings or tenant’s improvements)
  • Contents – fixtures, fittings, office equipment, non-portable plant and general equipment
  • Stock & ingredients – raw materials, packaging, work-in-progress and finished goods
  • Facilities fit-out – hygiene rooms, drains, extraction, racking, chilled areas and cleanroom-style finishes
  • Theft & vandalism – break-ins, malicious damage, targeted theft of ingredients or high-value products
  • Escape of water – leaks affecting production areas, packaging stores, offices and stock
  • Business interruption – add-on cover to protect gross profit while you rebuild (recommended)
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What Should a Food Manufacturing Site Insure?

Underinsurance is one of the biggest problems in property claims. Many policies are set up quickly and never reviewed, despite costs rising and operations changing. Food facilities are especially prone to underinsurance because site fit-out and specialist equipment can be far more valuable than people realise.

A good insurance review starts by splitting your exposure into: (1) the structure, (2) improvements and fit-out, (3) equipment and contents, and (4) stock and packaging. You then sanity-check the figures against replacement cost, not original purchase price.

Buildings and structure

  • Rebuild cost (not market value) including professional fees
  • Demolition, debris removal and site clearance allowances
  • Specialist areas: cold rooms, insulated panels, fire compartmentation
  • Compliance upgrades following a claim (where available)
  • External areas: yards, fences, gates, signage and loading bays

Tenant’s improvements and facilities

  • Hygiene fit-out, washable surfaces, drainage and bunding
  • Extraction, ventilation, compressed air and utilities distribution
  • Racking, mezzanines and warehouse layout installations
  • Offices, staff rooms, canteens, changing rooms
  • Security upgrades: shutters, alarms, access control

Contents, equipment and tools

  • Packaging machinery, conveyors and inspection equipment
  • Lab equipment and QA instruments
  • Forklifts and handling equipment (owned or hired-in)
  • IT systems, servers and traceability tech
  • Spare parts and critical components

Stock, ingredients and packaging

  • Maximum stock value at any one time (including peak periods)
  • Work-in-progress exposure during production runs
  • Packaging materials (often overlooked but high value)
  • Temperature-controlled stock and deterioration considerations
  • Stock in yard, on vehicles, or at third-party storage (where applicable)
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Food-Specific Extensions to Consider

Standard commercial property policies can leave gaps for manufacturers, particularly where temperature, perishability and hygiene controls are central to the business. Many food producers therefore add specialist extensions to strengthen protection.

Stock deterioration & refrigeration failure

  • Spoilage following freezer/chiller breakdown
  • Power failure temperature excursions
  • Leakage of refrigerant and related damage
  • Evidence requirements: logs, alarms, maintenance records
  • Optional extra expense: temporary storage and expedited salvage

Machinery breakdown and utilities

  • Mechanical/electrical failure of key production plant
  • Boiler and pressure plant (where applicable)
  • Utilities interruption (power, gas, water) and resulting downtime
  • Machinery business interruption (loss of profit from equipment failure)
  • Engineering inspections and compliance considerations

Transit, off-site and contract needs

  • Goods in transit (own vehicles or third-party couriers)
  • Stock at third-party cold stores or fulfilment centres
  • Exhibition/market stock (for artisan brands)
  • Customers’ or suppliers’ property at your premises
  • Contractual requirements for high-value customers

Contamination and recall integration

  • Contamination events causing stock loss and clean-up costs
  • Recall/withdrawal costs for widely distributed products
  • Crisis management and communications support (policy dependent)
  • Alignment with product liability limits and triggers
  • Supplier dependency extensions where needed
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Business Interruption: The Cover That Protects Cashflow

Property insurance replaces physical assets - but it doesn’t automatically replace lost revenue while you’re rebuilding. Food manufacturers often face long lead times for specialist equipment, regulatory sign-off, and customer re-approval. Without business interruption, you may be paying wages, rent and finance costs with reduced (or zero) output.

Business interruption cover is typically linked to property damage. It can protect your gross profit, fixed costs and extra expenses while you recover. Choosing the right indemnity period is crucial: many manufacturers need 12–24 months depending on complexity.

BI considerations for manufacturers

  • Selecting realistic indemnity periods (often 12–24 months)
  • Accurately calculating gross profit sums insured
  • Extra expense cover (outsourcing, temporary premises, expedited shipping)
  • Seasonality and peak trading periods
  • Supplier and customer dependency options

Common causes of long downtime

  • Specialist machinery lead times and commissioning
  • Building works to hygiene and food safety standards
  • Insurance claim settlement timelines
  • Re-certification, audits and customer re-approval
  • Supply chain disruption and labour constraints
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Why Choose Insure24 for Property & Stock Insurance?

Food manufacturing insurance works best when cover is designed around your operational reality: hygiene fit-outs, temperature control, high-value packaging, and dependency on specialist machinery. We help you structure sums insured correctly and align extensions to the risks that actually cause losses in food production environments.

  • Food & drink manufacturing expertise
  • Support setting realistic sums insured and BI periods
  • Access to insurers experienced with temperature-controlled risks
  • Clear explanations of exclusions and policy conditions
  • Claims support and ongoing account management
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“Our insurer previously undervalued our fit-out and packaging stock. Insure24 helped us restructure the sums insured and add the right extensions for cold storage and business interruption.”

Finance Director, UK Food Manufacturer

FREQUENTLY ASKED QUESTIONS

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What does property insurance cover for a food manufacturer?

Property insurance typically covers damage to insured buildings and contents from risks such as fire, flood, escape of water, storm, impact and theft (subject to policy terms). For food manufacturers, it’s important to ensure the policy reflects specialist fit-outs, processing areas and facilities features that affect replacement cost.

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How do I set the right sums insured for buildings and contents?

Buildings sums insured should be based on rebuild cost (not market value) including professional fees and debris removal. Contents should reflect replacement cost of equipment and fit-out. If your site has specialist hygienic finishes, cold rooms or racking, these should be included so you don’t risk underinsurance.

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Does stock insurance cover ingredients and packaging?

Yes, stock cover can include raw ingredients, packaging, work-in-progress and finished goods, subject to the policy. It’s important to insure the maximum values you hold, including peak periods, and to consider where stock is stored (on-site, in yard, or at third-party locations).

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What about refrigerated stock and spoilage?

Standard stock cover may not automatically include deterioration or spoilage. You can often add stock deterioration / refrigeration failure extensions, which can cover losses when temperature control fails due to an insured event. Insurers may require alarm systems, monitoring logs and maintenance records.

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Do I need business interruption insurance as well?

In most cases, yes. Business interruption cover helps protect gross profit and fixed costs while you repair and recover after insured property damage. Because manufacturing recovery can take months (equipment lead times, reinstatement, audits and customer re-approval), choosing the right indemnity period is crucial.

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How much does property and stock insurance cost?

Premiums depend on your sums insured, building construction, fire protections, claims history, security, processes, stock type and whether you add extensions like machinery breakdown, spoilage, contamination and business interruption. Contact Insure24 for a tailored quote.

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