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What Our Plans Cover
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Warehouse structure and fixed inst...
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Racking
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Stock owned by the insured
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Stock held for others
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Fire
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Burglary and housebreaking
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Business interruption following an...
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Debris removal and firefighting co...
Who Can Consider This Plan?
- Legal ownership, or an insurable interest such as a lease
- Property of permanent construction, meeting the insurer's standards
- Accurate declaration of occupancy and use
- Sum insured set on a defensible valuation basis
- Compliance with any fire safety requirements applicable to the premises
What May Not Be Covered?
- Stock above the declared value or outside the declaration
- Inventory shortages and unexplained stock discrepancies
- Deterioration of temperature-sensitive goods without specific cover
- Damage from improper stacking or storage
- Goods stored in breach of fire safety requirements
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading insurance companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
Our Insurance Partners
- Star Health Insurance
- Care Health Insurance
- Niva Bupa Health Insurance
- HDFC ERGO
- ICICI Lombard
- Bajaj Allianz
We represent multiple providers to help you find the most suitable option at the best price.
- Expert Guidance Personalised advice from experienced insurance professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
Warehouse insurance covers the structure, the racking and handling equipment, and the stock held inside. In almost every warehouse the stock is worth several times the building, which inverts the usual priorities of a property policy.
Stock is also the hardest part to insure correctly, because it moves. Levels vary with season, with orders and with the trading cycle. A fixed sum insured is nearly always wrong on any given day, which is why the declaration basis exists.
The other distinctive feature is goods held for others. A warehouse frequently stores stock belonging to customers, and liability for that stock is a separate exposure from ownership of your own — one that a standard property policy does not automatically address.
Who should consider it
Distributors, wholesalers, third-party logistics operators, manufacturers holding finished goods, and e-commerce fulfilment operations.
Benefits
- Structure, racking, handling equipment and stock in one policy
- Declaration basis matching premium to actual stock levels
- Cover for goods held on behalf of customers, where declared
- Business interruption after a warehouse loss
- Burglary cover appropriate to a high-value stock location
- Machinery breakdown cover for handling equipment
What is covered, and what is not
Read the right-hand column first. It is the one that decides whether a claim is paid.
Typically covered
- Warehouse structure and fixed installations
- Racking, shelving and material handling equipment
- Stock owned by the insured
- Stock held for others, where declared
- Fire, flood, storm and other natural perils
- Burglary and housebreaking
- Business interruption following an insured loss
- Debris removal and firefighting costs
Typically not covered
- Stock above the declared value or outside the declaration
- Inventory shortages and unexplained stock discrepancies
- Deterioration of temperature-sensitive goods without specific cover
- Damage from improper stacking or storage
- Goods stored in breach of fire safety requirements
- Employee dishonesty, unless a fidelity cover is taken
- Consequential loss without business interruption cover
Inclusions and exclusions vary between providers and between plans from the same provider. The wording in your own policy document is what governs — we will walk you through it before you buy.
How it works with us
- 1 We value the risk before we quote it Reinstatement cost of the structure, current value of the contents, and what a total loss would actually cost to rebuild today.
- 2 Perils matched to the location A coastal warehouse, a basement in a flood-prone city and a first-floor office are three different risks. The policy should reflect which one you are.
- 3 Quotes compared on sum insured basis, not premium Market value against reinstatement value changes what you receive far more than the premium difference between insurers.
- 4 Survey where the value warrants it Larger risks are surveyed before cover. It is also the moment to fix anything that would reduce a claim later.
- 5 Policy issued, and reviewed annually We revisit the sum insured every renewal. Under-insurance is the single most common reason property claims are cut.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Use a declaration basis for stock. A fixed sum insured is wrong on most days of the year, and being under-insured on the day of a fire is what the average clause exists to punish.
- Declare goods held for customers explicitly. Liability for third-party stock is not the same as insuring your own, and warehouse operators routinely discover the difference at claim time.
- Fire protection pays for itself. Sprinklers, hydrants and proper compartmentation reduce premium substantially and reduce the loss even more.
- If you store temperature-sensitive goods, deterioration cover is essential. A refrigeration failure destroys the stock without any fire or flood being involved.
- Set the business interruption indemnity period against how long it would realistically take to find, fit and stock an alternative warehouse. That is usually longer than people assume.
Documents required
- Proof of ownership or the lease agreement
- Details of construction — age, materials, number of floors
- Valuation or reinstatement cost estimate of the structure
- Inventory and value of contents, stock or equipment
- Details of fire protection and security arrangements
- Previous policy and claims history, where applicable
- Photographs of the premises, for larger risks
Frequently Asked Questions
How should I insure stock that changes every week?
On a declaration basis. You declare stock values monthly and the premium adjusts against the average, with a provisional sum insured set at your expected peak. It is the only structure that stays accurate for a business with real inventory movement.
Is stock belonging to my customers covered?
Only if declared. Goods held for others are a separate exposure from your own stock, and a policy written for your inventory will not automatically respond to a customer's. For a third-party logistics operator this is the central cover, not a detail.
Does the policy cover stock lost to inventory discrepancies?
No. Unexplained shortages are a trading and control issue, not an insured peril. Burglary requires evidence of forcible entry, and employee theft needs a separate fidelity cover.
What if my refrigeration fails?
Ordinary property cover will not respond — deterioration of stock following a refrigeration breakdown is a specific cover. If you store anything temperature-sensitive, it is not optional.
How much does fire protection reduce the premium?
Meaningfully. Sprinklers, hydrants and compartmentation are among the largest rating factors on a warehouse, and the premium saving often justifies the investment on its own — before you count the reduction in the loss itself.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.