Industrial insurance in Quebec: protect your factory and equipment

Industrial businesses face unique risks: factory fires, critical equipment failures, liability to customers for defective products, accidental environmental contamination. A well-structured industrial insurance policy protects your assets, revenue and reputation. Our specialized brokers compare the best market offers.

Why industrial insurance is different from other commercial policies

Industrial risks are particularly complex. Equipment is often worth millions of dollars, production lines are interdependent, and a single claim can paralyze dozens of employees for weeks or months. Industrial insurance is built to cover these specific realities.

Industrial risk	Required coverage	Typical financial impact
Fire / explosion	Property + business interruption	$1M – $50M
Critical equipment failure	Machine breakdown + business losses	$100K – $5M
Employee or client injury	Commercial + employer’s liability	$100K – $2M
Manufactured product defect	Product liability	$500K – $10M
Accidental chemical spill	Pollution / environmental liability	$500K – $20M
Cyberattack halting production	Cyber + business interruption	$200K – $5M

The 6 essential coverages of an industrial policy

1. Industrial property insurance

It covers your building, production equipment, raw materials and finished goods inventory against covered risks (fire, explosion, water damage, storm, vandalism). The insured value must reflect the cost of reconstruction and replacement as new — not book value.

2. Machine breakdown insurance

Complex industrial equipment (hydraulic presses, industrial furnaces, centrifuges, compressors, CNC systems) can fail for reasons not covered by standard property insurance: electrical surges, internal mechanical failure, operator error. Machine breakdown insurance fills this critical gap.

3. Business interruption insurance

After a major claim, you continue paying salaries, rent and bank interest — with no revenue. Business interruption insurance compensates for lost gross profit and fixed costs during the recovery period, which can range from weeks to several years for a complex factory.

4. Commercial general liability

It protects your business against third-party claims (customers, suppliers, visitors) for bodily injury or property damage caused on your premises or related to your activities. Recommended limits for the industrial sector are $5M to $10M, especially if you export to the United States.

5. Manufactured product liability

If one of your products causes damage after sale — whether resold by a distributor or used by an end customer — you are liable. This coverage is essential for any Quebec manufacturer selling in Canada, the United States or internationally.

6. Fleet and mobile equipment insurance

Trucks, forklifts, construction equipment and utility vehicles used in your operation must be insured separately from your building policy. A consolidated commercial fleet policy can generate significant savings.

Factors that influence your industrial insurance premium

• Type of activity: chemical manufacturing, food, metallurgy, printing — each sector has a distinct risk profile
• Asset value: building, equipment, inventory — accurate assessment critical to avoid underinsurance
• Claims history: companies with no claims for 5+ years benefit from reduced premiums
• Prevention measures: automatic sprinklers, alarms, emergency plans, ISO 45001 certifications
• Revenue: determines your general liability limit and business interruption premiums
• Export markets: selling to the United States significantly increases product liability requirements

Get your industrial insurance quote

Fill out the form below. A specialized industrial insurance broker will contact you to analyze your specific needs and propose the best coverage at the best price.

Useful links — Industrial insurance

• Business insurance
• General liability insurance
• Commercial insurance
• Insurance broker in Quebec
• Commercial fleet insurance
• Work-from-home insurance
• AMF — Business insurance
• Insurance Bureau of Canada
• INSPQ — Industrial and environmental risks

Frequently asked questions — industrial insurance Quebec