Advantages You Should Know About Commercial Fire Insurance Policy


fire insurance policy advantages and disadvantages

An enterprise, big or small, is the culmination of years of effort and a lifetime of investment. Our business is protected from any evil eye by all means before it is set up, especially in India.

However, is our business prepared for disasters? Has it been protected against fire damage? What are the commercial fire insurance policy advantages and disadvantages?

A fire has affected a number of businesses, whether they are startups or established, causing not only financial but also emotional losses.

A fire outbreak will not only affect the operation of a business in the near future but will also have a long-term effect.

But there comes commercial fire insurance to the rescue. It’s like a shining armor for all business owners.

Let’s discuss this in detail.

Commercial fire insurance protects commercial property from any threats occurring from a fire peril. It safeguards your business against all movable and non-movable items such as buildings, plant & machinery, equipment, stocks, and other contents.

A commercial fire policy is generally bundled with commercial liability insurance.

commercial fire insurance policy advantages - list

Do you still think that’s not enough?

Below are the advantages of having a fire policy for your business from a reliable best fire insurance broker only:

  1. Reimburse for the price of damage to the building
  2. Medical expenses if the employees get injured.
  3. Alternative or maintenance expenses for damage to equipment and machinery
  4. Cost of stocks damaged
  5. Loss of business income

Due to the wide range of industries and types, each policy is tailored based on an evaluation of your specific business requirements.

How do you get a discount on fire insurance premium when you buy it from the best fire insurance company in India?

While the premium largely depends on the size of your business which includes the building and its contents. In broad terms, the following factors affect the premium:

  1. Location– Properties with excellent fire protection tend to cost less than those with inadequate fire protection. Additionally, whether the location is at risk of any natural disasters such as hurricanes, earthquakes, etc.
  2. Construction– An infrastructure with fireproof materials can earn a good discount. You may be able to get a good fire rating if you use fire-resistant materials for walls, floors, and doors. However, combustible materials inside and outside the building can affect your rating.
  3. Occupancy– What type of industry you are in? A restaurant or an industry involving hazardous chemicals is likely to present more risk than an office building.
  4. Fire & Theft Protection: How good is your fire security system? How far are the nearest fire hydrant and fire station? Does your building have a proper fire alarm and sprinkler system? All these factors will help determine your fire rating.

A fire insurance policy ensures your business is protected from unforeseen events, no matter what you are, whether you are a bank, education institute, garage, or multi-specialty hospital.

Recommended Post – Steps to Get the Fire Insurance Claim

Commercial fire insurance has lots of factors to be taken into consideration. This insurance is very detailed and takes into account a lot of insurance technical analysis. It is thus recommended to seek help from your trusted insurance broker so that you get maximum coverage with the best premium.

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Susheel Agarwal

Susheel is the CEO of Ethika Insurance Broking P Ltd. This company, which has a current value of 10 million dollars, was bootstrapped by him and two of his friends. He attributes his success to his ability to inspire others to seek happiness at work.