November 22, 2021

Supplementary Policies to Fire Insurance

Supplementary Policies to Fire Insurance

Fire and Allied Perils Insurance can offer your business umbrella coverage against a host of risks including fire, lightning, riots and strikes, malicious damage, missile testing operations, natural disasters like flood, earthquakes, storms, and much more. It provides financial protection for assets like buildings, stock, furniture and fixtures, and other assets.

Fire Insurance is a must-have risk management tool for every commercial enterprise. However, it is not all-encompassing. The good news is there are certain insurance policies that can offer your business additional coverage.

Let’s take a look at some commercial insurance policies that you can opt for along with Fire Insurance:

This is a very popular supplementary product to Fire Insurance policies. It protects your business from any loss or damage caused due to burglary, housebreaking or holdup. Under this, damage caused to your insured property due to a violent entry or exit is also covered. Furthermore, this policy can also cover loss of money, damage to safe or strongroom, and injury during burglary as well.

Learn more about what is covered and not covered under Burglary and Theft Insurance here

While Fire Insurance can provide some coverage to your business’s computers and electronic assets, it is limited up to a certain amount. And if your business’s day-to-day operations rely heavily on electronic gadgets like computers, servers, electronic machines like MRIs, X-rays, etc., then this coverage may fall short of your actual needs. This is where Electronic Equipment Insurance comes in, securing your expensive equipment against accidental damage due to fire, lightning, flood, and loss due to theft or burglary.

Fidelity Insurance, also known as Fidelity Guarantee Insurance, offers insurance cover for any criminal act committed by employees against the company. This includes loss of money, securities or other assets due to employee theft, computer fraud, forgery, embezzlement, employee dishonesty, and more.

This Consequential Loss (fire) policy provides cover for loss of profits and any increase in the cost of business operations caused by a peril covered under  Fire Insurance. Under this policy, numerous expenses that are incurred as a consequence of property damage caused by fire or allied peril are covered. These expenses include, standing charges, loss of wages, auditor fees, deduction on account of depreciation among others.

This Insurance policy covers electrical or mechanical breakdown and physical damage to machines used by factories, plants, construction sites, etc. Here, machinery breakdown due to electrical malfunctions, abnormal operating conditions, impacts of collisions, fire, operators’ carelessness, etc. is provided for.

Along the same lines, you can also consider Machinery Breakdown Loss of profit Insurance. It covers loss of profits and increased operating costs due to halted or delayed operations caused by machinery breakdown or damage.

Read about Machinery Breakdown Insurance in detail here

This insurance policy covers glow and neon sign boards installed at your business’s premises against any unforeseen accidental loss or damage including damage to foil, painting, embossing, silvering, framework, etc. Similarly, Plate Glass Insurance covers any glass panels or signs from accidental breakage or destruction due to fire, natural disasters, arson, riots, and other perils.

Under this insurance policy, Cash-in-safe and Cash-in-transit is insured against burglary, holdup, robbery, housebreaking, theft, etc. Cash-in-safe here refers to money kept or stored in a safe or strong room whereas, cash-in-transit refers to money carried by the insured or the insured’s authorized employees. You can also get an additional cover for foreign currency under this policy.

Interested in learning more? Check out our blog on different types of Liability Insurance policies here

Opinions, conclusions and statements of intent expressed in this article are that of the author and Verak does not accept liability for the views expressed unless confirmed by an authorized representative of the Company independently of this communication.