FLEXA stands for Fire, Lightning, Explosion, and Aircraft Damage - some of the most common risks covered by fire insurance.
Fire insurance policies like the Standard Fire and Special Perils (SFSP), the Bharat Laghu Udyam Suraksha (BLUS), and the Bharat Sookshma Udyam Suraksha (BSUS) policies offer financial protection against FLEXA. These policies cater to different businesses and cover them against a number of risks including implosion, strikes, floods, cyclones, riots, malicious damage, forest fires, collision by trains and animals, among others.
Fire - All Fire Insurance policies offer protection to the policyholder in case of any loss, damage, or destruction to the insured property against fire. But, this excludes burning of the insured property by order of any public authority, or fire caused by the insured property undergoing any heating or drying process.
An SFSP (Standard Fire and Special Perils) policy also excludes fire caused to the property by its own fermentation (chemical breakdown), natural heating or spontaneous combustion. However, this risk is covered by a BLUS (Bharat Laghu Udyam Suraksha) and a BSUS (Bharat Sookshma Udyam Suraksha) policy.
Lightning - Any loss, damage or destruction caused to the insured property by lightning strikes is covered under all Fire Insurance policies.
There are no specific conditions or exclusions imposed by any Fire Insurance, but the surveyor or claims adjuster sent by the insurance company at the time of a claim evaluates meteorological data and eye witness reports to establish the occurrence of such an event
Explosion - Damage or loss caused to insured assets by both explosion and implosion are covered.
An SFSP policy will not cover explosion or implosion caused by centrifugal forces, and any damage to boilers, economizers, machinery, apparatus or their contents due to their own explosion or implosion. However, these events are covered by BLUS and BSUS policies.
Aircraft Damage - Loss, destruction or damage caused by impact or collision of aircrafts and other aerial devices including articles dropped from such devices is covered by Fire Insurance. Fire Insurance policies also cover other impact damages by external physical objects like vehicles, trains, falling trees, etc.
However, no policy will cover such impact damage (whether by aircraft or any other object) when it is caused by pressure waves due to the aircraft travelling at sonic or supersonic speeds.
Additionally, when the aircraft (or any other external object) that causes damage or destruction belongs to the insured or their employee while they were acting in the course of employment, such loss will not be covered by any Fire Insurance policy.
A Business Interruption or Fire Loss of Profit insurance policy (Consequential Loss Insurance) are excellent additions to your Fire Insurance policy to ensure you get comprehensive coverage.
Fire, Lightning, Explosion and Aircraft impact can all be disastrous events leading to a mountain of losses associated with your commercial property, workers, and profits. In some cases, these events can result in your shop, office or factory completely shutting down for repairs and reconstruction. This can lead to increased costs and an indefinite closure of your business operations. While a Fire Insurance policy will cover damage to your assets, business interruption and fire loss of profit insurance policies will cover you against additional losses from interrupted business activities.
Everything from loss of wages, loss of net trading profits, standing charges, auditor fees, increased cost of working, etc. are provided for.
The occurrence of fire and allied risks can also cause bodily injury, and in some cases death of your workers and employees. For the purpose of covering yourself against such contingencies, it is prudent to opt for a Workmen’s Compensation policy.
Fire Insurance covers much more than FLEXA risks. Read more about it here