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5 Reasons Fire Insurance Policy is a Great Safety Net for Your Business

5 Reasons Fire Insurance Policy is a Great Safety Net for Your Business

India Blooms News Service | | 16 Jun 2017, 03:32 pm

Indeed, your business is the result of your hard work and efforts. Not only it is precious to you, but a lot of time and money also goes into building it. At the same time, it is necessary for you to be aware of how easilyyou could lose it all to fire— a few months ago, a fire erupted at Chandni Chowk and entirely damaged a grocery shop and affected over 30 shops.

Though, fire detector systems can cut fire accidents to some extent, there are certain situations which are beyond your control. In such cases, the best thing that youcan do is—hope for the best and prepare for the worst. Buying a fire insurance policy is the right way to keep your business afloat even if afire accident hits it.

What isthe fire insurance policy?

A fire insurance is a type of insurance policy in which an individual agrees to pay a certain sum of money to the insurer to get coverage against losses or damages caused by fire. 

5 Reasons to have a fire insurance for your business

  1. Avoid bankruptcy - It is common for people to invest their entire life’s earning in developing business. So, when your business catches fire when it is not insured, you may have to incur losses, and owe to the bank or any other party for reconstructing your business. But it means, you would have to borrow money from everywhere and then take a long time to repay it. Surely, you’ve toiled hard for your business, why do you want to leave it unprotected?
  2. Replace damaged goods -Flames, smoke and water used to extinguish the fire can damage buildings and their content too. When the fire spreads, it will be difficult to save your valuable items, like machinery, equipments, stationary, etc.; and without sufficient funds, it may be difficult for the company to rebuild or replace the damaged property. The company may also be forced to cease the operation. However, if you have a fire insurance policy, you can cover the loss or damages caused to valuable items.
  3. Protection from unexpected events - A fire insurance policy not only covers you in the case of fire incidents only, but it also plays a crucial role by covering losses or damages to your business due to aplane crash, but lightning also struck, explosion, missile testing operation, bush fire, etc.
  4. Coverage for expensive items - A comprehensive fire insurance policy offers protection for a wide variety of assets, including furniture, machinery, stocks, electrical and other accessories. 
  5. Temporary place for machinery - Some fire insurance providers also give an alternative or maintenance place for machines, if they get broken due to fire accidents.

Though, fire accidents are unexpected, they can cause massive destruction, and hence, having a fire insurance policy is necessary. However, just having a fire insurance policy is not enough if it is not sufficient. It will be called underinsurance and your fire insurance policy won’t cover the entire cost of repairing or replacing the property in case of a mishap. It means, you would have to bear the remaining loss amount. To avoid such kind of situation, it is necessary to ensure that you have a sufficient fire insurance policy. Remember, underinsurance is as bad as no insurance.

In case you are unable to decide the correct sum insured for your fire insurance, it is worthwhile to take the help of corporate insurance advisors like SecureNow, which can help you know the correct fire insurance coverage as per your business requirements.

Finally,
In a nutshell, be proactive and secure your business! Here are some of the useful tips for your fire insurance policy:

  • Review your fire insurance policy coverage annually to ensure it includes all your buildings. Also, make sure addresses and other details given in the policy document are accurate
  • Start a conducive fire prevention program in your office and train your employees so that they know what should be done in the case of fire. Your fire insurance may also provide you some lucrative discounts for youractive fire prevention program

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