Fire Insurance Plans For Businesses

Fires and allied perils can cause heavy financial losses to businesses. Losses to property and goods due to fire incidents have recently become common, especially in urban areas. That is why having a fire insurance policy becomes essential. Fire insurance plans for businesses cover the financial loss you might face when your property or assets are destroyed or damaged due to fire.

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Fire Insurance For Different Businesses

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In today's time, almost all businesses, big or small, should cover risk through a fire insurance policy. Below are a few business entities for whom fire insurance policies are a must:

  • Industrial and manufacturing units
  • Godown owners
  • Traders in stock
  • Owners of expensive artifacts
  • Shop owners
  • Financial institutions
  • Hotels and restaurants

Fire Insurance Plans

The number of fire insurance plans for businesses available in the market today is increasing. Before we take a plunge to comprehend which factors affect one's decision to buy a particular type of fire insurance, however, there are three types of fire insurance policies available in India:

  1. Bharat Sookshma Udyam Suraksha: This policy provides coverage to the property for a sum insured up to Rs 5 Crores.
  2. Bharat Laghu Udyam Suraksha: This policy provides coverage to the property for sum insured between Rs 5 Crores and Rs 50 Crores.
  3. Special Fire & Special Perils (SFSP): This policy provides coverage to the property for a sum insured beyond Rs 50 Crores.

However, the assets in fire insurance plans can be divided into two, namely fixed assets and non-fixed assets. Fixed assets would include assets like buildings and, plants & machinery. In comparison, non-fixed assets consist of goods, stocks and other valuable items. Depending on the nature of the assets, you can pick the type of fire insurance plan for business. Let us talk about the non-fixed assets policies first as they come under Special Fire & Special Perils.

Policies For Non-Fixed Assets:

  1. Floater policy: A floater policy is ideal for goods located at different locations. However, to avail of this policy, the goods should belong to the same person.
  2. Specific policy: As the name suggests, this policy only covers the risk up to a specific sum, and it is usually lower than the asset's actual value.
  3. Comprehensive policy: This policy covers multiple and maximum risks making it one of the most recommended fire insurance for various businesses.
  4. Valued policy: The sum insured under this policy is specified at the time of purchase of the policy.
  5. Valuable policy: This policy works opposite to the valued policy. The claim amount is decided as per the current market price of the damaged property and not at the time of purchasing the policy.
  6. Consequential loss policy: Fire can disrupt your regular business. This policy can help cover losses suffered from this disruption.

Policies For Fixed Assets:

  1. Replacement value policy: The insurer pays the replacement value of the asset damaged due to fire or allied peril.
  2. Reinstatement value policy: A reinstatement value policy is similar to a replacement value policy. It is an added clause to the policy mentioned above. The insurer replaces the damaged property to its original condition before the loss.
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Factors Determining The Choice Of Fire Insurance Plan

As we are now aware of the types of fire insurance plans available in the market, the question is, which kind of fire insurance should you buy for your business? Which one is best suited for your business? To clear this doubt, we help you assess the following factors to choose the right fire insurance plan for your business:

  1. Type of risk to be covered: It is essential to determine what kind of risk you face and wish to cover with the fire insurance policy. For example, a floater policy can be the best choice if you have goods stored in warehouses in two different locations. Whereas, a valued policy would make more sense for assets whose value cannot be easily ascertained.
  2. Type of asset to be insured: As mentioned earlier, different assets can be covered under different fire insurance policies. You can opt for a replacement or reinstatement value policy for fixed assets. Whereas, for non-fixed assets, you can opt for comprehensive, floater, valued or anyone from the above list.
  3. Duration of the cover: Before selecting fire insurance plans for business, it is vital to know the period for which you need to take the coverage.

Conclusion:

Losses in business can sometimes be inevitable. However, they can sometimes be less impactful if the businesses are safeguarded with a proper fire insurance policy. With expert advice at every step, quick and hassle-free processes and a dedicated team to ensure speedy claims, Policybazaar can help buy the right fire insurance plans for businesses.

Written By: PolicyBazaar - Updated: 04 November 2022
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Policybazaar for Business - Fire Special Perils Insurance - Customer Reviews
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4.3/5
Based on 83 reviews
4.3
out of 5
Based on 83 reviews
13 users
66 users
4 users
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0 users
4.8 October 09, 2022
Aaftab
Amazing Customer Support
I am using a fire insurance policy from policybazaar and experienced amazing feedback from them in claim settlement. I have a sports merchandise shop that caught fire last yearI raised a claim which was resolved within a few days without any hassles.
Thiruvananthapuram
4.8 October 08, 2022
Balachandar
Helpful Support
The support team of Policybazaar is really helpful and prompt. They solve all your queries fast. Would definitely recommend Policybazaar for purchasing insurance .
Mangaluru
4.8 October 07, 2022
Raahim
Extensive Cover
Got a fire insurance policy for my shop and it was really extensive with so many features. Purchased it from Policybazaar without paying any commission fees. Great coverage.
Bengaluru
4.5 October 06, 2022
Aadi
User Friendly Website
We deal in the cotton industry and suffered a huge loss last year because of the fire. We were looking for insurance to safeguard us financially from any such incident in the future. We landed on the policybazaar website and bought fire insurance. Their website is well managed and gives all the necessary information.
MP
4.8 October 05, 2022
Rohit
Plans Are In Budget
Had to purchase a fire insurance which should be in my budget as I run a very small store. Got a lot of affordable plans on Policybazaar and purchased the one that suited my budget. All plans are in budget and with so many features.
Bhopal
4.3 October 04, 2022
Baban
Covered My Shop
I have a shop of garments and it caught fire last year in which I lost items worth thousands. Purchased a fire insurance from Policybazaar and now I feel really relieved that it would financially cover my shop in such circumstances.
Chandigarh
4.3 October 03, 2022
Aarnav
Faster Claim Settlement
A part of my warehouse having thousands of material caught fire. Luckily I had a fire insurance policy that I could claim and received compensation from them. It was such a relief. The claim settlement team at Policybazaar is helpful and really quick.
Assam
4.5 October 02, 2022
Jagadish
Affordable
I have a warehouse of clothes and was planning to buy a fire insurance policy to cover my material from unwanted fire. Got a really affordable plan from Policybazaar with some really great features.
Ahemdabad
4.5 October 01, 2022
Rahul
Budget Friendly
Wanted to cover my crockery shop from fire and was searching for an affordable plan. Found a great plan at Policybazaar which suited my budget.
Surat
4.5 September 30, 2022
Baabul
Instant Purchase
Wanted a fire insurance policy for my crockery business and could purchase it instantly from Policybazaar. The process was quick instant and very easy.
Gurgaon