Fire insurance is recommended for both residential as well as commercial setups. However, businesses must consider opting for fire insurance as it may act as a risk management strategy. A fire insurance policy does cover multiple perils and conditions, but the below supplementary policies to fire insurance can provide additional coverage to the business.
A Standard Fire and Special Perils (SFSP) policy does not cover theft. Also, if one has opted for Bharat Laghu Udyam Suraksha (BLUS) or Bharat Sookshma Udyam Suraksha (BSUS), the theft cover is very minimal. Thus, a burglary or theft cover is an important supplemental policy to fire insurance that can safeguard the business from loss brought on by a break-in, housebreaking, or holdup.
Fire insurance can offer limited protection for the digital or electronic assets of a business. Electronic equipment insurance is a supplemental policy to fire insurance that provides additional coverage to protect various electronic equipment and electrically operated machines. This additional coverage will be helpful for businesses whose daily operations largely rely on electronic devices like computers, servers, MRI equipment, X-ray machines, etc.
The machinery used mostly by factories, plants, building sites, and other businesses is protected by this policy. The protection is provided from physical damage as well as electrical or mechanical failure. This [policy also covers equipment failure owing to electrical problems, unusual machine operating failures, the effects of crashes and fire, operator negligence, etc. are covered.
SFSP policy covers impact damage caused due to any rail or road vehicle or animal, owned by anyone other than the insured. However, an add-on can be added to this which covers for impact damage caused to the insured own vehicle or animal.
This supplemental policy to fire insurance or the add-on provides reimbursement of rent that is required when a business needs to be temporarily shifted from one location to another due to damage.
This add-on or supplemental policy to fire insurance offers coverage for accidental leakage or contamination at a set-up.
Dr. Vikas, a Radiologist, owns a radiology lab. He has covered his premise with a fire insurance policy. At the time of renewal of the policy term, he received a call from the insurer explaining to him about the various other supplemental policies to fire insurance that he can avail of.
The insurer explained about the electronic equipment policy, a useful supplemental policy to fire insurance for his set-up. Dr. Vikas has extended his policy with add-on coverage for EEI. He will have to pay an extra amount for this add-on and he can get coverage for any kind of loss or damage caused to the electronic equipment due to a fire accident.
Conclusion
A Fire insurance policy is essential for every business, big or small. However, when it comes to extra coverage to the existing fire insurance plan, one must consider business needs before opting for any of the supplemental policies to the existing fire insurance policy.
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