Standard Fire and Special Perils
This plan is a basic cover against loss because of a fire, riots, strikes, floods and storms. Further policies under fire insurance include machinery breakdown insurance, electronic equipment policy, business interruption policy, and more.
You can also further customise and get cover for earthquakes and acts of terrorism.
Protection should cover office premises, including the elevators, boundary walls and fences, and its contents, such as furniture and fittings, office equipment and electronics. Make sure to declare all expensive items stored, along with related documents, or the insurer will not be obliged to cover these.
There are 'package' policies for protecting businesses, offices, and shops, that provide comprehensive protection against various contingencies such as fire, burglary, personal accident, third-party liability, and so on. These plans are convenient as you insure various assets through a single plan. However, any loss resultant of gross negligence will not be reimbursed.
There are also stand-alone policies sold by general insurers, wherein you choose to make a customised portfolio. If you have set-ups in multiple locations, some policies - such as the fire and burglary covers - offer a floater option, which means a single policy will suffice for all locations. These are annual plans and have to be renewed every year. There are also Engineering all risk/Construction all risk policies, that are tailor made for business in the construction/engineering/industrial sector. These policies cover all risks except those specifically excluded. They provide a wider scope of cover than your standard Fire package policy, although they are similar products.
A package policy is a Comprehensive fire policy, along with add-on options like burglary, terrorism, machinery, equipment, money, plate glass, etc. Customise your cover, pick and choose your add-ons, and do them all online!
A business can have machinery that breaks down due to usage, thus adversely affecting business. Machinery Breakdown insurance is offered as an additional cover to protect your main plant & machinery assets.
Business Interruption and Consequential Losses
A fire can interrupt operations and consequentially affect profits. Therefore, general insurers also have a specific plan to protect your business from loss of profit as an extension of the fire insurance. These policies typically cover loss of gross profit (net profit plus standing charges) due to reduction in turnover or output, additional cost to avoid reduction in turnover and the auditor's fee. Some policies may also reimburse the rent for alternative space if the premises are unfit for occupation.
A cover against theft and burglary is indispensable. Apart from loss of property, it also covers damage caused during a burglary or an attempted burglary. Exclusions include loss of jewellery, title deeds, business books (unless specifically insured), plate glass and items covered under a parallel policy, say, fire insurance and theft by family or employees and shoplifting. Basic burglary cover only kicks in if the thief breaks into your premises. Theft cover which is offered separately, covers you for loss even if there is no forcible entry.
In case of loss, the policy pays for the loss incurred depending on the sum insured. So, it is important that the sum insured be equal to the market value of all the items covered in order to be able to get the replacement cost of the items damaged or stolen.
There are specific covers that insure money & valuables(amounts have to be declared), plate glass & neon signs(useful if you are a retail business), Electronic equipment(portable and non-portable covered separately); Debris removal & consultant fees, and more. Check out Fire premium calculator to understand more.