Risks you should consider while buying fire insurance for your office

Mr. Manohar Lal is an owner of an IT company located in Bangalore. The Indian Meteorological Department issues an alert of the cyclone in the area in a couple of days. Within a few days, there are massive cyclonic storms and rainfall in the city, hampering the daily life. People had been issued guidelines about remaining at home, and all the offices are closed for a few days.

After the weather improves, Mr. Lal discovers that due to the storm, a tree fell in the office premises and damaged the roof of some part of the office building including its contents.

With an office insurance policy in hand, he is free of bearing the loss personally and is ensured reimbursements of the cost of repair and renovation.”

Imagine the conditions of Mr. Lal, in the absence of a suitable insurance policy. This could be a nightmare for any business owner.

If you are still undecided, whether your small/large setup needs an additional expense in the form of insurance, perhaps the following risks may help make your mind.

Risks Faced By Small Businesses

As a shrewd business owner, it is very likely that you have taken extraordinary measures in ensuring the safety of your activities, premise, materials and people.

Let’s look at some common risks that are secured in the Fire Insurance Policy:

  1. Natural Disasters

As mentioned in the example above, Fire insurance policy will insure one from bearing the financial loss because of natural disasters like cyclone, hurricane, flood, snowfall, earthquake, lightning, etc.

These natural perils cannot be avoided in any way but what can be done is to take necessary precautions in such cases.

  1. Vehicle Damage/Collision etc.

If you are running a business where you need to receive and send large quantities of goods as consignments, you will easily relate to this kind of risk to your workplace. Though a small amount of damage is expected with each loading unloading exercise, wrong parking or ignorant driving of the vehicle can cause major repair costs.

  1. Fire & Other Accidents

Offices, nowadays, have fittings, decorations, and furnishings unlike the simple structures of the old times. While these present a more comforting picture of the workplace, they are also prone to fire damage.

Similarly, modern buildings are compulsorily equipped with fire extinguishing systems. If turned on accidentally these systems like sprinklers etc. can damage the electronic equipment and papers kept in the office.

  1. Pollution & Contamination Risks

Modern commercial complexes are designed in such a way that multiple offices are situated in the same building. While this is commercially viable, it puts multiple businesses under the risk of contamination from pollution emanating from another business.

For example, the fire caused in one office premise may damage the material and health of people working in other offices. Such risks, again, cannot be avoided or prepared for and thus need end of the mile solution such as insurance cover for the same.

Fire insurance policy covers such risks to your office premises.

  1. Additional Risks

Apart from the above risks, which are generally applicable to all types of business setups, there are other hazards which can be taken care of by a fire insurance policy. For example, damage, leakage, etc. to the stored material, costs incurred in debris removal after an insured event, can also be covered under the fire insurance policy for your office.

While precaution is welcome and helps reduce the chance of damage, risks cannot be entirely ruled out. Therefore, as an end of the mile solutions insurance is a necessary tool to ensure financial safety of your enterprise.

The best way to buy fire policy, like any other commercial product is to compare all available options. Sounds complicated? To make your pre-purchase experience smooth, you can connect with any of the online insurance brokers like Sec