Accidents can happen anytime and leave you with loss that sometimes becomes hard to recover from. The amount of damage seems greater when you are running a business. Fire and burglary are significant risks that damage the business’s property and goods. That is why investing in good fire and burglary insurance is crucial.
But how do you know which insurance is the right one for your business? To choose right, you need a guide to fire and burglary insurance.
Understanding Fire and Burglary Insurance
- Fire Insurance: A fire insurance plan is a type of insurance that provides coverage for damage caused by fire, lightning, implosions, explosions, bushfires, and other related fire perils. It also provides coverage for alternative accommodation expenses in case your premises become uninhabitable.
- Burglary Insurance: Burglary insurance provides coverage to protect insured property against damage or loss due to theft, attempted break-in or burglary. It also provides coverage for damage caused to the property due to forced break-ins.
How To Choose Fire and Burglary Insurance?
Choosing the right fire and burglary insurance online for your business can seem daunting. However, if you keep these crucial points in mind, you will be able to make the right choice.
Business Requirements and Assets
Before you buy fire and burglary insurance for your business, you need to assess the business’s needs and the assets you want to protect. To do so, you need to list all your business equipment, inventory, furniture, intellectual property and crucial documents.
Coverage Amount
Coverage limit is another factor to consider before buying a policy. A coverage limit is the maximum amount that an insurance company will pay you in case of loss or damage of insured property or goods.
Thus, make sure to calculate the value of all your business assets. Opt for a higher coverage limit that provides better coverage in the event of loss. Make sure to use a fire or burglary insurance premium calculator to check the cost of a higher cover limit.
Location and Risk Percentage
The location and type of business also determine the importance of having fire and burglary insurance. Businesses located in theft—or fire-prone regions might have to invest in insurance with higher coverage limits. Moreover, if your business involves operations that have a high risk of fire incidents, comprehensive fire insurance is suggested.
However, it is also necessary to take mitigation steps to avoid any incident as much as possible.
Policy Coverage and Exclusions
Always read the policy wording to understand the coverage and exclusions of insurance. Common insurance exclusions that are not paid can include wear and tear due to usage, loss due to negligence and electrical breakdowns.
Deductibles
Deductibles for fire and burglary insurance are the amount that you, as a policyholder, have to pay before the insurer starts the claim procedure. The higher the deductibles amount, the lower your insurance premium. However, remember that higher deductibles mean you need to shoulder a larger amount of loss in the event of a claim.
Add-ons
Several insurance companies allow you to enhance the policy coverage by providing add-ons to the base plan. These add-ons to fire and burglary insurance can include coverage for valuable business data, interruption due to fire, cash kept on premises, etc.
Additional Points To Remember For Fire and Burglary Insurance
These are some additional things that you should be aware of before getting any fire or burglary insurance for your business.
Check Policy Documents: Fire and burglary policies are complex insurance policies, and their terms can be difficult to understand. Make sure to seek clarification on any jargon or complex conditions.
Claim Settlement Procedure: Learn the claim procedure of the selected insurance provider to avoid any confusion at the time. Understand what documents need to be submitted, the timeline for claim resolution, etc.
Customer Reviews and Feedback: Before selecting insurance, do a comparison of fire and burglary plans. Check out customer reviews of insurance providers and feedback on their claim settlement procedures. You can also go to their website for customer testimonials. Always choose insurance with positive reviews and feedback.
Choose a Reputable Provider: Choose to buy your fire and burglary insurance from a trusted and reputable insurer, such as TATA AIG fire and burglary insurance, which promises hassle-free claims during emergencies.
Summing Up
Fire and burglary insurance play a crucial role in safeguarding your business and its assets from related incidents. By understanding your business needs, coverage requirements, add-on requirements and the risk associated with location, you can choose the best policy.
This insurance is an investment that protects you from complete loss or damage in the event of fire or burglary. Thus, to get the complete benefit from it, choose your insurance wisely.
