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Standard Fire and Special Perils Insurance

Your business is an extension of you. It is the sum of the efforts and aspirations of your staff and your near and dear ones.You put a lot of time, hard work and considerable money in building up your business. For business owners, their business is as important as their families and most business owners protect their businesses like their family members. However, like most things in life, businesses are not immune from risks and misfortune strikes when one least expects it. Almost anything can happen at any time – a fire can engulf your business, a burst pipe can flood your premises, a riot or act of terrorism can wipe away years of effort.

Recent instances of fire in Mumbai – one in the Kalbadevi area and the other one in Andheri West – are the grim reminders of the fact that fire is one of the major risks that most businesses – especially the small and medium enterprises (SMEs) – are exposed to. A short circuit can reduce your assets to ashes in no time. A number of businesses were gutted in the Kalbadevi fire, which also resulted in a couple of firemen losing lives.

When it comes to protection of your business and assets, HDFC ERGO General Insurance Company is known as the best insurance firm that can help you get back on your feet with minimal aggravation. In fact, HDFC ERGO goes one step further and also has separate cover – Business Interruption Insurance which coversbusinesses against the losses that incur due to disruption to the business following a fire. Businesses – especially the SMEs – can stay assured of help, knowing that the best people will support them through the financial consequences – the after effects of the devastation.

In the event of a fire damaging a business enterprise, HDFC ERGO works with the business owners all the way till the business is restored to its pre-damaged level as per terms and conditions of the policy.To help businesses protect their business against such uncertainties, HDFC ERGO provides one of the best Fire and Allied Perils products in the industry. HDFC ERGO provides businesses a comprehensive protection backed by sound financial capability.

HDFC ERGO’s Standard Fire and Special Perils Insurance policy protects businesses from financial loss as a result of named perils. The Standard perils covered areFire, Lightning, Explosion/Implosion, Storm, tempest, flood, inundation group of perils (STFI), Subsidence and Landslide including Rock slide, Impact damage by vehicles/animals/aircraft, Riots, Strikes, Malicious Acts, Missile Testing Operations, Bursting of pipes/ Water Tanks, Sprinkler Leakage and Bush Fire and Aircraft Damage.

As an extension of the Standard Fire and Special Perils Insurance policy, businesses also have options to choose financial covers against events such as Earthquake (fire and shock), Terrorism, Spontaneous Combustion, Deterioration of Stocks in Cold Storage, Impact Damage due to Insured’s own Rail/Road Vehicles, Fork lifts, Cranes, Stackers and the like and articles dropped therefrom, Omission to Insure additions, alterations or extensions, Architect, Surveyor &Consulting Engineer Fees in excess of 3% of claim amount, Debris removal in excess of 1% of claim amount, Forest Fire, Spoilage Material Damage Cover, Leakage & Contamination Cover, Temporary Removal of Stock, Loss of Rent, Insurance Of Additional Expenses of Rent For An Alternative Accommodation. Other additional Add on covers available are - Appraisement Clause, Breakage Of Fixed Glass &Outdoor Signs, Civil Authorities Clause/Acts of Civil Authorities, Immediate Repair Clause, Sue &Labour Clause, Brands & Trademarks Clause/ Brands & Labels Clause (also loss of damaged goods), On Account of Payment Clause, 72-Hours Clause, Electrical Clause/ Electrical Installation/Electrical Injury/Electrical Breakdown Clause, Automatic Extension Clause, Obsolete Parts Clause, Account receivable clause, Cost of Re writing records etc. These extensions enhance the coverage of the business at a marginal cost. Businesses have option to choose the most relevant clauses from all available.

The regular policy period is 12 months, though a long-term policy of up to 10 years is available for houses, at an attractive discount. It is recommended that the business’ assets be insured on a replacement / reinstatement cost basis to get full protection following a loss. The premium on this policy depends on the type of occupancy, covers opted, claims experience, installation of fire protection equipment and deductible opted under the policy. This policy is subject to a compulsory deductible and will depend upon the sum insured.

Businesses are the Raison d'êtrefor existence of business owners and their families who depend on the income from the businesses. Hence, it is prudent for business owners to safeguard their businesses against untoward instances like fire. HDFC ERGO’s Standard Fire and Special Perils Insurance policy is ideal for SMEs and Corporate alike, those who need coverage for their business against uncontrollable situations that can devastate property and businesses.


 
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