The policy indemnifies you against damage or destruction to buildings and its contents as a result of fire and other perils like Lightning, Earthquake, Aircraft Damage, Impact, Tornado, Flood, Riot and Strikes, Malicious Damage, Bush Fire and Burst Pipes.  Items that can be covered under this are:-

	Building (including Gates and Fences) of standard construction belonging to the insured or held in trust or on commission occupied as offices, private dwelling house.
	Plant and Machinery
	Stock
	Office Furniture, Fixtures, Fittings, Utensils
	Removal of Debris
	Rent (Where building is not owned by the insured but rented, amount paid in advance for rent can be covered under this policy).

There are various discounts attached to this policy.  For example, for fire-fighting appliances, reduction of risk, and Long Term Agreement to mention a few.  These go a long way to reduce your premium outlay.

CONSEQUENTIAL LOSS INSURANCE

A material damage fire policy provides compensation following destruction of or damage to buildings, contents and stocks but does not provide any cover for loss of use of the premises and the loss of trading that follows:

It is inevitable that a fire or other damage in business premises will lead to a partial or total disruption in production, sales or whatever business activity that is carried on.  As a result, the turnover and earning capacity of a business are diminished.  This is the subject matter of a consequential loss insurance.

A consequential loss policy protects the earning capacity of a business and supplements any trading maintained after a fire (or other insured damage), to enable all the overheads of the business which do not reduce proportionately with trading to be met.  It also enables the business to achieve the level of net profit, which would have been earned, but for the fire.

<<Back