In South Africa, fire and explosions account for 65% of all business losses, according to the 2022 Global Claims Review Report from international insurer Allianz. There is no doubt that a single fire can cause anything from small damage to a catastrophic event that leads to the death of employees, customers, and even total business destruction.
Cases such as the fire that caused damaged to the Parliament precinct, which was not insured, highlight why it is critical for businesses to ensure their buildings through fire insurance. Fire Insurance cover is a policy that covers your property, stock, office contents, plant & machinery, and other assets against loss or damage because of fire, explosion, lightning, storm, hail floods or wind etc. Due to the fact that the precinct was not insured at the time of the incident, tax payers may be liable for all repairs caused by the fire, which includes the fire damage, as well as damage caused during the efforts to put the fire out, for example, water damage to equipment.
Your policy's many clauses may be activated depending on the circumstances. Because of this, it's essential for business owners to make sure they have adequate and comprehensive insurance coverage in case they need to lodge a claim for losses like property loss, fatalities, or harm to other companies' operations.
Even in situations where a business has comprehensive insurance, an insurer's liability is never guaranteed. This is because most fire insurance policies have conditions or warranty’s which the insured must comply with. Sometimes a fire claim can be rejected if for example the business in question did not adhere to the required number of fire extinguishers or other firefighting equipment or lacks proper housekeeping as conditioned by their fire policy.
To guarantee peace of mind for businesses with fire insurance it is important that they get the right extensions covered, sit down with their broker to understand the terms & conditions of their cover, and adhere to all the risk recommendations that are put through.
Make sure your business is sufficiently covered; contact us today.
