Get Fire Insurance for your Business in UAE

A fire breakout does not just destroy your property and its assets but can also cause damages to third parties that you’re liable to pay. What’s worst is that it can bring your business to a grinding halt. While the unpredictable can happen anytime, as a business owner you cannot afford to jeopardize your business and that’s why taking fire insurance that covers risk of all types of fires is a wise move. 

The hot and humid climatic conditions in the UAE requires air-cooling units and other electrical systems to be working round the clock. Due to the build-up of excessive heat, short-circuit related fires are common in factories and warehouses causing significant lost to machinery, personnel and stored goods. Without commercial fire insurance, business owners can be burdened with huge repair bills and reconstruction costs, having lost business income to hostile fires. This is where owning an insurance comes into play to protect the property and interest of businessmen. In this article, we orient you towards the importance of fire insurance and the broad coverage it offers: 

Fire insurance in UAE covers damage to immovable and movable property that include plant and machinery, furniture, fixtures, stocks, raw material, and more. This policy covers losses that have been caused by accidental fires and lightning only. However, if you want more coverage, you can extend it with Allied Perils Cover to include the following: 

• Explosion/implosion 
• Riots, strikes, civil commotion and other malicious damage 
• Natural calamities (cyclones, floods, earthquakes and volcanic eruptions) 
• Damages caused by aircraft and impacts from any other dropped aerial devices 
• Bursting of water storage tanks, apparatus or pipes. 

Kindly note : The insurance company may at its option repair or replace the affected property instead of paying for the cost of restoration. 

Other benefits include: 

• Fire brigade charges and extinguishing expenses. 
• Architects, surveyors and engineering consultancy fees.  
• Coverage for expenses of removal of debris post the fire
• Theft/burglary due to forcible entry 
• Loss of rent or income due to interrupted business  
• Third party legal liability including that of landlords towards their tenants 

General exclusions include: 

• Intentional misconduct 
• War and terrorism 
• Political risk of any kind 
• Nuclear risk 
• Pollution related damages

Preventing the risk of fires  

Fires can cause massive devastation to both property and life. Though fire insurance can help you mitigate the losses, it’s not worth the headache. As a business owner it’s in your best interest that you take necessary measures to reduce occurrence of fires on your premise. Here are few preventive measures you can implement to decrease the chance of fires.  

• Install firefighting systems such as smoke detectors, fire alarms, emergency lights, fire extinguishers and sprinkler pumps on premise. 
• Schedule periodical maintenance to inspect your fire protection equipment is up to date. 
• Make sure your staff is properly trained on fire safety techniques and usage of firefighting equipment to control fires at source. 
• Organise fire drills and mock evacuations periodically for employees to clock their run for safety via exit routes. 
• Store flammable/hazardous materials in a safe and dry place. 
• Properly dispose all combustible substances such as oils and chemicals.
• Reduce clutter and keep your premise neat and tidy.

The unexpected can happen anytime. Protect your property against flames. 

Now that you know the range of coverage for your business under fire insurance, what are you waiting for?  Choose a trusted insurance advisor in UAE who can help you select the best insurance policy to fireproof your business from losses. At Insurancepolicy.ae we offer commercial building property and fire insurance policies tailored to the needs and budget of each client. Connect with our insurance brokers in UAE for further details.