A Must Have Fire Protection Insurance
Owning a business is a major investment. You put your time, money, and effort into setting it up. While it can provide you with a source of income, there are also potential risks that you need to take into consideration. As such, you would want to protect your investment at all costs. Getting fire insurance is one of the ways you can protect your business. As a business owner, you have many expenses on your table. You pay business taxes, wages and salaries, equipment, rentals, to name just a few. When it comes to fire insurance, the first thing that might come to your mind is: “Do I need it for my business?” or “I cannot afford it. I already have so many expenses.” Well, you might not need it at this moment but what if something happens, do you have the money to recover the losses?
Why a fire Insurance makes sense?
Assurance.PH understands the importance of protecting your business assets from incidents like fire. You may not have enough money to make an out of the pocket payment for the cost of equipment, furniture, fixture, and others that you lost from an accidental fire. As a responsible business owner, you need to be ready for any unfortunate accidents that might happen to your business.
Biz Protect is a fire insurance policy that protects your business assets, like building contents such as equipment, furniture, fixtures, fittings, and others from financial losses that may arise from a fire. Depending on where your business operates, Biz Protect may also offer additional protection against earthquakes, typhoons, and floods.
Reasons Your Business Needs
You might think of fire insurance as another expense but one that is necessary. Here we cite some reasons why you should invest in a fire insurance policy for your business.
HOW DOES BIZ PROTECT FIRE INSURANCE WORK?
- In case your property is totally destroyed, Standard Insurance will pay the Sum Insured in case of a claim. The “Sum Insured” is the value of the property you want to insure. It is also the maximum amount that will be covered by Standard Insurance.
- In declaring the “Sum Insured,” you can use your property’s Replacement Value or its Actual Cash Value/Sound Value as a basis. It is worth noting that without specific instructions from you, the default basis for the valuation of your property is Actual Cash Value/Sound Value. Standard Insurance recommends Replacement Value as the basis for the valuation.
- The Actual Value is the Replacement Value less depreciation
What is Underinsurance?
With a fire insurance policy, you need to avoid underinsurance. This means that your declared Sum Insured is less than the actual value of your property. When your property is underinsured, your insurance policy will carry an “Average Clause.” To avoid underinsurance, make sure that your building is appraised regularly.