Second only to motor insurance, fire insurance is the biggest general insurance policy in the Malaysian market — with over 40% market share in total gross premium for the year 2016. It is one of the most important types of business insurance to ensure the safety of your business.

While most businesses don’t like to think about their business being hit by a fire or natural disasters for any reason, it’s not inconceivable that it could happen. Suburban city Subang, for instance, has one of the highest rates of thunderstorms in the world with about 240 lightning strikes per year.

In the event that a massive thunderstorm hits the area, a giant tree falls onto one of your business premises, and severe damages are inflicted on the infrastructure of your building, the cost of repair for damages could cripple a business if unprotected with sufficient coverage. This is where fire insurance comes in – better safe than sorry.

Fire Insurance 101

With fire insurance, it important to select coverage that fits your business’s own needs. For example, business owners can insure their building’s value with buildings insurance to cover the cost of re-building, whereas contents insurance can cover the cost of repairing or replacing damaged furniture and/or appliances in the event of a fire. If the nature of your business is based on trades, where stocks are kept in a factory, this too, can be added as an additional coverage to your fire insurance policy

Who Needs to Purchase Fire Insurance?

Just like vehicle ownership, any business owner with a business loan for their property are required to insure their property with fire insurance. But since majority of businesses have property loans, the worry isn’t with having their basic insurance covered. When it comes to time of claims, many policyholders find inadequacy in their coverage and file for dispute during the claim processes. It is vital for policyholders to check and agree on their policies prior to disastrous events.

Second only to motor insurance, fire insurance is the biggest general insurance policy in the Malaysian market — with over 40% market share in total gross premium for the year 2016. It is one of the most important types of business insurance to ensure the safety of your business. While most businesses don’t like to think about their business being hit by a fire or natural disasters for any reason, it’s not inconceivable that it could happen. Suburban city Subang, for instance, has one of the highest rates of thunderstorms in the world with about 240 lightning strikes per year.

In the event that a massive thunderstorm hits the area, a giant tree falls onto one of your business premises, and severe damages are inflicted on the infrastructure of your building, the cost of repair or damages could cripple a business if unprotected with sufficient coverage. This is where fire insurance comes in – better safe than sorry.

With the recent de-tariffication ruling, certain types of occupations that operate from within the business premises qualify for more rebates on premiums. Many insurance companies also offer free evaluation reports for properties that total up to more than RM50 million in sum insured as a complimentary package.