Factory & Office Insurance

Your office or professional establishment on which so much of your time and money have been spent to build up is constantly exposed to various kinds of risks. Some unfortunate occurrences might bring a huge financial burden to your business and on you. Although you cannot guard your business from all possible risks, but you can take steps to help tide over some such unexpected events.¬

Benefits of Office Insurance

Range of risks covered
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  • The office property insurance policy covers the loss or damage caused from fire, lightning strike, natural catastrophes and other specified perils such as impact damage or leakage due to bursting of pipes, Electrical and electronic equipments can be covered for mechanical breakdown and short circuit,¬†Portable equipments such as laptops can be covered for theft during transit.¬

Insurance at reinstatement value

  • Insurance policy would reimburse the cost of reinstating the asset to its condition prior to loss. Depreciation charge is not deducted if the reinstatement value clause is applied. By default claims in fire insurance policies are settled based on market value i.e., after deduction of depreciation.¬†Under reinstatement clause, property has to be reconstructed to be eligible for the claim.¬

Consequential loss

  • Select subsequent losses arising from a covered peril insured under the policy could also be indemnified. For example, rent for an alternative accommodation during the reinstatement period.¬†Under Fire Loss of Profits (FLOP), loss of profits during the reconstruction period is covered.¬†Gross profit or Net Profit + Standing expenses, is considered for FLOP Insurance.

Factory and warehouse Insurance is a valuable benefit in an industrial set up used for manufacturing and storage of goods. It considers any financial loss due to damage of goods, building or machinery in and outside premises.

The following is covered under Factory and Warehouse Insurance:


Goods Covered Under Factory & Warehouse Insurance

Factory and warehouse insurance considers certain perils that are primarily covered under the Insurance claims, that are:

The coverage may vary based on the type of the policy bought:

  1. Comprehensive Cover: Includes all types of covers available for Factory & Warehouse premises
  2. Valued Policy: Issued for materials for which market value cannot be ascertained
  3. Floating Policy:¬ Issued when same property frequently changes location
  4. Replacement & Reinstatement Policy:¬ Pays cost of replacement or reinstatement of the

Insured asset

  1. Specific Policy: Provides cover only up to a specific amount, usually less than the property value

Perils like Theft and burglary are not included in factory and warehouse Insurance as there are separate policies available for them.

1. What does an office property insurance cover?

Office property insurance covers all your assets from various risks & perils such as Fire, lightning, riot, strike, malicious damage, mechanical & electronic breakdown, burglary, storm, tempest, flood and inundation. There are add on coverage such as earthquake, terrorism, theft and rent for alternative accommodation which can also be covered in the property insurance.

2. What is not covered under office property insurance?

Office property insurance policy does not cover normal wear and tear due to deterioration, intentional damage to the property, damage to the property due to war, illegal activity or pollution. Also, the common exclusions in office fire insurance policy also includes damages due to radioactive contamination and pollution or contamination losses.

3. Does office insurance cover third party liability?

The biggest advantage of office insurance is that a single policy can cover many risks under one package policy. You can cover third party liability cover in your office package policy as well along with covering other assets and risks for your office. Rupaiya Vasool will help you design a comprehensive and cost effective insurance cover for your office property.

4. What are the add-ons available in office package policy?

Apart from standard fire and special perils policy coverage, add-ons like fidelity cover, cash in safe and transit, plate glass, neon sign, fire loss of profit, rent for alternative accommodation, public liability etc can be covered by paying additional premium. There are add on coverage such as terrorism, all risk laptop insurance and breakdown of electrical equipment which can also be covered.

5. How is the premium calculated for office insurance?

The premium rate of your office insurance is calculated on the basis of risk that includes location of the office, history of past claim settlements, size of the company, nature of business etc. In addition to these, if you opt for any add-ons then the premium will increase.

6. How to minimize fire insurance policy premium?

You can minimize the cost of fire insurance for office by taking collective safety measures like, installing fire extinguishers and sprinklers, increasing the deductible and eliminating unnecessary coverage. Also, you should take required security measured by installing CCTV and burglary alarm. Pre-placement risk inspection of your premises can also reduce the premium.

7. What is the best way to start an office insurance policy?

In order to get the best premium discounts and get optimal coverage, it is advised to take the help of an insurance expert. In order to start the policy, you can pay premium through cheque, DD, net banking directly to the insurance company you choose to go with.

8. Does premium vary substantially by insurers?

Yes. Risk perception for each occupancy varies by insurer. It is recommended to take quotes from multiple insurers for efficient price discovery.

 9. How to file claims under office insurance?

In case of a claim, you need to first intimate your risk manager as soon as possible about the incident. Then our claim team will inform the insurer and get a surveyor appointed who would visit the accident site to do a survey. You would then need submit claim form, invoices and other documents required by the insurance company within allowed time limit. Before the surveyor inspects the loss, you should not initiate repairs. You should try to minimize the loss, inform local authorities, and take pictures of the loss.

 10. What are the documents required for filing claims under office insurance?

The common documents required for filing the claim under various policies are duly filled claim form, FIR, fire brigade report, final investigation report, invoice copy of the damaged asset, forensic laboratory report (if any), estimated cost of repair or lost product. In addition to these documents, the insurer can ask for some additional documents based on the type of claim.

 11. How much claim will I get in case there is a fire incident in my office?

In normal course, the compensation paid against the loss of the property will paid as per depreciated value of the asset. However, in fire insurance we can add a clause called reinstatement value clause to make sure that you get your claim at the current reinstatement value of the asset. You would be paid the actual cost of reinstating the asset, subject to sum assured adequacy, and net of deductible in the policy.

 12. What circumstances can lead to rejection under office property insurance?

Apart from standard exclusions mentioned in your policy copy, a few circumstances which could lead to rejection include declaring wrong risk location & occupation, inadequate safety standards, not submitting complete documents timely, non intimation to insurance company immediately after the incident, and any intentional act.

 13. Why do I need an office insurance policy?

Any damage of office spaces can incur huge business loss to any company or entity. To safeguard your business from unknown perils or dangers, like fire or natural disasters, which may interrupt your business operation, it is best to take fire insurance policy for office spaces. Fire policy offers combination of standard and optional features to choose from. This policy will help you put your business into same financial position before the claim incident.

¬ 14. What are the different types of policies which can be covered under office insurance?

There are various kind of policies you can buy under office insurance and club into a package insurance. Few of those policies are Standard fire and special peril, Burglary, Electronic Equipment Insurance, Mechanical breakdown insurance, all risk insurance for portable insurance, cash in safe and transit insurance, public liability insurance. Rupaiya Vasool will help you in choosing the appropriate plan depending upon the risks you are exposed to.

15. Who should take office property insurance?

Any company which have assets on its name should take an office property insurance. We have client ranging from small firms, SMEs, MNCs, NGOs, government companies, IT firms, etc. It is important for every company, irrespective of the size of their business to cover their assets and buy insurance to safeguard from various risk such fire, burglary, theft, natural calamities, etc.

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