Property Insurance

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While setting up a new business, one of the things on your priority list is to establish a decent office for all the commercial work suitable as per your business requirements. For manufacturers, factories and warehouses also hold crucial importance for the proper functioning of their business. But it is often seen that while a businessman tries to protect his commercial office with all kinds of security systems, factories, and warehouses where the goods are produced and stored respectively lack such measures.
Mr. Varun Mehta had a store located on the outskirts of the city. Since the store was not in use, Mr. Mehta had not hired any security guards for it. He used to visit the place every month and thought it sufficient to keep a check on it personally. The next time he visited it, he was shocked to see a truck smashed into his warehouse building! The whole building structure was damaged, and he has to bear the financial brunt personally!
There are multiple such cases recorded all over the world in factories and warehouses which are difficult to ignore! If you are a businessman or a store owner, there are certain perils that you should beware of to save yourself from massive losses.

Let’s have a look at some of them below:

  1. Damage and destruction due to Natural Disasters:

Natural disasters like cyclones, storms, floods leading to landslides, and lightning can play havoc with building structures. Imagine that you have a textile warehouse. All the security systems are in place. But on a fateful night, there are extremely severe weather conditions with excessive lightning that strikes and destroys the ceiling of your warehouse. With some finished fabrics and raw materials stored in it, a fire breaks out, and all the goods are damaged and left useless. With such mishaps beyond one’s control, you need to be prepared with a significant amount of savings to bear the resulting losses. You can avail of financial loans to do so and also maintain your reputation with a large number of banks and financiers available.

  1. Theft or Burglary:

Mr. Amit Singh faces an unexpected emergency in his hometown where he owns a plastic factory. The workers in the industry are on strike for a while due to low incomes. But, since the management is still not agreeing to pay them more, they adopt violent means to destroy the factory and warehouses! Mr. Singh’s factory is one such place.
As rare as such incidents might seem, they do occur, and those who have factories in a riot-prone area need to take up the necessary security measures. You may secure through proper locking systems for external and internal windows, doors, gates, and fences fitted with proper locking devices like access control systems in which codes need to be changed to protect against theft and unauthorized entry. CCTVs are a must to install even in those factories and warehouses which are non-functional!

  1. Fire Outbreaks:

Ms. Sheila owns a food company, and the products are manufactured in a facility located on the outskirts of Delhi. Due to the negligence of some workers, while operating a machine, it catches fire, and two minor explosions take place on the premises leading to the bursting of the water pipes due to which the fire is curbed, but the water leads to extensive damage to the electrical circuits and other machines. Ms. Sheila has to bear the brunt personally and faces a huge problem in getting everything repaired.
Fire might spread due to the negligence of workers or due to excessive friction in machines. Short circuits might also be a common cause of the same. While you must lay out strict rules for the workers, get the electrical sockets, and all the machines thoroughly checked at regular intervals.

  1. Damage to the Factory Accessories:

Building accessories such as automatic sprinklers, mezzanines, racks, shelves, automatic guided vehicles, etc. play a critical role in the proper functioning of business-related activity. Any damage to these can hamper the business operations for a particular period of time, thus, affecting the profitability of the firm. You must be prepared to get these remade/installed in case they are damaged due to certain natural or man-made perils. Even in the absence of any risks, you will need to bear the cost of their repair from time to time!
Save as much as you can for such doomed days even though you might be doing pretty well in your business. But, the question that may finally arise in your mind is:

Can you save enough?

Also, is it wise to keep a large chunk of cash stuck as a contingency fund?
Although there will be a few conditions and situations where you will have to arrange some funds from your pocket, it’s wise to insure the risks with a bigger loss possibility. The policies under a fire insurance policy can cover all such perils your business is exposed to.
If you are wondering how you can get this sorted, you can connect with any of the general insurers or just connect with an online insurance advisor from the comfort of your office. Insurance advisors like SecureNow will not only help you understand your insurance need but also assist you in managing the policies and filing claims if need be.