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Fire and Allied Perils

Your shopkeeper's insurance policy covers any damage to your shop and it's contents. Read to know more.

Apnainsurance Research Bureau

17 Jan 2008

This section of shopkeepers' insurance provides cover for damage to your shop and its contents - business assets, stock-in-trade, equipment, furniture, fixtures, fittings, interior decoration and other contents - against fire and its associated perils that might happen because of natural or man-made calamities.

Natural calamities include fire, lightning, earthquake, landslide or rockslide damage, flood, inundation, storm, tempest, typhoon, hurricane, tornado, or cyclone.

Man-made calamities include explosion of gas in domestic appliances, bursting and overflows of water tanks, apparatus, or pipes, damage caused by aircraft, riots, strikes, malicious, or terrorist acts.

Additional risk covers provide for:

  • Removal of debris
  • Costs to comply with building regulations following a damage
  • Consulting fees for architects, surveyors, and engineers
  • Temporary removal of equipment to another place for repairs or renovation
  • Loss of rent as landlord and
  • Additional expenses on rent for tenant
  • Escalation of sum insured throughout the year to guard against inflation


  • insurance companies tend to be selective about the risk covers offered. For example, some companies may charge an additional price for cover against terrorist activities. Yet others may have built-in deductibles where you will have to pay a portion of the claim amount for damage or loss due to natural calamities.
  • Loss, destruction or damage caused by:

    • War, invasion, foreign enemy hostilities, civil war, mutiny, civil commotion
    • Nuclear activity
    • Pollution or contamination
    • Stock spoilage in cold storage due to change in temperature

  • Loss, destruction or damage to bullion or unset precious stones, works of art for an amount exceeding Rs. 10000, goods held in trust or on commission, manuscripts, plans, drawings, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of accounts or other business books, computer systems records, explosives unless otherwise expressly stated in the policy

  • Loss of earnings, loss by delay, loss of market

  • Loss by theft during a peril or after it happens except in the case of riots, strikes, and malicious damage covers
  • Loss or damage to property insured if they have been removed to another place; this is not applicable to machinery and equipment temporarily removed for repairs, cleaning, or renovation (not exceeding 60 days)

See also:

Money Insurance
Electronic Equipment / Reinstatement of Data and Software
Television, Video Equipment, Portable Computer, Mobile Phone
Electrical or Mechanical Appliances Breakdown
Business Interruption and Increased Cost of Working / Loss of Profit
Neon or Glow Signs
Plate Glass Coverage
Pedal Cycle Coverage
Baggage Coverage
Personal Accident Coverage
Fidelity Guarantee
Public Liability Risk and Workmen's Compensation Policy
Burglary and Housebreaking

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