Fire Insurance

Protect your business against fire and allied risks.

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Shield Your Business From Fire-Related Perils

PRODUCT OVERVIEW

What is Fire Insurance?

Fire Insurance is a commercial property insurance policy that protects businesses against financial losses arising from unforeseen incidents such as fire, explosion, lightning, natural calamities, riots, or accidental damage. It provides coverage for physical damage or loss caused to insured business assets such as office premises, factories, warehouses, plant and machinery, stock, equipment, furniture, and fixtures.

Protects Critical Business Assets

Fire insurance helps safeguard business premises, machinery, stock, equipment, furniture, and other valuable assets against fire-related damages.

Reduces Financial Losses

It provides financial protection against losses caused by fire, lightning, explosions, and certain natural calamities covered under the policy.

Supports Business Continuity

The policy helps businesses manage repair, reinstatement, and replacement expenses, reducing the financial burden after a major incident.

Helps Faster Recovery

Supports quicker recovery from property damage and business interruptions caused by fire-related incidents.

Suitable for Multiple Businesses

Useful for factories, warehouses, offices, retail shops, and other commercial establishments exposed to fire risks.

Top 10 Global Business Risk

Fire and explosions are ranked as a top 10 global business risk in 2026, remaining a perennial threat to operations. (1)

$148 Billion in Projected Insured Losses

Global insured losses from natural catastrophes (including fire/wildfire) are projected to hit $148 billion in 2026 due to "secondary perils." (2)

₹285 Crore Single-Incident Losses

Large-scale commercial fires continue to impact regional economies, with early 2026 reports citing single-incident industrial losses exceeding $34 million (₹285 crore) in heavy industry zones. (3)

#3 Risk in Construction & Engineering

For the construction and engineering sectors, fire is ranked as the #3 top business risk globally, highlighting its disproportionate impact on infrastructure projects. (4)

WHO SHOULD PURCHASE

Who Should Purchase Fire Insurance?

Offices and Commercial Establishments

Protect office infrastructure, furniture, equipment, electronics, and business assets against unforeseen incidents and operational disruptions.

Factories and Manufacturing Units

Factories handling combustible materials, high electrical loads, boilers, furnaces, or chemical storage require broader fire and allied peril coverage, along with higher sum insured limits, due to their susceptibility to fire hazards.

Warehouses and Storage Facilities

Secure stored inventory, goods, machinery, and stock against damage arising from fire, explosion, natural calamities, and other covered risks.

Standard Fire and Special Perils Policy (SFSP)

The Standard Fire and Special Perils Policy is suitable for businesses with total asset values exceeding ₹50 Crores. It provides coverage for buildings, plant and machinery, stock, inventory, electrical installations, furniture, fixtures, and other insured business assets against fire and allied perils such as explosion, lightning, riots, storms, floods, and earthquakes.

Bharat Sookshma Udyam Suraksha

Bharat Sookshma Udyam Suraksha caters to small businesses and micro enterprises with total asset values up to ₹5 Crores. The policy offers standardised fire insurance coverage for shops, retail outlets, warehouses, small offices, restaurants, service establishments, and manufacturing units against losses arising from fire and related perils.

Bharat Laghu Udyam Suraksha

Bharat Laghu Udyam Suraksha is applicable for businesses with total asset values between ₹5 Crores and ₹50 Crores. It covers commercial buildings, machinery, stock, equipment, operational assets, furniture, and fixtures against fire, accidental damage, natural calamities, and other insured risks that may impact business operations.

What is Covered

Fire and lightning

Covers losses caused due to fire outbreaks, lightning strikes, and resulting property damage.

Explosion and implosion

Protects against damages arising from internal or external explosions and implosions.

Natural calamities

Covers cyclones, storms, floods, hurricanes, typhoons, earthquakes, and related natural events.

Riots and terrorism

Provides coverage for losses caused by riots, strikes, malicious acts, and terrorism incidents.

Impact and water damage

Covers damages caused by vehicle or animal impact and overflow or bursting of water tanks and pipes.

What is Not Covered

Losses arising from war, invasion, nuclear hazards, or radioactive contamination are excluded.

Pollution and contamination

Does not cover damages caused due to pollution or contamination-related incidents.

Wear and tear

Normal ageing, gradual deterioration, corrosion, and depreciation of assets are not covered.

Intentional acts or negligence

Losses caused intentionally or due to wilful negligence by the insured are excluded.

Indirect financial losses

Consequential losses such as loss of profit, delay, or market loss are not covered unless specified.

Operational and uncovered losses

Excludes damages during processing operations, temperature-related stock loss, and unexplained theft or missing property.

CLAIMS

Fire Insurance Claim Process

Coverfox will assist the policyholder with the claim resolution. The employer must follow these steps to raise a claim for WC policy through Coverfox:

Notify Us

Inform us immediately after the fire or insured incident occurs through help@coverfox.com.

Register the Claim

Complete and submit the claim form along with incident details, policy information, and supporting documents.

Surveyor Assessment

The insurer appoints a surveyor to inspect the damage, determine the cause of loss, and assess the claim.

Claim Verification

The insurer reviews the surveyor's report, submitted documents, and policy terms to determine claim eligibility.

Claim Settlement

Once approved, the insurer settles the claim as per the policy terms and coverage limits.

WHY INSURANCE

Documents Required for Fire Insurance Claim

To purchase an Employee’s Compensation Policy online, you need to provide basic business and employee-related information. Keep the following documents ready:

Fire Insurance policy document

Signed by an authorized signatory, detailing the nature of the business

Duly filled claim form

Including the number of workers and their job roles

Fire brigade report

Of employees for accurate premium calculation

Additional documents

If required by the insurer based on the nature of the business

Trusted Insurer Options

Get fire insurance quotes from IRDAI-approved insurers through a single platform for easier policy comparison and selection.

Customised Business Coverage

Get tailored insurance for offices, factories, warehouses, retail outlets, hotels, and commercial establishments based on business requirements.

End-to-End Policy Assistance

Receive dedicated support for policy issuance, renewals, endorsements, and claim-related assistance throughout the policy period.

Expert Guidance on Policy Terms

Get assistance in understanding coverage inclusions, add-on covers, exclusions, and insurer-specific terms before purchasing the policy.

What is covered under a Fire Insurance policy?

Fire Insurance generally covers losses or damages caused by fire, explosion, lightning, natural calamities, riots, storms, floods, and other allied perils specified in the policy.

Fire Insurance is suitable for businesses, factories, warehouses, offices, retail shops, hotels, restaurants, housing societies, and commercial establishments with physical assets and infrastructure.

While Fire Insurance is not mandatory for all businesses, certain lenders, landlords, industrial regulations, and commercial contracts may require businesses to maintain adequate fire coverage.

Yes, but only if Business Interruption or Loss of Profit cover is included in the policy. A standard Fire Insurance policy mainly covers physical damage caused by fire and related risks.

Premiums are determined based on factors such as property type, sum insured, occupancy, location, asset value, fire safety measures, and risk exposure.

Yes, businesses can enhance coverage through add-ons and policy extensions based on operational and industry-specific risks.

Yes, Fire Insurance can cover stock, raw materials, finished goods, and inventory against insured fire and allied perils, subject to policy terms.

You must immediately inform the insurer, submit the claim form, provide supporting documents, and cooperate with the surveyor appointed by the insurer.

Commonly required documents include the policy copy, claim form, fire brigade report, FIR, photographs, invoices, and proof of loss or damage.

Claim settlement timelines vary depending on the nature of the loss, documentation, surveyor assessment, and insurer verification process.

Disclaimer

Coverage, inclusions, exclusions, add-ons, claim settlement, and policy terms may vary depending on the insurer and policy selected. Please refer to the respective policy wording, terms & conditions, and coverage documents for complete details, limitations, and exclusions before purchase.

1 Source: Allianz Risk Barometer 2026
2 Source: Swiss Re Institute, Global Catastrophe Trends.
3 Source: NFPA Large Loss reporting / Regional fire department incident data (Q1 2026).
4 Source: 2026 Industry Risk Rankings, Allianz Risk Barometer.