What doesn’t it cover?
Business fire insurance does not usually cover personal possessions belonging to you or your employees, so check with your provider if this aspect is going to be of concern.

Apart from physical possessions, have you considered the profit you would lose in the aftermath of a fire? Even if you have adequate fire cover for your premises and contents, you will not be able to trade while you are getting yourself back on your feet and trying to replace missing or damaged premises and equipment. This loss of profit is something that is often overlooked. Business interruption insurance covers exactly this scenario. However, it is not standard on all policies, so check with your provider whether it is available as an extra.

How much will it cost?

The premium depends on how many employees you have, and what kind of business you run. Some businesses are a greater fire risk than others. For example, using dangerous or volatile petrochemicals would be a high risk business.

How can you bring down the cost?

Bringing down the cost for your fire cover is often relatively straightforward. As with all insurance cover, the provider assesses the risk involved in offering you cover and decides on a price that is linked to this level of risk. The riskier the customer, the more expensive the cover. So to bring down the cost of your policy, you need to bring down your business’ fire risk. This may include making physical alterations to your business premises like installing extra fire doors and extinguishers. However, you also need to consider how your staff would deal with a fire. Have they been adequately trained? Improving staff training can help to make them better prepared to avoid or deal with a fire.

Are you already protected?

Before you take out business fire insurance, check your existing policies. Perhaps your contents and buildings cover already includes fire cover. If so, check that it is for a sufficient amount.