Fire

This forms under the umbrella of the loose term, property insurance. Fire cover insurance, flood insurance, earthquake insurance, home insurance, inland marine insurance and boiler insurance all fall under Property. This can be protected against the damage caused by the natural elements of fire, flood, earthquake, storm, lightning, explosion, theft and other specified perils in respect of the building, machinery, stock and other contents. These damages may be irreparable and business revenues will be disrupted because the business cannot be open.

Small business owners insure their business for less than it is worth in order to obtain low premiums in the case of fire cover. However, the policy states that the business has to be insured for a value that is equal to the value of the business (100% of the business value). When a loss occurs and the value is seen to be lower than the actual value, a penalty will be applied to the settlement account, which exceeds the amount of the saved premium, at the worst time possible.