You can obtain a (Fire Insurance Policy) on properties of all kinds (e. g Building & Contents, personal effects, factories, warehouses etc…
The basic purpose of Fire insurance is to provide compensation for damage or destruction or loss caused by Fire lightning or explosion of boilers or gas for domicile purposes and can be extended to cover its allied perils, (if required) such as the risks of storm and tempest, flood, bursting or overflowing of water tanks, explosion, earthquake, impact damage by vehicle or articles from the air and aircraft, riot and strikes, subsidence and landslides, thunderbolt and burglary (Theft following forcible and violent entry into the premises).
It is possible to get an additional cover to Fire Insurance policy, which is (Loss of Profit Insurance Cover which is pertinent to fire insurance). This Insurance attaches, when a business concerned should suffer a large fire, its business or productions may be seriously disrupted or reduced. Loss of Profit Policy can cover any net profit lost, all standing charges, like salaries or auditor fees, rents, etc… that may have to continue to be paid even though the business is reduced or non- productive.
This insurance cover cash money, cheques and bank notes whilst carried to and from the bank which is called “Cash In Transit“.
There is another type of Money Insurance policies, which offers insurance protection during the money being in safes, cash boxes, and cash register … etc for employee handling money who may be injured by thieves and damages to safes under ”Cash In Safe“ cover.
It is common for both kinds of policies “Cash In Transit” and “Cash In Safe” to exclude losses arising from fraud or dishonestly of an employee; this would be expected to be incorporated in separate Fidelity Guarantee Insurance cover.
Scope of Cover:
To indemnify against, financial losses suffered by an employer due to specified dishonest acts of employees.
Policy may be covering an individual employee or group of employees with individual limits.
Normal cover and possible extensions:
To indemnify the employer against direct pecuniary loss of money or goods belonging to the employer the act should have been committed in the course of duties of the person to be guaranteed.
There is time limit within which the losses are to be discovered and reported to insurer for recovery. Generally the discovery period is restricted to 6 months after the resignation, dismissal, retirement or death of the employee or 3 months after the termination of the policy period whichever is earlier. Only direct pecuniary losses are covered. Consequential losses are not covered.
