Fire and Lightning Policy

Job Description

It is a type of insurance which compensates insured against financial loss or damage to commercial property being damaged or destroyed by fire and lightning but in response to market demand extensions of cover will be developed for other perils.

There are two policies issued under commercial line which are standard fire policy and industrial all risk policy.

The standard policy cover is a named-peril policy covering various perils on demand bases in addition to fire and lightning.

This policy is issued for small to medium businesses to cover loss or risk of fire and demand based causes or perils against insured property.

The policies under commercial line cover insured’s property including building, machinery, stocks, furniture, and other contents, against damage or losses arise out the following major perils

• Fire
• explosion,(excluding explosion of boilers, economizers or other vessels, or apparatus in which steam is generated)
• direct lightning

Some of the basic exclusions are damage or loss by:

• theft during or after occurrence of an insured peril;
• electrical short circuits,
• destruction/damage by own fermentation, natural heating or spontaneous combustion;