Fire and Extraneous Perils insurance is coverage of your business assets, property and stocks from damage caused by fire, lightning, explosion, flooding, riots, strikes, malicious damages or from Acts of God.
Fire and Extraneous Perils is also known as Fire and EP insurance. It started off as fire insurance for business and insurers started to add in EP to cover for other perils that can disrupt business’s operations and assets such as flood, lightning, riots, etc.
Does my business need Fire and Extraneous Perils insurance?
Most of us have fire insurance for our home. HDB and some condominium have made it compulsory to buy basic fire insurance for the home structure. So, is your income-producing business worth the risk of exposure to the risks of unplanned events such as lightning, fire, flooding (from burst pipes), etc?
Your business is your bread and butter, and probably the bread and butter for your staffs and their families. As long as your business has an office, you definitely need basic fire and extraneous perils insurance. This is the 1st common business insurance that all business should consider, as it protects their primary base.
Singapore has the highest rate of lightning in the world, though all our buildings have lightning protection, lightning can still do damage in accidents like causing trees to fall, or starting a fire. Singapore Civil Defence Force has also highlighted many electrical fires started from small business offices.
And if your business is in ground floor or at basement level, Orchard road flooding with lots of expensive Hermes bags floating in the “once-every-ten-year- floor would bring to your memory how damaging a flood can be. Even if you are on 2nd floor and above, burst pipes and water seepage at the wall from a storm can also cause unnecessary disruption at work.
How much do fire and extraneous perils insurance cost?
Not expensive at all. They are usually around the same as home insurance plans, which is really cheap. You can buy standard plans that cover general office for mere dollars, and even customized plans with other riders if you have special equipment, stocks or assets that are more valuable or unique.
To keep premium costs down, do check with your general insurance broker what other riders to stack on so that you can get good discounts for overall risk management.