A 7.4 magnitude earthquake ravaged Japan’s east coast on 17th March, causing at least 4 casualties and over a hundred injuries.
The quake derailed a bullet train, opened cracks in highways, caused a mass loss of power and water, and devastated more than 1,000 buildings.
The ensuing property damage is expected to cost insurers between $2-4 billion! And the bulk of these losses will stem from damage to commercial and industrial properties.
So, how do commercial enterprises cover against the risks of earthquakes and other natural calamities?
Through a Fire Insurance policy!
Fire Insurance policies essentially provide coverage for loss or damage to business property (like buildings, stock, machinery) from a large number of risks, including earthquakes, volcanic eruptions, floods, and other natural disasters.
And that’s not all! This policy also covers instances of theft, burglary, fire/explosion, riots, and over a dozen more perils.
Although high magnitude earthquakes like this are relatively rare in India, they still have the power to cause enormous damage to many of India’s small businesses.
Adding to this the risk of floods and fires that are both widely prevalent in the country– a Fire Insurance policy becomes crucial.
And they’re not needlessly expensive either! Small businesses like Kirana stores or retail shops can get this coverage for as little as ₹200 a year.