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Fire insurance steps in America

Fire insurance steps in America

If you own a factory and want to insure it against fire, but you do not know what the procedures are and how to guarantee your right and the requirements of the insurance company to issue this document, the following report will explain to you in detail the steps for issuing an insurance policy on the factory.


Fire insurance steps in America

Insurance on any factory against fire risk begins with the customer - the factory owner - filling out an insurance application that includes some data and is divided into two parts.


The reason for requesting data related to the type of factory activity is that estimating the risks and setting prices for fire insurance for a factory next to a car catering station - a petrol station - is different from a factory next to a vacant land or an industry that is not dangerous or its danger is less because this affects pricing and acceptance of the risk itself and the tolerances.


Fire insurance in America

The next step includes determining the amount of insurance and its details in the sense of determining the value of assets, machinery and inventory, and after completing that step, the customer or the factory owner is asked a specific question, which is whether the factory is currently operating or stopped working?


A suspended or closed factory has a higher risk because in that case it will be neglected and there is no interest in it, which worries the insurance company, especially since a fire may break out and the factory owner will demand compensation to pay certain debts such as his debts to banks.


Note that the closed activity or the factory that is not working and stopped working, the insurance companies refuse to cover it or issue an insurance policy for it.


On the other hand, if the factory is operating, in that case the next step begins, which is to inspect the factory before issuing the insurance policy. The inspection is carried out through the specialized expert sent by the insurance company at its own expense.


And the inspection includes the fulfillment of some basic data, including the availability of means of fire protection in the factory, such as the alarm system, the good storage system, and others.


In addition to the availability of fire-fighting means such as the availability of automatic water sprinklers, the presence of manual extinguishers, the availability of a carbon dioxide system for electricity and the nearest extinguishing point. The extinguishing point may be in a nearby factory if there is no fire station, in addition to ensuring the ease and soundness of the fire engine to the place or to the factory in case of an outbreak fire.


The inspection includes identifying the security and guarding system in the factory and whether it is available 24 hours a day or not, in addition to the distribution of dangers in the factory, as it is necessary that the distance between each danger and the other be a minimum distance of 25 meters.