Fire and allied perils
Insurance of commercial and industrial enterprises against fire and other risks is the most widespread insurance product in the domestic property insurance market, providing protection for an enterprise’s entire property, or for individual facilities, on a wide range of risks and coverage. Along with traditional policies for named perils, policies providing insurance against all risks, with a loss limit per each claim, are even more wide-spread in practice. Such coverage is typically used for industrial enterprises, but in some cases can be used for commercial facilities as well.
Other coverage is used to supplement fire policies in creating a complex program of protection for the insured’s property interests. Examples include losses due to business interruption, and liability for third party damage resulting from a claim on insuredís property.
In all cases, the development of an effective insurance program which considers the insured’s interests and acceptable levels of risk is impossible without taking into account a set of concomitant factors. To determine the appropriate cost of insurance coverage, in addition to an insured facilityís physical characteristics and its susceptibility to certain natural and man-made hazards, it is necessary to consider the adequacy of preventive measures depending on the volume of coverage, validity and correctness of cost indexes for the facility and accompanying expenses, and, last but not least, the existing insurance practice.
More and more, insurance is based on competition: comparative approaches to appraising an insured facility, as well as the attractiveness of the offered insurance program, play the key role in decision-making. The effectiveness of each insurance offer is especially important in highly competitive sectors, including property insurance.
Participation of a skilled appraiser during the development of original insurance terms ensures a global and potentially strategic competitive advantage aimed at acquiring a significant share of the market under the most favorable conditions.