Benefits of Adding Burglary Coverage to Fire Insurance Policy for the Hospitality Industry

In today’s world, it has become extremely important to safeguard your property, especially in the hospitality sector. Hence, most businesses prioritise buying burglary insurance and fire insurance coverage.

Fire insurance is a plan that packages multiple benefits and financial compensation together to protect your property against damage and loss caused by fire. Many hotels and restaurants buy fire insurance policies, but adding burglary coverage to these policies will offer substantial benefits.

 Burglary Insurance

Most people confuse theft insurance with burglary insurance, so let us understand the difference.

Theft consists of an action of stealing an asset or property that rightfully belongs to you. In comparison, burglary refers to an unlawful act of breaking into your private property and stealing what is rightfully yours.

The act of breaking and entering follows with a series of financial losses and damage. Burglary insurance is designed to protect businesses against the losses incurred from break-ins, theft and the damage that follows these actions. Typically, this policy covers replacement, repairs and restoration of stolen or damaged property.

Adding a burglary plan to a fire plan creates a comprehensive policy in fire insurance. Some insurers like Tata AIG allow you to buy fire insurance and burglary insurance bundled under one plan.

 Benefits of Adding Burglary Insurance to Basic Fire Insurance Coverage

●         Optimal Risk Management

You do not need expertise in risk management to understand fire insurance’s importance and benefits. The basic fire insurance coverage is not enough to provide all-inclusive protection for your property. However, when you buy a fire and burglary insurance policy, you substantially increase your financial security.

The integration of these two policies allows risk mitigation by covering multiple risks. The fire and burglary insurance coverage keeps you prepared for various risks, providing stronger safety nets against potential risks.

●         Comprehensive Coverage

Buying fire and burglary insurance online from providers like Tata AIG allows you to get extensive coverage against damages caused by fire, smoke, burglary, theft, water damage, impact damage, natural disaster damage, etc.

It is always advised to add burglary insurance to your policy when you buy fire insurance. This way, you create a more robust insurance plan that covers multiple threats and risks.

●         Protects Against Loss

A hospitality business depends a lot on how the property is maintained and kept. Fires and break-ins can cause substantial damage.

Fire and burglary insurance policies can protect property against this type of loss and damage. Businesses can be reimbursed for the losses suffered and can resume operations to prevent any further revenue loss.

●         Asset and Property Protection

Hospitality businesses often house expensive equipment, goods, furniture, cash and other valuables. Burglary, fire and extended coverage insurance offers all-inclusive coverage pertaining to these items, ensuring their replacement, repair or restoration.

The policy covers damage to premises, locks, keys, goods, valuable items, money in different forms (cash, coins, cheques, overdrafts) and money in transit as well.

●         Compliance Requirements

When it comes to medium and large-scale hospitality businesses, buying fire and burglary insurance policies becomes a matter of compliance.

Even if it is not legally mandatory to buy this policy, many landlords (who lend their property to hospitality businesses) and franchise owners make it a point to get the said business insured against fire and burglary.

Beyond everything, it demonstrates your commitment to the safety of your business and guests.

●         Business Continuity

Financial reimbursement from your insurance provider allows quick repairs, replacement and restoration of damaged property, items and appliances.

This feature also benefits you by allowing your business to continue without a long break, preventing business interruption and loss of income. The fire and burglary insurance policy covers the cost associated with these interruptions.

 Conclusive Thoughts

The hospitality industry needs safety and security to be able to provide optimal hospitality to their guests. Safeguarding the business with security measures is not enough; it needs insurance.

A policy that can protect against multiple damages and losses, fire and burglary insurance is just that. By investing in this integrated approach, you can create a safe space for your business to grow and for your guests to feel safe.