Fire and All Risk
Technically, in such a policy, one has 2 options to insure his/her property. Firstly, the basic policy which only covers the losses &/or damages occurred due to Fire and lightning. And secondly, the additional cover which coversthe losses &/or damages due to Fire, lightning and Allied Perils.Both categories have similar terms but however, there can be additions and modifications in the coverage for Allied perils, each one differs from the other in terms of conditions and clauses.
Coping with one’s business loss after a mishap can often be more stressful due to the loss of revenue and certain standing charges that continue irrespective of the situation that the insured is placed in; bank EMIs, Salaries, Rent, Electricity, etc. This ultimately affects the gross profits due to reduction in turn over and increased cost of working during the phase where there is no business taking place. This policy proves to be active only if the Insured has a Fire Insurance or a Property All Risk Insurance in place.