Quick Summary
fire insurance
fire insurance
On June 30, 2025, a fatal explosion and fire broke out at the Sigachi Industries chemical plant in Telangana. Over 140 workers were on-site when the reactor’s spray-dryer unit reportedly overheated and exploded, triggering a massive fire. The blast collapsed the building, killing at least 36 to 40 people, injuring dozens, and leaving several workers missing, some so badly burned that identification required DNA testing.
In industries like chemicals and pharmaceuticals, factory fires can cause more than just physical damage. Lives are lost, operations freeze, and entire communities face financial and emotional loss. That’s why it’s important not just to react after a disaster but to stay prepared. Having the right fire insurance can help protect your factory, employees, and financial future. A good fire insurance policy ensures you can recover quickly without bearing the full cost of the damage.
The tragic explosion at Sigachi Industries highlights how industrial accidents leave behind far more than just burnt structures. The damage goes deeper like affecting operations, finances, and lives.
This could happen to any manufacturing unit, warehouse, or plant that underestimates the risks and doesn't invest in fire insurance.
Having comprehensive fire insurance and business insurance isn’t just a smart move, it’s a safety net that helps companies recover, rebuild, and take care of their people when tragedy strikes.
Fire Insurance For Your Organisation. Simple, Fast, Reliable: Protect your property, inventory, and operations with Pazcare’s comprehensive Fire Insurance customised for Indian businesses.
Whether you own a factory, warehouse, office, or even a commercial shop, the risk of fire or explosion is real and often underestimated.
A single fire can wipe out years of hard work. Investing in the right fire insurance and business insurance coverage helps you protect assets, employees, and business continuity before it’s too late.
Read: Fire Insurance Coverage for Tangible and Intangible Assets
If you don’t, you're taking a huge risk. Even a small fire can lead to major damage and complete operational shutdown. A fire insurance policy is your financial backup.
Many businesses forget to revise their policy after buying new equipment or expanding. Underinsurance can lead to partial claim payouts. Make sure your coverage reflects your current asset value, not outdated estimates.
A basic fire insurance policy may not cover all scenarios. Add important riders such as:
In case of a fire, your claim depends heavily on proof. Maintain:
Insurers may inspect your workplace before approving large claims. Conduct internal safety audits and ensure you comply with fire safety norms under the Factories Act and local fire department rules.
The right partner can make all the difference during a crisis. At Pazcare, we help you:
👉 [Get Covered Today with Pazcare] – Protect your property, equipment, and future.
Here's how both department plays a critical role in building a fire-resilient business and why having a comprehensive fire insurance policy matters to them:
HR leaders are responsible not just for employee engagement, but also for health, safety, and emergency preparedness.
Finance teams ensure facility continuity, safety compliance, and vendor coordination, all of which are disrupted during fire incidents.
Why it matters: Without proper coverage and documentation, finance teams face chaos when disaster hits from facility shutdowns to vendor disputes. One uninsured fire can derail balance sheets, damage investor confidence, and trigger compliance issues.
This tragedy highlights one important point that fire safety is essential but not enough. Even with alarms, extinguishers, and drills, accidents can still happen.
Without the right fire insurance coverage, the damage can last for years:
A fire insurance policy gives you a financial backup that safety equipment alone can’t provide.
Don’t wait for a disaster to strike. Protect your company’s future with comprehensive fire insurance and business insurance, including important add-ons tailored to your operations, from equipment breakdown to relocation and data recovery.
At Pazcare, we offer tailored insurance solutions for businesses that want complete protection:
Secure your business and assets before disaster decides for you. Contact our insurance advisors now for a free risk audit and coverage in just 24 hours.
Fire insurance, generally known as the Special Fire and Special Perils is a type of property insurance that provides coverage for material damage. The main objective of fire insurance is to provide cover for your property against any physical losses, damage or destruction. The policy pays you the restoration costs, repair costs or replacement costs of the property or any part of the property.
Types of fire insurance
Fire insurance in India is broadly categorised into three based on the sum insured.
Bharat Sookshma Udyam Suraksha
This fire insurance policy covers the loss, damages or destruction to the business property like stocks, buildings, plant and machinery, fittings and fixtures and other assets of the business for a sum insured up to ₹ 5 crores.
Bharat Laghu Udyam Suraksha
This fire insurance policy covers the loss, damages or destruction to the business property like stocks, buildings, plant and machinery, fittings and fixtures and other assets of the business for a sum insured up to ₹ 5 to 50 crores.
Special Fire and Special Perils Policy
In this type of fire insurance policy, the business property like buildings, plants and fixtures, and other assets are insured against any loss or damage by the perils mentioned in the policy copy. Here the sum insured exceeds ₹ 50 crores.
The Special Fire and Special Perils are broadly categorised into:
Values Policy
In this type of fire insurance policy, firstly the value of the business property is decided. This value is not the current market value but the value the insured and the insurer agreed upon. This applies to those properties where the market value cannot be determined, for instance, old manuscripts, artefacts etc. Hence, this value will decide the sum insured.
Floating Policy
In a floating fire insurance policy, the coverage is offered to business that deals with stocks/goods present at various locations for one sum insured and one premium. This mostly applies to businesses dealing with the import and export of goods.
Comprehensive Policy
A comprehensive policy ensures that coverage is offered to fire-related perils and also offers cover against other perils such as burglary, robbery, etc.
Specific Policy
In a specific fire insurance policy, a sum insured is already decided for your business property. In case of any loss or damage to your property, the cover amount provided will be within the determined sum insured limit.
Replacement Policy
Replacement or reinstatement policy applies to buildings, furniture, machinery and fixtures. The market value of the property is determined and the insured is compensated based on the actual amount required to replace or restore the damaged property.
Consequential loss policy
This type of policy provides compensation for the consequential loss of profits or loss. For instance, a fire outbreak at a manufacturing plant can stop operations and bring down production hence, causing a loss in profits. However, the fixed expenses continue. So, this policy compensates those consequential losses by looking at a loss.
Fire insurance primarily covers damage or loss to a property caused by fire. It can also extend to include other perils like lightning, explosion, riots, and sometimes even natural disasters depending on the policy.
Key principles include: Insurable interest, utmost good faith, indemnity, proximate cause, contribution, and subrogation.
Yes, fire insurance is available for various types of properties, including residential buildings, commercial spaces, and industrial premises. It can also cover movable assets like machinery and equipment within these properties.