INDUSTRIAL FIRE INSURANCE

Subject of the insurance:

Movable and immovable property of commercial companies, property of public /state and municipal/ institutions, of non-profit organizations. This insurance is entered into for sites with insurance sum above 1,000,000 BGN and a deviation from that rule is allowed for property of budget organizations, of non-profit organizations and institutions.

• Fixed assets: Buildings; machinery, facilities, equipment, incl. economic stock, other fixed assets, transport means (without MV with state control number, floating vessels and aircrafts);
• Expenses for acquisition of fixed assets (excluding non-finished construction);
• Inventories, incl. materials, production, goods, unfinished production;
• Other properties – itemized in a list;
• Foreign properties (rented, accepted for repairs, processing and/or storage), which are in the possession of the Insured person on a lawful legal base.

Covered risks:

• Basic cover: fire, thunder (lightning), explosion, implosion, collision and/or falling of piloted aircraft, its parts and/or cargo.
• Additional risks: storm, hail, heavy rain, flooding; natural accumulation of snow or ice; frosting, freezing; land sliding or collapsing of earth; damage, caused by underground waters and/or the effect of sea waves; malfunction of water supply, sewage and steam supply installations and devices connected to them; impact by a motor vehicle or animal; earthquake; arson; required expenses; vandalism; accident with loading and unloading machinery during loading and unloading.
• Theft through breaking and robbery /usually in a separate policy, covering only those risks/

Insurance sum:

Determined in the following manner:

• For fixed assets:
• as per real value – the sum for which, instead of the insured property, another property, of the same type and same quality, can be bought or the sum for which it can be sold (its market value);
• as per replacement costs – the value of re-construction, delivery or production of insured property (buildings, MFE, fixed assets expenses) in the same appearance and with the same quality;
• as per book value or corrected book value;
• Inventories:
• their real value is the price of acquisition or their prime cost; The insurance sum can be agreed:
• as fixed value – the value of the maximum quantity, stored at the premises and storage areas of the Insured person;
• based on periodic declaring – the period of declaring is agreed upon with the Insurer;

Limits are agreed as part of the additional risks, which are based on Primary risk (for ex. Vandalism, required expenses, breaking of glass etc.)

Insurance premium: 

Determined as a percentage of the insurance sum.

The following are of an essence:

• Site risk class;
• Selected covered risks;
• Age and number of floors per building;
• Other agreements.

Discounts of the nominal sum of the premium:

• single payment;
• agreed deductible or deductible higher than the common one;
• dispersion of the site, leading to reduction of the risk;
• Level of the site’s security;
• Complex insurance;
• Lack of damage during previous years, when renewing.

Duration of the insurance:

Usually, the insurance is concluded for one year but a longer period, up to 5 years, is possible.