UAE – Fear of arson at warehouses
Monday, 01 25 2016, Category: Insurance and Reinsurance, Country: U.A.E
Insurance companies are avoiding the coverage of warehouses because of beliefs at insurers and reinsurers that part of the fires taking place are intentional. Additionally, many warehouses use low cost low quality equipment.
Moreover, the warehouses in the local market do not comply with the adequate safety standards, which pushes insurance companies to decline insurance coverage for these enterprises.
Insurance officials have asked for stringent safety actions at warehouses, which can protect them from fires and removes arson suspicions. They confirmed that meeting safety standards at the design, inventory, and cleaning levels will open up competition at insurance companies and will decrease the cost for all stakeholders.
The prices of warehouse insurance cover against fire ranges between 0.5 per mil and 5%, so it differs according to the safety requirements, the nature of warehouses, and the type of inventory provided the insurer accepts to provide coverage.
Source: Al Roeya - UAE