By The Algorithmic Lawyer
The fire is out and the warehouse is closed. Accounts needs a number for the claim. How much stock was actually lost?
The inventory system shows what should have been on site. The photographs show what survived. The gate register records a dispatch just before the fire. Together, those records help explain how the business arrived at its estimate.
Use this checklist to build a claim file for a factory, warehouse or other commercial premises. Start with records that are easy to lose, including CCTV footage and shift logs.
1. Start with a timeline
Once everyone is safe, notify the insurer promptly and follow the reporting instructions in your policy. Record when the fire was discovered, who was called and what emergency work was done. Preserve original photographs, CCTV footage and incident logs where safely available. Keep the fire brigade report and any police record obtained for the incident.
If the cause is still under investigation, say so. “Smoke was first seen near the electrical panel” describes an observation. “The electrical panel caused the fire” is a conclusion that needs evidence. The New India Assurance fire claim form asks for the date, time, circumstances and whether the police or fire brigade were informed. Fire insurance claim form
2. Put the complete policy in one folder
Keep the schedule, wording and endorsements together. Match the affected premises and damaged property to the schedule. Then check the valuation basis, limits, deductible and any endorsement that changes the terms. Create separate entries for building damage, machinery and stock. Each entry should identify the affected property and the evidence you have for it. Use the wording issued for the relevant policy period when checking coverage. Example SFSP policy wording
3. Build the loss estimate from records
| Property | Records to gather | What they help establish |
|---|---|---|
| Stock | Inventory counts, invoices, goods receipts, dispatch records and transfer notes | What was on site at the time of the fire, what survived and how the stock was valued |
| Plant and machinery | Asset register, serial numbers, photographs and itemised repair or replacement estimates | Which asset was damaged and how the estimated cost was calculated |
| Building and fixtures | Photographs, plans if available, contractor estimates and invoices | Which parts of the premises were damaged and the scope of work |
For stock, take the last reliable balance and reconcile receipts, transfers and dispatches up to the incident. Check the resulting quantities against surviving and damaged stock. If accounts show 500 cartons and the gate register shows that 40 left before the fire, check whether that dispatch is already reflected in the accounts before adjusting the figure. Link every adjustment to a record. Mark provisional quantities or costs and explain what is still being checked.
4. Document urgent work and salvage
Keep damaged property available for inspection where safe and practical. If urgent work or removal is required for safety or to prevent further damage, record what was moved, why and where it went. Keep photographs, contractor invoices and written instructions. Ask the insurer or surveyor how to document disposal and salvage under your policy.
5. Keep a separate file for the shutdown
Keep the cost of repairing physical damage separate from the financial effect of the shutdown. If you have business interruption cover, record when production stopped, when each line restarted and what the business spent to keep orders moving. Keep sales records, production logs and supporting invoices. Check the relevant cover, trigger, limits and indemnity period before including a trading loss. For an example of how an insurer defines gross profit and the indemnity period, see the Zurich Kotak Consequential Loss (Fire) policy wording.
6. Compare the assessment line by line
When the assessment differs from your estimate, put the figures side by side. For each difference, record the item, your estimate, the assessed amount, the stated reason and the supporting document or policy clause. Check whether the gap comes from a disputed quantity, a different valuation basis, a deductible or another adjustment. If an adjustment is unclear, ask for a written explanation tied to the relevant item and policy provision.
Before you submit: check that your file contains the incident timeline, policy documents, relevant authority reports, photographs, stock or asset records, itemised estimates, salvage records and the correspondence log. Use the insurer’s claim form and retain a copy of what you send.
This article provides general information. The applicable policy, endorsements and facts determine how an individual claim is assessed.