Which insurance protects your property assets?

A leaking water pipe, a short circuit in your storage room, machine failure or burglars who run off with your computers. These are just a few of the disaster scenarios that may keep you awake at night. Even though ‘fire insurance‘ gives you more peace of mind, depending on your professional situation, you may also see the benefit in taking out one or more additional insurance policies to protect your property assets.

Fire insurance

Compulsory or not?

No, obtaining fire insurance is not legally compulsory in Belgium; however, in practice, it is often contractually required. 

• When you rent the building where you live or work, you must obtain tenant's liability insurance unless the owner has waived recourse in the contract. 
• Additionally, when you apply for a mortgage loan for your business premises, the bank will require you to obtain fire insurance.

What does the insurance cover ?

The term ‘fire insurance’ is quite misleading since it also protects your property and its contents against the consequences of storms, hail, snow, water, glass breakage, attacks, vandalism, and natural disasters. Coverage varies from one insurance policy to another and depends on the building to be insured, so check in advance what your policy does and does not cover. There are plenty of online tools to compare so-called ‘fire insurance’.

Cost

The premium is determined by the specific coverage you select, the risk assessment, the value of your contents, and the size of your building(s). It is advisable to regularly adjust your ‘fire insurance’ coverage to reflect any variations in your contents. Renovations should also be reported to your insurer without delay.

Theft insurance

Theft insurance coverage protects you against the loss or damage of your goods due to (an attempted) theft. This is particularly advisable if you store valuable items in a shop window, warehouse, or shop. Such items may include jewellery, antiques, laptops, or work tools. Your ‘fire insurance’ often already includes (basic) theft coverage.

Business losses

Sixty per cent of businesses go bankrupt within five years of a major loss, as they can no longer operate. Business interruption insurance covers the financial repercussions of such a loss. It is an optional add-on to your fire insurance or machinery breakdown insurance. In fact, it serves as a company's ‘life insurance’.

Fire or breakdown insurance covers material damage, but it often takes weeks or even months for everything to return to normal following a loss. During this time, costs to maintain operations may increase while earnings decline. In such cases, a business losses policy provides a financial buffer for fixed operating costs, the ‘lost’ operating profit, and any additional costs incurred to prevent or limit declining sales. Depending on the specific insurance policy, the reimbursement period will span 6 to 18 months.

You can choose between two types of cover:

• Minimum cover with a daily indemnity for each day of inactivity
• More comprehensive cover with compensation based on the turnover impacted by the loss.

Machine failure

This insurance covers certain machines against unforeseen and sudden damage. The damage may arise from external factors (such as falling, inexperience, or malicious intent) or internal factors (including overheating or faulty assembly). It is certainly not a luxury if your business relies on the reliability of your equipment. Here are a few examples: printing presses, overhead cranes, medical devices, fitness equipment, and more. The insurer will compile an inventory of the machines you wish to protect and calculate the premium accordingly. Please note that basic machine failure insurance may already be included in your fire insurance policy.

All Risks Electronics (ARE)

Without realising it, you quickly accumulate a vast array of electronics: laptops, projector beams, tablets, cameras, and so forth. The most common electronic items are easily replaceable, but medical devices or an expensive server are considerably less so. If the failure of electronic equipment could result in significant potential losses for your company, comprehensive insurance cover for electronics (ARE) may be the answer.

Conclusion

The Belgian authorities do not require you to protect your assets, but in practice almost everyone has fire insurance. Depending on the type of equipment or goods you use in your business, you can also opt for some other optional insurance policies.

Insurance is a complex subject, and it's not always easy to find your way around. Fortunately, you can seek advice from your insurance broker.

^{This content was enhanced in 2025 with further insights from insurance broker Yago.}