Fires: Why insurance should be your friend
Fire has the potential to destroy properties, which could have taken years to build, within minutes. Photo / File
What you need to know:
- Fire is one of the forces that can create destruction in a minute, resulting in tens of thousands of shillings in damages and property loss, possible injuries, or even fatalities
January 2, 2025, was a normal day for the traders operating at Nyumba Kubwa building, in downtown Kampala until 11am.
According to media reports, the fire gutted about 16 lockup shops and left more than four people injured.
All the joy that the owners had on ushering in the New Year was washed away by the tears that rolled off their cheeks as they watched their merchandise worth millions of shillings burn to ashes.
Fast forward, another fire gutted Kapchorwa market in the wee hours of January 4. Media reports indicate that property estimated at Shs1.2b was destroyed. Precautions and prevention are something we all want to follow in everything we do.
Be it the way we run our businesses or the way we handle personal incidents, following precautionary measures is a basic human instinct.
However, there are times when events spiral out of our control and cause havoc that we can’t manage either.
Fire is one of the forces that can create destruction in a minute, resulting in tens of thousands of shillings in damages and property loss, possible injuries, or even fatalities.
For the two recent fires, the big question lingering on the affected traders’ minds is where to get capital to reinstate their businesses. Some of them could even have been servicing bank or Sacco loans.
What happened at Nyumba Kubwa and Kapchorwa market, can happen to any other business, factory, school, or any other enterprise at any time and can be devastating.
Not only can it cause physical damage, but can also cause emotional trauma and financial loss. That is why, it is essential for every business, home, and any other enterprise, to have a fire insurance policy to protect the business' valuable properties and assets.
Without a fire insurance policy, you would be responsible for covering all losses or damages from your pocket. In certain cases, fire can cause severe financial crisis. To protect your finances, its essential to have the appropriate fire insurance coverage. This policy provides financial protection and mitigates the risk by covering property damage, liability claims, and even providing compensation for business interruption.
Thus, as we start 2025, traders are encouraged to purposefully consider transferring all potential financial risks related to their businesses so that they can trade with a peace of mind, prosper, and contribute to the economy with confidence.
From small, to medium to large businesses, as well as households, let’s prioritise fire insurance to protect operations from unexpected losses that could potentially drive you into financial hardship.
Mr Ibrahim Kaddunabbi is the Insurance Regulatory Authority of Uganda chief executive officer
