The fire and explosion at Arabella Plaza Mall in New Cairo's Fifth Settlement, in Egypt, that resulted in three deaths, 11 injuries and material damage, has highlighted the importance of having integrated insurance programmes for facilities that hold large numbers of people, especially malls and shopping centres.
According to an article on news platform Al Mal News, the incident also highlighted the importance of conducting prior assessments of insurance risks, determining appropriate coverage for each facility and periodically reviewing insurance amounts, liability limits and safety and maintenance requirements.
The article, quoting insurance expert Ahmed Ibrahim, also stated that determining actual insurance coverage requires reviewing documents, terms, coverage limits and exclusions, noting that such places need comprehensive insurance programme, not just a single document.
Risk assessment the first step
Mr Ibrahim explained that places that receive large numbers of people, such as malls, hospitals, hotels and entertainment centres, need to conduct a risk assessment before designing an integrated insurance programme.
The process begins with identifying potential risks, then selecting appropriate coverage and liability limits for each facility according to the nature of its activity and the size of the risks surrounding it.
He also pointed out the importance of periodically reviewing insurance amounts, liability limits, maintenance and safety conditions, and fire protection requirements, explaining that having an insurance policy does not necessarily mean that all losses will be covered.
Mr Ibrahim stressed that compensation is linked to the scope of coverage, policy terms, exclusions and liability limits, which makes updating and periodically reviewing the insurance programme an essential part of risk management.
Designing an insurance programme
While there are many types of coverages for large areas, Mr Ibrahim drew attention to business interruption coverage, which aims to compensate for the loss of income resulting from the cessation of activity following a covered incident.
He added that this coverage represents an important aspect of risk management, especially since the effects of accidents are not limited to the cost of repairing physical damage, but may extend to losses of revenue during the period of business interruption.
Mr Ibrahim also highlighted the importance of workers compensation and employers liability coverage, as well as insurance for money and crime coverage, to deal with the risks of money, theft and embezzlement according to the nature of the business.
He also noted that cyber insurance has become more important for modern malls, given the increasing reliance on payment, data, surveillance and other electronic systems.
Lastly, Mr Ibrahim emphasised the importance of civil liability, pointing out that in an incident like the Arabella Plaza Mall fire, the insurance question is not limited to determining who will compensate for the building damages, but also extends to determining who will bear the responsibility of compensating the injured, the families of the deceased and the damages incurred by neighbouring shops.