What was expected to be a much-anticipated Friday night turned into a nightmare when a major fire broke out at Khlong Thom Center on Worachak Road, Pom Prap Sattru Phai District, Bangkok. Since 28 Aug 2026, many people have been unable to access their shops, raising questions about whether insurance exists for this case and the extent of its coverage.
Thairath Money reached out to Adisorn Pipatworapong, Deputy Secretary-General for Legal Affairs and Inspection at the Office of Insurance Commission (OIC). He explained that the Khlong Thom Center building holds Industrial All Risks (IAR) insurance policies in the name of the legal entity with Thewath Insurance Public Company Limited. There are two policies with coverage amounts of 60 million baht and 248.5 million baht respectively.
Preliminary information indicates that the building management requires shops within the center to have basic insurance coverage of 350,000 baht each. Therefore, each shop likely has some insurance, but the coverage amounts may vary. The damage from this major fire is estimated to be included within the building's structural insurance coverage.
Currently, damage assessments must be completed first. The insurance claim process and coverage evaluation will begin after the insurance company inspects the site. Then, either the insurer or the claimant can propose a settlement amount. If an agreement is reached, the claim is paid; if not, OIC can assist as a mediator to help resolve disputes.
Fire damage is generally covered, including negligence, electrical short circuits, or possible ignition sources. Initially, it appears the insurance policies should cover this case. However, there is a risk of underinsurance, as some shops report millions in damages but may have insured for much less.
The timing of damage assessments depends on how quickly the site can be accessed. For example, the Lat Phrao brewery fire took several weeks before safety authorities confirmed it was safe to inspect. Visible damage can only be fully evaluated once access is permitted.
OIC recommends that business owners in the building consider purchasing insurance that includes:
1. Coverage for their own property, such as inventory, stock, shop decorations, leasehold insurance, and rights to use the property.
2. Liability coverage, which protects in cases where the owner might be the fire’s cause, helping to mitigate some losses.
3. Loss of income coverage, such as business interruption insurance—for example, if the building must close for six months resulting in lost revenue. Coverage amounts are usually calculated based on the business’s financial performance. While it may not cover all damage costs, it typically covers fixed costs like employee salaries.
For instance, if there are ongoing salary payments or other expenses, owners might negotiate with insurers to receive partial payments in advance. This is not finalized yet, but with clear evidence of necessary expenses, each case must be considered individually.
Finally, the most important thing is to understand the insurance coverage purchased and to keep all relevant documents to file claims properly. Continuous communication with the insurance company is encouraged to find solutions. Meanwhile, OIC is ready to assist or mediate disputes for both the public and businesses, whether small or large.
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