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Bharat Sookshma Udyam Suraksha Policy

Table of Content

What is Bharat Sookshma Udyam Suraksha Policy?

Bharat Sookshma Udyam Suraksha is a Fire and Allied Perils Insurance product available in India that protects SMEs against loss due to fire, explosion, natural calamities, malicious activity, and much more. This policy provides insurance cover for damage to buildings and structures, fittings and fixtures, plant and machinery, stocks, and other assets related to the business under the policy. This policy is meant for enterprises where the total value at risk across all insurable asset classes at one location does not exceed ₹5 Crore (Rupees Five Crore)

Why is Bharat Sookshma Udyam Suraksha Policy Necessary?

Protection of business assets

This policy helps business owners protect all property vital to the daily operation of the business, extending not only to buildings, stores, and offices but also equipment, furniture, inventory and any other physical assets important to the company.

Peace of Mind

When you own any business or enterprise, it becomes your priority to safeguard your business from the unforeseen perils for the smooth flow of your enterprise as a business is always exposed to a wide range of risks that not only may put a financial burden on you but also can hamper the course of your business. This policy protects your property and other assets against any such unforeseen event and provides you complete peace of mind so you can focus on growing your business.

Advantages of Bharat Sookshma Udyam Suraksha Policy

Protection For All Assets

It covers everything from your building to your office equipment under one policy.

Comprehensive Risk Coverage

It offers safety from an exhaustive range of risks and perilous events, including terrorism and natural disasters

Additional Covers

It offers many in-built covers for no extra premium. These include start-up expenses, professional fees, costs compelled by municipal regulations, movable stocks, and much more.

Features of Bharat Sookshma Udyam Suraksha Policy

Standard Cover

Covers physical loss or damage, or destruction caused to the building and structures, plant and machinery, stock and other assets that have a direct connection to your business. Provides protection against fire, theft, implosion/explosion, riot, strike, earthquake, missile testing operations and other allied perils.

Additions, alterations or extensions

Property that the owner erects, acquires or adds during the Policy Period is covered up to 15% of the Sum Insured for that item (excluding stocks).

Stocks on floater basis

Loss to stocks located at more than one named location

Temporary removal of stocks

Loss to stocks temporarily removed to other premises for fabrication, processing or finishing up to 10% of value.

Cover for Specific Contents

Covers specific content such as money, documents, deeds, computer programme information and data, personal effects of Directors, employees and visitors etc. upto a pre-defined limit.

Start-Up Expenses

Covers start-up cost incurred in respect of insured risk consequent upon a loss or damage due to insured events up to ₹1 Lakhs (Rupees One Lakh).

Professional fees

Covers the fees of architects, surveyors and consulting engineers up to 5% of the claim amount.

Costs for Removal of debris

Covers the expenses incurred for removal of debris up to 2% of the claim amount.

Costs compelled by Municipal Regulations

Covers any additional cost of reconstruction of property incurred solely for complying with municipal regulations.

Why buy Bharat Sookshma Udyam Suraksha Policy from Raghnall?

One Point of Contact

No need to coordinate with multiple points of contact and third parties. With Raghnall, you only need to stay in touch with us and no one else.

Product Expertise

At Raghnall, we have specialized underwriters and product experts who take time to understand your business and offer the coverages suitable to your needs.

Best Deals

As a fully independent broker we customize coverage catering to your needs and provide the best price for most comprehensive coverage.

Who should buy Bharat Sookshma Udyam Suraksha Policy?

Business Owners

A Bharat Sookshma Udyam Suraksha policy can be bought by anyone who has property pertaining to business. The policy can be availed by the owner, tenant, lessee or even the person who holds it as trustee on commission.

Individuals running a family business

This policy can be bought by individuals who have a family business in place. It ensures that the business property is protected, and in case of any untoward situation, the losses are covered.

Individuals running high-risk businesses

Those who run high-risk enterprises need to have this policy as they are exposed to dangers like fire, physical damage to assets and other risks.

Factors affecting the premium of Bharat Sookshma Udyam Suraksha Policy

Sum Insured

Make sure that you pick the right sum insured for your policy. The amount of sum insured also impacts the premium you need to pay for availing a policy of Bharat Sookshma Udyam Suraksha policy. A high sum insured will result in a higher premium.

Nature of the insured property

The premium which you need to pay for the policy depends on the nature of the insured property such as building, plant, stock, etc.

Risk profile of the enterprise

The risk profile of the enterprise also plays an important part when the premium is calculated. If the profile of the enterprise is highly risky, the payable premium will be high and vice versa.

Frequently Asked Questions

The policy term can go upto 1 Year.

Yes, in case of death of the insured, his/her legal representative will continue to reap the benefit of the policy.

Yes, the policy will continue to cover the assets even if the value exceeds Rs.5 crore. However, you need to replace it with an applicable policy once the policy expires.

Yes, you can cancel this policy at any time during the policy period. The insurer will return part of the premium on the basis of the terms and conditions of the company.

No, these are inbuilt perils and cannot be excluded.

Yes upto 15% only.

In the event of a claim due to insured peril, additional costs incurred by insured (on actual basis) at the time of reinstatement of property due to change in Municipal Regulations.

Impact damage of any kind means damage caused by impact, or collision caused by any external physical object (e.g., vehicle, falling trees, aircraft, wall etc.).

In case of mid-term increase or decrease in sum insured, existing policy terms and condition shall remain applicable but at the time of renewal, relevant policy type shall be applicable.

The annual policy can be issued on or after completion of the short policy period. Extension of short period policy is not possible.

As per IRDA, guidelines, presently, the Sum Insured limits of in-built covers are fixed.

Some of the major exclusions in the policy are: Intentional damage – If you suffer any loss or damage that has been done by you deliberately or wilfully, the insurer does not take the responsibility for that. Stock – If any loss, destruction, or damage to your stocks in cold storage due to a change in temperature, your loss will not be covered by the policy. War – Any loss occurred due to war, invasions or war-like situation will be excluded from the coverage. Radiation – Due to ionization or radioactive waves, if any loss or damage occurs that will not be covered by the company. Pollution and contamination – Damage or loss arising out of pollution or contamination will not be reimbursed. For full list of exclusions, please refer the policy wordings.