Bharat Sookshma Udyam Suraksha Policy

Bharat Sookshma Udyam Suraksha Policy is a standardized property insurance policy introduced by IRDAI for micro and small enterprises. It provides protection against physical loss, damage or destruction of business assets due to fire and allied perils. The policy is designed for businesses where the total value at risk at one location does not exceed ₹5 Crore. :contentReference[oaicite:0]{index=0}

Key Features

• Designed for Micro and Small Enterprises.
• Coverage for Assets up to ₹5 Crore at One Location.
• Protection against Fire and Allied Perils.
• Earthquake Cover Included.
• Flood and Storm Cover Included.
• Terrorism Cover Included.
• Underinsurance Waiver up to 15%.
• Reinstatement Value Basis for Assets.
• Automatic Reinstatement of Sum Insured.

Eligibility

Property Covered

• Buildings and Structures.
• Plant and Machinery.
• Furniture, Fixtures and Fittings.
• Raw Materials.
• Stock in Process.
• Finished Goods.
• Office Equipment.
• Computers and Electronic Equipment.
• Other Business Assets.

Perils Covered

• Fire and Spontaneous Combustion.
• Lightning.
• Explosion / Implosion.
• Earthquake and Volcanic Eruption.
• Storm, Cyclone, Typhoon and Hurricane.
• Flood and Inundation.
• Landslide and Rockslide.
• Bush Fire, Forest Fire and Jungle Fire.
• Impact Damage.
• Missile Testing Operations.
• Riot, Strike and Malicious Damage.
• Terrorism.
• Bursting or Overflowing of Water Tanks and Pipes.
• Leakage from Automatic Sprinkler Installations.

In-Built Covers

• Additions, Alterations and Extensions up to 15% of Sum Insured.
• Stocks on Floater Basis.
• Temporary Removal of Stocks.
• Cover for Specific Contents.
• Start-Up Expenses.
• Professional Fees.
• Removal of Debris Expenses.
• Costs Compelled by Municipal Regulations.
• Automatic Reinstatement of Sum Insured after Claim.

The policy includes several built-in covers such as additions and extensions, floater stock cover, temporary stock removal, start-up expenses, professional fees and debris removal costs. :contentReference[oaicite:1]{index=1}

Special Benefits

• Underinsurance Waiver up to 15%.
• Compulsory Earthquake Cover.
• Compulsory Terrorism Cover.
• Compulsory STFI Cover.
• Theft Cover within 7 Days of an Insured Event.
• Reinstatement Value Claim Settlement.

The policy automatically includes earthquake, terrorism and STFI coverage and provides a waiver of underinsurance up to 15%. Theft following an insured peril is also covered within specified limits. :contentReference[oaicite:2]{index=2}

Basis of Sum Insured

Property is generally insured on reinstatement value basis for buildings and machinery, while stocks are valued based on landed, input or manufacturing cost as applicable. :contentReference[oaicite:3]{index=3}

Major Exclusions

• War and War-like Operations.
• Nuclear Risks.
• Consequential Losses.
• Normal Wear and Tear.
• Pollution and Contamination (unless covered).
• Willful Acts by the Insured.
• Inventory Shortages not linked to an Insured Event.

Who Should Buy This Policy?

• Retail Shops.
• Small Manufacturing Units.
• Warehouses.
• Hotels and Restaurants.
• Offices and Commercial Establishments.
• Service Businesses.
• Small Storage Facilities.

Why Choose Bharat Sookshma Udyam Suraksha?

• Standardized IRDAI-approved policy.
• Comprehensive protection for business assets.
• Includes earthquake, flood and terrorism cover.
• Automatic in-built benefits.
• Suitable for businesses with asset values up to ₹5 Crore.
• Simple and transparent policy structure.

Disclaimer

The above information is for general reference only. Coverage, exclusions, premium rates, claim settlement terms and policy conditions are subject to the latest policy wording issued by the insurer and IRDAI guidelines.