Small and Medium Business Owners Insurance

While not a legal requirement like motor insurance, it is practically mandatory if you have a bank loan. Most Indian banks will not release funds or renew your credit line unless you provide a copy of the Bharat Sookshma or Laghu Udyam policy.

Yes. Coverage for STFI (Storm, Tempest, Flood, and Inundation) is a built-in feature. This is one of the most important covers for Indian SMEs, especially in cities like Mumbai, Chennai, or Bengaluru.

These policies are very generous. They automatically include cover for Terrorism, Earthquake, Removal of Debris, and even Architect’s/Surveyor’s Fees (up to 5% of the claim). You don’t have to pay extra for these.

The policy generally covers stock kept inside the “Insured Premises.” However, there is a limited “Temporary Removal of Stocks” cover (usually up to 10% of the sum insured) for goods sent for cleaning or renovation.

No. The Bharat Sookshma/Laghu policies only cover physical damage. To cover your lost income while the factory is closed for repairs, you must buy a separate Business Interruption (Fire LOP) policy.

In India, you must inform the insurer and pay an additional premium via an Endorsement. Under Section 64VB of the Insurance Act, the cover for the new machine only starts after the premium reaches the insurance company.

Surprisingly, no. These are primarily Fire and Allied Perils policies. To cover theft, you must either add a Burglary Rider or buy a separate Burglary Insurance policy.