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Building and Content Coverage of Shopkeeper's Insurance
Dec 20, 2023

All You Need To Know About The Building And Content Coverage Of Shopkeeper’s Policy

The Shopkeeper's Package Policy is a comprehensive insurance policy designed to safeguard the interests of shopkeepers, especially with establishments that operate as MSMEs. This policy offers protection against a wide range of risks, including damage or loss to both the building and its contents. Let’s take a look at what shopkeeper’s insurance is, and what it has to offer under its Building and Content Cover.

What is the Shopkeeper's Package Policy?

Categorised as general insurance, the Shopkeeper's Package Policy is a policy tailored to meet the unique needs of MSME shop or business space owners. Under one of its covers, it offers a combination of coverage for the building, its contents, and various other perils that may pose a threat to the insured premises. This cover is among the many others that you may be able to avail of under this type of MSME insurance policy that you may use to protect your business, especially a shop.*

Building and Contents Coverage

The Buildings and Contents Cover encompasses a range of perils and hazards that can result in damage or loss to the insured property. You may be offered coverage for the following scenarios, depending on your policy details.*
  • Fire

The policy covers damage or loss caused by fire, with some exceptions. It does not cover damage due to self-fermentation, natural heating, spontaneous combustion, or heating/drying processes. Also, any destruction or damage caused by the burning of property on the order of a public authority is excluded.
  • Lightning

Lightning-induced damage is covered.
  • Explosion/Implosion

The type of general insurance policy covers damage or loss due to explosions or implosions, except for specific situations such as damage to boilers (excluding domestic boilers) or machinery caused by their own explosion/implosion.
  • Aircraft Damage

Damage caused by aircraft, aerial devices, or objects dropped from them is covered, apart from damage caused by pressure waves.
  • Riot, Strike, and Such Human-made Incidents

This coverage includes damage caused by external violent means but excludes damage resulting from the cessation of work, permanent or temporary dispossession due to government actions, or burglary and related acts.
  • Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood, and Inundation

The policy covers damage directly caused by these natural disasters but excludes losses from earthquakes, volcanic eruptions, or other natural convulsions.
  • Impact Damage

Damage caused by the direct contact of rail/road vehicles or animals not belonging to the insured or their employees is covered.
  • Landslides

The policy covers damage from subsidence or landslides, excluding specific situations like the normal settling of new structures or coastal/river erosion. Some of the other inclusions of this coverage are:
  1. Bursting and/or overflowing of Water Tanks, Apparatus, and Pipes
  2. Missile testing operations
  3. Leakage from Automatic Sprinkler Installations
  4. Bush fire
Details of policy cover inclusions can be found in the policy document of the plan you purchase. Hence, ensure that you read through the policy document and get a clear understanding of what the policy covers.*

Exclusions of Building and Content Coverage

The exclusions of the Shopkeeper’s Package policy outline scenarios in which the policy will not provide coverage. Some of the key exclusions include:
  • Excess

The policy includes an excess, which is the initial amount the insured must bear for each claim. This excess applies to various perils, such as lightning, subsidence, and more.
  • War and Related Perils

Damage caused by war, invasion, foreign enemies, civil war, mutiny, rebellion, or military actions is not covered.
  • Nuclear and Radioactive Hazards

Damage caused by nuclear fuel, nuclear waste, ionising radiation, or radioactive contamination is excluded.
  • Pollution or Contamination

Damage resulting from pollution or contamination, unless caused by an insured peril, is not covered.
  • Valuables

The policy does not cover loss or damage to valuables exceeding Rs. 10,000, curios, works of art, manuscripts, securities, obligations, and more.
  • Cold Storage

Loss, destruction, or damage to stocks in cold storage premises due to temperature changes is excluded.
  • Electrical Damage

Damage to electrical equipment caused by short-circuiting, arcing, self-heating, or electricity leakage is not covered.
  • Architects, Surveyors, and Consulting Fees

Expenses incurred for professional services following a loss are not covered beyond 3% of the claim amount.
  • Loss of Earnings

The policy does not cover loss of earnings, loss by delay, or consequential damages.
  • Earthquake and Volcanic Eruption

Damage caused by these natural events is excluded.
  • Property Relocation

Property removed to a location other than the one stated in the policy is not covered, except for machinery temporarily removed for repair, cleaning, or renovation for up to 60 days. The Shopkeeper's Package Policy protects against a wide range of perils and hazards, providing financial security in the face of unforeseen events. While the policy has comprehensive coverage, it's crucial to understand the inclusions and exclusions to make the most of this insurance.   *Standard T&C Apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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