Explained: Bharat Sookshma Udyam Suraksha Commercial Package Policy

Any damage to your business, irrespective of the size or scale of your venture, can prove to be quite a setback. It is essential to ensure that your business, even if is classified as a micro-enterprise, is protected. While you may be doing the best that you can to protect it against any unforeseen circumstances, it may not be enough. Financial protection for your business against any unavoidable damages should also be considered. This is usually available in the form of insurance. Getting the right insurance policy for your micro business is crucial, as this choice will determine how your finances are protected in the face of any unavoidable damage faced by your business. You may like to opt for individual policies, but a more comprehensive choice comes in the form of a commercial package policy.

What is Commercial Package Policy?

The Bharat Sookshma Udyam Suraksha policy is an insurance plan that you can choose to get optimal coverage for your micro-enterprise. This offers protection at various levels and against numerous possibilities. Since a personal accident cover is included in the policy, it may minimise the need for you to get multiple insurance coverage, allowing you to get a range of benefits under a single policy umbrella.*

Bharat Sookshma Udyam Suraksha Coverage

This type of general insurance plan is suitable for businesses categorised as micro-enterprises under MSME. This is usually meant for businesses that hold a risk value of under Rs. 5 crores. If your business is registered in this category and you seek financial protection, getting such a policy can help you do so.* Here are some common coverages offered by this MSME insurance for micro businesses.*

• Standard Fire and Special Perils Cover

This cover offers financial protection in the event of fire, lightning, explosion or implosion, riot, strike, malicious damage, aircraft damage, storm, cyclone, typhoon, tempest, hurricane, tornado, flood, inundation, impact damage, landslide, water tank accidents, bush fire, missile testing operations, and automatic sprinkler accidents. If your business were to sustain damages due to the events covered by the fire insurance coverage of your policy, you may be able to make a claim.

• Burglary and Robbery Cover

Under this cover of the policy, the policyholder may be able to make a claim in the event of a burglary or robbery that may cause damage to the contents of the property or the property itself. Similar damages due to an attempted burglary may also be covered under this umbrella. The policyholder may be required to inform the insurer within 24 hours of the occurrence of such an event. They may also be required to register a complaint with the police about the items lost.

• Money Insurance Cover

Money lost during a robbery or burglary from a safe or a strong room on the premises covered by the policy, as well as money robbed from the cashier’s till on the premises during the hours of operation may be covered under this type of general insurance. In this case as well, the policyholder may be required to inform the insurer within 24 hours of the occurrence of the event.

• Machinery Breakdown Cover

The machinery used in routine operations of the business can be crucial for the business to operate. This coverage offered by the policy may prove useful if you were to face any damages to the machinery that is covered under the insurance. The machinery should have cleared the performance and/or acceptance tests.

• Fidelity Guarantee Cover

If an employee of the business were to commit a dishonest or fraudulent act to cause harm to the business covered by the policy, the policyholder may be able to claim damages for the same. The act is required to be committed during the course of the business and ought to be discovered during the policy period.

• Group Personal Accident Cover

People insured under this policy may be offered coverage for death as well as permanent and temporary disability. The part of the sum insured offered as the claim amount may depend on the type and nature of the injury. Some of the other coverages included in the Bharat Sookshma Udyam Suraksha are:

1. Neon Sign Cover
2. Plate Glass Cover
3. Public Liability Cover
4. Workmen’s Compensation Cover
5. Portable Equipments Cover
6. Baggage Insurance Cover
7. Pedal Cycle Cover
8. Electronic Equipments Insurance Cover

Claims are subject to terms and conditions set forth under commercial package insurance policy.

Policy Exclusions

Some of the general policy exclusions include:

1. Asbestosis due to the involvement of asbestos in the business
2. Convulsions of nature such as earthquakes, or other atmospheric disturbances
3. Wrongful detention or eviction, slander, libel, false arrest, and other such situations
4. Situations that the policyholder may have been aware of before the commencement of the policy period

There may be some exclusions specific to the covers of the policy as well. Ensure that you go through the policy document thoroughly when you buy the policy. Protecting your business against unavoidable damage can be easier through such a policy.   *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.