Published 18 October 2026 · By the Rateshwar General Insurance team, Oshiwara, Mumbai
Since 1 April 2021, fire insurance for most small and medium businesses in India is sold through standard products designed by IRDAI. Every insurer offers the same basic cover under the same name, which makes it easier to compare quotes. Here is how they work.
Which policy applies to you
- Bharat Sookshma Udyam Suraksha: when the total value of the insured assets is up to ₹5 crore.
- Bharat Laghu Udyam Suraksha: when the total value is more than ₹5 crore and up to ₹50 crore.
- Standard Fire and Special Perils policy: for larger risks above ₹50 crore.
- Bharat Griha Raksha: the matching standard product for homes.
The value is worked out on all the assets you insure, including building, plant and machinery, furniture, fittings and stock.
What is covered
The policies cover physical loss or damage to the insured property caused by listed events, including fire, lightning, explosion, storm, cyclone, flood, inundation, earthquake, subsidence and landslide, riots and strikes, malicious damage, and impact by vehicles or aircraft. Terrorism cover can be added.
What is not covered
Burglary and theft are not part of the fire policy. They need a separate burglary policy, which most businesses take alongside. Loss of profit while the business is shut after a fire also needs separate business interruption cover. Normal wear and tear and gradual deterioration are not covered.
Setting the right sum insured
Insure buildings and machinery at what it would cost to rebuild or replace them today, not at the value in your books. Stock should be insured at its current value. If the sum insured is too low, the insurer may reduce the claim in proportion, so review the values every year, especially after you add machinery or increase stock.
Getting a quote
Insurers will ask for the address, construction type, what the business does, fire safety equipment, and the value of each asset class. Send us these details and we will compare quotes from our partner insurers, including burglary cover if you need it.