IRDAI-mandated standard commercial fire insurance for micro & small enterprises. Total insurable assets ≤ ₹5 crore. Shops, offices, hotels, bakeries, manufacturers, warehouses. New for Old — no depreciation. 8 in-built covers including Start-Up Expenses. ₹5,000 flat excess. Replaces old SFSP for commercial use.
Commercial Insurance· IRDAI Mandated· First Commercial Product in This Series
"Sookshma Udyam" means "Micro Enterprise" in Hindi. The Bharat Sookshma Udyam Suraksha Policy (BSUS) is the IRDAI-mandated standardised commercial fire insurance product for micro and small enterprises whose total insurable assets at any one location do not exceed ₹5 crore. Shops, offices, hotels, bakeries, factories, warehouses — all covered under one standardised policy. Probitas Insurance Brokers Pvt. Ltd. (IRDAI Lic. No. 528) is your licensed broker.
SI = cost of a NEW equivalent property — no depreciation deducted on Building, P&M, or contents claims
No DepreciationIf SI ≥ 85% of actual value, average clause does not apply — full claim paid up to SI
85% ThresholdStart-up expenses, stock floater, temp. stock removal, professional fees — all at no extra premium
Zero Extra PremiumTerrorism via GIC Re Terrorism Pool is a mandatory in-built peril — same as BGRP home insurance
GIC Terrorism PoolTransparent, flat compulsory excess of ₹5,000 per claim — no complex excess calculations
Per ClaimAll general insurers must offer BSUS — same core coverage, same product name, same UIN framework
Mandatory for All InsurersBSUS is for enterprises where the TOTAL value of ALL insurable assets at ONE LOCATION does not exceed ₹5 crore at policy inception. "Insurable assets" means all your assets — building, plant, machinery, stocks, furniture, and other contents — even those you have not insured.
₹5 crore = ₹5,00,00,000 total at one site.
If you have TWO separate locations each under ₹5 crore → buy TWO separate BSUS policies (one per location). If ONE location exceeds ₹5 crore → buy BLUS (Bharat Laghu Udyam Suraksha) for that location.
Individual residential dwellings and housing societies CANNOT use BSUS. For your home, use the Bharat Griha Raksha Policy (BGR). BSUS is exclusively for business / commercial properties — shops, offices, factories, warehouses, hotels, restaurants, bakeries, and similar commercial enterprises.
Grocery, clothing, hardware, electronics, medical stores
Professional, corporate, co-working, service offices
Hotels, restaurants, cafés, food service establishments
Bakeries, food processing — specifically mentioned in BSUS KFD
Micro & small manufacturing units; plant, machinery, raw materials
Storage risks, cold storage; stocks of all types
Tailoring, printing, repair shops, small workshops
What Can Be Insured
BSUS covers all physical business assets at the insured location. Building and P&M are insured at reinstatement value (New for Old). Stocks are valued differently depending on type. Use the interactive checker to verify your total is within ₹5 crore.
Old SFSP policy: Your 10-year-old lathe machine burns down. Depreciated value: ₹50,000. Insurer pays: ₹50,000.
BSUS (New for Old): The equivalent new lathe costs ₹1,80,000 today. Insurer pays: ₹1,80,000 (minus ₹5,000 excess = ₹1,75,000).
BSUS replaces damaged property with new property of the same kind — no depreciation deducted for age. The same applies to buildings and other contents (excluding stocks).
Actual value: ₹1 crore
SI: ₹90 lakh (90%)
→ ≥ 85% threshold
Waiver applies — full ₹90L SI available, no proportional deduction
Actual value: ₹1 crore
SI: ₹80 lakh (80%)
→ < 85% threshold
Average clause applies — claims reduced proportionally by ₹20L shortfall
Every BSUS claim has a compulsory excess of ₹5,000. The insured bears the first ₹5,000 of every claim; the insurer pays the remaining admissible amount up to the Sum Insured.
Example: ₹2,50,000 claim → Insurer pays ₹2,45,000 (₹2,50,000 − ₹5,000 excess).
For terrorism claims: specific excess per GIC Terrorism Pool terms.
All 19 In-Built Covered Perils
All 19 perils are mandatory and cannot be excluded. The same comprehensive peril coverage as the Bharat Griha Raksha home insurance policy — but now protecting your business assets: building, P&M, stocks, and contents.
BSUS uses the identical 19-peril coverage suite as the BGR home insurance policy. The difference: BGRP protects your home building and household contents; BSUS protects your commercial building, plant & machinery, business stocks, and office/shop/factory contents. Same perils — different insured property.
BSUS does NOT cover standalone burglary. Theft IS covered when it occurs within 7 days of a preceding insured event — e.g. stock looted after a riot makes your shop temporarily unprotected; opportunistic theft after an earthquake. For standalone burglary / shop theft, you need a separate Burglary Insurance Policy.
Under old SFSP policies, terrorism was an optional add-on. Under BSUS, it is a mandatory in-built covered peril via the GIC Re Terrorism Pool (Government of India). It cannot be excluded from the policy. Particularly relevant for commercial establishments in urban and high-risk areas.
8 Automatic Benefits — No Extra Premium
These 8 covers are automatically built into every BSUS policy at no extra premium — a major improvement over the old Standard Fire and Special Perils (SFSP) policy which had none of them.
New buildings, plant, machinery, or contents acquired after policy inception are automatically covered — insured must notify insurer within 7 days.
Up to 15% of relevant SI (excl. stocks)Loss to stocks at more than one named location covered under a single "floater" SI — useful for businesses with stock at shop, warehouse, and transit locations.
Floating across named locationsStocks temporarily sent to another premises for fabrication, processing, or finishing are covered — common situation where raw material goes to a sub-contractor.
Up to 10% of stock SIMoney on premises up to ₹50,000. Deeds, manuscripts, business books, plans, drawings — cost of restoring (not the intrinsic money value). Curios and art if declared.
Money: up to ₹50,000Costs of restarting the business after a covered loss — reconnecting utilities, re-testing machinery, re-licensing, initial restart costs. Not available in old SFSP at all.
Up to ₹1,00,000 per policy periodArchitect's fees, surveyor's fees, consulting engineer's fees for assessing damage and supervising reinstatement — automatically covered within the SI.
Included within SICost of removing debris, dismantling, demolishing, shoring up, or propping up of damaged building or machinery — 2% of claim amount (higher than BGRP's 1% of SI).
2% of Claim AmountAdditional cost of reconstruction solely to comply with updated municipal regulations at time of reinstatement — covers updated building codes, fire safety regulations post-claim.
Included within SIRestarting your business after a fire or flood involves real costs beyond physical repair:
→ Reconnecting gas / electricity / water supplies
→ Re-testing machinery before commercial restart
→ Re-licensing and regulatory re-approvals
→ Initial staff restart costs
BSUS covers up to ₹1,00,000 per year in start-up expenses. The old SFSP policy had NO equivalent cover — this is a uniquely commercial insurance concept reflecting how businesses actually restart after major losses.
Machinery temporarily removed from the insured premises for repair, cleaning, maintenance, or similar purposes is covered for up to 60 days — even when off-site. This addresses the common scenario where a machine is sent to an authorised workshop for annual servicing and is damaged in transit or at the service centre.
Optional Add-On Covers — Additional Premium
Beyond the 8 in-built covers, BSUS offers 5 optional add-on covers at additional premium. Business Interruption is the most critical add-on for any commercial enterprise.
For businesses with highly fluctuating stock levels — seasonal businesses, traders, manufacturers with variable production. Declare stock value monthly/quarterly; premium adjusted at year-end based on average declarations. More accurate and cost-effective than insuring peak stock all year.
Stock Heavy BusinessesCovers gross profit loss AND standing charges (rent, salaries, loan EMIs) while the business is shut due to an insured event. Indemnity period: typically 3–12 months. Without this cover, BSUS only pays the physical repair bill — not the income you lose while unable to operate.
⭐ Most Critical Add-OnCovers sudden physical damage to machinery from internal breakdown — separate from fire/allied perils. Particularly valuable for manufacturing units, bakeries, restaurants with high-value equipment that can breakdown independently of fire or flood events.
Manufacturing / Food Servicethe insurer's unique add-on: covers the cost of sourcing obsolete spare parts following an insurable loss to Plant & Machinery. When old machines are damaged and spare parts are no longer manufactured, the cost of sourcing custom or vintage parts is covered.
the insurer Exclusive Add-OnStocks in transit between business locations covered for fire and allied perils during inland transit — particularly relevant for businesses that move stock between their factory, warehouse, and retail locations.
Multi-Location BusinessesBSUS covers the PHYSICAL DAMAGE to your property. But it does NOT cover the money you LOSE while your business is SHUT.
If your restaurant is closed for 3 months after a fire:
→ You earn: ₹0 (restaurant is shut)
→ You still pay: rent, staff salaries, bank loan EMIs, electricity minimums, insurance premiums
→ This financial gap = your LOSS OF PROFIT
The Business Interruption (Loss of Profit) add-on covers this gap for the agreed indemnity period (typically 3–12 months). Without it, BSUS only pays the repair bill — not the income you lose while you can't operate. This is the most critical add-on for any commercial enterprise — shop, restaurant, factory, warehouse, or office.
How BSUS Compares
The three IRDAI-mandated standardised fire insurance products cover different property types and value ranges. BSUS is the commercial counterpart to the residential BGRP.
| Feature | 🏠 Bharat Griha Raksha (BGR) | 🏪 Bharat Sookshma Udyam Suraksha (BSUS) — This Product | 🏭 Bharat Laghu Udyam Suraksha (BLUS) |
|---|---|---|---|
| Property Type | Residential only | Commercial / Business only | Commercial / Business only |
| Who is it for? | Homeowners, tenants | Micro & small enterprises | Small & medium enterprises |
| Total Value at Risk | No cap | ≤ ₹5 Crore at one location | ₹5 Crore – ₹50 Crore |
| Compulsory Excess | As per policy | ₹5,000 per claim (flat) | ₹10,000 per claim |
| Underinsurance Waiver | Full waiver (no average clause) | Up to 85% threshold | Up to 90% threshold |
| Reinstatement Basis | ✔ New for Old | ✔ New for Old | ✔ New for Old |
| Auto SI Escalation | 10% p.a. compounded | Not stated separately | Not stated separately |
| Auto Contents Cover | 20% of building SI, max ₹10L | Must be separately declared | Must be separately declared |
| Start-Up Expenses | ✘ Not applicable | ✔ Up to ₹1L/year (in-built) | ✔ Up to ₹1L/year (in-built) |
| Stock Floater | ✘ Not applicable | ✔ In-built | ✔ In-built |
| Temp. Stock Removal | ✘ Not applicable | ✔ 10% of stock SI (in-built) | ✔ 10% of stock SI (in-built) |
| Debris Removal | 1% of Building SI | 2% of Claim Amount | 2% of Claim Amount |
| Terrorism | ✔ In-built (GIC Terrorism Pool) | ✔ In-built (GIC Terrorism Pool) | ✔ In-built (GIC Terrorism Pool) |
| BI / Loss of Profit | Not applicable (residential) | Optional add-on (critical) | Optional add-on (critical) |
| Machinery Breakdown | Not applicable | Optional add-on | Optional add-on |
| Policy Term | Up to 10 years | Typically 1–3 years | Typically 1–3 years |
If your total insurable assets at the location exceed ₹5 crore during the policy year (due to capital investment, stock build-up, expansion):
→ The BSUS policy is NOT cancelled mid-term — it continues until the policy expiry date
→ At the next renewal, you must switch to Bharat Laghu Udyam Suraksha (BLUS) which covers ₹5–₹50 crore
→ Call Probitas on 022 4302 0000 to arrange the switch at renewal
Who Can Buy BSUS
Own your commercial space? Insure building + stocks + shop fittings under one BSUS policy.
Building + Stocks + FF&EFactory, workshop, or micro-manufacturing unit with P&M, raw materials, and finished goods.
P&M + Stocks + BuildingDon't own the building? Insure your fit-outs, stocks, and contents — tenant improvements are covered.
Fit-Outs + Stocks + ContentsGodown or warehouse owner/operator insuring the building and stocks held in storage.
Building + Stocks on FloaterBSUS is a per-location policy. The ₹5 crore limit applies to the total value at risk at ONE specific location. If you have multiple business locations, you need a separate BSUS policy for each location (subject to that location's assets being ≤ ₹5 crore). If any single location exceeds ₹5 crore → buy BLUS for that location.
• Individual residential dwellings → use BGR (Bharat Griha Raksha)
• Housing societies → use BGR or specialised policy
• Enterprises with assets > ₹5 crore at any one location → use BLUS
• Properties under construction → only completed, occupied commercial properties
• Motor vehicles, aircraft, watercraft → separate motor / marine / aviation policies
How to File a Claim
BSUS settles on reinstatement value (New for Old). Stock claims require stock register reconciliation. Do NOT repair before surveyor inspection. Call 022 4302 0000 immediately after any insured event.
BSUS pays the cost of NEW replacement property of the same kind — not the depreciated value of the old property. For P&M: surveyor assesses cost of new equivalent machine. For building: cost of rebuilding to original specification with new materials at current rates. For stocks: landed cost / input cost / manufacturing cost as applicable.
For stock claims, the insurer's surveyor will reconcile the claimed stock loss against:
→ Your last stock statement / stock register
→ Purchase invoices for raw material / trading stock
→ Production records for finished goods (to verify manufacturing cost)
→ Sales records (for Contract Price goods — sold but not delivered)
Maintain your stock register meticulously and ensure it is updated at least monthly. Segregate damaged from undamaged stock immediately after the event and document the separation.
For structural damage and P&M claims above ₹75,000 — do NOT demolish damaged portions or carry out permanent repairs before the insurer's surveyor inspects. Temporary safety measures (shoring dangerous walls, covering exposed areas) are permitted — document all costs. Call Probitas 022 4302 0000 immediately for large claims.
Call Probitas on 022 4302 0000 immediately. Lodge Police FIR for fire, theft, RSMD, terrorism. For flood/earthquake: Revenue Dept. / local authority certificate. Notify within 7 days (24 hrs for large losses).
Photograph all damage to building, P&M, and stocks. Segregate damaged from undamaged stock immediately. Do NOT repair before surveyor inspection. Secure premises to prevent further loss — document all security costs.
For stock claims: prepare a detailed stock inventory at time of damage. Compare against last stock register / stock statement. Compile purchase invoices, production records, and sales invoices. Surveyor will reconcile claim against these records.
Insurer appoints licensed IRDAI surveyor for claims above ₹75,000. Surveyor assesses on New for Old basis — replacement cost of new equivalent P&M; reinstatement cost of building; stock at appropriate basis. Cooperate fully and provide all records.
Claim Form, Policy document, Photographs, Surveyor report, Repair estimate / invoice, Stock register & purchase invoices, Police FIR, Revenue Dept. certificate, Financial statements (for BI add-on), Bank details (NEFT).
BSUS pays reinstatement cost (New for Old). ₹5,000 excess deducted per claim. IRDAI TAT: 30 days from complete documents. Large claims: staged payments possible. NEFT payment directly to your bank account.
Illustrative Claim Scenarios
| Parameter | Bakery Fire — Delhi | Flood — Chennai Warehouse | Riot — Hyderabad Electronics Shop |
|---|---|---|---|
| Business | Sapna's Bakery, Karol Bagh, Delhi | Rajan Textiles Warehouse, Ambattur, Chennai | Ahmed Electronics, Secunderabad, Hyderabad |
| Insured Assets | Baking machines/ovens: ₹15L; Raw material (flour, sugar): ₹2L; Finished goods (cakes): ₹50K; Furniture: ₹1.5L (building rented — not insured) | Building: ₹80L; Fabric stocks: ₹1.5Cr; Sewing machines: ₹60L | Total: ₹2.9Cr | Shop building: ₹40L; Electronic goods (trading stock): ₹25L; Shelving/displays: ₹5L; Computers/POS: ₹3L | Total: ₹73L |
| Total SI | ₹19,00,000 (<₹5Cr ✔) | ₹2,90,00,000 (<₹5Cr ✔) | ₹73,00,000 (<₹5Cr ✔) |
| Event | Electrical fire in kitchen — ovens, mixers, counters severely damaged; raw material and finished goods destroyed | Chennai floods — warehouse inundated; ground floor stocks and machines damaged; building wall partially damaged | Riot — windows smashed; electronic stock looted within 7 days (theft within 7 days of RSMD); shelving damaged |
| UW Waiver | Not applicable (fully insured) | Applies — Actual value ₹3Cr; SI ₹2.9Cr (96.7% ≥ 85%); full claim paid | Not applicable (fully insured) |
| P&M / Building Claim | ₹12,00,000 (NEW equivalent baking machines — reinstatement) | ₹8,00,000 (wall repair) + ₹18,00,000 (machine restoration + new parts) | ₹4,50,000 (window/facade damage) |
| Stock Claim | ₹2,30,000 (raw + finished goods at landed/manufacturing cost) | ₹35,00,000 (fabric stock at landed/manufacturing cost) | ₹8,00,000 (looted electronics at cost price — theft within 7 days) |
| FF&E / Shelving | ₹95,000 (counters, furniture) | NIL | ₹1,80,000 (shelving, display fixtures) |
| In-Built Covers Used | Debris removal: ₹30,000 (2% of claim) Start-up expenses: ₹80,000 (gas reconnect, machine re-testing) | Debris removal: ₹1,22,000 (2% of ₹61L claim) | Police FIR submitted for riot + theft |
| Compulsory Excess | (₹5,000) | (₹5,000) | (₹5,000) |
| Total Claim Paid | ₹16,30,000 | ₹62,17,000 | ₹14,25,000 |
* Illustrative only. Actual settlement depends on policy terms, surveyor assessment, stock register verification, and documentation. Stock claims require invoice/purchase reconciliation. RSMD/theft claims require Police FIR. Flood claims require Revenue Dept. certificate. ₹5,000 excess applies to each claim.
Common Questions
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