Cover for premises, plant, stock and the income they generate.
Property insurance covers the physical assets a business depends on — buildings, plant, machinery, stock, fixtures and fittings — against loss or damage. In the Indian market it is built around the Standard Fire and Special Perils Policy, which despite its name covers a broad list of perils including flood, storm, riot, impact damage and subsidence. Larger businesses move to Industrial All Risk cover, which reverses the logic: everything is covered except what is specifically excluded.
Property is usually the largest single asset on a balance sheet and the most exposed. A fire, flood or structural failure can halt operations for weeks. What compounds the loss is that most businesses insure the asset but not the income it generates — rebuilding is covered, but the months of lost trading are not, unless Fire Loss of Profit has been added.
The most common failure in property cover is not absence of insurance but understated sum insured. Values declared three years ago no longer reflect replacement cost. When the average clause applies, every claim settles proportionally — a business insured at sixty percent of value recovers sixty percent of even a small claim.
Each placed across our insurer panel and structured around your actual exposure rather than a standard template.
If your operations fall into any of these, this category is likely relevant to your risk profile.
Standard Fire covers a named list of perils. Industrial All Risk covers everything except stated exclusions, which is broader. IAR is generally available above a defined sum insured threshold.
Not as standard. Loss of income during repair requires a separate Fire Loss of Profit policy, usually placed alongside.
On reinstatement value — what it would cost to rebuild or replace today. Book value and original cost both understate this and trigger the average clause.
Not as standard. It is available as an add-on and should be considered based on the seismic zone of the location.
The landlord typically insures the structure, the tenant insures contents, stock and any improvements made. The lease should make this explicit.
Standardised IRDAI products for smaller businesses. Bharat Sookshma Udyam Suraksha covers property up to five crore; Bharat Laghu Udyam Suraksha covers between five and fifty crore.