Exploring Breakdown Of Business Equipment Coverage In Bharat Sookshma Udyam Suraksha Shopkeepers Package Policy

The Bharat Sookshma Udyam Suraksha Shopkeepers Package Policy is an MSME insurance plan. If you need to become more familiar with the term MSME, know that it refers to Micro, Small and Medium Enterprises. As its name suggests, this MSME insurance policy aims to provide coverage specifically to shopkeepers and similar business ventures. It is designed to provide comprehensive coverage against a wide variety of events and losses that can affect a shopkeeper’s enterprise. Such coverage is essential to safeguard the business against unforeseen losses and to ensure its operations run smoothly.* Claims are subject to terms and conditions set forth under commercial insurance policy. The Bharat Sookshma Udyam Suraksha Shopkeepers Package Policy provides various covers, one of which is the breakdown of business equipment coverage. Let’s delve more into it in this article.

Understanding Breakdown of Business Equipment Coverage 

If the insured enterprise undergoes a breakdown of business equipment as specified in the policy document, the insured shall receive financial compensation accordingly as per this coverage. Here are more details:*

1. The insurance company will indemnify the insured against the repair or replacement costs that can come up due to any unforeseen and sudden physical loss of business equipment. This does not include damage occurring from causes that are excluded from the coverage.
2. It is also important to note that the insurance company’s liability for any one item of business equipment will not exceed, whether individually or in aggregate, the sub-limit for that item. The sub-limits under the sum insured are set for different items in the policy schedule.
3. The breakdown of business equipment coverage can ensure to a great extent that the insured is shielded from financial expenses when unfortunate situations arise.
4. Such General insurance policies allow the insured to receive timely financial help so that their daily business operations can continue without major interruptions.*

Claims are subject to terms and conditions set forth under commercial insurance policy. To understand the breakdown of business equipment coverage better, one should also look at its special conditions and exclusions in detail.

Special Conditions applicable for Breakdown of Business Equipment Cover

In the event that the sum insured for each business equipment item is equal to the cost of replacing it with a new property of identical kind and capacity, the process for loss settlement is as outlined below: 1. When an item is reasonably repairable at a cost lower than its replacement, the insurer will indemnify the insured for the necessary expenses to restore the item to its pre-event state. The insurer will not deduct depreciation except for parts with limited life. 2. In cases of total loss, the insurer will indemnify the insured for the restoration or replacement costs up to the sub-limit mentioned in the policy schedule. The insurer will deduct proper depreciation from the replacement value. 3. If the collectively assessed value of the insured business equipment exceeds the sum insured during any insured event, the insured assumes responsibility for the difference. Accordingly, the insured bears a proportionate share of the loss or damage for each item separately. 4. The insured is responsible for the initial 1% or Rs.250/- (whichever is higher) of any claim related to business equipment items.

Special Exclusions under the Breakdown of Business Equipment Coverage 

Under the Bharat Sookshma Udyam Suraksha Shopkeepers Package plan, the insurer will not provide indemnity or payment for any loss connected to: 1. Any fault or defect that was known or should have been known to the insured at the policy's start, regardless of whether the insurer knew or should have known about it. 2. Loss or damage the manufacturer or supplier is responsible for. 3. Loss or damage to business equipment over 10 years old. 4. Damage due to wear and tear, deterioration, climate conditions, rust, corrosion, moth, vermin, or insects. 5. Costs related to business equipment maintenance, including parts that were replaced during maintenance. 6. Costs for eliminating functional failures, unless caused by an insured event. 7. Loss or damage from wilful acts or gross negligence of the insured or employees. 8. Transportation costs to and from the repair location. 9. Loss covered by other coverages within the policy. 10. Loss or damage to mobile phones or similar communication devices. Please take note that along with the above exclusions and conditions, the breakdown of business equipment coverage is also subject to general conditions and exclusions mentioned in the policy wordings. In addition to the breakdown of business equipment cover, the policy also provides other covers, such as building and contents cover (excluding valuables) and burglary and robbery cover. It also provides neon sign/glow sign cover, money insurance coverage, plate glass coverage, electronic equipment coverage, and much more, as specified in the policy wordings.* Claims are subject to terms and conditions set forth under commercial insurance policy. With the wide variety of coverage provided by the Bharat Sookshma Udyam Suraksha Shopkeepers Package policy, business owners can rest assured of their finances and conduct business with peace of mind.   *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.