Does Shopkeepers Package Policy Cover Breakdown Of Business Equipment?

The Shopkeepers Package Policy is an MSME insurance plan that can serve as a protective shield for enterprises operating within the MSME sector. For the unaware, MSME stands for Micro, Small and Medium-sized Enterprises. The Shopkeepers Package Policy covers various aspects to ensure the smooth functioning of these businesses. With the coverage of a well-designed MSME insurance plan, enterprises can get a safety net that protects them from financial disruptions. One such essential coverage point within the Shopkeepers Package Policy is the breakdown of business equipment cover.* Claims are subject to terms and conditions set forth under commercial insurance policy. If such a situation occurs, i.e., essential business equipment breaks down, the organisation’s productivity can be affected negatively to a great extent. Hence, it is important to have the right coverage against such a contingency and know the extent of the coverage as well. With that in mind, let’s look at the breakdown of business equipment coverage in the Shopkeepers Package Policy.

How Does the Shopkeepers Package Policy Cover the Breakdown of Business Equipment?

The following points delve into the nuances of the breakdown of business equipment coverage within this shopkeeper insurance plan:*

1. If the business equipment of an organisation requires repair or replacement due to any unforeseen and sudden physical loss, the insurer will indemnify the insured against the costs for the same.
2. The liability of the insurer with respect to any item/s of the covered business equipment within a single policy period will not exceed the sub-limit of the sum insured set against the particular item in the policy schedule. This is applicable regardless of whether the costs for the item exceed the limit individually or in aggregate.
3. Additionally, if the business equipment requires repair or replacement due to a loss that is excluded under the policy, the cover shall not be applicable.
4. Thus, the insurer provides a safety net to the insured against such essential costs due to unpredictable events and helps the enterprise continue its daily operations resiliently, in addition to giving the insured better peace of mind.

Claims are subject to terms and conditions set forth under commercial insurance policy. As with all coverage in a general insurance plan, the breakdown of business equipment cover is also subject to certain conditions, which we shall look at now.

Special Conditions for Breakdown of Business Equipment Cover

Considering that the sum insured for each business equipment item is equal to the cost of replacing it with new property of the same kind and capacity, the loss settlement will be as follows: 1.  If an item can be repaired or reinstated at a cost lesser than the replacement cost, the insurer will indemnify the insured for the expenses incurred to restore that item to the state prior to the occurrence of the insured event. Depreciation will not be deducted except for those parts with limited life. 2.  If a situation of total loss has occurred, the insurer will indemnify the insured for the restoration or replacement only up to the sub-limit of the sum insured set for the item in the policy schedule. Here, depreciation will be deducted from the replacement value of the item. 3.  If the collective value of the business equipment is more than the sum insured during any insured event, the insured person shall bear the difference between the two amounts, i.e., take care of the amount exceeding the policy sum assured. Accordingly, they shall bear the rateable proportion of the loss or damage. Every item is subject to this condition. 4.  In case of any claim concerning any business equipment item, the insured will bear the first 1% or ₹ 250, whichever is higher. The Shopkeepers Package Policy also has a list of exclusions applicable specifically to the breakdown of business equipment cover. Furthermore, the general exclusions of the policy are also applicable, unless otherwise stated.

What Else Does the Shopkeepers Package Policy Cover?

Along with the breakdown of business equipment cover, the policy also covers the following:

Building and contents cover (excluding valuables)*

The policy covers the insured against loss or damage to the building and its contents in the insured premises against a variety of events specified in the policy schedule.

Burglary and robbery cover*

The policy also covers loss or damage to the contents in the insured premises due to burglary and/or robbery along with loss of money due to the same, subject to policy wordings.

Money insurance*

If money is lost while in transit while being carried by the insured or its employee due to robbery, theft, or other unfortunate event, it will be covered, as per policy wordings.

Neon sign/ Glow sign*

Repair or replacement costs for the insured’s neon sign or glow sign fixed in the insured premises will be covered under this shopkeeper insurance policy, if it is caused by issues mentioned in the policy inclusions only. Claims are subject to terms and conditions set forth under commercial insurance policy. Multiple other events and items are covered, all of which, including the above, are subject to special conditions and exclusions, as well as general exclusions.   *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.