• Type: Named-peril policy (covers only specified risks, not “all risks” unless extended).
• Duration: Usually 1 year (annual renewal).

Basis of Sum Insured:

• Reinstatement Value (recommended for buildings, plant & machinery — covers replacement cost without depreciation).
• Market Value (for stocks).
• Indemnity Principle: Pays for actual loss (subject to sum insured, average clause, and deductibles).
• Customizable: Add-ons and extensions are common for large corporates.

The policy covers physical loss, damage, or destruction to insured property caused by:

1. Fire (including due to fermentation, spontaneous combustion).
2. Lightning.
3. Explosion / Implosion.
4. Aircraft Damage.
5. Riot, Strike, Malicious Damage.
6. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood, Inundation.
7. Impact Damage (by own or third-party vehicles, falling trees, etc.).
8. Subsidence and Landslide (including rockslide).
9. Bursting or overflowing of water tanks, apparatus, or pipes.
10. Missile testing operations.
11. Leakage from Automatic Sprinkler Installations.
12. Bush Fire (excluding forest fire).

• Buildings (including plinth & foundations).
• Plant & Machinery, Equipment.
• Stocks (raw materials, finished goods, goods in process).
• Furniture, Fixtures, Fittings & Electrical Installations.
• Other contents.

• Earthquake.
• Terrorism.
• Architects’, Surveyors’ & Consulting Engineers’ Fees.
• Debris Removal.
• Loss of Rent / Additional Expenses.
• Spoilage of Stock.
• Escalation Clause.
• Temporary Removal of Property.
• Business Interruption (Loss of Profit) — often added separately.

• “All risks” cover (except specified exclusions).
• Includes Material Damage + Business Interruption.
• Often bundles fire perils + machinery breakdown + burglary + more.
• Higher minimum sum insured (usually ₹50 crore+), higher deductibles, and higher premium.

• Condition of Average: If under-insured, claim is reduced proportionately.
• Deductibles: Usually 5% of claim amount (subject to minimum, e.g., ₹10,000 or higher for large risks).
• Exclusions (common): Wear & tear, gradual deterioration, war, nuclear risks, intentional damage, theft (unless extended), electrical/mechanical breakdown (unless added).
• Claims: Requires immediate intimation, detailed documentation, and often a survey for large losses.

Premium paid for business assets is usually allowed as a revenue/business expense under Income Tax (deductible from profits).

• Risk survey is mandatory for large corporate policies.
• Always insure on reinstatement value basis for better protection.
• Compare with Bharat Laghu Udyam Suraksha if your asset value is below ₹50 crore — it is simpler and more standardized.

For businesses in Faridabad/Haryana (industrial hubs), many factories opt for SFSP or IAR depending on asset value and risk profile (e.g., fire-prone manufacturing).