According to the Economic Survey 2021-22, the Department for Promotion of Industry and Internal Trade (DPIIT) recognized at least 14,000 startups during the fiscal year. With over 61,400 startups, India is home to the third-largest startup ecosystem in the world. The increasing number of entrepreneurs proves that more people are willing to take risks. Especially fire insurance for start-up, can play an active risk mitigation tool.
Before taking a leap of faith and jumping into the big pool of the startup world, consider understanding and assessing risks from all corners. During an unfortunate event, startups or SMEs need a safety net to fall back on.
You might have taken necessary precautions and installed various fire safety equipment in your office or warehouse. But unimaginable accidents can still occur, leading to disruption, damage, and irreparable losses to your business. This makes fire insurance for start-up an imperative buy.
Now that we have identified the need for fire insurance for businesses, it’s time to know the kinds of fire insurance offered best suited to your needs. In January 2021, The Insurance Regulatory and Development Authority of India (IRDAI) issued guidelines allowing insurance companies to design customized products for micro and small enterprises, ‘Bharat Sookshma Udyam Suraksha’ and ‘Bharat Laghu Udyam Suraksha’.
Bharat Sookshma Udyam Suraksha: This policy provides cover for the plant & machinery, building, stock and other assets up to Rs. 5 crores.
Bharat Laghu Udyam Suraksha: This policy provides cover for the plant & machinery, building, stock and other assets above Rs. 5 crores but not exceeding Rs. 50 crores.
Special Fire & Special Perils (SPSF): This policy provides cover for the plant & machinery, building, stock and other assets above Rs. 50 crores.
Conclusion
A fire insurance policy for your startup is like having damage control at your fingertips. If your startup does not have an adequate fire insurance policy, the repercussions can make a big hole in your pocket. Knowing the significance of fire insurance, Policybazaar can help you compare and buy the right policy for your startup.
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