SFSP, BLUS, and BSUS: Insurance Differences at a Glance

Most of the insurers until recently offered only Standard Fire and Special Perils (SFSP) fire policy to their customers. The Insurance Regulatory and Development Authority of India (IRDAI) issued guidelines in January 2021, wherein it allowed insurance companies to design customized products. These products must be specifically be focusing on micro and small enterprises. In the article below we shall highlight SFSP, BLUS, and BSUS insurance differences in detail.

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Types of Fire Insurance Policies

The types of fire insurance policy in India are based on the sum insured. Let us have a look at these types and their major differences.

Bharat Sookshma Udyam Suraksha (BSUS): This policy offers protection to companies for a maximum sum insured of Rs. 5 crores. It typically covers plant and machinery, stock, building, and other assets, the total value for which is not beyond Rs. 5 crores.

Bharat Laghu Udyam Suraksha (BLUS): This policy provides coverage for the sum insured between Rs. 5 crore and Rs. 50 crores. Similar to the BSUS, this policy too covers plant and machinery, stock, building, and other assets, the total value for which is between Rs. 5 crore and Rs. 50 crores.

Standard Fire and Special Perils (SFSP) policy: This policy covers plant and machinery, buildings, and other assets of a property where the total value of the assets at risk is above Rs. 50 crores.

SFSP, BLUS, and BSUS Insurance Differences

To learn about major points of differences between the different fire insurance policies, let us look at the table below:

Basis	BSUS	BLUS	SFSP
Total insured asset value of the subject matter	Below Rs. 5 crores.	More than Rs. 5 crores but less than Rs. 50 crores.	Exceeding Rs. 50 crores
Excess amount to be borne by insured	5,000 of each claim	5,000 of each claim, subject to a minimum of Rs. 10,000	As specified in the policy
Coverage for Terrorism, Volcanic Eruption, Earthquakes, and Forest Fires	Inbuilt	Inbuilt	Offered as add-ons at an extra premium cost
Flexibility in choosing between STFI (Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation) and RSMD (Riots, Strikes, and Malicious Damage)	Being a standard coverage in the policy, these covers cannot be customised.	Being a standard coverage in the policy, these covers cannot be customised.	Customization of this policy is possible. One can add a cover at an additional premium cost or delete it for a lower premium.
Costs for Removal of debris	Upto 2% of the claim amount	Upto 2% of the claim amount	In excess of 1% of the claim amount
Method of valuation	Based on Reinstatement Value/Replacement Value only	Based on Reinstatement Value/Replacement Value only	Based on Reinstatement Value/Replacement Value or Market Value

Case Study:

Vikas started his business (computer training institute) and bought a Bharat Sookshma Udyam Suraksha (BSUS) policy. When due to an electrical fault, a fire erupted and damaged his institute, he raised a claim against his policy. The insurer sent the surveyor to assess the actual loss. After the survey, the assessed damage was mentioned as Rs. 1 crore. Since the fire had occurred as a result of the peril insured under the policy, all the losses were covered. Thus, Bharat Sookshma Udyam Suraksha (BSUS) policy helped Vikas curtail financial losses.

Conclusion:

Fire insurance for businesses is very essential as the losses due to fire and other allied peril can have a huge financial impact. Choosing the correct fire insurances policy for your business is also very vital. The article above helps you understand SFSP, BLUS, and BSUS insurance differences and make an informed decision.

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Policybazaar for Business - Fire Special Perils Insurance - Customer Reviews

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4.6

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Based on 126 reviews

60 users

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5 November 03, 2026

Aarti Yadav

Great For Businesses

Found suitable coverage for my commercial property.

Guwahati

5 November 02, 2026

Manish Tiwari

Convenient Experience

Didn't have to visit any office. The entire process was completed online.

Lucknow

5 October 03, 2026

Meenakshi Iyer

Convenient Comparison

Saved a lot of time by comparing insurers in one place.

Raipur

5 October 02, 2026

Abhishek Jain

Transparent Information

Everything from coverage to exclusions was explained clearly. No hidden surprises.

Jaipur

5 September 03, 2026

Shreya Gupta

Quick Support

Received immediate assistance whenever I had doubts.

Aurangabad

5 September 02, 2026

Sandeep Mishra

Quick Issuance

Purchased fire insurance for my retail shop. The policy was issued much faster than expected.

Ahmedabad

5 August 03, 2026

Kavita Mishra

Trustworthy Service

Felt confident throughout the purchase process.

Nashik

5 August 02, 2026

Rohit Agarwal

Professional Support

The advisor answered all my questions patiently and helped me understand the policy terms.

Pune

5 July 03, 2026

Sneha Kapoor

Easy To Understand

Policy features were explained in simple language.

Vijayawada

5 July 02, 2026

Ankit Gupta

Value For Money

Happy with the premium and coverage offered. It gives me confidence that my property is protected.

Chennai

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⁺Premium varies on the basis of Occupancy, Business Activity & Coverage Type . The premium of Rs 3400/year (Rs 283.33 / month) is for a pucca building with sum insured of Rs 50 lakh at selected locations, for property age less than 25 years and policy term of 1 year, rounded off to nearest 10. Additional premium is payable for the optional covers including contents opted. STANDARD TERMS AND CONDITIONS APPLY. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale.
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