Standard Fire and Special Perils Policy (SFSP)

Life is full of uncertainties. It can put you in a tight spot when you least expect it. Life is full of uncertainties. It can put you in a tight spot when you least expect it. Man-made or natural calamities come unannounced and can have a huge impact on our lives. However, having a shield of insurance can help you overcome such unforeseen events. A Standard Fire and Special Perils Policy (SFSP) is a type of insurance that protects against losses or damages sustained to your property due to natural or man-made disasters

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What is Standard Fire and Special Perils Policy (SFSP)?

A SFSP policy is a type of fire insurance policy. Just like any other insurance, it is a contract wherein the insurer (insurance company) guarantees to pay the insured for the loss or damage to the property if caused due to the covered perils. This insurance policy is specified for one year and can be renewed annually. Both, homeowners as well as commercial entities like factories, offices, shops etc. are advised to buy SFSP policy as it offers several fire insurance benefits.

When it comes to commercial policies, SFSP policy is generally bought by entities who look out for a sum insured beyond Rs. 50 crores. This policy provides coverage to plant & machinery, building, stock and other assets of the business. It is an ideal policy for corporates and SMEs who require coverage for their business against unforeseen and uncontrollable factors that can have financial repercussions.

Types of Standard Fire and Special Perils Policy (SFSP)

Below are the five types of policies under SFSP:

  1. Valued policy: Under this policy, the value of the insured property is determined at the time of the purchase. In case of damage or loss, the insurer is liable to pay the pre-decided amount to the insured.
  2. Valuable policy: This policy functions in a reverse manner of the valued policy, and the claim amount is decided as per the current market price, not at the time of purchase.
  3. Specific policy: This policy only covers the risk up to a specific sum.
  4. Floating policy: When goods are at different locations a floating policy can be highly beneficial. However, it is to be noted that the goods should belong to the same person (insured).
  5. Comprehensive policy: This type of policy provides coverage for multiple risks including explosions, burglary, labour disturbances, etc. and also offers added features. This makes it highly recommended.
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A fabric manufacturer in Surat bought a standard fire and special perils policy (SFSP) insurance policy for his new setup. Once, a fire broke down in his manufacturing unit and burnt the stock. The insured immediately informed the insurer about the event. The insurance company assessed the reason for the damage and concluded that the fire broke due to an insured peril. The insured was thus compensated for the loss and could get back to business, rather easily.


You know about your business more than anyone and how much would be at risk if a fire accident takes place. If the expected damage is more than Rs 50 Crore than SFSP policy is the right choice. You can also customize the policy coverage however, it is recommended to opt for the comprehensive coverage this insurance provides.

Written By: PolicyBazaar - Updated: 11 August 2023
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Policybazaar for Business - Fire Special Perils Insurance - Customer Reviews
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Based on 83 reviews
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Based on 83 reviews
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4.8 October 09, 2022
Amazing Customer Support
I am using a fire insurance policy from policybazaar and experienced amazing feedback from them in claim settlement. I have a sports merchandise shop that caught fire last yearI raised a claim which was resolved within a few days without any hassles.
4.8 October 08, 2022
Helpful Support
The support team of Policybazaar is really helpful and prompt. They solve all your queries fast. Would definitely recommend Policybazaar for purchasing insurance .
4.8 October 07, 2022
Extensive Cover
Got a fire insurance policy for my shop and it was really extensive with so many features. Purchased it from Policybazaar without paying any commission fees. Great coverage.
4.5 October 06, 2022
User Friendly Website
We deal in the cotton industry and suffered a huge loss last year because of the fire. We were looking for insurance to safeguard us financially from any such incident in the future. We landed on the policybazaar website and bought fire insurance. Their website is well managed and gives all the necessary information.
4.8 October 05, 2022
Plans Are In Budget
Had to purchase a fire insurance which should be in my budget as I run a very small store. Got a lot of affordable plans on Policybazaar and purchased the one that suited my budget. All plans are in budget and with so many features.
4.3 October 04, 2022
Covered My Shop
I have a shop of garments and it caught fire last year in which I lost items worth thousands. Purchased a fire insurance from Policybazaar and now I feel really relieved that it would financially cover my shop in such circumstances.
4.3 October 03, 2022
Faster Claim Settlement
A part of my warehouse having thousands of material caught fire. Luckily I had a fire insurance policy that I could claim and received compensation from them. It was such a relief. The claim settlement team at Policybazaar is helpful and really quick.
4.5 October 02, 2022
I have a warehouse of clothes and was planning to buy a fire insurance policy to cover my material from unwanted fire. Got a really affordable plan from Policybazaar with some really great features.
4.5 October 01, 2022
Budget Friendly
Wanted to cover my crockery shop from fire and was searching for an affordable plan. Found a great plan at Policybazaar which suited my budget.
4.5 September 30, 2022
Instant Purchase
Wanted a fire insurance policy for my crockery business and could purchase it instantly from Policybazaar. The process was quick instant and very easy.