Question 1

What is business insurance and who needs it in India?

Accepted Answer

Business insurance (also called Shop & Office insurance or SME insurance) covers loss of stock, damage to equipment, third-party liability, and fire/theft risks for businesses. Any business with physical premises — retail shops, restaurants, offices, godowns, and manufacturing units — should consider it mandatory. IRDAI mandates it for businesses with annual turnover above ₹5 lakh.

Question 2

What does Shop & Office insurance typically cover in India?

Accepted Answer

Shop & Office insurance covers: fire and allied perils (damage from fire, lightning, explosions), burglary and theft of stock and equipment, money insurance (cash in transit and in safe),riot/strike damage, and electronic equipment breakdown. Optional add-ons include public liability, plate glass, and business interruption.

Question 3

How much does business insurance cost for SMEs in India?

Accepted Answer

Business insurance premiums in India start at ₹1,000/year for a small shop with ₹5 lakh sum insured. Mid-size businesses (₹50L turnover) typically pay ₹5,000–₹15,000/year. Premiums are calculated based on business type, location, sum insured, and coverage type. Compare all plans on InsureScan to find the best value.

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