Risks Generally Excluded

o War and nuclear war o Wear and tear (normal degradation in the quality of the product) Wilful act or negligence Loss discovered at the time of taking the inventory o o

Capping/Upper Sub-Limits

Apart from the exclusions, the policy buyer should be wary of some policies where the extent of insurance cover (sum assured) is capped (for example, policy is issued for up to Rs 200 lakhs as sum assured). Also, a few insurance policies have sub-limits (with maximum amount of cover) for individual risks.

Policy Period

As a general practice, insurance companies offer annual premium for a one-year policy period. For shopkeepers who prefer a long-term policy, some insurance companies offer premium for up to four years – in such cases, shopkeepers can negotiate for a discount on the premium.