Textile mill insurance · Pan India — Fire cover built for spinning mills.
Fire, stock, business interruption and machinery cover for spinning mills, weaving and processing units across India, with a sum-insured review before every renewal.
IRDAI Direct Broker Licence No. IRDAI/DB/1258/2025
What a mill needs
The covers that protect a textile unit.
Fire and allied perils
- Buildings, plant, machinery and stock against fire, lightning, explosion, storm, flood, earthquake and riot. For a mill, the stock and machinery usually carry most of the value.
Stock declaration and floater policies
- Cotton and yarn stock swings through the season. A declaration policy insures a maximum value and charges premium on the stock you actually declare each month; a floater covers stock across several godowns under one sum insured.
Business interruption (fire loss of profits)
- Pays your lost gross profit and the extra cost of keeping orders moving while the mill is rebuilt after insured damage. Without it, wages, loan EMIs and fixed costs keep running with no production.
Machinery breakdown
- Sudden mechanical or electrical breakdown of ring frames, carding machines, compressors and transformers, which fire insurance doesn't cover. Add machinery loss of profits if one machine can stop the line.
Marine cargo
- Raw cotton coming in and yarn or fabric going out, by road or sea. An open or annual turnover policy covers every shipment without a new policy for each consignment.
People: employees' compensation and group health
- Employees' compensation covers your legal liability for workplace injuries; group health and accident cover look after the workforce and their families.
Standard fire products
Which fire policy fits your mill?
Since April 2021, the fire policy you buy depends on the total value at risk at each location.
| Bharat Sookshma Udyam Suraksha | Bharat Laghu Udyam Suraksha | Standard Fire & Special Perils | |
|---|---|---|---|
| Total value at risk | Up to ₹5 crore | Over ₹5 crore, up to ₹50 crore | Above ₹50 crore |
| Typical unit | Small weaving or knitting unit | Mid-size spinning mill or processing unit | Large integrated mill |
| Earthquake and flood | Included | Included | Flood (STFI) included; earthquake as an add-on |
| Underinsurance | Relaxed for small shortfalls | Relaxed for small shortfalls | Claims cut in proportion to any shortfall |
Before renewal
Get the sum insured right.
Most disputes after a mill fire come down to valuation. These four checks prevent them.
Insure at reinstatement value
- Reinstatement value pays what it costs to rebuild and replace with new machinery of the same kind; market value deducts depreciation. For older mills the gap can be large, so we check which basis your policy uses.
Avoid the average clause
- If the sum insured is lower than the real value at the time of loss, most policies pay only that proportion of the claim. Revalue buildings and machinery at every renewal, and declare stock honestly.
Show your fire protection
- Hydrants, sprinklers, detection systems and separation between cotton godowns reduce the chance of a total loss, and insurers price them in. We help you document them for the underwriter.
Keep records off site
- Stock registers, purchase bills and asset lists decide how fast a claim settles. Keep copies in the cloud or at another location so a fire doesn't destroy the evidence too.
Product limits are from IRDAI's standard fire products. Your policy schedule and wording always prevail.
TEXTILESExample claim · Textiles
A fire in a spinning mill’s warehouse. Here’s how we’d stand with you.
- 01Same dayClaim loggedWe notify the insurer and start the file while the site is made safe.
- 02On siteSurvey & documentsWe meet the surveyor with you and prepare stock registers, photos and estimates.
- 03SettlementEvery rupee checkedWe review the offer line by line and escalate any short payment.
Illustrative example of our claims process, not a specific client.
How our claims desk worksMill owners ask
Textile insurance questions.
It depends on the total value at risk at one location. Up to ₹5 crore it's Bharat Sookshma Udyam Suraksha, up to ₹50 crore Bharat Laghu Udyam Suraksha, and above that a Standard Fire and Special Perils policy. We work out the value with you and place the right product.
Stock at your premises is covered by the fire policy. Cotton in transit needs marine cargo cover, and stock held at another site must be named or covered under a floater. We check every location where your stock sits.
No. The fire policy pays for physical damage. Lost profit and fixed costs during the shutdown need a separate business interruption (fire loss of profits) policy.
If your sum insured is below the real value, the claim can be cut in proportion. A review before renewal, using current replacement costs, is the simplest way to avoid it.
Yes. Send us your current schedule and we'll check the sum insured, the basis of valuation, add-ons and exclusions, and compare renewal terms from multiple insurers at no cost to you.
Free risk review
Renewal coming up?
Send us your current policy schedule. We'll check the valuation and compare terms from multiple insurers before you renew.
