Industrial All Risk
Comprehensive Insurance Protection for Large-Scale Industrial Units
Industrial All Risk (IAR) insurance is a comprehensive package policy that provides broad coverage for large industrial businesses. It’s designed to protect against a wide range of risks and potential losses, offering more extensive coverage than traditional fire and allied perils policies. IAR policies typically cover material damage to the insured property, as well as business interruption losses resulting from those damages
Key aspects of Industrial All Risk insurance
Comprehensive Coverage
IAR policies aim to cover a wide spectrum of risks, including fire and allied perils, burglary, machinery breakdown, and business interruption.
Named Exclusions
Unlike traditional policies, IAR policies often operate on the principle of “all risks” coverage, with specific exclusions rather than a list of covered perils.
Package Policy
IAR policies combine various types of coverage into a single, unified policy, streamlining the insurance process for large industrial operations.
Material & Business Damage
IAR policies typically cover both the physical damage to the insured property (e.g., buildings, machinery, equipment) and the financial losses resulting from business interruptions caused by those damages.
Market Value for Stocks
Stocks are typically covered on a market value basis, reflecting the value of the goods at the time of the loss.
Large Industrial Operations
IAR insurance is particularly well-suited for large factories, manufacturing plants, and other industrial businesses that face a variety of potential risks.
Reinstatement Value
Buildings, machinery, and other fixed assets are often covered on a reinstatement value basis, meaning the insurer will pay to replace or rebuild them at their current cost.
Add-on covers
- Deterioration of Stocks in Cold Storage premises due to power failure following damage due to an insured peril.
- Forest Fire.
- Impact Damage due to Insured’s own Vehicles, Forklifts, and the like and articles dropped therefrom.
- Spontaneous Combustion.
- Omission to insure additions, alterations, or extensions.
- Earthquake (Fire and Shock).
- Spoilage material damage cover.
- Leakage and contamination cover.
- Temporary removal of stocks.
- Terrorism.