Understanding Industrial all risk insurance

18 Sept 2020

Life is unpredictable and business even more so. There are many incidents which can cause disruption to your business and lead to property damage and financial losses. Industrial all risk insurance is a type of insurance which is designed to protect your property and finances against such unpredictable circumstances.

Industrial All Risk Insurance offers coverage against damage to all types of fixed assets from unforeseen circumstances except the ones defined in ‘Exclusions’. It also covers the loss of revenue or profits occurred from physical damage to fixed assets.

The policy primarily offers coverage under two sections, material damage and business interruption.

Material damage

It provides compensation, in case the property insured is lost, destroyed or damaged accidentally other than in circumstances excluded in the policy. The coverage can be as money in the event of damage or providing the replacement of the damaged property.

Business Interruption

Here, the policy will cover the amount of loss resulting from business interruption or interference in consequence of loss, destruction or damage covered up to the limit of Sum Insured.

The risks generally included in an industrial all risk policy are:

  • Fire
  • Explosions
  • Natural Calamities like floods, storms of all kinds, Earthquake, Landslides, Rockslides, Land Subsidence
  • Riot & Strikes
  • Malicious Damages
  • Machinery Breakdown
  • Boiler Explosion
  • Breakdown of electronic equipment
  • Loss of revenue due to any of the risks mentioned above

At Unison, we have a dedicated team of professionals who have years of experience in structuring Industrial All Risk Policies as per the clients’ needs.