Industrial All Risks Insurance

Industrial All Risk Insurance

Industrial All Risk Insurance policy not only provides financial compensation against accidental loss or damage to your building, plant & machinery and stock, but also shields you against loss due to consequential business interruption.
It is a comprehensive policy that covers damage to your assets from all unforeseen circumstances except for those defined in ‘Exclusions’. The Policy also protects your balance sheet from any adverse consequence arising out of such interruption.

Additional Covers

Consequential Loss arising out of Machinery Breakdown
Extension to cover named/ unnamed supplier's premises
Omission to Insure Additions, Alterations or Extensions
Extension to cover named/unnamed customer's premises
Temporary Removal of stock
Extension to cover loss due to accidental failure of public electricity/gas/water supply
Extension to cover Prevention of Access
Additional Increased Cost of Working
  • A single policy that covers accidental material damage, burglary, boiler explosion, machinery breakdown and consequential loss due to interruption
  • Much wider coverage as policy is driven by exclusions
  • Coverage for equipment and machinery sent for repairs outside the premises for a limit of 60 days
  • Transit risk cover with compound available
  • Provision for Waiver of underinsurance upto 15%
  • Total loss due to machinery breakdown is settled on Reinstatement Value Basis
  • Single policy document combining various coverage
  • Risk located in various places can be covered under a single policy

The Industrial All Risk policy is an ‘all risk’ operational policy that covers all fortuitous mishaps barring a few named exclusions. These exclusions are:

Material Damage Section - Excluded causes

  • Faulty or defective design materials or workmanship, Inherent vice, latent defect, gradual deterioration, or wear and tear
  • Interruption of water supply, gas, electricity or fuel systems
  • Collapse or cracking of building
  • Corrosion, rust, fungus, shrinkage, pollution or changes in temperature
  • Larceny
  • Acts of fraud and dishonesty
  • Inventory losses
  • Coastal and river erosion, Normal settlement or bedding down of new structures
  • Any Willful act or willful negligence
  • Cessation of work delay or loss of market
  • War, invasion, mutiny, civil commotion or warlike operations
  • Destruction of property by order of public authority
  • Nuclear weapons material and ionizing radiations

Material Damage Section - Excluded property

  • Money, cheques and other valuable documents unless specifically mentioned in the policy
  • Goods held in trust or on commission unless specifically mentioned in the policy
  • Vehicles licensed for road use
  • Property in transit other than that within the insured premises
  • Property in course of demolition, construction or erection
  • Land (including top soil, back fill, drainage or culverts), driveways, pavements, roads, runways, railway lines, reservoir, canals, tunnels, bridges, piers, jetties, wharves, mining, property underground, off-shore property unless specially covered
  • Property damaged as a result of its undergoing any process

Business Interruption Section – Excluded causes

Loss resulting from interruption due to

  • Any restriction or reconstruction or operation imposed by any public authority
  • Insured’s lack of sufficient capital for timely restoration or replacement of property lost, destroyed or damaged
  • Suspension, lapse or cancellation of a lease, license or order
  • Damage to boilers, economisers, turbines or other vessels in which pressure is used or their contents resulting from their explosion or rupture
  • Damage to electronic installation, computers, and data processing equipment
  • Mechanical or electrical breakdown or derangement of machinery or equipment

Section I: Material Damage

  • Fire & allied perils
  • Theft & burglary
  • Machinery breakdown , Boiler explosion and Electronic equipment

Section II: Business Interruption

  • Fire Loss of Profit
  • Machinery Loss of Profit (optional).