Industrial Special Risks Insurance (ISR) provides property damage and business interruption cover for larger asset values and organisations which have more diverse operations. Typically, Industrial Special Risk Insurance is available for combined asset values more than $5 million, however this minimum amount can vary between insurers. Businesses with assets values under this amount are usually insured on a business pack insurance policy.
ISR Insurance is a complex product. There are different risk facets to be assessed and clients’ needs vary from case to case. At Matrix Insurance, we take the time to listen and understand our client’s business requirements so we can ensure that the policy is structured correctly and suitable limits are applied.
Industrial Special Risks insurance protects against a wide range of events such as fire, storm, earthquake, malicious and accidental damage. As ISR wordings are open-ended, policies effectively cover any event which is not excluded or limited in the policy.
What sort of events does an Industrial Special Risks cover?
- Loss or damage to physical assets such as Buildings, contents plant and equipment, stock
- Business Interruption loss from physical damage to the building or contents. It can even cover other events such as failure of public utilities like power, gas or water outages and prevention of access. Eg if the road is blocked off preventing customers or suppliers to get access to your business
- Theft of contents and stock
- Money stolen from the business by a third party
- Internal and external glass, regardless if the damage is malicious or accidental.
- Costs associated with removal of debris
What is the difference between a business pack and an Industrial Special Risk (ISR) Insurance policy?
- ISR insurance policies are typically more comprehensive in cover with less policy exclusions
- ISR policies have higher asset values. Generally, if your business has a total declared asset value of more than $5 million you should consider an ISR policy.
- ISR policies have higher excesses than business packs
- ISR policies are most cost effective. For ISRs, premiums are calculated by a rate which is set by the insurer and multiplied by the total declared asset value. Other sections like theft, money and glass are generally included without charge. Business pack insurance policies charge for each individual section you insure. Therefore, ISR policies are usually more cost effective
For more information on Industrial Special Risks insurance policy please contact one of our experienced insurance brokers.