Industrial Special Risks

Don’t let a fire or other hazards undermine your bottom-line

Don’t let a fire or
other hazards undermine your bottom-line

Remove the uncertainty

Having insurance cover for your physical assets, whether that is a building, plant or machinery or materials can go a long way towards giving you the confidence you need to help grow your business.

Remove the uncertainty

What is Industrial Special Risks (ISR) insurance ?

An ISR policy generally covers for loss and/or damage to buildings, plant and machinery and stock or raw materials as well as loss of profits due to damage caused, theft or burglary and accidental damage.

It is regarded as an “All-Risks” policy in that it is intended to cover all property damage at the insured situation except that which is specifically excluded. Therefore, unlike a Business Package Insurance Policy, all losses are covered and the ISR insurer may only deny a claim if it can prove that an exclusion applies to the loss event. Common exclusions include wear and tear, flood and machinery breakdown (unless otherwise specifically insured).

ISR policies are commonly issued on what is referred to as a ‘Mark IV’ wording, an Australian industry standard level of cover. This base wording is then tailored to your individual risk profile by adding highly technical clauses and endorsements to expand the coverage, a complex task requiring careful consideration to ensure that the policy best your risk profile.

That’s why our our specialist broking team members get to know your business enabling them to provide considered advice delivering you the best policy for your specific needs.

Touch base with us to learn how we can help you.

Who should consider it?

Numerous industries utilise ISR policies, ranging from Mining, Energy and Infrastructure, Major Retail, Office Towers, Strata Title, Hospitals, Shopping Centres to business operations with locations scattered throughout Australia.

If you have assets greater than $5,000,000 or assets in multiple locations you should consider getting Industrial Special Risk Insurance.

What are the benefits of an ISR Policy?

The potential benefits for this policy are wide, and can include coverage being extended to include loss of income due to damage to your customers or suppliers premises, Loss of Land value, and even additional costs for undamaged sections of building to meet current building standards imposed following damage to another part of the building.

This means that an ISR policy is extremely broad. Due the large material and financial losses that can occur with these policies, it is important that an experienced insurance broker be involved when designing and presenting your ISR cover requirements to insurers.

HDL, the right partner for you.

Seek advice from HDL

Even though often referred to as an ‘all risks’ policy due to its broad coverage, this name can be misleading and all policies are different, often not properly constructed to protect your actual risk profile.

Additional property policies such as Machinery Breakdown, Marine Transit, Electronic Equipment, Motor, Aviation/Marine-Hull or Fine Arts, to name a few, are often required to supplement an ISR policy.

It is therefore always best to seek advice from HDL regarding your level of cover.

Contact HDL for advice

Importance of declared values, locations and limits

Values and locations must be reported as completely and accurately as possible, and reflected in the policy.

Whether or not your policy contains a coinsurance penalty, the adjustment process following a major claim will be tenuous if the loss occurs where values are significantly under-reported or at an unreported location.

Values should not be the determining factor in setting policy limits. Using the largest location’s value as the policy limit ignores coverages for items with no reported values which are part of the covered limit (such as business interruption interdependency, extra expense, debris removal, demolition, increased cost of construction, etc.). The limit should be set after careful review with your HDL broking team.

Complimentary Review

Securing optimal insurance protection is becoming more challenging.

Having a fresh set of eyes can make a dramatic difference. HDL welcomes the opportunity to evaluate and challenge your current risk and insurance program in a confidential manner that avoids disrupting existing relationships.