Industrial All Risk Insurance: Protect your Plant & Machinery

Industrial operations face potential risks such as material damage, machinery breakdowns, and business interruptions that can result in substantial financial losses. The Industrial All Risk (IAR) Policy serves as a comprehensive solution to safeguard businesses from these implications, offering broader coverage compared to a Standard Fire and Perils policy.

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Here’s what is typically not covered in an industrial all-risk insurance policy:
Wear and Tear
Damage caused by gradual wear and tear, gradual deterioration, or inherent vice in the insured property.
Faulty Design or Workmanship
Damage from defective design, faulty artistry, or inadequate maintenance.
Specific Perils
Certain specific perils might be excluded, such as nuclear risks, war and civil commotion, terrorism, acts of government authorities, etc.
Consequential Losses
Losses due to loss of market, consequential economic losses, and losses caused by delay, unless specifically covered.
Dishonesty or Fraud
Losses due to fraudulent activities, theft, dishonesty, or inventory shortages caused by internal factors like employee fraud, etc.
Cyber Risks
Damage or losses caused by cyber-related events such as hacking, data breaches, or cyber-attacks.
Intentional Damage
Damage caused intentionally or wilfully by the insured or its employees.

While IAR Policies are typically designed for larger industrial risks, insurance providers may offer tailored solutions or packages suitable for small to medium-sized enterprises (SMEs) with varying coverage options to suit their needs.

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