What does industrial special risks insurance cover
Atlantic Insurance have been offering Industrial Risks Policies to our Medium and Large Clients for over 40 years and over this time have assisted our valued Clients negotiate some particularly large and complex claims.
Whilst a Business Package Policy is more suited to small businesses with low to medium asset values, an Industrial Special Risks Insurance Policy is a broad Property Insurance Policy which is available to insure businesses with significant asset values with a loss of profit component.
Where a Business Package Policy is designed to cover losses for defined perils such as Fire, Storm, Impact etc an ISR Policy will generally provide a broader level of cover whereby losses caused to property of every kind and description are covered unless excluded. As a general rule the minimum asset value insurers will consider is $5,000,000 for access to an Industrial Special Risks Policy.
There are two main sections covered under an ISR Policy including Material Damage which provides cover for physical loss, damage and destruction of physical assets that are not excluded. The second section is Business Interruption which provides cover for loss of “Gross Profit” resulting from interruption to a business as a consequence of Material Damage. The Material Damage and Business Interruption covers go hand in hand, we often highlight to our valued Clients that there is no point in replacing your physical assets if you have no business to return to after you have been unable to meet your obligations following a major loss.
Who needs to take out industrial special risks insurance
Any business with significant Property Assets should consider taking out an ISR Insurance Policy.
Assets typically insured under an Industrial Special Risks Policy include Buildings, Contents, Fixed Plant / Equipment, Stock, Gross Profit, Wages along with Increased Costs of Working following a major loss.
With changing weather patterns and difficulties reinstating following major losses careful consideration needs to be given to ensure a businesses assets are insured adequately. To assist our Clients determine adequate sums insured, Atlantic Insurance work with a number of specialist “Insurance Replacement Valuers” who can visit your premises and recommend adequate sums insured. With Building Costs and Rebuilding Periods increasing often these Valuers will also recommend allowances for Cost Escalations following a major loss including the estimated lead time from the date of loss to rebuilding commencement and an estimated rebuilding period. Our experienced Client Managers can then provide recommendations on adequate Business Interruption indemnity periods to ensure you are able to keep the doors open whilst your assets are reinstated.
Does atlantic insurance assist with claims
ISR Insurance claims can be exceptionally complex especially when large asset values are involved and a business interruption section is triggered. Often these claims will remain open for two to three years and sometimes more and regular payments will need to be made by insurers to ensure income continues to flow during reinstatement.
At Atlantic Insurance the Client Manager who assisted you arrange the cover will be your main point of contact for lodgement to settlement of your claim. This is very important for complex property claims as often many of the unique endorsements that were included when setting up the policy will extend cover in the event of a loss.
Atlantic Insurance also work closely with specialist Property and Business Interruption consultants who we can often engage at no cost to our Clients via the “claim preparation costs” cover available under an ISR Policy. These consultants can often maximise our Clients settlement and ensure a reasonable settlement offer is put forward by insurers.
