Industrial Special Risks Insurance is an Insurance policy that can tailored to your Business and provide a comprehensive solution to meet your own unique Insurance needs. An ISR insurance policy can cover a range of risks to your business from fire, theft, accidental damage and also the associated financial impact of these and many more perils.
Atlantic has a team of experience Brokers that you can contact to discover more about this form of insurance cover including whom it may benefit, what exactly it offers cover for and how it differs from general Business Insurance plans.
Who needs ISR Insurance?
As a Business owner you have spent years investing your time and resources into establishing a viable Business. Industrial Special Risks Insurance tends to be best suited for those business with higher asset values and turnover. It can be structured to cover multiple locations and whilst providing superior cover to your physical assets, it is the consequential loss that can arise for claims involving business property, stock, plant and machinery or any other assets insured, that provide a level of comfort.
What does it cover? – Coverage is divided into two sections, material loss or damage and business interruption.
Material loss or damage is best explained as covering all risks associated with the physical loss, destruction or damage of property assets while business interruption can cover any financial loss arising as a result of these Material Damage perils.
What value assets can it cover?
As a minimum requirement an ISR Policy tends to have cover asset values of at least $5mil. This could be a combination of both physical assets Insured under the material damage section together with the Gross Profit insured under the consequential loss section of the policy. Therefore the minimum values of assets required to arrange an ISR policy can be less than $5Mil and can be as high as you need to be adequately Insured.
What size organisations should have it?
The policy is appropriate for medium or large businesses with higher values Insured, though it can also be suitable for small businesses with high Gross Profit values. Especially as the the Consequential loss section of the policy can be tailored so that the Indemnity period of the Policy can be as long as is required in order to return you to your pre-loss trading position in the case of a claim. Indemnity periods of 24 and 36 months are not uncommon in the case of ISR policies especially in the current environment where supply and labour shortages can protract the duration of most claims.
How does it differ from Business Insurance? – Generally speaking it is a broader cover and not subject to as many exclusions as a more typical Business Insurance product.
A Business Insurance pack is typically better suited to smaller businesses and still provides a wide scope of cover and risk protection often at a more affordable level. Coverage options can be selected to cover events that fall within the specific policy sections of cover selected wihtin the Business pack.
Is Removal of Debris automatically covered?
If there is debris from damaged property, any repair or replacement generally cannot occur until this has been cleared, and the cost of this can be large. This is commonly included in insurance policies, but if it is not specified it will not be automatically included in ISR cover. As these policies often attach to large sites the amount Insured under the Removal of Debris section can be significant.
What is a sublimit?
A sublimit is a monetary threshold which is placed on the amount that can be claimed by your insurer. For example, if a policy covers $25,000 Burglary cover then you can only receive $25,000 to cover this theft.
This is important to be aware of, as it may mean the amount available for claim for a certain event is lower than expected. Under an ISR policy tailoring these sublimits to your specific Insurance needs is taken into account when the Insurer arrives at the applicable premium. Refining these ensures that the policy premium is reflective of the scope of cover provided under the policy.
What is a Limit of Liability?
This outlines the maximum exposure for the insurer. This does not affect the premium but is taken into account by Insurers to ensure the exposure presented by this risk fits within their Underwriting appetite.
What is a Declared Asset Value?
The Declared Asset Value is the value that is covered Under the physical assets and Consequential loss section of the policy. This is a driver of premium together with a number of other rating factors including location, industry, past performance, previous claims etc.
What is ‘Mark IV’ wording?
This is an industry standard commonly used for ISR policies where the wording in its foundation can be easily tailored to your individual risks, ensuring you are met with the best policy for your business.
Choosing the right ISR policy
To select the ISR Insurance that is most appropriate for your business and your specific risks, you should be aware of any exclusions in the policy you are considering. You should also understand the coverage that will be most important to your business and note whether it is included. Compare a variety of options to determine which will be most beneficial.
Industrial Special Risks Insurance with Atlantic Insurance
At Atlantic Insurance, we are committed to offering comprehensive and competitive Industrial Special Risks Insurance policies from a broad range of Insurance providers that offer substantial coverage for a range of circumstances. Contact us to discuss the cover requirements for your business and receive a quote.
To learn about other Business Insurance policies that may be necessary to cover against risk for your company, visit this blog.
Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Your should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.
