How an Industrial Special Risk Insurance Policy Protects High-Value Assets

When your organisation owns or manages commercial property, plant, or equipment with significant asset values, a standard business insurance policy may not offer adequate cover. This is where an industrial special risk insurance policy (ISR policy) becomes essential. It delivers broad protection for physical assets, tailored coverage for complex risks, and financial security against disruption or loss.

At Atlantic Insurance, we help Australian businesses secure ISR cover that protects their operations, no matter the complexity or size.

What Is an Industrial Special Risk Insurance Policy?

An industrial special risk insurance policy is designed to provide comprehensive protection for businesses with declared assets typically exceeding $5 million. Rather than using multiple insurance policies to protect your business property, ISR policies combine protection for material damage and business interruption into a single, highly flexible insurance solution.

This form of risk insurance is well-suited to organisations operating across multiple locations, in high-risk industries, or with complex asset structures. From manufacturing plants to logistics warehouses, Atlantic Insurance works with clients to ensure their ISR policy supports operational resilience and financial stability.

Why Businesses with Significant Assets Need Specialised Cover

Businesses with high-value assets—such as machinery, commercial buildings, or stock—face unique and elevated risks. An insured event such as fire, flood, storm damage, or accidental damage can lead to significant financial loss and operational downtime.

ISR insurance policies address this by offering:

• Broader cover than standard property insurance
• Customisable policy wording tailored to your risk exposure
• Higher limits and fewer exclusions
• Access to extensions such as machinery breakdown or removal of debris
  

Atlantic Insurance ensures each ISR policy is carefully structured to match your risk profile, industry obligations, and operational needs.

What Does ISR Cover Typically Include?

Each ISR policy is designed to suit the specific needs of your organisation. Common cover sections include:

1. Material Damage Cover

This provides protection for your insured physical assets—such as commercial property, buildings, fixtures, equipment, and contents—against insured perils like fire, impact, theft, and weather events. Whether it’s damage to a warehouse or loss of stock due to water damage, ISR policies cover the cost of reinstatement or repair.

Atlantic Insurance will help assess your declared asset values to ensure you’re not underinsured.

2. Business Interruption Cover

When a significant event causes damage to your property, ISR insurance can include business interruption cover. This section reimburses lost profits, pays for fixed overheads, and helps your organisation maintain financial stability while recovery takes place. Coverage may also extend to increased cost of working or loss of rental income.

3. Machinery Breakdown Insurance

Machinery and equipment are often critical to business continuity. ISR policies can incorporate machinery breakdown insurance, covering repair or replacement costs following sudden and unforeseen failure. This is particularly relevant for industrial, food processing, or utility-based businesses.

Atlantic Insurance works closely with clients in manufacturing and heavy industries to ensure this vital cover is included where needed.

4. Theft and Accidental Damage

Coverage can extend to theft of assets, vandalism, or unintentional loss of or damage to physical assets. These extensions are essential for protecting against the risk of physical loss and damage.

5. Risk Management Insurance Features

ISR policies often include extensions such as:

• Removal of debris

• Professional fees (e.g. architects, engineers)

• Extra Costs of Reinstatement

• Cover for Money

• Business Interruption following Prevention of Access
  

As part of our service, Atlantic Insurance helps you navigate these extensions to build a stronger risk protection strategy.

Who Should Consider an ISR Insurance Policy?

ISR cover is ideal for businesses and commercial property owners who need robust asset protection. You may benefit if:

• Your business owns or leases multiple commercial properties

• You operate medium to large organisations with high-value machinery or equipment

• You require tailored insurance coverage for complex risk profiles

• You’re in sectors like manufacturing, warehousing, healthcare, aged care, or construction
  

Atlantic Insurance specialises in providing ISR policies for clients with complex operations across Victoria and other major Australian states.

Advantages of Choosing ISR Cover

ISR insurance offers several distinct advantages over general business property insurance or standalone policies:

• Customisation – Policy wordings can be tailored to specific exposures, industries, and asset classes.
  Consolidation – Reduce administrative burden by combining multiple insurance options under one agreement.

• High Limits – Accommodates businesses with substantial asset values and complex risk needs.

• Greater Clarity – Cover is clearly defined, with transparent terms and fewer grey areas.
  Enhanced Business Continuity – Business interruption coverage ensures operations can recover quickly after a loss.
  

With the support of Atlantic Insurance, your ISR policy is professionally managed, ensuring compliance, accuracy, and provides maximum value.

Understanding Risk and Exposure

When determining whether your organisation needs ISR coverage, consider the following:

• What are the asset values of your plant, buildings, and contents?

• Are you exposed to perils such as fire, flood, or mechanical failure?

• Do you have operations across multiple sites or states?

• Would an extended shutdown cause major loss of profits?
  

Atlantic Insurance can guide you through a full risk analysis and provide ISR options that suit your business continuity requirements.

Final Thoughts

An industrial special risks insurance policy is more than just cover—it’s a tailored strategy to protect your business from catastrophic loss. Whether you’re managing large-scale commercial property or coordinating logistics for multiple sites, having a comprehensive ISR policy helps you remain resilient in the face of disruption.

If your current business insurance doesn’t fully address your risks, speak to Atlantic Insurance. We’ll help you design a robust ISR solution that protects your people, assets, and operations — all with expert advice from brokers who understand Australian businesses.

Need tailored ISR cover for your high-value assets? Contact Atlantic Insurance today for a risk assessment and obligation-free quote.