Industrial special risks insurance, also known as ISR Insurance, is a broad coverage business insurance policy that provides cover for diverse scenarios or damage to high-value physical assets including property, buildings, materials and machinery.
If you are a business or commercial property owner with insured property or high value assets over the value of $5 million, you should consider industrial special risks insurance. Please note that minimum values do vary by insurer.
An enormous number of industries utilise ISR policies. These can range from mining, energy and infrastructure, major retail, office towers, strata title, shopping centres to business operations with locations throughout Australia.
At DKG Insurance Brokers, we understand that the needs of each client are different, therefore we will take the time to assess your individual risk requirements and deliver a bespoke solution. Please reach out to one of our experienced brokers today.
Exclusions to public liability, property and business insurance for communicable diseases such as COVID-19 were in place prior to the outbreak of the pandemic, however, some policies failed to reference the relevant legislation, creating ambiguity around the scope of the exclusion. Insurers have now rectified the perceived error of citing the Quarantine Act 1908 rather than the Biosecurity Act 2015 and, in some cases, expanded to make the communicable disease exclusion broader.
Important note − The information provided is general advice only and has been prepared without taking into account your objectives, financial situation or needs. When making decisions about industrial special risks insurance, please consider the Product Disclosure Statement.
An ISR insurance policy provides cover for property damage to your valuable assets by any cause not excluded under your policy, such as:
- Loss and/or damage to buildings, plant and machinery, contents, stock, raw materials, unregistered vehicles and the property of directors and employees.
- Loss of profits, revenue or rentals and/or increased expenses caused by damage to insured property.
- Loss of profits, revenue or rentals and/or increased expenses caused by contingent damage to property at the premises of suppliers, customers and utilities.
- Burglary, theft of money and employee dishonesty.
- Accidental damage and glass breakage.
This means that an ISR policy is extremely broad. Due to the large material and financial losses that can occur with these policies, we recommend an experienced insurance broker be involved when discussing your ISR cover with insurers.
What usually isn’t covered?
The standard exclusion in an ISR policy can be categorised as either Property or Peril exclusions.
Examples of standard Property Exclusions include:
- Railway Rolling Stock
- Live Animals
- Property in Open Air
- Growing Crops
Example of standard Peril Exclusions include:
- Machinery Breakdown
- Flood
These exclusions can be amended or written back subject to the Insurer’s agreement.
Important note − The information provided is general advice only and has been prepared without taking into account your objectives, financial situation or needs. When making decisions about industrial special risks insurance, please consider the Product Disclosure Statement.