Operational Risks
Fire and Allied Perils
Fire and allied perils insurance protects buildings, contents, plant, machinery, and stocks against loss or damage from fire (including smoke), lightning, explosions, and named additional perils. It safeguards immovable and movable property on land (excluding land value), and could include fire brigade costs, debris removal and professional fees.
Industrial All Risks (IAR)
Industrial All Risks (IAR) insurance is a comprehensive "all risks" policy tailored for industrial operations, protecting buildings, plant, machinery, stocks, and contents. The policy has separate sections like material damage, theft, goods-in-transit, money, machinery breakdown and business interruption
It surpasses standard fire and allied perils policies by offering broader protection on an exclusion-based principle (everything is covered except what's listed out), making it ideal for manufacturing plants, factories, or warehouses with high-value assets typically requiring detailed risk assessments.
Property/Assets All Risks
Property all risks (PAR) insurance, also known as Assets All Risks, is a broad "all risks" policy that safeguards property and assets against any accidental physical loss or damage from fortuitous causes unless explicitly excluded, encompassing perils like fire. The policy has separate sections like material damage, theft, goods-in-transit, money, machinery breakdown and business interruption.
The difference between Assets All Risks and Industrial All Risks is that the former is tailor made for commercial businesses and includes service-based organizations whereas the latter is for large-scale manufacturing and industrial organizations.
Machinery Breakdown
Machinery breakdown insurance safeguards critical industrial and commercial machinery against sudden, accidental physical damage from internal causes such as mechanical or electrical faults, operator errors, or arcing, whether in operation, at rest, or during maintenance at the insured site, typically including repair/replacement costs and temporary fixes.
A machinery breakdown policy fills specific gaps for post-warranty assets via annual terms with inspections.
Business Interruption
Business interruption insurance compensates for lost income during closures or slowdowns triggered by underlying policies such as property all risks or industrial all risks, it may extend to supplier disruptions or utility failures helping businesses maintain cash flow and resume operations swiftly.
Stock Insurance
Stock insurance protects a business's inventory against physical loss or damage from specified perils. Typically an extension within commercial property or contents policies rather than standalone, it primarily focuses on owned stock (or stock in custody) under the policyholder’s control at fixed locations.
Deterioration of Stock Insurance
Deterioration of stock insurance safeguards perishable or temperature-sensitive goods against spoilage or loss of value from sudden temperature changes due to refrigeration breakdowns, power failures, refrigerant escape or accidental damage to cooling systems.
It is typically an add-on to machinery breakdown or property policies for cold storage operators and refrigerated transport companies.
Theft & Burglary Insurance
Theft and burglary insurance protects property owners from financial losses due to stolen items or damage from break-ins.