Industrial All Risks Insurance is a wider cover than traditional “Standard Fire and Special Peril Insurance policy”. It is an all risk policy covering a wide range of perils such as fire and allied perils, burglary, accidental damage, breakdown as well as business interruption.
Coverage is defined into two Sections as follows
• Section - I: Material Damage - It covers accidental physical loss or damage (including machinery breakdown) to the property insured (other than excluded property) due to any cause (other than excluded causes).
• Section - II: Business Interruption -It covers loss due to business interruption following a Physical loss or damage to the property covered under material damage section of the policy. Loss of Profits arising out of machinery breakdown is optional.
On payment of additional premium, the following add-on covers can be opted
• Agreed Bank Clause
• Architects, Surveyors and consulting engineers fees clause
• Designation of Property Clause
• Escalation Clause
• Omission to insure additions, alterations & extensions clause
• Temporary removal of stocks clause
• Terrorism CoverExcluded causes
This Policy does not cover damage to the property insured caused by:
• faulty or defective design, materials or workmanship, inherent vice, latent defect, gradual deterioration, deformation or distortion or wear and tear
• interruption of the water supply gas electricity or fuel systems or failure of the effluent disposal systems to and from the premises unless Damage by a cause not excluded in the Policy ensues and then the Company shall be liable only for such ensuing Damage.
• collapse or cracking of buildings
• corrosion, rust extremes or changes in temperature, dampness, dryness, wet or dry rot, fungus, shrinkage, evaporation, loss of weight, pollution, contamination change in colour, flavour, texture or finish, action of light, vermin, insects, marring or scratching unless such loss is caused directly by Damage to the property insured or to premises containing such property by a cause not excluded in the Policy.
• acts of fraud or dishonesty
• disappearance, unexplained or inventory shortage, misfiling or misplacing of information, shortage in supply or delivery of materials or shortage due to clerical or accounting error
• coastal or river erosion
• normal settlement or bedding down of new structures