industrial special risks insurance is a comprehensive policy designed to protect businesses with high-value physical assets against a wide range of risks. Commonly used by large or medium-sized enterprises, ISR insurance provides flexible coverage for property damage and business interruption under one policy.

What Does ISR Insurance Cover?

ISR policies typically include two main sections:

  1. Material Damage
    • Covers loss or damage to physical assets such as:
      • Buildings
      • Plant and machinery
      • Stock and inventory
      • Office equipment
    • Protection extends to perils like fire, explosion, storm, malicious damage, and accidental damage.
  2. Business Interruption
    • Covers loss of income due to disruption caused by insured events.
    • Helps businesses continue paying overheads, wages, and other critical expenses during downtime.

Who Needs ISR Insurance?

ISR insurance is ideal for:

  • Large commercial and industrial enterprises
  • Manufacturers, wholesalers, and logistics providers
  • Property owners with high-value buildings or equipment
  • Businesses with complex operations and multiple locations

Key Features of ISR Policies

  • All-Risks Basis: Covers all risks unless specifically excluded.
  • Customizable: Policies can be tailored to your operations and risk exposures.
  • Higher Sums Insured: Designed for businesses with asset values typically over AUD $5 million.
  • Flexible Extensions: You can add coverage for machinery breakdown, flood, theft, or cyber incidents.

Why It Matters

Standard property insurance might not offer enough protection for larger businesses. ISR fills that gap by providing:

  • Broader protection under one policy
  • Business continuity support
  • Peace of mind against unexpected losses

Getting the Right Policy

When choosing an ISR policy:

  • Work with a broker experienced in industrial insurance
  • Conduct a risk assessment of all locations and operations
  • Ensure accurate valuations for all property and business income
  • Review exclusions and optional extensions

Conclusion

Industrial Special Risks Insurance is essential for businesses that rely on high-value assets and cannot afford extended downtime. Its flexibility, wide-ranging coverage, and focus on continuity make it a key component of a strong risk management plan.