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.

This policy is a Comprehensive Package Policy which covers almost all risks and threats, which a large scale industry may face during its operation. It covers buildings, machinery, furniture, fixtures, fitting , and electrical installations on reinstated value, while the stock is covered on market value basis. Underinsurance on each item of the schedule will be overlooked if it does not exceed a certain percentage of the sum insured. This also covers apparatus and machinery sent for repairs outside the grounds for a period of 60 days. Transit risk inside the compound of an industry is also covered.

Bursting and overflowing of water tanks, apparatus and pipes, Wear and tear of stocks due to power failure, following damage to premises of public power stations and electric service feeders (for Cold Storages), forest fire, leakage and contamination cover, spoilage material damage cover, sprinkler leakage cover, subterranean fire, spontaneous and landslide cover, burglary (other than larceny), machinery breakdown/boiler explosion/electronic equipment, business interruption following fire, business interruption following machinery breakdown are covered under this policy.

Damage to the property caused by faulty or defective design materials or workmanship, inherent vice, deterioration, damage direct or indirect by nuclear weapons material and contamination by radioactivity, etc are excluded from this policy.