Industrial Special Risk (ISR) Insurance Program Design and Implementation
Where a client has insurable building, contents and loss of profit asset values exceeding at least $5,000,000 an ISR policy is usually the broadest and most cost effective way to arrange insurance cover. These policies are extremely flexible and be used to cover a variety of different property and risks dependent on the insurer and the risks in question.
The ISR policy consists of two main sections:
Section 1 – Covering Material Loss or Damage
This section of the policy covers physical loss or damage to the insured assets from events such as Fire, Explosion, Earthquake, Impact by Vehicles and Aerial Devices, Storm and Tempest, Cyclone, Malicious Damage and Vandalism, Accidental Loss or Damage, Burglary and Theft, Theft of Money, Damage to Plate Glass. Cover for Flood and storm surge cover can be included depending on the circumstances. Under this policy, it is normal to find limits for the following items:
- Accidental Damage
- Removal of Debris
- Theft of Property in the Open Air
- Extra Costs of Reinstatement
- Loss of Land Value
- Replacing Locks, Keys and Combinations
- Plate Glass
- Employees Tools & Equipment
Section 2 – Covering Business Interruption
This section of the policy is often the least understood by insurance brokers and clients and the cover arranged is often inappropriate. When arranging an ISR policy we will often spend considerable time with our clients in order to ensure that the cover arranged is appropriate for their needs.
Under this section of the policy you will often find cover arranged for:
- Loss of Profits or loss of Gross Revenue;
- Loss of Rent;
- Claims Preparation Costs;
- Contractual Fines and Penalties;
- Accounts Receivable.
We will assist you to design and implement an ISR program that is appropriate for your needs.