Engineering InsuranceIndustrial All Risk

Industrial All Risk Insurance

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Industrial All Risk Insurance

This policy is a Comprehensive Package Policy which covers risks and perils, which a large industry commonly encounters during its operation. This policy covers Buildings, Machinery, Furniture, Fixtures, Fitting & electrical installations on Reinstatement value, while the stock is covered on a market value basis.
Underinsurance on each item of the schedule will be ignored if it does not exceed 15% of the sum insured. The policy also covers equipment and machinery sent for repairs outside the premises for 60 days. Transit risk inside the compound of an industry is also covered.


  • Umbrella /Comprehensive Cover under one single policy
  • Economical Rate of Premium
  • Protects against all possible aspects of risk exposure which may have been overlooked inadvertently
  • Covers eventualities which cannot be taken care of by any of the present operational policies available like Fire, MBD Policy etc
  • Multiple locations can be covered under one single policy


  • Industrial Units - Both manufacturing as well as Storage Units. (Excluding Petroleum Refineries, Petrochemical and Fertilizer Plants)
  • Normally Overall sum insured of Rs. 100 crores and above in one or more locations in India


This is a comprehensive policy to cover damage to your assets from all unforeseen circumstances except for those defined "Exclusions". The policy offers coverage under two sections:

  • Section I - Material Damage
    Fire and special perils, Earthquake, Burglary, Machinery or Electronic Equipment breakdown and Boiler explosion
  • Section II - Business Interruption
    The Sum Insured under this Section should represent the projected gross profit.
    • FLOP (Fire Loss of Profit): Business interruption due to fire and all special perils
    • MLOP (Machinery Loss of Profit): Business interruption due to machinery breakdown

Add on Covers

  • Section I (Material Damage)
    • Architects', Surveyors and Consulting Engineers' Fee clause
    • Designation of Property Clause
    • Escalation Clause
    • Omission to insure additions, alterations or extensions clause
    • Temporary Removal of Stocks clause
  • Section II (Business Interruption)
    • Suppliers' and Customers' Premises extension
    • Failure of Utility services at the terminal ends


  • Section I (Material Damage)
    The policy will not cover any claim due to:
    • Faulty or defective design materials or workmanship
    • Interruption of the water supply, gas, electricity or fuel systems or failure of the effluent disposal systems
    • Collapse or cracking of buildings
    • Larceny & Fraud
    • Coastal or river erosion
    • Willful act or gross negligence of the insured
    • Cessation of work, delay
    • War, warlike operations
    • Nuclear risks
    • The destruction of property by order of any public authority
    • Normal settlement or bedding down of new structures
    • Inherent vice, normal wear and tear
    • Pollution, contamination
    • Inventory losses
  • Section II (Business Interruption)
    The policy does not cover loss resulting from interruption of or interference with the business, directly or indirectly, attributable to
    • Any restriction or reconstruction or operation imposed by any public authority
    • The insured's lack of sufficient capital for timely restoration or replacement of property lost, destroyed or damaged
    • Electronic installation, computer and data-processing equipment
    • Deliberate erasure loss, distortion or corruption of information
    • Deductible stated in the schedule
    • Willful act or gross negligence of the insured
    • Cessation of work, delay
    • War, warlike operations
    • Nuclear risks
    • The destruction of property by order of any public authority

Claim Process

In the event of loss, the following are immediate actions to be taken
Intimate the insurer the occurrence of loss, submit a full statement in writing of the claim, provide the nature and extent of loss and also the estimate of loss. Any delay in intimation might jeopardize the claim as the insurer may express an inability in accepting liability of the loss/damage.

  • To take all steps to reduce and minimize the extent of loss/damage and liability.
  • The proximate cause of the loss and assess the type/extent and whether it is within the scope of the policy.
  • To extend full co-operation to the insurer and the surveyor appointed for completion of the survey work and for proper assessment of the loss.
  • Produce all such records and proof as may be required by the surveyor or the insurer for arriving at the extent of loss and the liability under the policy.
  • Provide documents such as claim form, Claim bill, copy of the policy, books of accounts etc.
  • Keep the damaged property under the safe custody until advised by the surveyor/insurer regarding its disposal.
  • Identification of the subject-matter insured.

Why Choose PrishaPolicy

5 Reasons why you should choose us to be your policy issuing partner of choice. Allow us to tell you why we are one of the fastest growing insurance brokers.

Customer-Centric Culture

For us, you always come first. Our products and services are designed to find the best coverage for all.

A Decade of Market Leadership

Our teams expertise and experience makes them the perfect guides in choosing a policy that fits your needs.

Reliable and Consistent

Rest assured that everything will be taken care of without a glitch. From shortlisting to claims processing & delivering promises without a hitch.

Guided Policy Assistance

Our experts are forever ready to assist you through each policy detail with a fine-tooth comb.

Claims Assistance

Our DNA prompts - Sales is incomplete without timely support. From start to end, we facilitate smooth processing from lodging to settlement.

Still Thinking About It?

Get on a call with us. We take pride in being associated with you for competitively managing your risks with the best insurance covers and delivering a stress-free experience.

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Questions You Might Have

Should all the losses that are under the deductible be reported?

If the loss is below the deductible, it is not recommended to report it to the insurance provider. If one is not sure about the final amount of loss or deductible amount, it is recommended to contact the insurer.

What is the duration of Contractors All Risk Insurance policy?

Unlike other insurance policies, the Contractors All Risk Insurance plan is issued for the period of the contract that is from the starting of work until the work completes. Even though it is possible to extend the period of the policy if the completion of the contract gets delayed, but it is always wise to choose a slightly longer insurance period initially for avoiding paying a higher premium in case of extension.

For what value of machine the insurance should be purchased?

It is a requirement of this insurance that the sum insured be equal to the cost of replacement of the machines by new machines of the same kind and same capacity, which shall mean its replacement, or reinstatement cost, including freight, custom duties, if any, and erection costs.

Can we cover loss due to design defects in the engineering policy?

Yes, you can cover the costs of project damages caused by design flaws. Damage due to design is an exclusion in a normal policy, but by paying an additional premium, you can cover the design flaw in the policy. There are other forms of design defect cover, such as design defect-3 and design defect-4, that can be added to the policy as an add-on for an additional premium. We advise all of our clients to include this coverage in their erection all risk insurance.