Industrial Special Risks Insurance, commonly called ISR Insurance, is a form of commercial property insurance generally used for larger or more complex businesses.

An ISR policy is typically designed to insure both:

• Physical property and assets.
• Financial loss resulting from an interruption to the business following insured damage.

Australian ISR policies commonly follow the traditional Mark IV structure, although individual insurers may modify the wording and apply their own endorsements.

What are the main sections of an ISR policy? #

ISR policies commonly contain two main sections.

Section 1: Material Damage #

This section can insure physical assets such as:

• Buildings.
• Contents.
• Machinery and equipment.
• Stock.
• Fixtures and fittings.
• Other insured property.

Section 2: Business Interruption #

This section can respond to financial loss resulting from an interruption to the business following insured physical damage.

Depending on the policy, this can include loss of gross profit and certain additional costs incurred to keep the business operating.

Is ISR Insurance only for industrial businesses? #

No.

Despite the name, ISR Insurance is used across many industries.

It can be suitable for businesses such as:

• Manufacturers.
• Wholesalers.
• Property owners.
• Large retailers.
• Warehousing and logistics businesses.
• Hospitality businesses.
• Commercial property portfolios.
• Larger professional or commercial organisations.

The appropriate policy structure depends on the size, assets and complexity of the business rather than whether it is literally an industrial operation.