Doc Summary
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.
Frequently Asked Questions #
Industrial Special Risks Insurance #
What is Industrial Special Risks insurance?
Industrial Special Risks insurance is individually underwritten property and business interruption cover generally suited to larger or more complex commercial risks. Cover depends on the wording, declared values and selected sections.
General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.How is ISR different from a Business Pack policy?
ISR is generally more individually underwritten and suited to larger or more complex property and business interruption exposures. Business Pack policies use packaged sections for many smaller or less complex businesses. Suitability is not determined by a single value threshold.
General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.What property can be covered under an ISR policy?
An ISR policy may cover buildings, contents, stock, plant, machinery and other declared commercial property. Suitability and cover depend on values, locations, occupations, business interruption exposure and overall risk complexity.
General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.Does ISR insurance include Business Interruption?
Business Interruption is commonly available as a selected ISR section but is not automatically included. Declared values, the gross profit or revenue basis, increased cost of working and an adequate indemnity period should be considered.
General Advice Warning: The information on this page is general in nature and does not take your personal circumstances into account. You should consider whether it is appropriate for you and seek professional advice before making any decisions. For tailored advice, please contact Webber Insurance Services.
