Industrial All Risk (IAR) Policy - Comprehensive Protection for Large Industries
The Industrial All Risk (IAR) Policy is a comprehensive property insurance solution designed for large-scale industries and corporates. Unlike traditional fire policies that cover only named perils, IAR provides “All Risk” coverage - meaning it covers all risks except those specifically excluded.
It is ideal for businesses with high-value assets and complex risk exposures.
Who should opt for an IAR policy?
- Large manufacturing units
- Corporate industrial houses
- Multi-location businesses
- Companies with asset value typically above ₹100 Crore
What does IAR policy cover?
Assets covered
- Buildings Factories, warehouses
- Plant & machinery Including heavy equipment
- Furniture, fixtures, fittings
- Stock Raw material, WIP, finished goods
- Utilities and infrastructure
Scope of coverage (all risk basis)
The policy covers any sudden and unforeseen physical loss or damage, except as stated in the policy exclusions.
Examples of covered risks
- Fire, lightning, explosion
- Flood, earthquake, storm
- Machinery accidents (if not excluded)
- Accidental damage
- Impact damage
- Riot, strike, malicious damage
This “all risk” scope is broader than a Standard Fire & Special Perils policy, which insures only listed perils.
Important add-ons / extensions
- Business interruption (loss of profit)
- Machinery breakdown cover
- Boiler explosion cover
- Electronic equipment cover
- Terrorism cover (if opted)
Major exclusions
- War and nuclear risks
- Wear & tear, gradual deterioration
- Willful negligence
- Electrical/mechanical breakdown (unless covered separately)
- Cyber risks