Industrial Insurance
What is Industrial Insurance?
Industrial Insurance is a highly specialized protection framework designed to address the heavy-duty
risks associated with manufacturing units, power plants, refineries, and industrial processing
facilities. Unlike standard commercial plans, Industrial Insurance focuses on the core drivers of your
production: the complex machinery, the high-pressure boilers, and the specialized workforce that keeps
your operations running 24/7.
From sudden mechanical breakdowns to catastrophic industrial fires, DigiAssure provides comprehensive
"Industrial All Risks" (IAR) solutions that cover physical assets, business interruption, and
third-party liabilities. We understand that in the industrial world, downtime is the greatest enemy. Our
plans are engineered to provide fast liquidity for repairs and replacements, ensuring your supply chain
remains resilient and your financial foundation remains unshaken even in the face of major operational
accidents.
Essential Industrial Protection
1. Machinery Breakdown Cover
Protection against internal mechanical and electrical failures, short circuits, and accidental damage to critical industrial equipment, including repair or replacement costs.
2. Business Interruption (FLOP)
Covers the "Fire Loss of Profits" and fixed expenses if your production is halted due to a covered peril, ensuring your financial obligations are met during downtime.
3. Environmental Liability
Protects your enterprise against claims related to sudden and accidental pollution or environmental damage caused by industrial operations or chemical leaks.
4. Supply Chain Resilience
Provides a financial safety net for losses resulting from damage to the property of your key suppliers or customers, preventing a domino effect on your business.
Key Features of Our Plans
MB & EEI Integration
Combined coverage for heavy Machinery Breakdown (MB) and sensitive Electronic Equipment Insurance (EEI) under a single plan.
Boiler & Pressure Plant
Specialized protection against the explosion or collapse of industrial boilers, including damage to surrounding property.
Spoilage of Stocks
Essential for industries handling perishable goods; covers losses due to deterioration of stocks resulting from machinery failure.
Testing & Commissioning
Provides coverage during the critical phase when new machinery is being installed, tested, and integrated into your production line.
Stock in Process
Comprehensive protection for raw materials, work-in-process, and finished goods against fire, natural perils, and accidental damage.
Public Liability
Coverage for legal defense and settlements arising from accidental injury or property damage to third parties near your industrial site.
Industrial All Risks vs Fire Policy
Why large-scale manufacturing requires the comprehensive IAR framework.
| Feature | Industrial All Risks (IAR) | Standard Fire Policy (SFSP) |
|---|---|---|
| Coverage Basis | Comprehensive (All Risks) | Named Perils only |
| Machinery Breakdown | Standard Inclusion | Excluded (Rider needed) |
| Business Interruption | Core Benefit | Excluded (Rider needed) |
| Burglary & Theft | Included | Excluded (Rider needed) |
| Accidental Damage | Covered | Not Covered |
| Asset Valuation | Reinstatement Value (New) | Market Value (Depreciated) |
| Target Audience | Large Factories / Refineries | Offices / Retail / Small Units |
Coverage Details
Understand the comprehensive boundaries of your industrial safety net.
What we Cover
Protections included in the IAR plan:
- Fire, Explosion & Natural Perils
- Mechanical & Electrical Breakdown
- Burglary & Theft of Assets/Stocks
- Impact damage by vehicles/animals
- Accidental leakage from tanks
- Testing/Commissioning of machinery
Policy Exclusions
Standard industrial policy exclusions:
- Gradual pollution or contamination
- Normal wear, tear and corrosion
- Losses due to Willful Negligence
- War, Invasion & Nuclear hazards
- Damage during illegal operations
- Inventory shortage during audits
Valuable Industrial Add-Ons
Customized extensions for complex manufacturing risks.
Terrorism Cover
Extends the IAR policy to cover damage or loss of profits caused by acts of terrorism. This is critical for industrial hubs and large infrastructure projects.
Debris Removal
Covers the significant cost of clearing heavy machinery rubble and industrial waste from the site after a major accident, before reconstruction can begin.
Escalation Clause
Automatically increases the sum insured of your machinery and assets periodically throughout the year to account for rising costs and inflation.
Professional Fees
Covers the fees (up to 7.5% of claim value) paid to architects, surveyors, and consulting engineers for planning and overseeing the repair of complex industrial assets.
Factors Affecting Industrial Premiums
How we determine the best value for your industrial risk.
1. Nature of Industry & Hazards
Chemical processing or oil refineries have higher risk profiles and premiums compared to engineering or assembly-based manufacturing.
2. Age & Maintenance of Machinery
Well-maintained machinery with regular logs and OEM servicing can earn significant discounts on Machinery Breakdown premiums.
3. Fire Suppression Infrastructure
Institutional-grade sprinklers, fire hydrants, specialized suppression systems for electrical panels, and 24/7 monitoring reduce risk and premium.
4. Geographic Location
Industrial units in coastal zones, seismic hubs, or flood-prone areas will face different premium rates based on historical environmental data.
5. Security & Risk Management
Presence of CCV, gated security, and a dedicated industrial safety officer (ISO) significantly impacts the underwriting decision.
Documents Required
Simplified requirements for large-scale industrial onboarding.
Machinery & Assets
- Detailed List of Machinery with OEM specifications
- Invoices or recent Valuation Report (New Replacement Value)
- Maintenance Logs and AMC details for critical assets
- Boiler inspection and fitness certificates
Compliance Documents
- Factory License and Consent to Operate
- GST and PAN Card of the industrial entity
- Fire NOC and Environmental Clearance certificates
- Proof of identity for authorized signatories
Security & Risk Audit
- Latest Fire Safety Audit Report
- Internal Risk Management and Safety policy
- Security Agency Contract and surveillance details
Financial Evidence
- Latest Audited Balance Sheet & P&L Statement
- Annual Turnover details for the last 3 years
- Inventory statement (Raw materials/WIP/Finished goods)
Industrial Claim Process
Dedicated technical support for complex manufacturing losses.
Incident Notification
Notify our 24/7 industrial desk immediately. For machinery breakdown, keep the affected equipment isolated for inspection.
Technical Survey
A senior technical surveyor (Engineer) will visit the site within 24 hours to investigate the cause of failure or damage.
Loss Mitigation
Work with our experts to prevent further damage to secondary equipment and protect unaffected stocks from deterioration.
Repair Estimates
Submit detailed technical quotes from the OEM or authorized service centers for repairs or replacement of machinery.
Forensic Audit
For Business Interruption claims, our forensic accountants will review your production logs and financial data to assess loss of profits.
Document Review
Submit all original purchase bills, AMC records, repair invoices, and the final technical report for verification.
Interim Payment
For high-value technical losses, we can release an interim payment to help you start the repair process and resume production.
Final Settlement
Once all repairs are verified, the final assessed amount is credited to your bank account to restore your industrial capacity.
Frequently Asked Questions
Common technical queries about industrial protection answered.
What is Industrial All Risks (IAR) insurance?
IAR is a comprehensive policy for industrial units with a sum insured over ₹100 Crores. It combines fire, machinery breakdown, burglary, and business interruption into a single 'All-Risk' package with broader benefits.
Does it cover my boiler exploding?
Yes, the policy includes specialized 'Boiler and Pressure Plant' insurance which covers damage to the boiler itself, surrounding property, and third-party liability resulting from a boiler explosion.
Are pre-owned or second-hand machines covered?
Yes, second-hand machines can be insured after a technical survey and valuation. However, they are usually insured at their current 'Market Value' rather than 'New Replacement Value'.
What is the Business Interruption (FLOP) benefit?
FLOP stands for 'Fire Loss of Profits'. It compensates the business for the lost net profit and fixed costs (like bank EMI and salaries) that continue to accrue even when production has stopped due to an accident.
Can I get a discount for a clean claims record?
Yes, businesses with a history of zero or low claims over 3-5 years are eligible for substantial 'Low Claim Bonuses' or discounts on their renewal premiums.
What happens if a new machine is being installed?
You can add a 'Testing and Commissioning' rider which protects the machinery during the high-risk phase of installation and initial trial runs before it goes into full production.