Industrial Property Insurance (IAR)

What Is Industrial All Risks (IAR)?

IAR is an enhanced property policy designed for medium to large industrial and commercial risks, providing broader cover than a Fire policy.

While Fire covers named perils, IAR is an “all risks” policy, protecting against any accidental physical loss unless specifically excluded.

What IAR Covers

1. Property Damage (All Risks Basis)

Covers accidental physical loss to:

• Buildings
• Plant & machinery
• Production lines
• Stocks / inventory
• Office & operational contents

Includes perils such as:

• Fire
• Lightning
• Explosion
• Accidental damage
• Machinery impact
• Storm, flood, water damage
• Theft (by forced entry)

2. Business Interruption (BI)

Provides financial support for:

• Loss of gross profit
• Loss of revenue
• Increased cost of working
• Additional expenses

Triggered when property damage interrupts operations.

Who Should Choose IAR Over Fire Insurance?

IAR is suited for properties with higher complexity or higher value, such as:

• Large factories
• Food & beverage processing plants
• Heavy industrial facilities
• Logistic & distribution centres
• Cold storage operations
• Manufacturing plants with specialised machinery
• Large commercial buildings or mixed-use complexes

If the total asset value is above RM10 million, IAR is often more suitable than Fire. We will advise based on our expertise.

Common IAR Claim Scenarios*

Electrical Fire in Machinery

Control panel failure damaged machines and halted production.

Triggered: Property damage + BI.

Storm Damage & Water Ingress

Strong winds caused roof uplift, letting rain damage goods inside.

Triggered: Property damage + increased cost of working.

Impact Damage from Forklift

Forklift collision damaged structural columns and racking.

Triggered: Accidental damage (not covered under Fire).

Power Surge

Sudden voltage spike damaged electronics controlling production.

Triggered: Property damage (subject to policy terms).

How Foundation Supports Your IAR Programme

1. Technical Risk Assessment

We review COPE data, fire protection systems, equipment profiles, and stock exposures to build a clear risk picture for underwriters.

2. Structuring & Placement

We structure appropriate limits and coverage based on your building, machinery, stock levels, and operational requirements.

3. Policy Alignment

We align your IAR policy with financier conditions, tenancy agreements, and operational risk controls.

4. Change Management

We support endorsements for new machinery, expanded facilities, stock fluctuations, or production line changes.

5. Claims Support

We coordinate with loss adjusters, interpret policy conditions, and assist with BI calculations to support timely settlement.