Industrial and Non Industrial risk policy
This refers to the different types of risk in an insurance policy. Basically, the class of insured is different in these two, for example- in Industrial risk policy, where a business can insure its building, machinery, furniture etc. While, in Non Industrial Risk Policy, insured include hotels, motels, club houses, restaurants, boarding and lodging houses, flight kitchens, residential premises, exhibitions etc.
Lets understand in Detail
Industrial risk policy provides protection against accidental loss to your business, plant or machinery, stock and building or loss for consequential business interruption. Thus, it can be dived into two i.e. material damage which includes fire perils, burglary, earthquake, machinery breakdown, breakdown of electric equipment. Business interruption would include loss of profit due to machinery. This policy does not covers money cheques, stamps, bonds, vehicles for road use, livestock etc.
In Non Industrial Risk policy, indemny or compensation would be provided to the third party in case of accidents being occurred in the insured premises or due to bodily damage and loss or damage to property. It would also cover legal costs and expenses occurred by you with your prior consent. It can also be extended to cover goods kept in custody.
