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Industrial and Non Industrial Risk Policy

Industrial and Non Industrial Risk Policy

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.

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  1. This choice is a simple one, because you can define your business easily depending on the type of work that is carried out onsite. My query is when there is a large office based personnel combined with warehousing and or manufacturing. Are there some risk policies available that would cover those situations?

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