Frequently Asked Questions

ISR is a broad-form commercial insurance product that combines property (material damage) and business interruption cover into one policy. It operates on an "all risks" basis, meaning it covers accidental physical loss, destruction or damage that is not otherwise excluded, always subject to the policy exclusions, sub-limits, conditions and the schedule. This makes it one of the broadest forms of commercial property cover available in Australia.

Any business with commercial property, stock, or equipment should consider ISR. It's particularly suited to manufacturers, warehouses, retail stores, hospitality venues, healthcare facilities, and any business where property damage could interrupt operations and revenue.

A business pack covers specifically named perils (fire, storm, theft, and so on). ISR works the other way around on an "all risks" basis: it covers accidental physical loss or damage that is not otherwise excluded, subject to the policy exclusions, sub-limits and conditions. ISR can also include business interruption where the insured elects it, while business packs often offer it as an optional add-on.

Premiums depend on your sum insured, property construction, location, fire protection, business type, and claims history. ISR can be surprisingly competitive - especially when you compare it to the combined cost of separate property, business interruption, and other individual policies.

"All risks" means the policy covers accidental physical loss or damage from any cause that is not specifically excluded in the policy wording, subject to the sub-limits, conditions and the schedule. This is the opposite of "named perils" policies, which only cover events that are specifically listed. All risks gives you broader cover than a named-perils policy, because cover starts from everything that is not excluded rather than only a listed set of events.

ISR can cover storm, earthquake and bushfire damage, and flood cover is often available, though flood is commonly optional, sub-limited or excluded and varies by insurer and location. Some events may carry sub-limits (a cap on the payout) or higher excesses. Your broker can help you understand the natural hazard risks for your area and discuss how your policy may be structured.

Business interruption cover compensates you for lost revenue and ongoing expenses when an insured event (like a fire or flood) forces your business to stop or reduce operations. It typically covers gross profit, wages, increased costs of working, and additional expenses incurred to get back up and running.

The indemnity period is the maximum length of time your business interruption cover will pay out after an insured event. Common options are 12, 18, 24, or 36 months. Choosing the right indemnity period is critical - it should reflect how long it would realistically take to fully restore your business operations.

Yes, machinery breakdown is a common extension on ISR policies. It covers sudden and unforeseen mechanical or electrical breakdown of plant, machinery, and equipment. Without this extension, breakdown (as opposed to external damage) would typically be excluded.

Contact your broker immediately after any incident. We'll guide you through the process, help document the loss, and help coordinate communication with the insurer on your behalf, within the scope of our authorisation. Early notification is important, as most policies require you to report potential claims as soon as reasonably practicable.