Industrial All Risks

This is a combination policy and basically incorporates fire, fire consequential loss, theft and accidental damage perils. With this policy, there will be no need of taking out Fire and Fire Consequential Loss Policies described above as well as Burglary and All Risks described here below. This policy is however subject to a higher deductible than the individual policies.

The policy is issued under two sections and provides indemnity against all those risks not excluded by the policy.

a) Section A – Material Damage

In the event of accidental physical loss of or damage to the property specified not occasioned by or happening through any excluded cause the insurer will pay to the Insured the value of the said property at the time of the happening of the loss or the amount of such damage or at their option repair or replace such property.

The property to be covered under this policy should include:

  • Furniture, Fixtures and Fittings
  • Office contents
  • Plant and Machinery

The sums insured should reflect the current replacement or market values of the property less a
deduction for wear and tear/ depreciation (if any).

To enable us to quote we require to know the sums insured in respect of the property as described above.

The main exclusions include: –

  • Property in course of construction or erection or testing;
  • Property in transit other than within each of the premises specified in the Schedule;
  • Cash, Cheques, Postal notes, money orders, stamps promissory notes, bills of exchange, jewellery, precious stones, furs, precious metals or bullion, curiosities or works of art other than as provided under “All Other Contents” extensions;
  • Documents, manuscripts, business books, computer systems records, patterns, models, moulds, plans and designs other than provided for by the All Other Contents Clause hereafter;
  • Motor and other mechanically or electrically propelled vehicles and accessories (whilst in or on such vehicles), railway locomotives and rolling stock, watercraft or aircraft and or property contained therein;
  • Animals, explosives, lawns, plants, shrubs, trees, standing timber growing crops, dams, reservoirs, canals, roadways, tunnels, bridges, docks, piers or wharves unless specified in the Schedule;
  • Any boiler or other apparatus or their contents due to its own explosion or collapse as defined hereinafter. EXPLOSION means the sudden and violent rending or tearing apart of the permanent structure by force of internal steam or fluid pressure causing bodily displacement of the structure or any part or parts thereof and accompanied by the forcible ejection of its contents. COLLAPSE means the sudden and dangerous distortion of any part of a boiler or other apparatus by bending or crushing caused by steam or fluid pressure whether attended by rupture or not;
  • Machinery if directly attributable to mechanical breakdown or derangement;
  • Ionising radiations or contaminations by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purpose of this Exclusion only combustion shall include any self-sustaining process of nuclear fission.
  • Nuclear weapons material.
  • War, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared or not), civil war.
  • Mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power.
  • Acts of terrorism committed by a person or persons acting on behalf of or in connection with any organisation.
  • Unexplained disappearance, shortage revealed at any stocktaking, shortages due to clerical or accounting error, shortages in the supply of delivery of materials;
  • Infidelity or dishonesty on the part of the Insured or any of his employees;
  • Theft except from a building and then only if there is violence to persons or threat of violence or forcible and violent entry to or exit from such buildings;
  • Wear and tear, deterioration, rust or corrosion, erosion, mould, wet or dry rot, animals, birds, vermin, insects and larvae;
  • Inherent or latent defect, slowly developing deformation or distortion of any building, plant or machinery;
  • Leakage or overflow from plumbing, heating, air conditioning or other equipment or apparatus (except fire protection system) caused by freezing whilst the premises are vacant or unoccupied unless the Insured shall have exercised all reasonable care with respect to maintaining heat in the building or unless such equipment and apparatus are drained and the water supply shut off during such vacancy or unoccupancy;
  • Delay or loss of market or any other consequential or indirect loss or interruption of business;
  • Defects in materials or workmanship;

b) Business Interruption (Consequential Loss)

This section covers loss consequent upon the happening of a peril covered under section A of the
policy.

To enable us to quote under this section, we would require to know: –

  • The gross profit
  • The wages
  • Indemnity period
  • Increase Cost of working (optional)

Premium Indication

In view of the sums insured, this risk may be categorized as a listed risk and the premium rate would have to be communicated by the Association of Kenya Insurers but in normal circumstances, premium rate is a variable depending on the nature of the object of insurance.