Property Insurance
Mega Risk Insurance
Mega Risk Insurance is a comprehensive insurance policy designed to cover large-scale industrial projects, high-value assets, and complex infrastructure. It provides protection against multiple risks, including property damage, machinery breakdown, business interruption, liability claims, and catastrophic losses.
This policy is ideal for industries like power plants, oil & gas, steel, large infrastructure projects, petrochemicals, and heavy engineering sectors where losses can be massive.
Why is Mega Risk Insurance Essential?
- High-Value Asset Protection
- Multiple Risk Coverage in One Policy
- Business Continuity & Stability
- Compliance & Risk Mitigation
- Catastrophic Loss Protection
Important Things You Should Note
- Designed for Large-Scale Businesses – Applicable to businesses with high capital investment, multiple locations, and complex operations.
- Customization is Key – Policies can be tailor-made to include property, liability, business interruption, terrorism, and specialized risk coverage.
- Risk Assessment is Crucial – Insurers conduct detailed risk inspections, engineering surveys, and safety audits before issuing the policy.
- Large Sum Insured – Coverage can go into billions based on the scale and nature of the insured project.
- Global Reinsurance Support – Large-scale risks are often co-insured or reinsured by international reinsurers due to the magnitude of potential losses.
What is Covered & What is Not Covered?
What is Covered?
- Property Damage – Covers industrial buildings, machinery, and equipment against fire, floods, earthquakes, and explosions.
- Machinery Breakdown – Protects against damage to critical machinery used in production and manufacturing.
- Business Interruption – Covers financial losses due to operational downtime caused by an insured peril.
- Third-Party Liability – Covers legal liabilities arising from bodily injury, property damage, or environmental pollution.
- Terrorism & Sabotage (Optional Add-On) – Covers losses due to terrorist attacks or acts of sabotage.
- Natural Catastrophes – Covers losses due to earthquakes, cyclones, floods, and storms.
What is Not Covered (Exclusions)?
- Gradual Wear & Tear – Does not cover damages due to aging, corrosion, or regular maintenance issues.
- War & Nuclear Risks – Excludes damages due to war, nuclear radiation, or radioactive contamination.
- Intentional Damages – Losses caused by deliberate acts, negligence, or fraudulent activities are not covered.
- Unapproved Modifications – Any damage resulting from unauthorized alterations or poor construction is excluded.
- Cyber Risks (Unless Specifically Included) – Cyber-attacks and data breaches require a separate Cyber Insurance policy.
Frequently Asked Questions (FAQs)
Who needs Mega Risk Insurance?
Industries such as oil & gas, power generation, steel plants, aviation, mega infrastructure projects, and large manufacturing units require this coverage.
Can the policy be customized?
Yes, coverage can be tailored to include specific risks like terrorism, business interruption, machinery breakdown, and liability coverage.
How is the premium calculated?
Premiums are based on risk assessments, asset value, industry type, past claims history, and location-specific risk factors.
Is business interruption always covered?
Business interruption is optional and must be specifically included in the policy.
Can Mega Risk Insurance cover international operations?
Yes, multinational companies can extend coverage to include global assets and operations with international reinsurance support.
