All Risks Insurance Coverage and Plans in Malaysia
All Risks Insurance
In Malaysia, All Risks Insurance is used and applied in reference to business operations assets. This is different from project work and assets coverage.
All Risks Insurance Coverage
All Risks coverage plans covers damages to items and damages caused by specific perils faced by businesses and investors.
All Risks coverage plans are comprehensive coverage plans to cover losses or damages to business operations caused by fire, lightning, explosions, theft and accidental damages.
Fire Insurance plans will cover risks to commercial and residential properties and related content, caused by fire, lightning and explosions.
All Risks Coverage vs Fire Coverage
The table below show the differences in materials and items coverage by these two insurance policies. Items not covered here, can be covered by other types of insurance policies as listed in the enquiry form below.
Comparison of Items Covered by All Risks and Fire Policies
| Items Covered | All Risks Insurance | Fire Insurance | |
| Office Equipment, Furniture, Fixtures and Fittings | Covered | Covered | |
| Equipment, Plant and Machinery under Leasing | Covered | Not Covered | |
| Plant and Machinery (Static) | Covered | Covered | |
| Mobile Machines, Lifts, Hoists | Covered | Covered | |
| Building/Structure (Commercial/Residential) | Not Covered | Covered | |
| Renovations | Not Covered | Covered | |
| Renovations (not part of structure) | Covered | Covered | |
| General Contents | Not Covered | Covered | |
| Stocks, Inventory, Goods for Sale | Not Covered | Covered |
All Risks Coverage for Stocks, Inventory and Goods for Sale
An All Risks policy does not cover inventory of goods and stocks. Stored goods for sale, transit or production are covered by the Inventory, Goods and Stocks Insurance. This special all risks insurance for stored goods, covers various types of perils and risks on inventories in storage, including equipment failure and perishable goods, and other perils which are not covered by Fire Insurance plans.
Comparison of Perils Covered by All Risks Insurance and Fire Insurance
The table below show the differences in risky events and perils coverage by these two of insurance policies. These risks can happen anywhere and anytime.
| Perils Covered | All Risks Insurance | Fire Insurance | |
| Fire | Covered | Covered | |
| Lightning Strike | Covered | Covered | |
| Domestic Gas Explosion | Covered | Covered | |
| Theft | Covered | Not Covered | |
| Accidental Damage | Covered | Not Covered |
Special Perils to be Optionally Selected
The table below shows the optional special perils that can be covered by these two insurance policies. These are optional, as these risks are situational requirements based on location or business operational environment and setup.
| Additional Special Perils Coverage Options | Selection for Both All Risks Insurance nd Fire insurance | |
| Aircraft Damage | Selectable Option | |
| Earthquake, Volcanic Eruption | Selectable Option | |
| Storm, Tempest | Selectable Option | |
| Flood | Selectable Option | |
| Explosion – Industrial without boilers | Selectable Option | |
| Explosion – Industrial/Non Industrial with boilers | Selectable Option | |
| Explosion – Non Industrial without boilers | Selectable Option | |
| Impact Damage (Excluding Insured’s Vehicle) | Selectable Option | |
| Impact Damage (Including Insured’s Vehicle) | Selectable Option | |
| Bursting/Overflowing of Water Tanks/Pipes (>5 storeys) | Selectable Option | |
| Bursting/Overflowing of Water Tanks/Pipes (others) | Selectable Option | |
| Riot, Strike & Malicious Damage | Selectable Option | |
| Bush/Lalang Fire | Selectable Option | |
| Subsidence & Landslip (Standard Cover) | Selectable Option | |
| Spontaneous Combustion (Fire Only) | Selectable Option | |
| Spontaneous Combustion (Full Cover) | Selectable Option | |
| Damage by Falling Trees or Branches | Selectable Option | |
| Sprinkler Leakage (Building) | Selectable Option | |
| Sprinkler Leakage (Contents) | Selectable Option | |
| Electrical Installations | Selectable Option |
All Risks Policy Coverage and Premium Calculation
What is an All Risks Insurance Policy?
An All Risks Insurance Policy is designed to provide funds to repair, replace or make good on damages to business operations. These are damages to industrial plants, tools, machinery, equipment, fittings, computers and office fixtures, resulting from fire, lightning, domestic gas explosions, theft, accidents and other optionally selected perils such as storms, floods, bushfire, leakages and many more other perils. See the comprehensive list of perils as listed in the table of additional perils above.
What is the All Risks Insurance Premium Calculation and Claim Process?
The insurance proposal form will ask for All Risks compliance requirements and what exactly is the coverage of damages and perils to be covered. These proposal forms will differ significantly between insurance companies and their policies’ fine print. Get a reliable general business insurance agent to guide you on creating, comparing and evaluating the insurance proposals from different insurers.
Request for Quotation
Medical, Life and Group Insurance