What is Highly Protected Risks?
Highly Protected Risks (HPR) insurance is a specialized form of property coverage designed for commercial properties that demonstrate superior risk management and safety features. These properties—such as manufacturing facilities, warehouses, or large retail complexes—typically have advanced fire suppression systems, robust construction standards, and detailed loss prevention protocols. This coverage provides tailored protection, often at favorable terms, because the insured property presents a lower probability of significant loss.
Who Needs It
HPR insurance is typically sought by businesses and operators with high-value assets and low-loss exposure due to their investment in safety and risk mitigation. This includes industrial manufacturers, logistics centers, and large-scale commercial property owners. Organizations with complex operations or those managing high concentrations of property value in a single location may also benefit from this coverage.
What it Typically Covers
This coverage usually protects against a broad range of losses, such as fire, equipment breakdown, and natural disaster damage—especially when the insured facility exceeds standard building codes and safety measures. Coverage may also extend to:
- Interior equipment and machinery
- Structural damage from fire or weather events
- Business interruption due to covered events
- Special perils, depending on the underwriting details
For example, a well-maintained distribution center with fire-resistant construction and sprinkler systems might be eligible for enhanced protection at a lower premium.
Common Exclusions or Limitations
Despite the comprehensive nature of HPR policies, certain exclusions may still apply. These can include:
- Wear and tear or gradual deterioration
- Acts of war or nuclear hazards
- Flood or earthquake (unless specifically added)
- Negligence in maintaining fire suppression systems
It’s important to review policy documents to understand what is and isn’t covered, especially for commercial liability exposures or equipment failures outside the scope of the agreement.
Factors That Influence Cost
Premiums for HPR insurance are influenced by multiple underwriting factors, such as:
- Type and construction of the property
- Fire protection systems and safety protocols
- Location and exposure to natural perils
- Operational hazards and historical claims
Properties in areas with limited fire department access or those storing flammable materials may see higher rates, even with high protection standards.
Proof of Insurance & Compliance
Businesses may be required to show proof of HPR coverage for lender requirements, lease agreements, or compliance with internal risk management policies. Certificates of insurance can be issued upon binding the policy, providing documentation of coverage terms and limits.
How to Get a Quote
To find the right HPR coverage for your facility, start by consulting with a commercial insurance specialist who understands the nuances of risk mitigation and underwriting. Be ready to provide building specifications, safety system details, and claims history. Our experts can help tailor a solution that fits your operation’s unique risk profile.
Get a custom quote for your highly protected risk property today.
For operations looking to go beyond standard policies, consider options like Excess Property Insurance or Excess Liability Coverage to safeguard against high-value losses and liability exposures.
Frequently Asked Questions
What qualifies a property as "Highly Protected"?
Properties with advanced safety features, such as fire-resistant construction, sprinkler systems, and robust loss control programs, may qualify as highly protected.
Is HPR insurance only for industrial buildings?
No. While common among industrial sites, commercial properties like data centers, retail warehouses, or logistics hubs may also benefit from HPR coverage.
Can I add flood or earthquake coverage to an HPR policy?
These perils are typically excluded but can often be added through endorsements or separate policies.
How does HPR coverage differ from standard property insurance?
HPR offers more favorable terms and potentially broader coverage for properties that meet strict safety and construction standards.
Do I need an inspection to qualify?
Yes, insurers often require a property inspection to verify compliance with HPR standards before offering coverage.
Still have questions? Talk to a local insurance expert.