Page 29 - Policy Wording - Commercial Underwriting Mandates & Guidelines Binder Addendum

Annexure C – Risk Classification
CLASSIFICATION DEFINITION
This is an easy reference to the relevant section whenever risk classification is discussed. First determine the correct classification code closest to the description below.
Fire/Combined
Comments
L
Low Risk:
Occupancies where the materials handled or the process carried out is liable, in the event of fire, to cause very slow combustion with a very low rate of rapidity though is not likely to give rise to poisonous fumes, nor cause explosions. Very few ignition sources are likely available so inception hazards are low. Fires are not likely to become serious and control of fires can generally be achieved relatively easily with trained personnel on-site using firefighting equipment.
M
Medium Risk:
Occupancies where the materials handled or the process carried out is liable, in the event of fire, to cause combustion with moderate rapidity but is not likely to give rise to poisonous fumes, nor cause explosions. Moderate ignition sources are likely available so inception hazards are moderate. The average fire does not start quickly and is of moderate intensity so not likely to spread quickly or burn with increasing intensity unless there is heavy concentrations of combustible materials (i.e. liquid, solid or gas) available. Control of fires can generally be achieved through moderate effort required from industrially trained personnel on-site using firefighting equipment.
H
(All risks to be referred to Hollard for approval)
High Risk:
Occupancies where the materials handled or the process carried out is liable, in the event of fire, to cause combustion with extreme rapidity or give rise to poisonous fumes, to a lesser degree to cause explosions. Considerable ignition sources are likely available so inception hazards are high. There is great probability of highly flammable fluids (liquids & gases) and solids available that propagate flames very easily. Generally fires start easily and, immediately after ignition, spread fast and increase quickly in intensity. There is a little chance of trained fire team’s on-site gaining control of any fires that may occur.
X
(All risks to be referred to Hollard for approval)
Extra High Risk: Occupancies where the materials handled or the process carried out is liable, in the event of fire, to cause combustion with extreme rapidity or give rise to poisonous fumes, or cause explosions. Extensive ignition sources are likely available so inception hazards are vast. There is great probability of extremely flammable fluids (liquids & gases) and solids available that propagate flames very easily. Generally fires start quickly, spread furiously, and burn intensely. There is very little chance (if any) of trained fire team’s on-site gaining control of any fires that may occur.
R D
1 2 3 4 5
Refer to Hollard Decline
Not attractive at all, no resale
Moderately attractive, goods have resale value Highly attractive, quick-selling Accommodation – refer to Hollard
Decline
Theft/Glass
Comments
1
Commercial Underwriting Mandates & Guidelines – Binder Addendums – Version 2 2020