Page 19 - Commercial - Underwriting Mandates & Guidelines Binder

Surveys
Principles for cold storage – requirement for sprinkler systems
Type of Core Material
Fire Load
Ease of Ignition
Fire Spread
Fire Resistance
Smoke Production
Sprinklers Required
Polyurethane Foam (PUR)
Polyisocyanurate Foam (PIR)
Modified Phenolic Foam (PF)
Very High
Very High
Very High
Very High
Medium to High
Medium
Medium to High
Medium to High
Medium to High
Very Low/Zero
Low
Low
High
High
Medium to High
> R20 million
> R20 million
> R30 million
Glass Foam (GF)
Very Low/Non- Combustible
Very Low/Non- Combustible
Very Low/Non- Combustible
Very High/ Non- Combustible
Very Low/Non- Combustible
Same as standard construction parameters
Mineral Wool (MW)
Very Low/Non- Combustible
Very Low/Non- Combustible
Very Low/Non- Combustible
Very High/ Non- Combustible
Very Low/Non- Combustible
Same as standard construction parameters
14. Survey risk requirement warranty
14.1 Where a survey has been conducted and it is found that there are integral risk requirements that need to be complied with in order for cover to continue, the policy schedule must be endorsed with the applicable warranty stated under point 14.7 below.
14.2 These warranties should only be used with the Manager's discretion and sign-off. The Manager is to evaluate the sum insured of the risk together with the risk mitigation of the Insured against the punitive first amount payable and then decide on the underwriting criteria that should be applied. For example: if we are insuring an undesirable risk with a sum insured of R40 000 000 and you apply a punitive first amount payable of R200 000, you must weigh the possibility of incurring a loss of R39 800 000.
14.3 The relevant dates and FAP values negotiated per individual policy must be inserted in the designated fields.
14.4 Once written confirmation of compliance with the risk requirements has been received, the warranty may be deleted.
14.5 The Hollard survey system (Advanced Risk Questionnaire – ARQ) is updated to make provision for the following:
• survey requirements being waived;
• policy has been warranted;
• survey requirements being regarded as complete due to a business decision;
• application of a punitive deductible due to survey requirements not being met.
14.6 Please keep your Hollard branch updated on the status of the survey requirements.
14.7 The warranties are as follows:
• New Business:
"It is warranted that with effect from <insert date>:
1. the Insured shall have 30 days (variable) to provide Hollard with a written action plan which includes time-frames and supporting evidence (e.g. signed orders/invoices) demonstrating the Insured’s commitment to fully implement the risk requirements as set out in Hollard’s Risk Survey Improvements Report dated dd/mm/yyyy. Should the Insured fail to provide Hollard with the written action plan and supporting evidence by <insert date>, then the Fire/Business Interruption related covers and any other resultant damage will be suspended as of midnight on <insert date>;
Commercial Underwriting Mandates and Guidelines – Binder – Version 4 2022 17