Page 145 - Policy Wording - Hollard Business Binder (2020-08-26)

Machinery Breakdown (Including Loss of Profits and Deterioration of Stock)
3.3 Deterioration of Stock
Value must represent either:
• actual purchase price paid by the Insured to the supplier; or
• actual purchase price paid by the Insured to the supplier including processing costs prior to being placed in the cold room; or
• selling price.
3.4 Each item of machinery/equipment must be listed separately including applicable sums insured.
3.5 The sums insured listed in respect of Business Interruption and Deterioration of Stock will apply per location.
3.6 Warranties:
• No equipment older than 7 (seven) years to be accepted.
• Maintenance plan or agreement must be in place as per memoranda noted in the policy wording.
• Switchgear of refrigeration machinery must have an apparatus for automatic restart following failure of the public supply of electricity as per memoranda noted in the policy wording.
3.7 Applying a time exclusion means only that no loss will be paid during the time period indicated. The type of equipment involved will be the determining factor.
3.8 Power surge, theft of cables and power supply interruptions are a reality which could potentially interrupt power supply. Determine the history in the area.
3.9 Avoid vacant premises.
3.10 Obtain a completed Machinery Breakdown questionnaire which must be kept on record. This will provide valuable information regarding the risk and items to be insured.
4. MAXIMUM ACCEPTANCE LIMIT (MB/BI/DOS COMBINED)
Description
Limit
Single item/equipment
Contents of cooling facility, any one container
Contents of cooling facility, any one location
Increased cost of working, any one location
Exposure any one location
Exposure any one policy
Any limit exceeded
R250 000
R100 000
R250 000
R250 000
R500 000
R1 000 000 combined Refer to Hollard
5. RATING
Air-conditioning
Boiler plant Extractor fans
Fixed generators Standby generators Portable generators
Stationary
Portable
Central air-conditioning
2.5%
5%
Refer to Hollard
5%
2.5%
3%
1.5%
7%
1%
3.5%
3.5%
R250 000
R50 000
Refer
R250 000
R50 000
R250 000
R250 000
R50 000
R50 000
R50 000
R50 000
Description
Rate
Max. item value
Ovens, stoves, fryers (excluding elements/expandable parts)
Compressors Gate/electric motors
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020