Page 32 - Policy Wording - Hollard Business Binder (2020-08-26)

Fire
3.3 Malicious damage
This extension of cover is now included in the wording under General Provision 10.
3.4 Vehicle load
3.4.1 Cover in terms of vehicles parked inside buildings while loaded is often required. This is common among distributors where the vehicles are loaded the day before being dispatched as a time- saving method. This is standard to the trade and has been accepted without much concern.
3.4.2 However, it is recommended that fuel per vehicle be restricted to 10l (ten litres) to prevent explosions should a fire occur.
3.5 Livestock, game, ostriches, bloodstock and pedigreed animals
3.5.1 No bloodstock or livestock of any description may be insured under the Fire section.
3.5.2 Provision for livestock is made under Livestock and Pedigreed Animal sections of the Agri policy.
3.5.3 Rates are contained in the relevant sections.
3.6 Column references:
3.7 Floating stock
Column 1 Column 2 Column 3 Column 4 Column 5 Column 6
Buildings
Rent
Machinery and equipment
Stock in trade
Miscellaneous
All other contents (stock and plant)
3.7.1 Certain industries require stock to be moved from one location to another as and when required. This must be declared up front and noted on the policy.
3.7.2 Add the item ‘floating stock’ representing the maximum amount that may be moved to another building/location.
3.7.3 Stock at CMT (cut, make and trim) factories and the like should be insured as a separate item with a maximum limit any one premises. The insured property is not usually in the custody and control of the Insured therefore terms must be in line with the risk.
3.8 Motor accumulation – static risk
3.8.1 There may be instances where a large number of vehicles are parked at one location at any one time.
3.8.2 The risk in motor accumulation is fuel in tanks and if ignition takes place all vehicles can be damaged.
3.8.3 The policy must be endorsed to guarantee the separation of vehicles in the yard where the accumulation takes place.
3.8.4 Vehicle storage must be:
• in groups of no more than 6 (six) vehicles;
• the groups separated by a clear 5m (five metres) in between;
• no more than 10l (ten litres) of fuel in tanks.
3.8.5 Vehicles stored in the open are susceptible to the elements. Apply a separate excess in respect of hail or storm damage.
3.8.6 Vehicles in the open must be parked under hail nets. Ensure that the Hail Net Warranty reflects on the schedule.
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020 31