Page 33 - Policy Wording - Hollard Business Binder (2020-08-26)

4.
RATING
4.1
4.2
Fire
M – Medium
H – High
X – Extra High
Escalation
Fire
3.9 Cold storage facilities and warehousing
3.9.1 Contrary to popular belief, cold storage facilities carry a significant fire risk.
3.9.2 Cold storage plants offer long- and short-term storage of frozen foods and perishables, and some facilities may also include other activities such as packaging and transportation services.
3.9.3 The property may be at risk from a combination of ignition sources, such as inadequate electrical wiring, large quantities of combustible materials (i.e. sandwich panelling) and equipment malfunctions.
3.9.4 Ammonia leaks could cause an explosion and therefore, the required detection system should be in place.
3.9.5 Good housekeeping and fire controls are critical (a no smoking policy must be strictly adhered to).
3.9.6 Sprinkler heads must be located high enough to avoid accidental contact with forklifts, but with adequate clear space from storage facilities to allow unobstructed operation in the event of a fire.
3.9.7 Forklifts should be refuelled in a separate, well ventilated area away from any combustibles.
3.9.8 Please refer to point 9. under the Survey section for details on sprinkler requirements for the various cold storage constructions.
Risk Classification
Area
Min Rate Allowed
Max Discount Allowed
1
2
L – Low
0.185% 0.210%
0.285% 0.325%
0.400% 0.410%
0.495% 0.575%
0.080% 60%
0.125% 55%
0.200% 50%
0.275% 45%
Rate
4.3
4.2.1 This extension provides escalation of the sum insured during the period of insurance. In the event of a claim, the sum insured will be escalated up to the date of such claim calculated pro-rata on the percentage selected and stated in the Schedule of this section.
4.2.2 Year one is to make provision for the increase in replacement cost.
4.2.3 Year two makes provision for further costs if the repairs started in year one have not been completed.
4.2.4 If selected, the amounts generated must be included in the retention calculation.
50% of the standard fire rate
25% of the standard fire rate
25% of the standard fire rate
15% of property sum insured (excluding rent) Buildings (column 1) and plant machinery (column 3)
Spray-irrigation systems – Agri only
4.3.1 This section is not suitable to provide cover in terms of any type of irrigation system, unless it is only pipes and pumps.
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020
Rate of escalation
Year one
Year two
Maximum percentage
Applicable to