Page 35 - Policy Wording - Hollard Business Binder (2020-08-26)

Fire
2. Underwriting a built-up silo (cont.)
Structure
Contents
2. Requirements:
a) a valid Master Electrician Certificate;
b) all storage, drying, loading and unloading processes must be in accordance with the accepted general silo practices and standards;
c) fire extinguishers and hose reels must be fitted in accordance with the requirements of the authorities and silo practices and maintained with the correct water pressure legible at all times;
d) survey.
2. Requirements:
a) humidity control and product on intake not exceeding 12,5%;
b) monthly inspection to test for humidity and implement measures to maintain acceptable humidity levels;
c) stock in bags must be on pallets at least 10cm above floor level.
3. Underwriting silo bags and contents
1. Silos are expensive and the alternative to bulk storage is silo bags.
2. Bags are imported from various countries but Brazil is probably the forerunner in supplying bags.
3. Make sure all requirements are met.
4. Consider the following when underwriting:
Bags
Contents
1. Information and requirements:
a) material of bags at least 240 micron and consisting of 3 layers of material – manufacturer specs. required;
b) when loaded material not to be expanded by more than 10% of its original size;
c) scraped area free of any sharp objects and covered with fine sand;
d) bags not to be stored on inclines;
e) area fenced in with fencing at least 1,8m high and entrance gates locked at all times;
f) continuous pest control;
g) only new bags to be used (used once only);
h) storage periods not to exceed 12 months;
i) areas of at least 30m surrounding the bags must be kept clear of flammables;
j) bags must be at least 3m apart whilst stored to allow for working space;
k) bags inspected weekly to inspect for structural damage;
l) adequate drainage to prevent flooding.
1. Continuous inspection of contents to ensure:
a) testing against mould, decay and/or condensation;
b) silo covers opened bi-weekly to inspect for condensation;
c) bi-weekly testing for heat variation;
d) health regulations as defined adhered to and effectively control pests;
e) mixing of wet and dry product not permitted;
f) heat and artificial drying not permitted on site;
g) humidity control and product on intake not exceeding 12,5%;
h) monthly inspection to test for humidity and implement measures to maintain acceptable humidity levels.
2. Maximum acceptance:
a) Per bag – R35 000
b) Per location (risk accumulation) – R500 000
34 Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020