Page 45 - Policy Wording - Hollard Business Binder (2020-08-26)

5.11.2 The following warranty should apply:
"It is warranted that all stocks and materials in trade susceptible to water damage are raised at least 150mm (one hundred and fifty millimetres) off the floor and placed on pallets or racks. In the event of non-compliance with this warranty, the Company shall not indemnify the Insured in respect of water damage to such property."
5.12 Hot work permit
5.12.1 The hot work permit system must be used in every instance where any temporary hot work is performed on-site to limit any potential losses from these activities and will be applicable on a case by case basis per the Hollard Survey Improvements Report (HSIR) or by type of risk if there is no survey report at hand.
The HSIR takes the following risks into account:
• risk classification: High, Extra High or Accommodation;
• group fire sums insured greater than R100M;
• all warehouses;
• any other risk as assessed by the surveyors.
5.12.2 The Hot Work Permit process ensures that when hot works are carried out (welding, cutting, grinding, etc.) that there are no resultant fires. This risk improvement is not a substitute to the legislated requirements as referenced in The Occupational Health and Safety Act 85 of 1993.
5.12.3 If applicable, the warranty below must be noted on the schedule as a General Endorsement. It is available on the Ekundu endorsement library in the grouped fire section or the user may copy paste the warranty:
"It is hereby warranted that a valid Hot Work Permit must be kept on record before any temporary hot work is conducted on any premises insured herein, which involves open flames or producing heat and/or sparks. This includes, but is not limited to: Brazing, Cutting, Grinding, Soldering, Thawing Pipe, Torch Applied Roofing, and Cad welding.
It is further warranted that:
1. the Insured must ensure strict compliance to the Hot Work Permit System prior to, during and after any temporary hot works is conducted by the Insured/any Contractors;
2. failure to comply shall result in suspension of cover from the time of breach until the breach is remedied."
5.12.4 The Hot Work Permit warranty will not apply to risks:
5.12.4.1 where the core business function includes hot works on a daily basis; 5.12.4.2 residential properties.
5.12.5 Please refer to Annexure G for the sample Hot Work Permit.
Minimum section premium
Annual Monthly
R1 500 R135
Fire
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020