Page 59 - Policy Wording - Hollard Business Binder (2020-08-26)

3. UNDERWRITING THE RISK
3.1 Declaration adjustments to be made at each annual renewal.
3.2 Not to be issued in isolation, always follow the Fire section.
3.3 If necessary, endorse the policy to ensure regular back-up of records.
3.4 Minimum rate of 0.075% to apply to Outstanding debit balances.
4. RIOT AND STRIKE
Refer to point 4.10 under the Fire section.
5. RATING
Outstanding debit balance Protections
Additional claims preparation costs
6. TRANSIT
66% of Fire rate Discount by 25%
50% of the underlying base rate
Accounts Receivable
1. GENERAL
ACCOUNTS RECEIVABLE
1.1 Underwrite on a duplicate-records-only basis.
1.2 The cover is aimed at indemnity for amounts not recoverable due to accounts receivable records lost after an insured event.
1.3 The full outstanding amount has to be insured, cover is not underwritten on a First Loss basis.
1.4 Electronic bookkeeping has to be backed up off-site.
2. UNDERSTAND THE RISK
2.1 The following information is required:
2.1.1 amount of estimated maximum outstanding debit balance at any one time, bearing in mind the application of average;
2.1.2 duplicate records and keeping of records.
2.2 It is essential to establish whether any of the following features exist:
2.2.1 Are the records kept in a fire resistant safe or strong room when the premises are closed for business and in fire-resistant cabinets at all other times when not in use?
2.2.2 Are duplicate records kept at any other premises forming a separate fire risk?
2.2.3 Are accounts paid by Banker's Orders?
Defined events
Description
Rate
Covers records of accounts whilst in transit between the business premises and the premises or residence of any director, partner, employee or accountant of the Insured.
Description
Rate
Transit
Minimum section premium
Annual Monthly
25% of basic rate
R500 R42
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020