Page 65 - Policy Wording - Hollard Business Binder (2020-08-26)

2.
1.1 Money is covered as a result of loss, damage, theft or hold-up.
1.2 Theft by employees will be covered subject to the loss being discovered within 14 (fourteen) days. If later, it will be payable in terms of Fidelity Guarantee section.
1.3 Money can be covered:
1.3.1 at the premises in a safe after hours;
1.3.2 at the premises outside of a safe, in money tills or receptacles, during business hours;
1.3.3 in transit by the Insured or professional carriers subject to the transit warranty;
1.3.4 under control of the Insured while on a business trip;
1.3.5 under control of collectors and roundsman;
1.3.6 Personal Accident cover (fixed benefits).
1.4 Money not contained in a safe will be covered if:
1.4.1 outside business hours on the premises, R3 000;
1.4.2 in the residence of the Insured, R3 000;
1.4.3 in custody of collector(s)/petrol attendant(s) and roundsman – up to the limit stated in the Schedule;
1.4.4 in custody of the Insured on a business trip, R3 000;
1.4.5 amounts stated in 1.4.1, 1.4.2 and 1.4.4 are fixed and can be increased subject to referral and motivation to Hollard.
UNDERSTAND THE RISK
2.1
Underwriting factors to take into consideration:
2.1.1 situation and physical security at risk address;
2.1.2 specifications of safe in which money will be kept: a list of safes and grading is noted below. It is important that the limits allowed for certain categories of safes are not increased without referral to Hollard;
2.1.3 details of amount of money kept on premises (not to be confused with sum insured) and processes, for example, where staff are paid in cash;
2.1.4 whether any money is in the hands of collectors, and if so, the precautions taken and limits that apply;
2.1.5 pre-paid phone cards or other cards, cell phone cards, ATMs and loading procedure on the premises.
Processes
2.2
2.2.1 2.2.2
2.2.3
The processes in respect of cash handling, in particular wages, are vital in assessing the likelihood of a claim under this section and thus the rates charged.
If staff are paid in cash or if a fixed routine is followed in banking procedures, then a claim is far more likely to occur and even with a low sum insured frequency of claims can result in major losses. It is imperative that a direct transit warranty be applied to all policies. This cuts down on collusion significantly.
Cash-carrying companies contract out of liability in respect of theft of the money that they carry on behalf of clients and we could possibly be exposed. This must be taken into account when rating.
Money
1.
GENERAL
MONEY
64
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020