Page 73 - Policy Wording - Hollard Business Binder (2020-08-26)

1.
GENERAL
2.
1.1 Cover may be issued on either an All Risks or Restricted basis.
1.2 Hi-jacking of the conveying vehicle is not automatically included in the base cover but can be purchased as an optional extension.
1.3 This section covers loss or damage to property whilst in transit, owned by the insured or for which they are legally responsible.
1.4 Cover is designed to insure goods on own vehicles but makes provision for replacement vehicles.
1.5 Transport contractors/professional carriers is a declined risk in terms of our Commercial offering but can be referred to either Hollard Trucking (if vehicle cover is also required) or Marine for a quote.
1.6 Period of transport includes:
1.6.1 loading and unloading;
1.6.2 transit by road, rail or air;
1.6.3 temporary overnight storage during transit;
1.6.4 theft from a temporary storage premises during the transit, forcible and violent conditions apply.
1.7 Transporting of livestock must be referred to the Hollard Agri division for a quotation.
1.8 The property insured includes ropes, tarpaulins and packaging material. Make sure the sum insured is adequate.
UNDERSTAND THE RISK
2.1
2.2
2.3
2.4
Load limit/Annual carry
2.1.1 Calculate premium on annual carry rather than load limit. This ensures that the correct premium is charged.
2.1.2 If the premium is based on load limit, then a rate must be charged per conveying vehicle. This ensures that adequate premium is received for the risk.
Second-hand/refurbished goods
2.2.1 It is difficult to determine the value of second-hand goods and as such, cover should be restricted.
2.2.2 Refurbished goods must be underwritten on an agreed value basis as the replacement cost will be indeterminable.
2.2.3 Ensure that written confirmation is obtained from the operator who did the refurbishment as to the value and condition of the goods.
Description of goods carried
2.3.1 The type of goods being conveyed must be noted on the Schedule and underwritten according to susceptibility to damage and/or theft.
2.3.2 Do not underwrite on the basis of 'all goods incidental to' as the underlying risk or business activity may change and as such the goods being conveyed.
Packaging
When assessing the risk consider whether the load is:
2.4.1 2.4.2 2.4.3
on an open vehicle;
within an enclosed vehicle; protected against the elements.
Goods in Transit
GOODS IN TRANSIT
72
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020