Page 74 - Policy Wording - Hollard Business Binder (2020-08-26)

Goods in Transit
2.5 Imports
2.5.1 Property imported and hauled to or from any harbor or main airport within our country could possibly be insured under a marine or stock through-put policy.
2.5.2 The imported property may be in seriously bad condition on arrival and if we cover the haulage to another location chances are that we will be paying for damaged property unnecessarily. Recovery will be expensive if not almost impossible.
2.5.3 Under no circumstances should imported property be insured on an All Risks basis unless the owner opens up the packaging and checks for damage.
2.5.4 The following should be established before cover is finalised:
• Goods professionally packed?
• How are the goods secured?
• Are the goods packed on pallets?
• Height (under bridge height)?
• Other protection measures?
• Goods carried by the owner or a contractor?
• Is the contractor experienced in transporting these types of goods?
2.6 Security
If the conveying vehicle(s) is not insured under this policy, it is important to check the security of the carrying vehicle and insist on a tracking device in the carrying vehicle if necessary.
2.7 Farmers
2.7.1 This section makes provision for farming activities and care should be taken considering the following:
2.7.1.1 The type of farming activity – is it seasonal or is all-year (regular) transport required? (A sheep farmer transports wool once a year, a maize farmer delivers to a silo close by, a vegetable farmer transports regularly)
2.7.1.2 How far is the market?
2.7.1.3 How often is a trip undertaken?
2.7.1.4 Does the turnover of the business justify the capital layout?
2.7.2 In some instances farmers may transport their own produce to the market and to save on costs, transport third party property on the return trip. Agri policies may be endorsed to clearly state that the vehicle use may include transportation of third party property for reward but not exceeding 25% (twenty five percent) of the total usage of that vehicle.
2.7.3 Farmers transporting livestock and pedigreed animals must ensure that all animals are healthy at the commencement of the trip.
2.8 Valuation
2.8.1 The policy refers to property transported related to the business.
2.8.2 Do not offer to insure the property of any third party as the Insured then becomes a contractor.
2.8.3 The load should not be based on the invoice amount as this amount includes profit and other trade expenses.
2.8.4 To compensate for certain expenses the actual manufacturing price may be increased by 10% (ten percent) to 15% (fifteen percent) and is what is known as "cost plus 10%/15% (ten percent/fifteen percent)", the policy must be endorsed to this effect if required.
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020 73