Page 77 - Policy Wording - Hollard Business Binder (2020-08-26)

1.1 This cover is primarily designed for property which by virtue of its nature is susceptible to accidental loss or damage.
1.2 This section is only issued on a replacement value basis.
1.3 Cover is noted to be worldwide.
2. UNDERSTAND THE RISK
2.1 Multiple losses may indicate a problem risk or inadequate care to safeguard property.
2.2 Ensure that the items insured actually relate to the business, e.g. a photographer will not require cover for a scientific scale.
2.3 Avoid ambiguous descriptions such as 'equipment'.
2.4 Do not cover heavy machinery, mining equipment, large sums insured and types of equipment that could potentially be covered by a Plant policy.
3. UNDERWRITING THE RISK
3.1
3.2
3.3 3.4
The property
Ensure that the:
3.1.1 full description of the property insured is provided;
3.1.2 sums insured must represent replacement value;
3.1.3 supporting documentation is available: invoice, warranty or instruction manual.
Blanket cover
3.2.1 Where property is insured on a 'blanket' basis, for example office machinery or tools, the sum insured must represent the replacement cost of all property of that nature.
3.2.2 An item limit must always be applied. The item limit must not exceed 10% (ten percent) of the blanket/globular sum insured.
3.2.3 An item limit of R2 500 is recommended.
3.2.4 If an item limit is not applied the claim for one item may be the full sum insured and that is not the intention of the blanket cover basis.
Average
Average applies to this section whether items have been specified on an individual or blanket basis.
Tools and hand-tools
3.4.1 3.4.2 3.4.3 3.4.4
These are high risk items in terms of theft must be treated as accommodation business.
Tools must be locked away safely after business hours.
If left in an unattended vehicle, tools must be concealed and the vehicle securely locked.
Tools carried on the back of vehicles (in the open, exposed) should be underwritten as follows:
3.4.4.1 3.4.4.2 3.4.4.3
carried in toolboxes fixed to the vehicle and locked; canopies locked at all times;
canopy glass fitted and protected with smash-and-grab protective screen (dark type to limit visibility) or even diamond mesh;
provision for forcible and/or violent entry should never be deleted;
3.4.4.4
Business All Risks
1. GENERAL
BUSINESS ALL RISKS
76
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020