Page 81 - Policy Wording - Hollard Business Binder (2020-08-26)

4.1
Defined Events 1 – Property
Insured property that is not particularly susceptible to accidental damage with only a small area of rack storage and not using mobile plant or travelling cranes
Insured property that is not particularly susceptible to accidental damage, but with a large area of rack storage or using mobile plant or travelling cranes
Insured property that is reasonably susceptible to accidental damage with rack storage or using mobile plant or travelling cranes
Insured property that is highly susceptible to accidental damage with large rack storage or using mobile plant or travelling cranes
Insured property that is extremely susceptible to accidental damage with very large rack storage or using mobile plant or travelling cranes
L (Low)
Accidental Damage
1. GENERAL
ACCIDENTAL DAMAGE
1.1 Cover under this section will only respond if there is no other insurance in place or for which insurance is available under another section of the policy (excluding Business All Risks section).
1.2 The exposure could be very high and therefore the rating and deductibles applied should be suitable for the risk.
2. UNDERSTAND THE RISK
Consider the type of business in terms of whether or not the risk would have items that are susceptible to breakage.
3. UNDERWRITE THE RISK
3.1 Cover can only be purchased on a First Loss basis.
3.2 For Defined Event 1 – Property ensure that:
3.2.1 First loss average applies;
3.2.2 the rating is applied to the full value as per the Fire section.
3.3 It is important to evaluate each risk on its own merits with particular regard to losses which could occur that are not insurable by other classes.
3.4 Breakage is a substantial risk where crockery, glassware and bottled goods are insured and should be avoided.
3.5 Overloading of shelves is a major factor that could contribute to collapse which could result in a substantial loss.
3.6 Foreign objects falling into working machines, breakage of conveyor belts, and solidification of molten metals all give rise to serious loss or damage.
3.7 A surveyor should ensure that hazards which could increase the risk of accidental damage are noted and if necessary, recommend a list of goods to be excluded from cover.
4. RISK CLASSIFICATION AND RATING
M (Medium)
H (High)
X (Extra High)
D (Decline)
Rates
80
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020
Classification
Classification
L
Rate
0.75%
R500 10% of claim minimum R2500
R1 500 10% of claim minimum R3 000
Min Annual Premium
Description
Excess
M
1%