Page 84 - Policy Wording - Hollard Business Binder (2020-08-26)

Combined Liability (Claims-made Basis)
2.1.1.2 The answers provided will assist in understanding the details of the risk, processes used, imports and exports as well as the level of foot traffic on the premises.
2.1.1.3 Only the questions relevant to the business of the Insured need to be completed.
2.1.2 Business activities and business description
2.1.2.1 In the case of manufacturers and repairers this should include a description of all products produced and property handled/repaired. A term such as 'engineer' is too vague, be specific: motor engineer, mechanical engineer, etc.
2.1.2.2 The number of years that the business has been established gives an idea as to the experience that the proposer has in this type of business.
2.1.2.3 Be mindful if the Insured conducts diverse activities. Cover should be underwritten according to the most hazardous activity.
2.1.3 Salaries, wages and turnover
2.1.3.1 An estimate of annual wages is important as this also indicates the size of the business. Labour-intensive businesses are more likely to experience losses associated with human error. Rate accordingly.
2.1.3.2 If the services of contractors and sub-contractors are required, obtain the estimated annual payments made to them.
2.2 Consumer Protection Act (CPA read in conjunction with 3.2 Products)
2.2.1 This is a huge concern as consumers become aware of their rights. According to the Act, all parties involved in the "supply chain" are responsible.
2.2.2 The aim of the law is to ensure that consumers are treated fairly and that products perform as intended.
2.2.3 Pay special attention to Products/Defective Workmanship covers as with the new Act, this is where the exposure lies.
2.2.4 The Liability questionnaire must therefore be completed and underwritten prior to accepting the risk.
2.3 Contractor's liability
2.3.1 The policy excludes cover for contractor’s liability.
2.3.2 Cover may be purchased in terms of a specific Contractors All Risks policy via the Hollard Engineering division.
3. UNDERWRITING THE RISK
3.1 Excluded cover to take note of:
3.1.1 Efficacy or Recall – this cover can be purchased from our specialist liability division, iTOO.
3.1.2 Defective design – Professional Indemnity cover can be purchased for this type of risk via iTOO.
3.1.3 Aircraft liability – cover for this is generally provided under an Aviation policy.
3.2 Products Liability/Defective Workmanship
3.2.1 Public Liability cover specifically excludes liability resulting from goods or products (including containers and labels) sold or supplied as well as resultant damage to third party property directly related to the failure of part(s) worked upon by the Insured.
3.2.2 Products Liability is now combined with Defective Workmanship and can be purchased as an optional cover.
3.2.3 To assess the risk it is recommended that the information contained in the Liability questionnaire be scrutinized.
3.2.4 Details of countries (if any) to which the Insured exports with details of products and turnover relating to such exports must be obtained.
3.2.5 Damage must have occurred after the work was handed over and the customer had left the premises of the Insured.
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020 83