Bespoke Ready-Mix insurance Professional Indemnity Insurance Specialist Supplier Presentation EXCLUSIVE FOR MEMBERS OF THE SOUTHERN AFRICAN READY MIX ASSOCIATION ("SARMA")
So what is a Professional Indemnity Insurance Specialist Supplier Policy? Professional indemnity insurance aims to protect you and your business from various claims made by clients and third parties (whether those claims are genuine or false). In particular, it helps protect you when someone seeks compensation if you ve made mistakes or are found to have been negligent. Professional indemnity insurance is often also known as PI insurance. The professionals covered used to be quite narrowly defined, essentially traditional professions like accountants, attorneys and architects. Now, however, the scope extends more widely to SARMA Members offering specialist advice or services as defined.
This is a "Claims Made" Policy for Defective Ready-Mix Very simply put, Claims Made means that the claim for the Injury or Damage made during the period of insurance from one originating cause for errors and omissions Damage: shall mean physical loss of or physical damage to tangible property Injury: shall mean death of, or bodily injury, illness or disease to any person Period of Insurance: shall mean the commencement date shown in the Schedule and ending with the expiry date shown in the schedule for which the Insurer accepted the SARMA Member premium.
SO HOW IS A CLAIM TRIGGERED? THE INSURING CLAUSES IN A NUTSHELL MAKES THIS A BESPOKE POLICY The Insurers will protect and cover the SARMA member based on the presumption of negligence against claims made during the Period of Insurance in terms of the conditions of the policy: Section 1 - The Professional Duties and Activities of a SARMA Ready-mix member for Loss or Damage resulting in any defect in the supplied Ready-Mix. and is discovered prior to the issue of any practical completion or take over certificate
SO HOW IS A CLAIM TRIGGERED? THIS IS A BESPOKE POLICY The Insurers will protect and cover the SARMA member against claims made by 3 rd Parties who suffer damages during the Period of Insurance which arise out of: Section 2 - Any claim for which the SARMA Member shall become Legally Liable to pay compensation arising from a negligent breach of Professional Duty or Activity owed by the Ready-Mix company
WHAT ARE PROFESSIONAL DUTIES? Professional Duties wherever used in this Bespoke Policy. Professional Duties shall mean the Performance by the SARMA Member in accordance with statutory regulations and all codes of practice of SARMA and in connection with the Contract which the SARMA Member is undertaking.
WHO ARE THESE SARMA PROFESSIONALS? All Specialist Consultants, Technicians or Inspectors as would be normally appointed by the SARMA Member Advice given in the promotion of Ready-Mix products by the SARMA Member Cover is available to all the employees of SARMA members who are under the direct supervision of suitably qualified employees holding a recognized University or Technical Qualification in building and/or civil engineering or construction materials technology with at least 3 years relevant experience or A Batcher duly accredited by SARMA or Any other appropriate training academy or a technical representative having a minimum of 10 years appropriate supervisory experience in the relevant field or activities of the Insured
WHAT DOES LOSS MEAN? Loss: shall mean actual expenses including re-design and replacement that are reasonably and necessarily incurred in rectifying or repairing any fault, deficiency, shortcoming or defect which arises out of the professional Duties and Activities undertaken by the SARMA Member. Note: Should the loss be indemnified under the following risks products then there is no right to recovery on this policy regardless of whether the SARMA Member has put in place or not. Contractors All Risk Public and Products Liability Plant All Risks It is a requirement of this Policy that all sub-consultants agreements shall require the sub-consultant to indemnify the SARMA Member against its own professional errors, omissions and negligence and arrange an appropriate Professional Indemnity Insurance cover when contracting with the SARMA Member.
SHOULD THE SARMA MEMBER HAVE A POSSIBLE CLAIM - WHAT THEN? The Insurers will pay at cost any expenses incurred by the SARMA Member (with the prior approval of the insurer, which approval will not be unreasonably withheld) in order to assist with the investigations, defence or settlement of any claim made against the SARMA Member and the costs of representation at any inquest, inquiry or other proceedings in respect of matters which have a direct relevance to any claim made or which might be made against the SARMA Member
WHAT IS AN INDEMNITY LIMIT? Put simply, an indemnity limit is the maximum amount that an insurer will pay out for any one claim or the total of claims within any one policy year. The Maximum cover per claim or series of claims to SARMA Members is either R5 Million or R10 Million (as selected). The cover includes all costs, interest thereon, all claimants costs, fees and expenses and defence costs as defined within the limit of indemnity The Total Liability of the Insurers, in terms of the Insuring Clause: Per Claim or series of claims arising from one originating cause or source, including hereunder In respect of all claims per Policy Period shall not exceed the Limit of Liability per occurrence including all cost and expenses including defence or any aggregate Limit of Liability per annum
What is in the 'aggregate' or 'any one claim' basis? When arranging your Professional Supplier Indemnity Insurance it is important to understand that there are two fundamental ways in which the cover can be arranged. This can be crucial when you are faced with a large or multiple claims. The two ways of arranging the cover are; Aggregate basis and Any One Claim basis. As you can see from the diagrams below, with Aggregate basis your claims are all paid out of the indemnity limit whereas with any one Claim you are entitled to the full indemnity limit for each and every claim. Aggregate each claim is paid out of the specified Indemnity limit and reduces the amount available for subsequent claims. Any one claim every single claim you make during the insurance year is entitled to the FULL indemnity limit. This policy works on Aggregate basis only
WHAT ELSE IS INCLUDED? * SPECIAL SARMA BESPOKE GENERAL EXTENSIONS Insured's Own Plant Mechanical Breakdown Extension The cover provided under this extension is to include the costs of repair or replacement of Ready-Mix supplied under a specific order which is rendered defective or not fit for purpose due to an interruption of the supply of Ready-Mix caused by a mechanical failure of the SARMA Members batching plant which prevents the completion of a continuous pour to a particular structure for which the concrete was ordered. For the purposes of this extension the term Batching Plant shall be deemed to include the mechanical loading equipment. This indemnity shall only be provided upon the SARMA Member proving to the satisfaction of the Insurer that the interruption was due to a sudden and unforeseen mechanical failure of the batching plant (but not due to the failure of the primary electrical and/or water supply to the batching plant) and that all reasonable action was taken by the SARMA Member during the interruption period to mitigate its loss. (NOTE: if included in the Schedule and in respect of which premium has been paid)
GENERAL EXTENSIONS We are cemented by trust WHAT ELSE IS INCLUDED? Wrongful Arrest and Defamation When the Insured causes a person to be wrongfully arrested this extension provides cover for False imprisonment Assault arising before being placed in police custody Defamation arising out of arrest, false imprisonment or the investigation of theft Statutory Legal Defence Costs The SARMA Member's legal costs in defending a criminal action. The court would impose fines and penalties to punish the offender in criminal matters. The court award is not covered by the policy (fines and penalties are excluded). The cover under this extension is for the defence of any action or investigation incident or representation at enquiries brought against the SARMA Member only. (NOTE: if included in the Schedule and in respect of which premium has been paid)
GENERAL EXTENSIONS We are cemented by trust WHAT ELSE IS INCLUDED? Infringement of Copyright and Trademark Breach of patent, design, trademark, trade name, copyright or action for passing off any product this extension covers the SARMA Member for claims arising out of any negligent act or omission which amounts to a breach of Professional Duty. But does not cover liability arising out of:- Any breach of implied Warranty of Authority or of trust committed in good faith; defamatory statements whether written or verbally made by the Insured; the deliberate, conscious or intentional disregard by the Insured of the need to take all reasonable precautions to prevent Infringement of Copyright or Patent Rights Notification Extension Clause Events that give rise to valid claims may occur at any time between Commencement Date and the end of the Period of Insurance, expiry date. Should a SARMA Member notify the Insurer during the Period of Insurance of any Specific Event or circumstance which Insurers accept may give rise to a claim or claims then the Insurers will deal with such claim or claims which may later arise as if they had first been made against the Insured during the Period of Insurance The Notification Extension Clause is limited to a maximum of 12 months (NOTE: if included in the Schedule and in respect of which premium has been paid)
GENERAL EXTENSIONS We are cemented by trust WHAT ELSE IS INCLUDED? Consequential loss It is common for construction contracts to limit indemnities to direct loss (and to exclude consequential loss) and for exclusion clauses to seek to limit or exclude liability for consequential or indirect loss. This extension is applied when the Employer or Contractor has not excluded consequential or indirect loss and a 3 rd Party suffers an indirect loss, such as lost profits and expenses incurred through breach. Liability Following Employee Dishonesty Claims arising out of any dishonest, criminal or malicious act or omission, or any act or omission in violation of any law or ordinance, committed by or on behalf of any SARMA Member Employee (not being a Director, Partner or Principal) no cover shall be granted in respect of claims which are incurred or insurable under a Fidelity Guarantee Policy of Insurance (NOTE: if included in the Schedule and in respect of which premium has been paid)
WHAT IS EXCLUDED? A claim can only be triggered if an error or omission was made by the SARMA listed Professionals This bespoke product does not cover claims arising from Material damage
WHAT IS EXCLUDED? 1. due to incorrect or inadequate specification of materials unless arising out of a negligent act or omission of the SARMA Member; 2. arising out of the failure by the SARMA Member to meet Completion Dates unless caused by a negligent act or omission; 3. arising out of the failure of the SARMA Member to procure or maintain finance / or arising from incorrect financial estimates or the failure of any contracting party to procure contract works insurance; 4. due to or in connection with dishonesty or deliberate breach of any Statutory Regulation on the part of the Insured's Senior Technical or Administrative Management; 5. for expenses or liability more specifically covered under or indemnified by any other Section of this policy; 6. arising out of any Waiver of Rights of Recourse granted by the SARMA Members to other whether by express term or by reason of an assumption of liability under Contract;
WHAT IS EXCLUDED? 7. arising out of breach of any negligent act or omission by the SARMA Member which occured prior to the commencement date stated in the Schedule; 8. arising from the insolvency of the SARMA Member; 9. arising from the Certification of Value of Work executed by any contractor where the SARMA Member has an equity interest in such contractor, unless such company is listed as an insured; 10. arising from the recall of any Product or part thereof by the SARMA Member; 11. arising from the SARMA Member's activities while acting in their capacity as a Director or Officer of any partnership or company (Companies Act); 12. arising from the procurement of any Guarantee or Suretyship in respect of any Contract of Supply.
WHAT IS EXCLUDED? 13. arising due to the batching plant and / or the manufacturing process not complying with SARMA standards of supervision, quality control, performance, safety and / or any other criteria required in the SARMA code of conduct. Any deviation, non-compliance or failure to meet the SARMA Codes (within the period of insurance) shall be deemed to constitute a material alteration in risk that must be reported to the insurers - such period not exceeding 28 days.
The trust you place in your staff is absolutely key to long-term Success in business yet Ready-Mix Risks cannot be eliminated thus Success comes from Management of Risks and Part of Managing the Risk is the comfort in transferring such Risks that are beyond your company s control.
TRUST IS RARE, IT IS SPECIAL AND IN GREAT DEMAND Nothing happens in business if trust does not exist. We appoint people, we buy plant and machinery, we buy product all based on trust. We believe that the products, man and machine will perform in accordance with their purpose and our expectations. We start business projects with people, plant and machinery based on trust and we believe that if every person, product and plant delivers on the project then this will be a success. TRUST = SHORT WORD, HUGE IMPACT