“Typically, in terms of a commercial policy, should the limits be higher, the insurer may stipulate that money must be transported from the insured’s premises directly to the bank. However, this is not practically possible unless the insured is a large company with a sizeable amount of cash that needs to be transported,” Schoeman says.
He says it is standard practice in the industry for cash- in- transit companies to have specific routes, where they make several stops to pick up cash before delivering the money to the bank. “If the money is collected over the weekend or in the case where it has to be aggregated at the security company overnight, then transit directly to the bank is obviously not possible,” he points out. “Brokers should look carefully at cash- in- transit insurance policies and check the exclusions.”
“Once the cash leaves the insured’s premises, they should have cover from that point, regardless of whether there are additional stops or not,” he says. He cautions that in instances where there is accidental damage, for example, if the dye stain within the cross- pavement carrier is accidentally triggered, the insured should be covered for that event. “The insurer should provide 100 per cent cover for this occurrence and any other accidental damage.”