Ex­clu­sions

RISKSA Magazine - - SHORT TERM -

“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.”

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