Policy Wording

The policy provides fixed-limit insurance cover designed for small and micro businesses, protecting against specific risks that may affect the operation of your business. Fixed limit means the maximum amount payable for any claim is capped at the amounts shown in your Schedule of Insurance and in this document.

The policy provides cover for:

• Fire damage to business premises or stock
• Flood damage to business premises or stock
• Theft of insured business property

Each section has a maximum limit per claim, a maximum number of claims per year, and a maximum annual payout limit.

All cover is subject to the terms, conditions and exclusions set out in this policy.

1. Your agreement with us. When you take out this insurance you enter a legally binding agreement with Hollard. In exchange for your premium payments we provide insurance protection as set out in this Policy Document, your personalised Schedule of Insurance, and any optional cover add-ons or supplementary disclosures.

2. When your cover starts. Cover begins on the start date and time listed in your Schedule of Insurance, once we have received your first premium payment and the policy has been accepted and issued by Hollard. If you pay monthly, cover starts once your first premium is received.

3. Renewal. At the end of each policy period your cover may be automatically renewed if you continue to pay your premium on time and we agree to extend cover. We will send you an updated Schedule before your renewal date. Cover continues unless you tell us not to renew.

4. Maximum claims per year. A maximum number of claims may be made in any 12 month policy period. If more claims are submitted in a single policy year, further claims may be rejected, or we may cancel or decline to renew your cover. The maximum claims per year is shown in your Schedule of Insurance.

5. Cooling off period. If you change your mind after taking out or renewing cover, you may cancel within 15 days of the start date. If you cancel in this period and have not claimed, we refund your premium in full. After the cooling off period the standard cancellation process applies.

6. Important things to check. When you receive your policy documents it is your responsibility to review your Schedule of Insurance carefully, confirm your cover option, limits and optional benefits, and notify us within 15 days if any information is incorrect. Failure to notify us may affect your ability to claim.

7. SASRIA cover. Cover for special risks such as civil commotion, public disorder, strikes, riots and terrorism is provided separately by SASRIA SOC Ltd. Where selected, the SASRIA premium is shown separately and the SASRIA policy wording applies. If SASRIA cover is not included, no compensation is payable under this policy for loss or damage caused by these special risks.

8. Cancellation. This policy may be cancelled at any time by the Company giving 31 days notice in writing (or any other period mutually agreed), or by the insured giving immediate notice.

These definitions apply across all sections of this Policy Document.

• You / your - the policyholder named in the Schedule of Insurance.
• We / us / insurer / Hollard - Hollard Insurance Limited, the insurer and underwriter of this policy.
• Policy / insurance contract - this Policy Document, the Schedule of Insurance, any endorsements or amendments issued by us, and statutory disclosures issued at inception or renewal.
• Schedule of Insurance - the document showing policyholder details, insured premises, cover sections selected, limits and annual limits, premium, policy period, any excess and any special conditions. The most recent Schedule issued is the one that applies.
• Policy period / policy year - the 12 month period of insurance shown on your Schedule, used to apply annual limits and the maximum number of claims.
• Premium - the fixed premium payable for this policy as shown in your Schedule, including applicable taxes or statutory charges unless shown separately.
• Fixed limit policy - a policy where each section has a fixed maximum amount payable per claim, a fixed maximum number of claims per policy year, and a fixed maximum annual claims limit per section.
• Limit / maximum limit (per claim) - the maximum we will pay for one insured event under a cover section, regardless of the actual loss or cost.
• Annual limit - the maximum total we will pay for all valid claims under a cover section during one policy year, regardless of the number of claims.
• Maximum claims per year - the maximum number of valid claims allowed under a cover section during one policy year. Once reached, further claims in that section may be declined.
• Insured event - a sudden, unexpected and identifiable event happening during the policy period that directly causes loss or damage covered under this policy.
• Claim / claims event - a request for us to pay under this policy following an insured event. A claims event includes all loss or damage arising from one incident or a series of incidents arising from the same cause.
• Business / SME - the small or micro enterprise named in the Schedule, operating for commercial purposes, including informal traders, spaza shops, small retail outlets and service businesses, provided the business is lawful.
• Insured premises - the physical address where cover applies, as shown in your Schedule, including the building or structure the business operates from and any room, container or storage area at that address used for business purposes. Cover does not automatically apply to any other premises.
• Contents / business contents - business owned movable property kept at the insured premises, including business equipment and tools, furniture and fittings not permanently attached, point of sale devices and electronics used for the business, and storage containers, but excluding stock unless stock is explicitly included under Business Property on the Schedule.
• Stock - goods held by the business for sale or trade, including finished goods and trading inventory kept at the insured premises.
• Business property - your contents and/or stock kept at the insured premises, as applicable to the section of cover, and as reasonably evidenced as belonging to the business.
• Fixtures and fittings - items permanently attached to the insured premises, including shelving, counters, built in cupboards and fixed partitions. Only covered if explicitly stated in the Schedule as included.
• Proof of ownership / proof of value - invoices, receipts, supplier statements, bank statements reflecting purchases, stock purchase records, photos and videos, asset registers, or any other evidence reasonably required.
• Reasonable costs - costs that are fair and market related, not inflated above normal industry rates, supported by quotations or invoices, and necessary to repair or replace the damaged item. We pay the lesser of the reasonable cost or the applicable limit.
• Fire - combustion that escapes its normal confines and causes damage, including damage directly caused by fire, lightning and explosion, provided the event is accidental and not deliberately caused by you or anyone acting on your behalf.
• Flood - the accumulation, release or overflow of water that enters the insured premises and causes damage, including heavy rainfall leading to surface water accumulation, overflow of rivers, streams, dams or stormwater systems, and water run off entering the premises. Excludes seepage, damp, rising moisture or gradual water penetration over time unless directly linked to a sudden flood event.
• Theft - the unlawful taking of insured business property with the intention to permanently deprive you of it. Theft must occur at the insured premises and be supported by a police case number and evidence consistent with theft, including forced or violent entry where required.
• Burglary - theft involving unlawful entry into, or exit from, the insured premises by forcible and violent means.
• Robbery - theft involving the use of force, violence, or threat of violence against a person at the insured premises.
• Forced and violent entry - visible and physical damage to the insured premises consistent with forcible entry or exit, including broken locks, forced doors or damaged barriers.
• Security protections - the physical protections at the insured premises that reduce theft risk, including locks, burglar bars, gates and alarms. Where specific security measures are required, these must be complied with as a condition of cover.
• Underinsurance / inadequate limits - because this is a fixed limit policy, you may suffer loss above the limits. Any amount above the applicable limit or annual limit is for your account. This is not treated as average (proportional settlement) unless expressly stated.
• Salvage - any damaged or recovered property that remains after settlement of a claim. We may request rights to salvage or reduce settlement by the salvage value.
• Fraud / fraudulent claim - any dishonest act, misrepresentation, intentional non disclosure, or submission of false documents or information connected to policy inception, renewals, claims, or any communication with us. Fraud may result in claim repudiation, cancellation and recovery of amounts paid.
• Material information - information that would influence our decision to accept or decline the risk, set the premium, apply conditions, set limits, or handle a claim.
• Reasonable precautions - the steps a reasonable business owner would take to prevent loss or reduce damage, including maintaining basic security, safe storage and prompt action to limit further loss.
• Mitigation of loss - actions taken after an insured event to reduce further damage or loss. We do not pay for betterment or upgrades.
• Betterment - improvements that place you in a better position than before the insured event. Betterment is not covered.
• Latest policy schedule - the most recent version of your Schedule of Insurance, issued after the initial start date, a mid term change, or a renewal. It supersedes all previous ones.

This policy operates on a fixed limit, fixed premium and fixed claim structure, designed to provide affordable protection for small and informal businesses. All cover is subject to the maximum limit per claim, the maximum number of claims per policy year, and the maximum annual payout limit shown in your Schedule of Insurance.

Once the applicable annual limit or maximum number of claims has been reached, no further claims will be paid under that section during that policy year. Unused limits do not carry forward to the next policy period.

Basis of settlement. Claims are settled on a reasonable repair or replacement basis, subject to the applicable limits. We pay the reasonable cost to repair the damaged property, or the reasonable cost to replace it with a similar item, whichever is lower, up to the policy limit. We do not pay for betterment or upgrades, replacement with superior or new items where the damaged item was used, or any cost above the applicable policy limit.

Because this policy covers stock and business property, proof of ownership and proof of stock levels are mandatory. A claim for stock or trading goods will not be considered unless adequate proof of stock exists. Acceptable proof may include:

• Supplier invoices and purchase receipts
• Stock purchase records and delivery notes
• Bank statements showing stock purchases
• Stock registers or stock lists
• Photographs or videos of stock kept at the premises
• Sales records or inventory systems
• Any other reasonable documentation confirming the existence and value of the stock

Hollard may request multiple forms of proof before approving a claim. If the existence or quantity of stock cannot reasonably be verified, the claim may be declined or adjusted accordingly. The burden of proof rests with the insured.

Security and reasonable precautions. You must lock doors and windows when the premises are unattended, use reasonable physical security measures, protect stock from obvious environmental risks such as rain or flooding, and keep the premises in a safe and secure condition. Failure to take reasonable precautions may affect the outcome of a claim.

Insured premises. Cover applies only at the insured premises shown in the Schedule of Insurance. Unless stated otherwise, the policy does not cover property at another address, in transit, at temporary storage locations, or at markets, events or mobile trading locations.

Stock storage. Stock must be kept within the insured premises, not left outside unsecured overnight, and storage areas must be reasonably protected from theft and weather damage. Claims relating to stock left unsecured or exposed to obvious risk may be declined.

Claim limit application. Each insured event counts as one claim, regardless of the number of items damaged or stolen in the same incident. For example, if a fire damages stock, shelves and equipment at the same time, this is one claim event. Multiple unrelated incidents at different times are separate claims.

Important limitation of cover. This policy is designed as first loss protection for small businesses. The limits may not cover the full replacement value of the business or all stock. It is intended to provide financial support to help the business recover, rather than full commercial replacement cover.

Duty of disclosure. You must disclose all material information when taking out this policy, including the nature of your business, the type of stock kept at the premises, the approximate value of stock normally stored, and any previous insurance claims or losses. Failure to disclose may result in claim rejection, policy cancellation, or recovery of claims already paid.

Mitigation of loss. If an insured event occurs you must take reasonable steps to limit further damage, such as moving stock away from water during flooding, securing broken doors or windows after a burglary, or taking emergency steps to prevent fire spreading. We will not pay for loss that occurs because reasonable mitigation actions were not taken.

Cover provided. We will indemnify you for loss or damage to insured business property at the insured premises caused directly by fire, lightning, or explosion originating within the insured premises. Cover applies to stock, business contents, business equipment, and fixtures and fittings belonging to the business where applicable. The event must occur during the policy period and at the insured premises shown in your Schedule.

Basis of settlement. Claims are settled based on the reasonable cost to repair or replace the damaged property, whichever is lower. We may pay the cost of repair, the cost of replacement with a similar item, a cash settlement based on reasonable value, or pay a service provider directly. We may request quotes, invoices or repair estimates before determining settlement.

Proof of stock. Where a fire claim involves stock, proof of stock is mandatory to confirm the existence, approximate quantity and purchase value of the stock. Where stock cannot reasonably be verified, we may adjust the claim value or decline the stock portion of the claim.

Claim requirements. You must notify us as soon as reasonably possible and no later than 30 days after the event, take reasonable steps to prevent further damage where safe to do so, and provide a description of the incident, photographs of the damage, a fire brigade report if applicable, proof of ownership of damaged items, and proof of stock where stock is claimed. We reserve the right to appoint a loss assessor.

Temporary protection. After a fire you must take reasonable steps to protect remaining property, including removing undamaged stock from the affected area, covering exposed stock and securing the premises.

Not covered under fire. Gradual heating, smouldering or scorching without open flame; wear and tear or deterioration; electrical or mechanical breakdown unless it results in a fire; intentional acts by the insured or persons acting on their behalf; and illegal activities taking place at the premises.

Salvage and multiple items. Where a claim is paid we may retain the salvage or deduct its value from settlement. If a fire damages multiple items in the same incident it is treated as one claim event, and the total payout will not exceed the maximum limit per claim.

Cover provided. We will indemnify you for loss or damage to insured business property at the insured premises caused directly by flooding from heavy rainfall, overflow of rivers, streams or natural watercourses, stormwater overflow entering the premises, or sudden accumulation of surface water following severe weather. Cover applies to stock, business contents, business equipment, and fixtures and fittings belonging to the business where applicable.

Basis of settlement. Claims are settled based on the reasonable cost to repair or replace damaged property, whichever is lower. Where repair is possible and economically viable, we may elect to repair rather than replace.

Proof of stock. Where flood damage affects stock, proof of stock is mandatory to confirm the existence, quantity and value of the stock prior to the flood.

Reasonable precautions. Store stock above floor level where possible, avoid storing goods directly on the ground in flood prone areas, and take reasonable protective measures during heavy rainfall. Failure to do so may affect settlement.

Not covered under flood. Gradual seepage or dampness over time; rising damp or moisture penetration through walls or floors; poor building maintenance; water leakage from plumbing systems; damage from roof leaks not linked to a storm event; and loss occurring outside the insured premises. Flood cover applies only to sudden and identifiable flooding events.

Limits. A maximum of two flood claims are allowed per policy year, and the maximum total payable for flood claims in a policy year is R40 000.

Cover provided. We will indemnify you for loss of insured business property at the insured premises caused by burglary involving forced and violent entry, robbery involving violence or the threat of violence against the insured or employees, or theft occurring during a burglary or robbery event. Cover applies to business stock, business equipment and business contents used in the operation of the business.

Basis of settlement. Claims are settled on the reasonable replacement value of the stolen property, subject to policy limits. Settlement may be based on the replacement value of similar stock or items, verified purchase cost, or assessed reasonable value based on available documentation.

Mandatory police report. All theft claims must be reported to the South African Police Service and a valid case number provided. Failure to report the theft to the police may result in the claim being declined.

Proof of stock. Proof of stock is mandatory and must confirm the existence of the stock before the theft, the quantity stolen and the purchase value. If the existence or value cannot reasonably be proven, we may reduce the claim value or decline the stock portion of the claim.

Security requirements. The premises must be reasonably secured with lockable doors, lockable windows where applicable, and reasonable measures to prevent unauthorised entry. Where forced entry is required, there must be visible signs of forced and violent entry such as broken locks, damaged doors, forced gates or shutters, or broken windows.

Robbery. Where robbery occurs, forced entry is not required, but you must provide details of the incident and a police report. We may request additional supporting documentation.

Not covered under theft. Theft without evidence of forced entry unless robbery occurred; theft by the insured, employees, partners or family members; stock shortages discovered during stocktaking; misplacement or unexplained disappearance of property; loss occurring outside the insured premises; theft from vehicles or goods in transit; and fraud or dishonest acts by the insured or employees.

Claim requirements. Notify us as soon as reasonably possible and within 30 days of the incident, report the theft to the police immediately and obtain a case number, and provide a description of the incident, the police case number, photographs of forced entry where applicable, proof of ownership or stock records, and any additional documentation requested. We may appoint a claims assessor to inspect the premises.

Limits. A maximum of two theft claims are allowed per policy year, and the maximum total payout for theft claims in a policy year is R80 000.

If anything in this wording is unclear, message us on WhatsApp or email info@vuleka.com and we will explain it in plain language. This wording must be read together with your Schedule of Insurance, which shows the cover, limits and premium that apply to your shop.