itoo booklet final special risks - march 2017.pdf · digital media liability • liability...

ITOOSpecial Risks (Pty) Ltd

www.itoo.co.zaAuthorised Financial Services Provider. Registration No. 2016/281463/07

FSP No. 47230

Experience driven specialistsKnowledgeable, proficient team1

Face-to-face, personalised serviceNationwide footprint with growing African presence2

Your way or the highwayDoing what’s best for brokers and clients3

Specialist UMA focused on liability, special and emerging risks underwritten on the Hollard Insurance license

The meaning of ITOOITOO is a special risks UMA that offers a range of niche commercial products to companies of all shapes and sizes. But that’s just what we do. What we’re about is far more interesting…

ITOO is about doing things together. It involves everyone, speaks to everyone and considers everyone.

ITOO represents a collective intelligence that’s versatile, creative, disruptive and fun. It provides answers to the enquiring mind. It celebrates difference… makes a difference… IS the difference it wants to see.

ITOO is future-focused, out-of-the-box, and always available.

The power of I = the ITOO way

I am ableI find a way

I am future-focused

I and I and I come together to form ‘we’ … and WE do things the ITOO way

Pronouncedeye-two!

Our products & services

Cyber

Directors& Officers

ProfessionalIndemnity

MedicalMalpractice

Drones

EmploymentPractices

EnvironmentalEvents

FIPI

Trustees

VetProtect

BroadformLiability

CommercialCrime

Value AddedProducts

Claims

RiskManagement

African and International

Crime & Civil Liab.

Contact: Melita Thurling / [email protected]

Broadform LiabilityBroadform liability insurance protects the insured’s company against claims by third parties for bodily injury or property damage as a result of the insured’s business activities. This includes liability for products manufactured, supplied or distributed, as well as for sudden and accidental pollution damage and defective workmanship.

We offer public and product liability cover for the following:• Property damage and bodily injury (including mental anguish) • Defective workmanship and product design• Sudden and unexpected pollution damage• Product manufactured, supplied or distributed• Negligent product-related advice

We offer policy extensions such as:• Inefficacy• Errors and omissions• Pure financial loss• Product recall• Advertising liability• Care custody and control• Warehousing and carriers liability• Contractors liability

ITOO’s broadform liability insurance includes cover for top-notch legal representation and claims preparation expenses.

Claim examples• Flooding caused by bathroom mixers or taps either not fitted properly, leaking or left

open• Customers tripping and falling off ramps and stairs• Goods stolen after the insured negligently leaves premises open• Waste effluent, rather than being pumped down the correct drain, is instead pumped

into fuel tanks, causing machinery to stop and production to halt

Capacity: R500 millionRequired: Proposal form

Contact: Gizelle Periera / [email protected]

Commercial CrimeCommonly known as fidelity guarantee insurance, commercial crime insurance provides protection to the employer (insured) against fraud and dishonesty committed by employees, where the employees have benefited financially and/or intentionally caused a financial loss to the employer.

Policy triggers:• Fraud, theft or dishonesty committed by employees• Fraudulent transfer instructions• Third party computer fraud • Extortion

Benefits and extensions:• Personal financial gain is not considered a defined event, reducing the burden of

proof• An extended discovery period has been included, giving more time for the

insured to discover and report a potential loss• The prescription period is 24 months• Clients are automatically covered on an “each and every occurrence” basis, which

means they don’t have to purchase a reinstatement of the sum insured• Legal fees have been included to assist when necessary• Care, custody and control is automatically included• Past employees are recognised for 90 days • A risk management survey is conducted by ITOO an experienced risk manager

Capacity: R500 millionRequired: Proposal form and annual financial statements

Claim examples• An employee creates ghost employees and pays him/herself• An employee steals stock or money• A third party hacks into a company and sends instructions to the bank to transfer

money

Claim examples• A hacker or rogue employee steals customer data and threatens to post it publicly

or sell it in exchange for money• An employee’s laptop is stolen containing sensitive customer information• Malware is launched and causes operational disruptions

Cyber InsuranceOur cyber insurance solution provides cover for the following costs associated with responding to a network security or privacy breach:

Data recovery and business interruption expenses to cover:• Security specialists, attorneys, forensic investigators and loss adjusters to

contain, manage and recover from an incident• System downtime and consequential loss of earnings • Restoration or recovery of data and operations

Crisis management and notification costs for:• Communications during the crisis, especially to keep affected parties informed• Remediation services to safeguard affected parties, e.g. credit monitoring• Sending notifications to affected parties• Public relations campaigns to limit reputational damage

Cyber extortion• Expenses for specialists to investigate and mitigate a cyber extortion threat and,

where deemed necessary, costs to terminate a cyber extortion threat

Cyber liability• Defence and settlement of third party liability claims arising from the

compromised data• Defence and settlement of third party liability claims as a result of system

security failures causing harm to third party systems and data• Fines and penalties, to the extent insurable by law

Digital media liability• Liability associated with disseminated digital content, including unintentional

copyright or infringement upon rights to privacy

Claim examples• A hacker or rogue employee steals customer data and threatens to post it publicly

or sell it in exchange for money• An employee’s laptop is stolen containing sensitive customer information• Malware is launched and causes operational disruptions

Contact: Ryan van de Coolwijk / [email protected]


Directors and OfficersIn terms of various statutes, including the Companies Act, and common law, a director of a company may be held personally, jointly and severally liable for any loss, damages or costs sustained by the company or any stakeholder as a consequence of any breach or dereliction of their duties and responsibilities (fiduciary or statutory).

The ITOO D&O policy is structured as follows:1. Directors and officers Provides cover for non-indemnified events – i.e. protects a director against

personal liability or expenses not paid for by the company, and advances defence costs

2. Company reimbursement Reimburses the company when the company has indemnified a director for an

insured event, including any defence costs and expenses3. Company securities Cover for the company against any actions in respect of securities actions

normally brought by a securities regulatory body

The policy provides legal defence costs and indemnification where legally permissible to insure. Cover may be purchased on an “each and every” or “annual aggregate” limit basis.

The policy features a number or automatic or elective extensions.

Claim examples• Minority shareholders allege that directors have abused their position in order to

favour certain dominant shareholders• Competitor alleges that a director (former employee) has misappropriated trade

secrets and confidential information• Class action complaint from outside investors stating that directors failed to

disclose material information that could have shown that the company would eventually be liquidated

Contact: Beverley Erikson / [email protected]

Capacity: R500 million (Non-FI) / R350 million (FI)Required: Proposal form and annual financial statements

DronesITOO offers unique, comprehensive drone insurance designed specifically to cover drones in business and commercial use. Our drone insurance covers loss, damage and liability related to the drone itself, as well as premises, hangarkeepers and product liability. You can also insure against loss of data collected by your drone.

As a business or commercial drone operator, you also need cover to protect you from any liability that might arise as a result of using your drone. Our drone liability insurance covers you in the event of claims for:• Accidental third party injury or death• Accidental damage to someone else’s property• Damage to goods or products that form part of your drone, or are used in

conjunction with your drone• Damage to someone else’s drone while in your custody

We also offer a number of optional cover extensions, including:• Personal accident• Cyber cover• Hull war extension

Who we insureITOO will only insure registered drones that are operated by qualified drone pilots. In this way we are able to minimise our clients’ risk and keep premiums to a minimum.

Don’t meet the criteria?Never fear. Working with one of SA’s leading pilot training schools, and through our relationship with the South African Civil Aviation Authority (CAA), we can help you to get licensed, registered, insured and up in the air!

Claim examples• A drone crashes• A drone pilot negligently damages property or injures somebody• A drone pilot is injured while operating an insured drone

Contact: Bryan Verpoort / [email protected]

Capacity: R2.5 million (hull & payload) R20 million (aviation liability) Required: Proposal form and remote pilot’s licence (RPL)

Employment Practices LiabilityThe policy protects the company (entity) as well as the directors and officers for claims made against them for any actual or alleged employment practice infringements in the workplace.

Cover extends to legal fees, damages, awards and settlements.

Labour disputes are dealt with on several levels, either through bargaining councils, the Commission for Conciliation, Mediation and Arbitration (CCMA), the Labour Court or by private arbitration.

Claim examples• Discrimination• Wrongful dismissal for misconduct, poor performance, illness, injury or incompatibility• Retrenchments• Inadequate provision of benefits or training• Failure to promote, demotion, suspension, warnings, probation • Inaccurate whistle-blowing• Sexual harassment• Victimisation due to the exercising of legal or organisational rights



EnvironmentalITOO has introduced the first gradual pollution cover for existing conditions (subject to a risk assessment).

Our policy is ideal for oil and gas installations, filling stations, pipelines, mine-related infrastructure, waste facilities, chemical manufacturing and processing facilities, hazardous goods storage facilities, harbours and airports, depots, fuel farms, power stations and the like. The policy covers clean-up costs and legal liability damages relating to spillage causing an environmental incident during transportation of hazardous and non-hazardous goods.

Our products cover first and third party pollution clean-up, rehabilitation costs and third party claims, legal defence and emergency response costs emanating from an environmental pollution event.

Products include:• Tanksafe: Environmental liability for petrol stations, small to medium chemical

plants, etc.• Trucksafe: Environmental liability clean-up costs in respect of hazardous or non-

hazardous goods in transit• Sitesafe: Tailored environmental liability policies for large risks e.g. landfill sites

Claim examples• A truck overturns and spills diesel in a river or dam• A pesticide storage tank contaminates soil and groundwater

Capacity: R30 million each and every and R150 million in the annual aggregateRequired: Proposal form

Contact: Amanda Davis / [email protected]

Events LiabilityThe Safety at Sports and Recreational Events Act 2 of 2010 states that a controlling body, an event organiser, stadium or venue owner must have insurance in place for an event. Our tailor-made policy provides cover for events, whether they occur on a regular basis or once off.

Cover includes:• Public and product liability• Food and beverage• First aid• Spread of fire • Pollution - sudden/accidental

Claim examples• Stampede at a music event due to insufficient security • Equipment falls on a concert-goer and causes injury• Damage to property by unruly spectators at a sports event

Contact: Janine Lamprecht / [email protected]


Financial InstitutionsCrime and Civil Liability

The ITOO crime and civil liability flagship policy provides financial institutions with the most comprehensive coverage available in the market.

Coverage highlights include:• Civil liability - non-negligence based professional indemnity• Broadform employee dishonesty• The latest electronic and computer crime language • Theft of misdirected funds• Full policy limit available for claims preparation and verification costs, legal

defence costs, reconstitution of data, records and documentation following an insured loss

• Up to 25% automatic new subsidiary coverage

Optional extensions include:• Social engineering • Cyber liability

Financial institutions include banks, insurance companies, asset and investment managers, and private equity or venture capital funds.


Capacity: R350 millionRequired: Proposal form and annual financial statements


Capacity: R350 million Required: Proposal form and annual financial statements

Financial InstitutionsCrime and Professional Indemnity ITOO’s financial institutions policy has been designed to provide crime and professional indemnity cover.

The crime section protects the insured organisation against a direct financial loss resulting from an array of triggers, including employee dishonesty, premises theft and damages, forgery or alteration, securities fraud, counterfeit currency and extortion. It also covers third party computer crime, including reconstitution of data following an insured event. This section provides cover where outsiders are able to access the insured’s systems and divert funds.

The professional indemnity section provides cover for the entity against a third party liability suit for financial damages arising out of the insured’s actual or alleged negligent act, error or omission.

Cover includes legal defence costs and claims preparation costs to the full policy limit.

The policy may be extended to include:• Unidentifiable employees• Reinstatements • Trust services • New subsidiaries• Inter-company liability• Mitigation costs• North America • Cyber liability

Financial institutions include banks, insurance companies, asset and investment managers, and private equity or venture capital funds.

Contact: Louise Mallory / [email protected]

Capacity: R100 million (R50 million for clinical trials)Required: Proposal form

Medical MalpracticeOur medical malpractice policy is designed to cover medical professionals and clinical trials in the event of a claim or complaint arising out of their negligence while treating a third party patient (risk-dependent).

The policy covers claims for injury or damages, including emotional shock and loss of earnings claimed by a third party incurred as a result of alleged negligence of a medical practitioner. The policy covers approved defence costs when defending the third party claim. Cover extends to a sub-limited amount for defending complaints made to the Health Professionals Council of South Africa (HPCSA) or other regulatory bodies by third parties.

It excludes billing complaints and criminal hearing costs made to the HPCSA.

Claim examples• Failure to diagnose• Misdiagnosis • Dispensing errors• Nursing home abuse • Failure to refer to a specialist

Professional IndemnityOur professional indemnity (PI) policy provides financial protection in the form of defence costs to companies and individuals for their legal liability arising out of claims for damages from third parties due to their actual or alleged negligence, error or omission while providing services to such third parties in the scope of their specific practice, profession or business.

The damages claim made by the third party, as well as any indirect or consequential losses, are also covered by our policy.

Claim examples• Design failure or specification failure • Negligent project management • Incorrect advice provided by professionals (attorneys, advocates, accountants,

actuaries, engineers, architects, IT professionals etc.)• An auditor or accountant fails to submit tax returns timeously• An estate agent gives house keys to a potential buyer without carrying out

proper checks. The potential buyer turns out to be a con man who strips the house of all its valuables

• An employment agency fails to do the proper background checks before placing a candidate

• A valuator incorrectly evaluates a property for a bank

Who needs PI?A person or company that offers a professional service or gives professional or technical advice.

We also provide• Principal-controlled or single-project PI cover• Scheme or binder facilities for PI cover on professions that have similar

characteristics and risk profiles• Cover for various extensions that apply to specific industries

Contact: Malcolm Padayachee / [email protected]

Capacity: R500 millionRequired: Proposal form and detailed broking notes with an NCD


Capacity: R500 millionRequired: Proposal form and annual financial statements of the fund

Trustee LiabilityTrustees face personal liability for their fiduciary duties and responsibilities in respect of the funds they represent, both in terms of statute and common law. Liability is usually joint and several, which is particularly onerous.

The ITOO trustee liability policy provides cover for trustees’ personal liability as well as the fund’s liability for negligence and fraud. The policy is structured as follows:

Insuring Clause:1. Legal liability Providing cover for claims against the fund or trustees alleging negligence or a

wrongful act (breach of duty)2. Theft, fraud and dishonesty Proving cover for the fund arising out of the dishonesty of any of the trustees3. Third party computer crime Protecting the fund from outsider fraud via the insured’s computer systems

Claim examples• A trustee misappropriates the funds of a pension fund• The trustees fail to carry out a full due diligence and, as a result, a foolish

investment decision is taken, resulting in financial loss to the fund• The trustees fail to follow due procedure in either locating or allocating funds to

all beneficiaries • Trustees breach any of their statutory or fiduciary duties, including protecting

the interests of the members; acting with due care, skill and diligence; avoiding conflicts of interest; acting impartially toward all members

• A third party hacker intercepts an instruction to an administrator via our insured’s computer system

Vet ProtectVet Protect is a comprehensive liability offering that provides insurance to vets against claims of veterinary malpractice, professional indemnity, public liability, employment practice liability and commercial crime.

There are four categories of vets we provide cover for. They are rated according to their animal focus:

Category A: Professional individual – one-person practice Domestic and exotics, small animals, including pedigree animals but excluding animals used for professional breeding

Category B:Domestic general practice – multi-person practiceDomestic and exotics, small animals, including pedigree animals but excluding animals used for professional breeding

Category C:Commercial general practiceCommercial livestock, agriculture including extensive farming focused on livestock, equine (recreational) but excluding stud farming, professional or horse racing practices. (Animals in category A and B are also included)

Category D:Commercial specialised practiceWildlife, zoological, aquaculture and aquariums, professional (competition) and/or racehorse and stud farming, commercial dog breeding, intensive farming, dairies larger than 30 head of cattle being milked, and professional breeders

The product is endorsed by the South African Veterinary Association (SAVA). Discounts of up to 7,5% are offered if 75% of the vets in the practice are SAVA members.

The Vet Protect offering also covers all costs associated with legal representation at any counsel complaints.

We are able to offer limits up to R10 million.

Vet Protect is run through an exclusive agreement with a sole broker,Leonie Delgado Platinum Portfolios CC.Tel: +27 (0)11 662 1204 Email: [email protected] www.vetprotect.co.za

Contact: Willie Jansen van Rensburg / [email protected]

Contact: Willie Jansen van Rensburg / [email protected]

Required: Full details of the incident

At ITOO we pride ourselves on our service. Treating customers fairly, paying valid claims promptly and building relationships are our top priorities.

Our focus on claims service is to correctly adjust the claim on its merits, in line with the policy terms and conditions.

Our claims service is underpinned by strong internal technical skills in conjunction with leading law firms and supported by independent, specialist loss adjusters.

Claims

The ITOO International Desk provides bespoke insurance solutions for all specialist liability business outside the borders of South Africa.We write our local insurance capacity in the countries where Hollard has registered offices. These include Botswana, Ghana, Lesotho, Mozambique, Namibia and Zambia.

The Desk provides reinsurance capacity to our offices and accepts reinsurance inwards from non-UN sanctioned territories across sub-Saharan Africa and the Indian Ocean Islands (subject always to compliance with local reinsurance regulations).

Our objective is to participate in the risks that we write rather than merely fronting, which does not assist us in growing our book and contributing capacity to the local market.

Our risk capacity is as follows:General liability R500 millionSingle project liability R500 millionProject professional indemnity R100 millionFinancial lines/BBB R350 millionDirectors and officers liability R500 million Trustees liability R350 millionMedical malpractice R350 million

We also write niche liabilities in respect of:First party cyber R20 millionEnvironmental liability R20 millionCommercial drone liability R20 million

If you have a large single risk or client portfolio, we will look at layered programmes or co-insurance participation, provided that the local insurer or ceding company meets with the security requirements of the Hollard Reinsurance Risk Committee.

We can write local currency policies in the countries where there are Hollard offices, and dollar-based policies where there is no representative office.

Africa and International Business

Contact: Bryan Verpoort / [email protected]

Contact: Mari Williams / [email protected]

ITOO is passionate about training and enhancing our brokers’ knowledge and understanding of our entire product range. Accordingly we have developed comprehensive broker training packages to suit the needs of our brokers.

Training sessions can be conducted at your offices or at the Hollard/ITOO campus. The training programmes can be arranged to suit your schedule and timing requirements, whether it’s for an hour or a half-day session. Our training is offered to all our brokers, no matter where you are situated in South Africa. There is no cost associated with the training.

Our training facilitator has many years of experience in all our product lines and is passionate about the subject matter and the manner in which the training is conducted.

The content of the training can be structured to meet your specific requirements – from a high level overview to in-depth product specific training. This means we can focus on your requirements from junior brokers with little knowledge of our products to those experienced brokers who need the occasional refresher. Our training content ranges across:• Coverage• Underwriting criteria• High risk vs low risk industries• Information requirements for underwriters and why we need certain information• Claims examples

As a further enhancement to the training offered, we also provide a specific claims programme that covers:• The claims process• Claims procedures – what the insured needs to do• A broker’s guide to managing the liability claims process

All our training material is IISA and CPD accredited, starting with a minimum of 1,5 CPD hours for a basic session.

Training

Risk management and understanding risk is key to any insurance underwriting. At ITOO we work closely with brokers and policyholders to ensure we understand the underlying risks throughout the insurance lifecycle.

We are proud to offer dedicated liability and crime risk surveys across all of our product lines. Through detailed reviews and analysis of business aspects and historical data, we are able identify areas of regular exposure as well as any negative influences on the insured businesses. This translates into a long term business relationship between client, broker and insurer.

Surveys are undertaken at pre-inception stage, or during the policy period if there are material changes to the exposures. If any material findings are identified, we work with the insured and the broker to ensure that these are addressed and suitable processes, controls and procedures are put in place to remedy the findings.

We also carry out surveys after a claim has been paid to review the remedial actions implemented by the insured.

Full transparency is guaranteed throughout the process. All reports, surveys and recommendations are shared openly with both brokers and clients at all times. The survey may include all aspects of the business, or just specific high-risk areas of the insured’s operations, including:• Review of the overall nature of the business – what does the client do?• Internal risk management• Review of stock controls• Review of financial controls and procedures• Segregation of duties (commercial crime exposures)• Training and work performance (professional indemnity exposures)• Security exposures• Slip and trip exposures (general liability exposures)

Risk surveys can be conducted throughout South Africa at no cost to the insured.

Risk Management

Contact: Kelly Smith / [email protected]

Pretoria: Willie Jansen van Rensburg / [email protected] Town: Tiaan Erasmus / [email protected]: Duncan Cozens / [email protected]

Although ITOO’s main centre of operation is situated in Johannesburg, we are also fully represented in Pretoria, Cape Town and Durban.

Our offices in these major centres are staffed by experienced members of the ITOO team, who offer local support for:• Full marketing initiatives• All underwriting requirements• Quote and policy issuance• Risk management service• And more importantly, local support to our brokers

Claims are managed and run out of our Johannesburg offices.

Bloemfontein, Port Elizabeth, East London, George and the rest of the Western Cape and coastal regions are serviced out of our Cape Town office.

Through our links with the Hollard branch network (comprising more than20 branches countrywide), we are able to provide the full liability package atlocal level.

Regional Support

Value Added ProductsITOO offers a number of value added products within our liability product range. These added benefits further mitigate our client’s business risk when used in the correct manner.

Legal Assist HotlineThis provides our clients with unlimited access to a 24/7 legal assist hotline. The hotline is manned and operated by a team of qualified attorneys. Telephonic advice is given solely in relation to the client’s business activities. This would include:• Contract reviews• Shareholder agreements• Supplier and procurement contract reviews• Employment-related disputes

Business Identity TheftIdentity theft is one of the biggest fraud issues being experienced globally at present. Our offering here is to provide the insured company with cover in respect of any matter where its identity has been compromised. Identity theft may result in thieves unlawfully using the name, logo, banking information or marketing material of a business to commit financial crimes. The insured may suffer reputational, good-will as well as financial losses.

There is a policy extension available that provides access to a full team of attorneys and adjusters so as to remedy the identity theft and “clear” the client’s name. We pick up the costs of the rectification up to R500 000 on any one loss. The policy doesn’t cover the actual financial and/or consequential losses of identity theft. Our partner in this initiative is Identity Guard, which has a number of years’ experience in these types of matters.

Health and Safety HotlineThis offering is only included as part of our general liabilities product. In order to assist in managing the insured’s exposure in relation to employees and health and safety exposures, we have established a direct hotline that may be accessed for the following exposures:• Health, safety and environmental systems and procedures• OHSAS 18001 quality management systems• Compliance with statutory requirements• Hazardous environments and tasks• Occupational hygiene in the workplace• Checklists, compulsory registers, formation and election of health and safety

representatives and committees• Health and safety plans and policies, emergency evacuation plans, emergency

procedures and environmental plans

Authorised Financial Services Provider. Registration No. 2016/281463/07+27 (0)11 351 5000 | www.itoo.co.za | @itooexpert

Rest of Africa

JohannesburgVilla Arcadia22 Oxford RdParktown, 2193+27 (0)11 351 5000

Cape Town17th FloorMetlife Building7 Walter Sisulu AveCape Town, 8001+27 (0)21 815 2200

Durban9 The Boulevard

Westville, 3000+27 (0)31 279 3000

PretoriaBuilding 3, Walker Creek

90 Florence Ribeiro Ave, Muckleneuk, 0181+27 (0)12 460 1030

itoo booklet final special risks - march 2017.pdf · digital media liability • liability...

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