Hollard gives BI calculator away - free
|Issued by: Hollard|
[Johannesburg, 9 February 2017]
To remove broker strain Hollard decided to give its professionally designed calculator to the entire industry free of charge, according to Nash Omar.
The highly complicated calculations necessary for accurate and complete Business Interruption insurance is causing resistance among brokers to sell this cover and expose themselves to the risk of a professional liability claim: So Hollard has decided to give its professionally designed calculator to the entire industry … free of charge.
Previously, the advanced and professionally developed Hollard LMI BI Calculator has only been available to paying subscribers.
According to Hollard Broker Markets joint MD Nash Omar: "BI cover is a vital protection for South African businesses. But we have discovered brokers are struggling with this complicated calculation and are resisting selling it to their clients because an inaccuracy would expose them to the risk of a professional liability claim.
In a recent real-life example of how BI cover inaccuracies do easily occur, the client of a broker who had signed up to use Hollard's online assessment system was insured for R16.5 million. When this client's BI risk was accurately recalculated the appropriate level of cover measured just under R35 million. This meant the client had been underinsured by 53% and would have suffered crippling financial loss in a BI claim situation.
Faced with the impressive printout of the accurate calculation, this client easily accepted the premium increase involved and now enjoys the peace of mind of being fully covered and having ‘average' waived.
BI cover is designed to compensate the insured after financial losses caused by disruptions in operations which, among many causes, could involve flooding, electric outages, fire or strikes.
The Hollard LMI BI Calculator has been adapted to South African conditions and has an established formula, verified over years to achieve the stated aim of returning the insured to the same financial position as existed prior to the loss.
Benefits of using the Hollard LMI BI Calculator include the following:
* The calculator is user-friendly for brokers when referencing financial statements of the client company. An easy alternative is that the link can be forwarded to the client, who then completes the questions, guided by the online training video available on the Take a Tour section on the Web site http://www.bicalculator.co.za/
An appropriate premium will be determined and collected with regard to the exposure.
Regarding Hollard clients: average will be waived which is beneficial to clients in terms of the principle of indemnity as well as to Hollard in terms of improved customer relations. This involves ensuring that the calculator has been correctly used and is confirmed by an endorsement on the client's schedule once the calculated output has been noted by the relevant Hollard branch.
What makes the BI Calculator superior?
What gave the Hollard BI Calculator advantage over other spreadsheets or tools available?
* The calculator allows for the accurate and adequate cover to be determined.
In Australia, where the Calculator has been in use for the past five years, more than a dozen professional indemnity claims against brokers who used the calculator were successfully defended.
The calculator has been adapted to South African conditions and Hollard Broker Markets is proud to pick up the cost of all intermediaries using this trustworthy system. It has partnered with specialists LMI in the interest of wider business consumer education and protection in South Africa.
1. Applicants need to complete a Use of Software Agreement form which can be requested by e-mailing firstname.lastname@example.org. After completion e-mail back to the same address.