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Protecting suppliers against faulty concrete

by Tania Wannenburg
Sarma Jnl 4 15

Introducing a specific insurance policy to insure readymix concrete suppliers in the event of concrete failures.

To insure readymix concrete suppliers against claims by clients or third parties arising in the event of concrete failures, a specialist indemnity insurance policy has recently been introduced.

To remove and replace concrete that has already cured or partially cured is a risk facing any concrete supplier who, through one mistake, may lose millions of Rands or even his business depending on the size of the pour and resilience of the company.

In a progressive move to protect both the customer and readymix supplier, the Southern Africa Readymix Association (SARMA) has recently worked with insurance role players to provide specialist indemnity insurance that provides both parties with peace of mind in the event of concrete failures. The policy is only available to SARMA members and is offered by CivilSure, construction insurance specialists.

Even though concrete failures can occur as a result of unforeseen circumstances, underwriters of the policy are satisfied that the strict quality standards applied to SARMA members, which are audited annually, and the generally high standard of SARMA compliance are sufficient reason to provide this type of insurance to SARMA members only.

“If for example a person orders concrete suitable for building a swimming pool but, upon curing, it is found to be unsuitable, then the insurance will kick in and pay for the repair or removal of the failed concrete and pay for the replacement of a new structure if required,” explains Dan Payton from CivilSure. “The policy therefore provides recourse for the user, who will have his pool structure repaired or replaced, as well as providing the supplier with a means of guaranteeing his work.”

In addition, the policy will pay out up to R10-million in the event that the professional SARMA member company undertook its duties in accordance with the prescribed best practices as outlined by SARMA. “Claims for injury or damage will also be covered and additional extensions may be made to cover the readymix plant’s actual equipment against breakdowns, as well as certain legal defences and consequential loss, etc,” he continues.

Additional fleet insurance packages are also being made available to SARMA members. “This type of cover has been very difficult to obtain, as well as not affordable. However, the insurance company has seen that SARMA’s codes of conduct warrant that this cover can be provided at a reasonable premium,” says Dan.

Johan van Wyk, general manager of SARMA, concludes that these insurance policies should provide suppliers and buyers alike with peace of mind to know that they are covered in the event of something going wrong between the stages of procurement, delivery and curing of the concrete. It is another reason why users should specify concrete only from SARMA-accredited members.

For more information visit www.sarma.co.za

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