MR 1268 – Special Conditions: Erection of Storage Tanks
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SPECIAL CONDITIONS: ERECTION OF STORAGE TANKS
This endorsement forms part of section 1a and is subject otherwise to the terms, provisions, conditions and exclusions contained in the policy of insurance or endorsed thereon.
1.1. The insurer shall not indemnify the insured for loss or damage to storage tanks resulting from windstorm unless the insured has taken adequate measures and applied state of the art safety precautions to protect the property insured against windstorm.
1.2. Safety precautions, for example in the form of stay cables, temporary wind girders and water filling, shall be designed to ensure that tanks under erection can withstand wind speeds equal to the design wind speed for the completed tanks.
1.3. Safety precautions shall take into account but not be limited to:
- tank size
- construction method
- location and degree of exposure to wind
- availability of reliable meteorological data during erection period
- design wind speed
- Limit of indemnity
2.1. After application of the deductible the insurer shall indemnify the insured for: 100% of the loss if only one tank is lost or damaged 80% of the loss if two tanks are lost or damaged 60% of the loss if three or more tanks are lost or damaged