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Camargue Commercial Crime and Employment Practices Liability – SME Initiatives

Camargue are pleased to announce the launch of their Commercial Crime and EPL SME product offerings. Camargue differentiates itself from competitors by its holistic M3 principle which aims to manage, mitigate and migrate risks facing businesses. Camargue offers an array of risk management services, which are available to all policy holders. This provides a risk management solution whereby uninsurable risks are managed through such services, and insurable losses are migrated to the insurance policy. In addition to tailored product-specific risk management services, private arbitration is provided in relation to any commercial dispute; contract-vetting to bring the business in line with the requirements set out by the Consumer Protection Act; and free telephonic legal advice (to name but a few).

Commercial Crime
Some interesting commercial crime statistics:
• It is estimated that the loss to an organisation as a result of fraud = 5% of annual revenue
• It is estimated that corporate fraud costs SA economy R150Bn annually
• Employees are generally the biggest perpetrators (47%) in Africa, with the average loss due to fraud is R400,000
• From 107 cases analysed in Africa, more than 20% of cases resulted losses of at least US$1m (ZAR 9,68 million)
• +/- 50% of organisations do not recover any losses suffered due to fraud
*Source: 2012 Report on Corporate Fraud

Camargue’s Commercial Crime insurance covers losses to the insured business as a result of employee dishonesty, computer fraud, fraudulent transfer instructions, extortion and contractual penalties. Further, the product addresses the various shortfalls/gaps which may be experienced when purchasing Fidelity Guarantee insurance, which is typically offered by Multimark wordings. For further information on the key product advantages, kindly click on the below link:
Tailored Risk Management Services in respect of Commercial Crime:
– Fraud risk surveys: A high level overview of the business’s key risks from a fraud perspective, focusing on controls and procedures from a monetary and/or stock perspective, as well as the provision of recommendations as to how to rectify loopholes and advice on best industry and business practice

– Whistle blowing hotline: Posters are provided to all policyholders, whereby a reward of R25,000 is payable for useful information

– Risk management hotline: Telephonic advice on how to manage business risk from a fraud-perspective
Employment Practices Liability
Some interesting EPL statistics:
· There are over 200,000 unfair dismissal disputes each year

· The average award is 3.9 months’ pay or 3.7 (months back-pay)

· An average loss of R25,000 for employer per case

· An average time of 20 productive hours lost

· A 10% year-on-year increase in litigation each year
Thus, Employment Practices Liability covers an employer’s legal expenses and the awards made against it by the CCMA, Bargaining Councils and the Labour Court for allegations of unfair labour practices such as sexual harassment, unfair dismissal, discrimination and failure to employ.

Tailored Risk Management Services specific to Employment Practices Liability:
– Free legal advice on all labour matters

– Alternative dispute resolution: Resolves disputes before going to court, which saves time, money and manages reputational risk

– Subsidised training on industrial relations

– Free employer’s organisation membership: Allows experienced professionals to be represent the Insured at the CCMA
How to get cover, and how much does it cost?

1) Flat rates offered per the attachments hereto, provided that the proposer (business) falls within the defined parameters

2) Quick one-page proposal form completed and provided to Camargue

3) Camargue confirms written receipt of the proposal form and coverage commences
Last but not least, should a proposer opt to purchase both Commercial Crime and EPL coverages, a 25% package discount on premium will be enjoyed.

Justin Keevy, Senior Underwriter, Commercial and Cyber Crime Division


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