As you are aware, the City of Cape Town declared water restrictions in January 2016 which have led to institutions, residents, farmers and businesses all being adversely impacted.
To make matters worse, water resources have been put under tremendous strain due to the holiday season.
What Impact may this have on your insurance policy?
As the drought conditions continue to deteriorate, the shortage of water could materially affect the function or effectiveness of water-dependent firefighting equipment and sprinkler systems. The water crisis therefore requires additional precautions to be taken by yourselves to minimise the risk of loss or damage to property – a general policy condition in most insurance contracts. During these prevailing conditions, failure to take reasonable measures to safeguard property and lives could prejudice you in recovering from a loss event and may also be in contravention of the regulations on safety in the workplace.
Precautions taken should always be in line with the principles of water conservation outlined by the City of Cape Town.