Simulation: Underwrite a Commercial Fire Risk

You're a senior underwriter at a Ghanaian insurer. A broker has submitted a proposal for fire and allied perils cover for 'Tema Steel Works Ltd': a steel fabrication and welding business located in the Tema Heavy Industrial Area. The requested sum insured is GHS 8,000,000 for buildings and machinery, and GHS 2,000,000 for raw materials and finished stock.

The proposal form shows: the building is a steel-frame warehouse (15 years old), the business operates two shifts (6 AM to 10 PM), there are 45 employees, welding and cutting operations run continuously, they store oxygen and acetylene cylinders on-site, and they had one small fire incident 3 years ago (GHS 35,000 claim, caused by a welding spark igniting waste material).