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SAIA/410/042002 (MULTIMARK) MMIII 2003

Commercial Insurance

Business interruption section

Defined events Loss following interruption of or interference with the business in consequence of damage occurring during the period of insurance at the premises in respect of which payment has been made or liability admitted under

  • 1.

    the fire section of this policy;

  • 2.

    the buildings combined section of this policy;

  • 3.

    the office contents section of this policy;

  • 4.

    any other material damage insurance covering the interest of the insured;

but only in respect of perils insured under the fire section hereof (hereinafter termed Damage). Liability shall be deemed to have been admitted if such payment is precluded solely because the insured is required to bear the first portion of the loss. The company will indemnify the insured in accordance with the provisions of the specification hereinafter set out.

Specific conditions

  • 1.

    The insurance under this section shall cease if the business is wound up or carried on by a liquidator or judicial manager or is permanently discontinued, except with the written agreement of the company.

  • 2.

    On the happening of any Damage in consequence of which a claim may be made under this section, the insured shall, in addition to complying with General conditions 6 and 7, with due diligence do and concur in doing and permit to be done all things which may be reasonably practicable to minimise or check any interruption of or interference with the business or to avoid or diminish the loss, and in the event of a claim being made under this section shall, not later than 30 days after the expiry of the indemnity period, or within such further time as the company may in writing allow, at their own expense deliver to the company in writing a statement setting forth particulars of their claim together with details of all other insurance covering the loss or any part of it or consequential loss of any kind resulting therefrom. No claim under this section shall be payable unless the terms of this specific condition have been complied with and, in the event of non-compliance therewith in any respect, any payment on account of the claim already made shall be repaid to the company forthwith.

Item 1 - Gross profit (difference basis) The insurance under this item is limited to loss of gross profit due to

  • 1.

    reduction in turnover and

  • 2.

    increase in cost of working,

and the amount payable as indemnity hereunder shall be

  • 1.

    in respect of reduction in turnover the sum produced by applying the rate of gross profit to the amount by which the turnover during the indemnity period shall, in consequence of the Damage, fall short of the standard turnover;

  • 2.

    in respect of increase in cost of working the additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction in turnover which, but for that expenditure, would have taken place during the indemnity period in consequence of the Damage, but not exceeding the sum produced by applying the rate of gross profit to the amount of the reduction thereby avoided,

less any sum saved during the indemnity period in respect of such of the charges and expenses of the business payable out of gross profit as may cease or be reduced in consequence of the Damage, provided that the amount payable shall be proportionately reduced if the sum insured in respect of gross profit is less than the sum produced by applying the rate of gross profit to the annual turnover where the maximum indemnity period is 12 months or less, or the appropriate multiple of the annual turnover where the maximum indemnity period exceeds 12 months.

Item 1 - Gross profit (additions basis) The insurance under this item is limited to loss of gross profit due to

  • 1.

    reduction in turnover and

  • 2.

    increase in cost of working,

and the amount payable as indemnity hereunder shall be

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