Section 2 - Business Interruption Fire and Specified Perils If any building or other property used by the Insured at the Premises for the purpose of the Business is lost, destroyed or damaged by any Specified Peril referred to in the Schedule and defined in the Appendix to this Section (loss, destruction or damage so caused being termed Damage for the purposes of this Section) during the Period of Insurance and in consequence the Business carried on by the Insured at the Premises be interrupted or interfered with then the Company will pay to the Insured in respect of each item in the Schedule the Consequential Loss provided that 1. at the time of the happening of the Damage there shall be in force an insurance covering the interest of the Insured in the property at the Premises against such Damage and that a) payment shall have been made thereunder or liability admitted therefor or b) payment would have been made thereunder or liability admitted therefor but for the operation of a proviso in such insurance excluding liability for losses below a specified amount 2. the liability of the Company under this Section (including Extensions hereto) during any one Period of Insurance shall not exceed the appropriate Limit of Liability at the time of such Damage. Definitions Notes i. To the extent that the Insured is accountable to the tax authorities for Value Added Tax, all terms in this Section shall be exclusive of such tax. ii. For the purpose of these definitions, any adjustment implemented in current cost accounting shall be disregarded. iii. The words and expressions used herein shall have the meaning usually attached to them in the books and accounts of the Insured. Annual Gross Revenue 1. The Gross Revenue during the twelve months immediately before the date of the Damage to which such adjustments shall be made as may be necessary to provide for the trend of the Business and for variations in or other circumstances affecting the Business either before or after the Damage or which would have affected the Business had the Damage not occurred, so that the figures thus adjusted shall represent as nearly as may be reasonably practicable the results which but for the Damage would have been obtained during the relative period after the Damage. Gross Revenue 2. The amounts paid or payable to the Insured for services rendered in the course of the Business at the Premises. Indemnity Period 3. The period beginning with the occurrence of the Damage and ending not later than the Maximum Indemnity Period thereafter during which the results of the Business shall be affected in consequence thereof. Maximum Indemnity Period 4. Twelve Months unless otherwise endorsed hereon. Specified Peril 5. Any peril specified in the Appendix to this Section. Standard Gross Revenue 6. The Gross Revenue during that period in the twelve months immediately before the date of the Damage which corresponds with the Indemnity Period to which such adjustments shall be made as may be necessary to provide for the trend of the Business and for variations in or other circumstances affecting the Business either before or after the Damage or which would have affected the Business had the Damage not occurred, so that the figures thus adjusted shall represent as nearly as may be reasonably practicable the results which but for the Damage would have been obtained during the relative period after the Damage.
The Cover Gross Revenue The insurance under this Item is limited to a) loss of Gross Revenue and b) Increase in Cost of Working and the amount payable as indemnity thereunder shall be a) in respect of loss of Gross Revenue being the amount by which the Gross Revenue during the Indemnity Period shall fall short of the Standard Gross Revenue in consequence of the Damage b) in respect of Increase in Cost of Working being the additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction in Gross Revenue which but for that expenditure would have taken place during the Indemnity Period in consequence of the Damage, but not exceeding 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 Revenue as may cease or be reduced in consequence of the Damage. provided that, if at the commencement of the Damage the declared value in respect of Gross Revenue shown in the Schedule is less than the Annual Gross Revenue (or to a proportionately increased multiple thereof where the Maximum Indemnity Period exceeds twelve months) the amount payable by the Company shall be proportionately reduced. Additional Increase in Cost of Working The insurance under this Item is limited to further additional expenses beyond that recoverable under the Gross Revenue Item b) necessarily and reasonably incurred during the Indemnity Period in consequence of the Damage for the sole purpose of avoiding or diminishing a reduction in the Gross Revenue or for resuming or maintaining normal business operations, but not exceeding the Limit of Liability by this item.
Customers, Suppliers and Other Locations Extensions 1. If shown as being insured in the Schedule, this Section is extended to include loss resulting from interruption of or interference with the Business carried on by the Insured in consequence of a) physical loss or damage to property at the undernoted locations and such physical loss or damage shall be deemed to be Damage at the Premises (Customers) i) the premises of any of the Insured s customers (Suppliers) ii) the premises of any of the Insured s suppliers, manufacturers or processors of components, goods or materials but excluding the premises of any supply undertaking from which the Insured obtains electricity, gas, water or telecommunications services which prevents or hinders the supply of such services to the Premises (Other Locations Storage Sites) b) Damage to Property Insured whilst stored elsewhere than at premises in the occupation of the Insured and such Damage shall be deemed to be Damage at the Premises Provided that there shall be no liability under the Extension for loss: i) arising from any cause within the control of the Insured ii) as result of physical damage to property which is the direct result of repairs or maintenance being carried out to property as a result of inherent defect or wear and tear This Extension shall apply solely in respect of locations or property within the Territorial Limits and the Company s liability under this Extension shall not exceed in respect of any one event the Limit of Liability stated in the Schedule. Denial of Access 2. If shown as being insured in the Schedule, this Section is extended to include loss resulting from interruption of or interference with the Business carried on by the Insured following physical loss or damage to property in the Vicinity of the Premises which prevents or hinders the use of the Premises or access thereto, whether the Premises or property of the Insured therein shall be damaged or not. Provided that: a) for the purposes of this Extension Vicinity shall mean within one mile of the Insured s Premises b) this Extension shall apply solely in respect of locations or property within the Territorial Limits c) the liability of the Company does not exceed the Limit of Liability stated in the Schedule in respect of any one event d) the aggregate liability of the Company in respect of all events occurring during any one Period of Insurance does not exceed the Limit of Liability stated in the Schedule e) the Maximum Indemnity Period shall mean three months, and f) there shall be no liability under the Extension for loss arising from any cause within the control of the Insured g) there shall be no liability under the Extension for loss for the first 24 hours of any interference with the Business
Public Utilities 3. If shown as being insured in the Schedule, this Section is extended to include loss resulting from interruption of or interference with the Business carried on by the Insured following damage (including all connecting underground cables, to the terminal end of the public supply undertaking's main stop cock or meters) at the undernoted locations and such damage shall be deemed to be Damage at the Premises a) generating station or sub-station of the public electricity supply undertaking from which the Insured obtains electricity b) land based premises of the public gas supply undertaking or of any natural gas producer linked directly therewith from which the Insured obtains gas c) water works or pumping stations of the public water supply undertaking from which the Insured obtains water d) telecommunication services from any land based facilities of the Public Telecommunications undertaking and not occasioned by i) the deliberate act of any supply authority or by the exercise by any such authority of it's power to withhold or restrict supply ii) any industrial action iii) drought or any scheme of rationing unless necessitated solely by damage to a part of the authority s property Provided that there shall be no liability under this Extension for loss a) arising from any cause within the control of the Insured b) in respect of Public Utilities unless the duration of any failure exceeds 6 hours This Extension shall apply solely in respect of locations or property within the Territorial Limits and the Company s liability under this Extension shall not exceed in respect of any one event the Limit of Liability stated in the Schedule. For the purposes of this Extension the Maximum Indemnity Period shall mean three months. Transit 4. Where the insurance provided by this Section insures Gross Revenue, such insurance shall also apply in the event of interruption of or interference with the Business carried on by the Insured in consequence of Damage to Property Insured whilst in transit and such Damage shall be deemed to be Damage at the Premises. Provided that there shall be no liability under the Extension for loss a) arising from any cause within the control of the Insured b) as result of physical damage to property which is the direct result of repairs or maintenance being carried out to property as a result of inherent defect or wear and tear This Extension shall apply solely in respect of locations or property within the Territorial Limits and the Company s liability under this Extension shall not exceed in respect of any one event 10% of the Limit of Liability on Gross Revenue or GBP10,000 which ever is the lesser amount.
Special Conditions Alternative Trading 1. If during the Indemnity Period goods shall be sold or services shall be rendered elsewhere than at the Premises for the benefit of the Business either by the Insured or by others on the Insured's behalf the money paid or payable in respect of such sales or services shall be brought into account in arriving at the Gross Revenue during the Indemnity Period. Departmental 2. If the Business is conducted in Departments, the independent trading results of which are ascertainable, the provisions of Clauses a) and b) of the Gross Revenue item shall apply separately to each Department affected by the Damage, except that if the declared value in respect of the said item is less than the aggregate of the sums produced by applying the Rate of Gross Revenue for each department of the Business (whether affected by the Damage or not) to the Annual Revenue (or to a proportionately increased multiple thereof where the Maximum Indemnity Period exceeds twelve months) the amount payable by the Company shall be proportionately reduced. Payments on Account 3. Payments on account may be made to the Insured monthly during the Indemnity Period if desired. Professional Accountants 4. Any particulars or details contained in the Insured's books of account or other business books or documents which may be required by the Company under General Condition 6 applicable to this Policy for the purpose of investigating or verifying any claim may be produced by professional accountants if at the time they are regularly acting as such for the Insured and their report shall be prima facie evidence of the particulars and details to which such report relates. The Company will pay to the Insured the reasonable charges payable by the Insured to their professional accountants for producing such particulars or details or any other proofs, information or evidence as may be required by the Company under the terms of General Condition 6 applicable to this Policy and reporting that such particulars or details are in accordance with the Insured's books of account or other business books or documents provided that the sum of the amount payable under this clause and the amount otherwise payable in respect of any one item shall not exceed the sum insured thereon. Refund of Premium 5. In the event of the Gross Revenue earned (or a proportionately increased multiple thereof where the Maximum Indemnity Period exceeds twelve months) during the financial year most nearly concurrent with any Period of Insurance as certified by the Insured's auditors being less than the sum insured thereon a pro rata return of premium not exceeding 50% of the premium paid on such sum insured for such Period of Insurance will be made in respect of the difference. If any Damage shall have occurred, giving rise to a claim under this Policy, such return shall be made in respect only of so much of the said difference as is not due to such Damage. Reinstatement of Loss 6. In the absence of written notice by the Insured or the Company to the contrary the Company's liability shall not stand reduced by the amount of any loss, the Insured undertaking to pay the appropriate additional premium for such automatic reinstatement of cover.
This Section does not cover Exclusions 1. riot or civil commotion other than to the extent stated in Specified Peril 5 2. Consequential Loss caused or consisting of pollution or contamination but this shall not exclude destruction of or damage to the Property Insured, caused by a) pollution or contamination at the Premises which itself results from a Specified Peril b) a Specified Peril which itself results from pollution or contamination unless resulting from an excluded cause or otherwise excluded under this Policy 3. Consequential Loss resulting from Damage to a) vehicles licensed for road use (including accessories thereon), caravans, trailers, railway locomotives, rolling stock, watercraft or aircraft or aerospatial devices b) property or structures in course of construction or erection and materials or supplies in connection with all such property in course of construction or erection c) land, roads, pavements, piers, jetties, bridges, culverts or excavations d) livestock, growing crops or trees e) water other than water which is normally contained within any tank, piping system or other process equipment f) property in transit other than to the extent provided for elsewhere in this Section
Appendix Specified Perils Fire 1. Fire but excluding Consequential Loss caused by Lightning 2. Lightning. a) earthquake or subterranean fire b) i) its own spontaneous fermentation or heating, or Explosion 3. Explosion excluding Consequential Loss ii) its undergoing any heating process or any process involving the application of heat. a) caused by the bursting of any vessel, machine or apparatus (not being a boiler or economiser on the Premises) in which internal pressure is due to steam only and belonging to or under the control of the Insured b) by pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds. Aircraft 4. Aircraft or other aerial devices or articles dropped therefrom excluding Consequential Loss by pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds. Riot 5. Riot, civil commotion, strikers locked-out workers or persons taking part in labour disturbances or malicious persons acting on behalf of or in connection with any political organisation, excluding Consequential Loss a) arising from confiscation requisition or destruction by order of the government or any public authority b) arising from cessation of work c) arising from deliberate erasure loss distortion or corruption of information on computer systems or other records programs or software. Malicious Persons 6. Malicious Persons excluding Consequential Loss a) caused by Specified Peril 5 b) arising from confiscation requisition or destruction by order of the government or any public authority c) arising from cessation of work d) caused (other than by fire or explosion) by Malicious Persons in respect of any building which is empty or not in use e) arising from deliberate erasure loss distortion or corruption of information on computer systems or other records programs or software. Earthquake 7. Earthquake. Storm 8. Storm excluding Consequential Loss a) caused by i) the escape of water from the normal confines of any natural or artificial water course lake reservoir canal or dam ii) inundation from the sea whether resulting from storm or otherwise b) attributable solely to change in the water table level c) caused by lightning frost subsidence ground heave or landslip
d) In respect of movable property in the open, fences and gates. Flood 9. Flood excluding Consequential Loss a) attributable solely to change in the water table level b) caused by lightning frost subsidence ground heave or landslip c) in respect of movable property in the open, fences and gates d) caused by Specified Perils 10 and/or 11. Escape of Water 10. Escape of water from any tank apparatus or pipe excluding Consequential Loss a) caused by water discharged or leaking from any automatic sprinkler installation b) in respect of any building which is empty or not in use. Sprinkler Installation 11. Accidental escape of water from any automatic sprinkler installation in the Premises not caused by Impact (Third Party) a) freezing whilst the building in so far as it is in the Insured's ownership or tenancy is empty or not in use b) explosion earthquake subterranean fire or heat caused by fire. 12. Impact by any road vehicle or animal not belonging to or under the control of the Insured or any occupier of the Premises or their respective employees. Impact 13. Impact by any road vehicle or animal belonging to or under the control of the Insured or any occupier of the Premises or their respective employees. Theft 14. Theft as defined in Section 1 of this Policy.