Page 323 - Fire Insurance Ebook IC 57

The Insurance Times

Insured's property at other locations

n Owing to lack of space at their own premises a firm may find it
necessary to store commodities at different situations not in their
own occupation.

n Extension may be granted to cover interruption of business in
consequence of damage to insured's property at locations other
than the one to which the policy applies.

n Such locations have to be specified in the policy and a limit
(expressed as a percentage of the sum insured) is placed on the
amount payable in respect of loss at any one location. The addition
to the basis rate is produced by applying a prescribed percentage.

n This extension cannot be applied - to insured's other manufacturing
premises.

Damage at supplier's premises

n There are many firms who are dependent on the supply of raw
materials, semi-finished goods and components from other
producers.

n Damage by insured perils at suppliers' premises may thus affect
the production at the insured's premises.

n At an additional premium, the C.L. policy can be extended to
cover this risk.

n The extension should be restricted to original manufacturer's
premises and not extended to intermediary trader's premises.

n Unspecified locations and, suppliers abroad should not be covered

n The indemnity period under the main policy and the extension
should be identical.

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