Page 205 - Hollard Business Branch Policy Wording

Business Interrup on (Machinery Breakdown)
DEFINITIONS
Indemnity period
The period during which the results of the business are a ected in consequence of the accident beginning with the number of hours/days stated in the Schedule a er the occurrence of the accident and ending not later than the expiry of the period ( me excess) shown in the Schedule a er the occurrence
Time excess
The period stated in the Schedule
Turnover
The money paid or payable to the Insured for goods sold and delivered and for services rendered in the course of the business at the premises
Revenue
The money paid or payable to the Insured for goods sold and for services rendered in the course of the business at the premises
Gross pro t (di erence basis)
The amount of the opening and closing stocks shall be arrived at in accordance with the Insured's normal accountancy methods, due provision being made for deprecia on
Gross pro t (speci ed standing charges basis)
The sum produced by adding to the net pro t the amount of the insured standing charges or if there is no net pro t the amount of the insured standing charges less such a propor on of any net trading loss as the amount of the insured standing charges bears to all the standing charges of the business
Net pro t
The net trading pro t (exclusive of all capital receipts and accre ons and all outlay property chargeable to capital) resul ng from the business of the Insured at the premises a er due provision has been made for all standing and other charges including deprecia on but before the deduc on of any taxa on chargeable on pro ts
Standing charges
As speci ed in the Schedule
Accident
Unforeseen and sudden physical damage to the machinery described in the Schedule for this Sec on from any cause provided for by the Machinery Breakdown Sec on
Shortage in turnover
The amount by which the turnover during the speci ed por on of the indemnity period shall in consequence of the accident fall short of that part of the standard turnover to which it relates
The premises
All premises owned, used or occupied by the Insured for the purposes of the business
Rate of gross pro t
The rate of gross pro t to turnover during the nancial year immediately before the date of the damage
To which such adjustments will be made as may be necessary to provide for the trend of the business and for varia ons in or other circumstances a ec ng the business either before or a er the accident or that would have a ected the business so that the gure thus adjusted will represent as nearly as may be reasonably prac cable the results that but for the accident would have been a er the accident
Annual turnover
As may be necessary to provide for the trend of the business and for varia ons
the turnover during the 12 (twelve) months immediately before the date of the damage
Standard turnover
The turnover during the period corres- ponding with the indemnity period in the 12 (twelve) months immediately before the date of the accident
BASIS OF LOSS SETTLEMENT
1. Gross pro t (di erence basis)
The insurance under this item is limited to loss of gross pro t due to reduc on in turnover and increase in cost of working and the amount payable will be:
1.1 For reduc on in turnover:
the sum produced by applying the rate of gross pro t to the amount by which the turnover during the indemnity period shall in consequence of the accident fall short of the standard turnover;
Page | 204 Hollard Business Policy – Branch – Version 1 2018