Page 207 - Hollard Business Branch Policy Wording

Business Interrup on (Machinery Breakdown)
PROVIDED THAT:
if the respec ve sums insured are less than the aggregate of the sums produced by applying the rate of Gross pro t or Revenue for each department/branch of the business (whether its results are a ected by the accident or not) to the rela ve annual turnover thereof (propor onately increased where the indemnity period exceeds 12 (twelve) months) the amount payable will be propor onately reduced.
4. Deposit premium
In considera on of the premium for items 1 and/or 2 being provisional because they are calculated on 75% (seventy ve percent) of the sum(s) insured thereby, the premium is subject to adjustment on expiry of each period of insurance as follows:
if the Gross pro t or Revenue earned (propor onately increased if the indemnity period exceeds 12 (twelve) months) during the nancial year concurrent with any period of insurance is less or greater than 75% (seventy ve percent) of the sum insured thereon, a pro-rata return or addi onal premium not exceeding 33.3% (thirty three and one third percent) of the provisional premium paid for such period of insurance will be made for the di erence.
5. New business
For the purpose of assessing any loss sustained as the result of an accident occurring before the comple on of the rst year's trading the terms 'rate of gross pro t', 'annual turnover', 'standard turnover', 'annual revenue' and 'standard revenue' shall bear the following meanings:
5.1 Rate of gross pro t
The rate of gross pro t earned on the turnover during the 3 (three) months immediately before the date of the accident.
5.2 Annual turnover
12 (twelve) mes the average monthly turnover for the 3 (three) months immediately before the date of the accident.
5.3 Standard turnover
The turnover which would have been achieved during the indemnity period if the average turnover during the 3 (three) months immediately before the date of the accident had been maintained.
5.4 Annual revenue
The average revenue earned during the 3 (three) months immediately before the date of the accident.
5.5 Standard revenue
The revenue which would have been earned during the indemnity period if the average revenue during the 3 (three) months immediately before the date of the accident had been maintained.
6. Overhauls
If during a period of 6 (six) months immediately following the recommissioning of the machinery and plant a er the damage the Insured derives bene t from deferred sales or from increased produc on and/or pro ts as a consequence of an interrup on of or interference with the business, such bene ts shall be taken into account in determining the amount payable as indemnity under this Sec on.
7. Salvage sale clause
If the Insured shall hold a salvage sale during the indemnity period, item 1.1 under Gross pro t shall, for the purposes of such claim, read as follows:
7.1 in respect of 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 (less the turnover for the period of the salvage sale) shall, in consequence of the damage, fall short of the standard turnover, from which sum shall be deducted the gross pro t actually earned during the period of the salvage sale.
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Hollard Business Policy – Branch – Version 1 2018