Page 53 - Policy Wording - Hollard Business Binder (2020-08-26)

1.4.4 Definitions of cover:
1.5 Additional increase in cost of working
1.5.1 This extension can be issued without underlying Gross Profit/Gross Rentals/Revenue cover being selected.
1.5.2 Limited to reasonable additional expenditure for the purpose of maintaining the normal operation of the business.
Additional increase in cost of working .175%
Business Interruption
1.4 Gross profit
1.4.1 The Gross Profit/Gross Rental/Revenue sum insured is generally calculated by the broker in consultation with the Insured or the Insured's accountant.
1.4.2 The gross profit figure represents the profits that would have been earned based on prior months' financial statements.
1.4.3 A declaration form (available via the Hollard Insure Binder Portal) will assist to correctly underwrite the business interruption section of the policy.
Accounting Gross Profit from financials
Gross Profits (difference basis) including VAT
Loss of gross profit due to:
a) reduction in turnover; and
b) increase in cost of working;
based on all standing charges, or simply put:
turnover plus closing stock less opening stock plus uninsured working expenses or variable expenses.
Gross Profit (additional basis) including VAT
Loss of gross profit due to:
a) reduction in turnover; and
b) increase in cost of working;
based on all working expenses, or simply put:
net profit plus standing charges.
Gross Rentals
Limited to:
a) loss of gross rentals; and
b) increase in cost of working;
based on rentals receivable or payable.
Revenue
Limited to:
a) loss of revenue; and
b) increase in cost of working;
based on revenue receivable.
Turnover less costs of goods sold
Rate
Description
Rate
1.6
Wages – short period (number of weeks basis)
1.6.1 1.6.2 1.6.3
Covers the amount payable to employees whose services cannot be utilized by the Insured in full during the period of repairs/rebuilding, etc.
Limited to the payment of wages for the period beginning with the occurrence of the damage and ending not later than the specified number of weeks.
The sum insured must be the actual wages for the chosen period.
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020