Departmental Clause

Departmental Clause
If the business be conducted in departments the independent trading results of which are ascertainable, the provisions of clauses (a) and (b) of the item on Gross Profit shall apply separately to each department affected by the incident (expect that if the sum insured by the said item be less than the aggregate of the sums produced by applying the Rate of Gross Profit for each department of the Business (whether affected by the incident or not) to its relative Annual Turnover (or to a proportionately increased multiple thereof where the Maxim Indemnity Period exceeds twelve months) the amount payable shall be proportionately reduced).

Note: For insurances on the declaration-linked basis the words in square brackets should be omitted.

Extra Expenses Clause

  1. Subject to all its terms and conditions, this Policy also covers the necessary Extra Expense incurred by the Insured in order to continue as nearly as practicable the normal conduct of the Insured’s business following damage to or destruction of the property insured, or of property rented to or used by the Insured (other than property excluded), by perils insured. The Insurers shall be liable for the extra expense so incurred for not exceeding such length of time, herein referred to as the period of restoration commencing with the date of the loss and not limited by the date of expiration of this policy, as shall be required with the exercise of due diligence and dispatch to repair, rebuild or replace such property.
  2. The term “Extra Expense” wherever used in this Schedule is defined as the excess (if any) of the total cost during the period of restoration chargeable to the conduct of the Insured’s business, over and above the total cost that would normally have been incurred to conduct the business during the same period had no damage or destruction occurred, the cost in each case to include expense of using other property or facilities of other concerns or other necessary expenses.

    In no event, however, shall Insurers also be liable under this extra expense section for Loss of Income, nor for the cost of repairing or replacing any property that has been damaged or destroyed, except cost in excess of the normal cost of such repair or replacements necessarily incurred for the purpose of reducing the total amount of extra expenses.

  3. Any salvage of property obtained for temporary use during the period of restoration which remains after resumption of operations shall be taken into consideration in the adjustment of any loss hereunder.

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