We will pay to You the actual loss of Gross Revenue and Increase in cost of working and the amount payable as indemnity will be:
a) in respect of reduction in Gross Revenue:
the amount by which the Gross Revenue during the Indemnity Period shall, as a result of the Damage, fall short of the Standard Gross Revenue,
b) in respect of increase in cost of working: the additional expenditure necessarily and
reasonably incurred for the sole purpose of avoiding or diminishing the loss of Gross Revenue that, but for that expenditure, would have taken place during the Indemnity Period in consequence of the Damage, but not exceeding the amount of the reduction in Gross Revenue so avoided;
less any sum saved during the Indemnity Period in respect of the charges and expenses of the Business payable out of Gross Revenue that cease or are reduced in consequence of the Damage and any Uninsured Working Expenses.
Excess
We will not pay any claim where the interference or interruption to the Business is for a period of less than one week.
Additional benefi ts applicable to
this Section
Where a claim is admitted under this Section, We will pay the following, subject to the extent that the Sum Insured on Annual Gross Revenue is not otherwise exhausted.
1. Claims preparation expenses
We will pay the costs of reasonable professional fees as may be payable by You, and other reasonable expenses necessarily incurred by You and not otherwise recoverable, for preparation of claims under this Section. The most We will pay in respect of any one claim is $5,000.
2. Additional increase in cost of working
We will pay the increase in cost of working (not otherwise recoverable under this Policy) necessarily and reasonably incurred during the Indemnity Period as a result of the Damage for the purpose of avoiding or diminishing reduction in Gross Revenue and/ or resuming and/or maintaining normal Business operations and/or services.
The most We will pay in respect of any one claim is $10,000.
3. Computer
This Section extends to include loss (not otherwise recoverable) resulting from interruption of or
interference with the Business occasioned by Damage as detailed in a., b. or c. of The cover to computer installations, including ancillary equipment and data processing media utilised by You anywhere in Australia.
4. Other property
This Section extends to include loss due to interruption or interference to the Business due to Damage to other property, which had it been insured under this Policy, would have resulted in an admissible claim under Section Two – Material Damage, Section Four – Theft or Section Seven – Glass which occurs:
a) within a 5km radius of Your Premises which prevents the use of or access to the Premises; b) at any electricity station or substation, gas works
or water works of a public supply undertaking from which You obtain electric current, gas or water. Where the public supply undertaking is not at or immediately adjacent to Your Premises the interruption of supply must extend for longer than 48 hours for this additional benefi t to apply.
c) in any commercial complex of which the Premises forms a part or in which the Premises are contained, that prevents or hinders the use of or access to the Premises which results in cessation or diminution of trade, including any cessation or diminution of trade due to temporary falling away of potential custom.
5. Closure by authority, poisoning, murder
or suicide
This Section extends to include loss due to interruption or interference to the Business due to:
a) closure or evacuation of the whole or part of the Premises by order of a competent public authority as a result of:
(i) infectious or contagious disease manifested by any person while at the Premises,
(ii) vermin or pests or defects in the drains or other sanitary arrangements at the Premises,
(iii) the outbreak of a notifi able human infectious or contagious disease occurring within a 20km radius of the Premises.
b) poisoning directly caused by the consumption of food or drink provided on the Premises;
c) murder or suicide occurring in or at the Premises. However, there is no cover under Additional benefi t 5. (a) (i) and (iii) due to Highly Pathogenic Avian Infl uenza in Humans or any other disease declared to be a quarantinable disease under the Quarantine Act 1908 (including amendments).
The maximum amount We will pay for loss arising from this Additional benefi t 5. is $200,000 during any one Period of Insurance.
Specifi c conditions applicable to
this Section
1. Underinsurance
If the Sum Insured for Gross Revenue at the
commencement of each Period of Insurance is less than the sum produced by applying the Gross Revenue to 80% of the Annual Gross Revenue, (or its proportionately increased multiple of it, where the Indemnity Period exceeds 12 months) the amount payable under this Section will be proportionately reduced.
This condition will not apply if the amount of the claim does not exceed 10% of the Sum Insured for this Section.
2. Departmental clause
If Your Business is conducted in departments and the trading results of each department can be determined independently then the Basis of Settlement applicable to this Section will apply separately to each department affected by the Damage.
3. Alterations and forfeiture
We will not pay any claim under this Section if the Business is dissolved, wound up or carried on by either a liquidator, administrator or a receiver or is permanently discontinued or You, being a natural person, are declared bankrupt.
4. Turnover elsewhere after Damage
If during the Indemnity Period You or others on Your behalf operate the Business from premises other than those specifi ed in the Schedule then the revenue so earned will be brought into account when calculating the Gross Revenue.
5. Progress claim payments
Progress payments on account of any loss recoverable under this Section will be made at intervals to be mutually agreed upon if You so require and upon production of an interim report by the loss adjuster (if one is appointed).
6. Books of account
Any particulars or details contained in Your books of account or other Business books or documents that may be required by Us for investigating or verifying any claim made under this Section may be produced and certifi ed by Your auditors and their certifi cate will be prima facie evidence of the particulars and details to which the certifi cate relates.
The words and expressions used in this Section will have the meanings usually attached to them in Your books and accounts unless otherwise defi ned in this Policy.
7. New business
In the event of Damage occurring at the Premises before the completion of the fi rst year’s trading of the Business, the terms “Annual Gross Revenue” and “Standard Gross Revenue” shall have their meanings altered to refl ect the period the Business has been trading to the date of the Damage, converted to a 12 month equivalent fi gure.