Business Interruption Insurance
Business Interruption Insurance
· This insurance covers all the loss of profit due to business interruption or interference caused by insurance accident listed
   in the physical damage insurance policy. It is an extend insurance and is attached to the physical damage insurance. 
· It can be divided into two kinds:
  – attached to property insurance and named”Business Interruption Insurance”
  – attached to machinery breakdown insurance and named”Machinery Loss of Profit Insurance”
 
Subject Matter Insured
Gross profit loss and auditor expenses.
· Gross Profit= Business Profit +Agreed Standing Charges; or
· Gross Profit=Agreed Standing Charge - Business Deficit × Agreed Standing Charges/Total Standing Charges
· Standing Charges stated in this Policy refers to the costs or expenses incurred by the Insured for the purpose of maintaining
   normal business operation and shall not be proportionately reduced in accordance with the reduction of the Turnover. The
   agreed Standing Charges shall be determined by the Insured subject to the confirmation of the Insurer, and then specified
   in the contract.
 
Scope of Cover
· If during the period of insurance the business carried out by the Insured at the premises specified in the Schedule is
  interrupted or interfered with in consequence of physical loss of or damage to the property used in business operation
  (hereinafter called Physical Damage) resulting from perils or hazards covered under the Physical Damage Insurance
  (which herein refers to the standard clauses of the physical damage insurance, excluding the special provisions
  and conditions, extension clauses, endorsements and memorandum etc.), the Insurer shall indemnify the Insured for
  the loss of gross profit resulting from such interruption or interference, subject to the terms, exclusions, conditions
  and provisions contained in this contract.
· For example, due to insurance accident, the enterprise couldn’t continue operate and profit loss and shut-down occurs,
  the operational expenses such as wage, rent and water and electricity fees should also be paid.
· Indemnity Period in this Policy refers to the period beginning with the occurrence of the Physical Damage and ending no
  later than  the Maximum Indemnity Period stated in the Policy thereafter during which the results of the business is affected
  in the consequence of the damage.
 
Exclusions
· any loss or damage caused by or aggravated by willful act and/or gross negligence of the applicant and/or the Insured; 
· Loss occurs and expands beyond the limits of material loss insurance contract main clauses;
· any loss or damage caused by or aggravated by earthquake or tsunami and secondary disasters so caused;
· any loss or damage resulting from or aggravated by government's restrictions on recovery or repair of damaged property; 
· any loss or damage caused by or aggravated by terrorism activities; 
· the deductibles calculated by the deductible ratio stated in this Policy. 
 
* For further details, please refer to the insurance clauses.

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