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Index

A
ABI Extension Wordings
44
Accumulated Stocks Clause
152-153, 311
Notes153
Additional and Related Clauses
148
Additional Increase in Cost of Working
163, 175, 184-185
LMA5082185
Adjusters Report on Claims
13
Adjustments Clause
135, 141, 227
Trends Clause
141
Other Circumstances Clause
141
fragments of evidence
70, 144
Advance Loss of Profits
219
Advance ProfitsSpecification
328
Advertising181-182
Advisers Liability
107
material circumstances
109, 111, 201
Allocation Agreements for Subrogation Recoveries
252
Allocation of Recoveries from Third Parties
250
top down
250-251
Alternative Methods
235
Alternative Premises
179
Alternative Trading Clause
154, 156, 298, 301, 304, 306, 330, 334
wholesaling kitchenware
159
Auditors Remuneration
122
B
Bad Debts
118
Bank Charges
125
Beneficiary246
Book Debts Specification
323
Definitions
272, 297, 300, 303, 305, 323, 327, 328
Premium
128, 324
Professional Fees
324
Budgets and Forecasts
102, 222
Building or other property
39
Burden of Proof
61, 67
Insured Peril
67
prima facie
67
Inherent vice
67
Quantum or Measure of Loss
69
Business Clause
151-152, 311

Walmsley on Business Interruption Insurance

340

Business Continuity Plan


9-10, 13, 198
Type of Business
9, 45, 230
Business Interruption Key Issues Report
10, 41, 106, 198
AIRMIC
10, 41, 106, 198
Business Interruption Extension Wordings
313
Specific Suppliers
314
Unspecified Suppliers and Storage Sites
314
Motor Vehicle Manufacturers
314
Property Stored
52, 314
Patterns, Etc
314
Transit
51, 315
Motor Vehicles
52, 114, 315
Contract Sites
315
Prevention of Access
53, 315
Public Utilities
47,316, 317
Professional Insured Documents
316
Specified Customers
46, 316
Unspecified Customers
47, 316
Failure of Telecommunications
319
Time/Monetary Excess
319
Deliberate Act Exclusion
320
Standard Exclusion
320
Business Interruption Insurance
1, 6-7, 17-18, 24, 202, 237, 249
Business Interruption Policy
19, 31, 78
All Risks
20, 61, 71, 159, 223
Specification20
Reduction in Turnover
20, 135, 299, 328, 336
Increase in Cost of Working
20, 112, 163-164, 175, 184, 192, 211,

299, 326, 333, 336
ABI Gross Profit Form
7, 20
Business Interruption Specification Wordings
296
Business
11, 37
C
Calculation of Gross Profit
138, 142, 166, 178, 229, 241
fixed costs
138
variable costs
138
Calculation of Rateable Contribution
240
rateable240
Captive Insurance Companies
5
Carriage and Freight
115, 117, 122
buying in
117
Civil Commotion
82, 85

Index

Claims Conditions
258, 268, 276
Action by the Insured
161, 258, 268, 276
Fraud
259, 269, 277
Contribution
237, 259
Subrogation
237, 241, 246, 259
Arbitration
259, 269, 277
Clause (a)
135
Clawback146
Commission and Overtime
122
Competition Law Compliance
255, 261, 271, 282, 296, 313
Insurer agrees
255, 261, 271
Renewal premium
255, 261, 271
Composite Insurance
247
Subcontractors247
co-assureds247
subcontractor247
Computers223
Concurrent Causes
65
Emergency Speed Restriction (ESR)
65
Wear and tear
65, 222
Interdependent65
State Department Advisory
66
Similar warning
66
Sea conditions
66
Institute Cargo Clauses (A)
66
Inherent vice
67
Contractual Transfer of Risk
5
Consequential loss
5, 81, 256, 262, 272, 282, 292
Contribution
121, 237, 240, 259, 269, 277
Cost of Working
163, 184, 211-213, 299, 326, 333, 336
Customers46
Cyber Risks
224-226
D
Declaration-Linked Basis of Cover
131-132, 200-201
Deductibles275
Defective Sanitary Arrangements
95, 292
Definition
256, 262, 272, 297, 300, 303, 305, 323, 327-328
Incident
44, 297, 300, 303, 305, 323, 327, 328, 332, 334
Indemnity Period
135, 145, 195, 220, 297, 300, 303, 305,

327, 329, 335, 337
Maximum Indemnity Period
103, 106, 145, 297, 300, 303, 305, 327, 329
Turnover
221, 297, 300, 329, 334, 336
Gross Profit
99, 100, 135, 297, 300, 334, 336

341

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342

Uninsured Working Expenses


99, 100, 112, 136, 298, 300, 329, 334, 336
Rate of Gross Profit
135, 137, 151, 221, 298, 301, 311, 329, 335, 337
Annual Turnover
151, 298, 311, 335
Standard Turnover
135, 140, 151, 221, 298, 301, 311, 330, 335, 337
Alternative Trading Clause
154, 156, 298, 301, 304, 306, 330, 334
Uninsured Standard Charges Clause
298, 301
Premium Adjustment Clause
298, 301, 304, 306
Departmental Clause
148-149, 229, 310
Depreciation
120, 187, 189
payable191
Directors Remuneration
121
Disaster Recovery Plan
7, 10, 198
Discounts Received
176-178
Discounts
115, 199
Double Insurance
205, 208, 239
other insurance
239
Due Diligence Clause
148, 155, 161
Discontinuance of Business Clause
162
E
Earthquake
75, 89
Economic Limit
171, 185, 235
economic test
171
Adjusted Standard Turnover
172
Employees12
Energy
124, 175-176
Engineering Machinery Breakdown
222-223
wear and tear
65, 222
sudden and accidental damage
223
Engineering Perils and Specification
331
Specimen 1
331
Specimen 2
331
Specimen 3
332
Specimen 4
223, 332
Exceptions
74, 332
Specification333
Estimated Maximum Loss (EML)
13
Maximum Probable Loss (MPL)
13
Maximum Possible Loss (MPL)
13
Exceptions and Exclusions to Fire
74
Excluded Perils that may be Reinstated
89
Excluded Perils
81, 89

Index

Exclusions and Extensions


Named perils
All Risks
Exclusions
Expenses and Increase
Explosion
EXTENSIONS - Additional and Special Perils

61
61, 71, 73
61
61, 70, 256, 272, 331
175
75, 78, 90
88

F
Fines or Damages for Breach of Contract
213
legally liable
214
Fines or Damages
215
Fines or Damages
213, 307
Declaration-Linked Basis
100, 131, 132, 200, 308
Salvage Sale Clause
149, 150, 310
Accumulated Stocks Clause
152, 311
Fire
73, 75, 255
Flexible Limit of Loss Cover
234
Flexible Limit of Loss
234, 335
Franchises126-127
Fuel, Power and Utilities
125
G
Gross Profit Wording Declaration-Linked Basis
299
Renewal Clause
301, 306
Gross Profit Wording Sum Insured Basis
296
Reduction of Turnover
116, 174, 199, 214, 296
Increase in Cost of Working
20, 112, 163, 164, 175, 184, 192, 211, 296
General Conditions
257, 268, 276
Policy Voidable
257, 268, 276
Alteration
258, 268, 276
General Exclusions
72, 75, 81, 256, 266
CONSEQUENTIAL LOSS
81, 256, 262, 272, 282
Damage to property
81
Unlawful association
257
Goods in Store
49
Insureds goods or property
50
Other Premises
40, 50
Gross Profit and the Sum Insured
99, 198
Gross Profit
99-100, 135, 138, 200, 227, 297, 300, 334, 336
Gross Revenue Wording Declaration-Linked Basis
304
Estimated Gross Revenue
304, 305
Gross Revenue Wording Sum Insured Basis
226, 302
Loss of Gross Revenue
302, 304

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Gross Revenue
226, 303, 305, 319,
Annual Gross Revenue
227, 303
Standard Gross Revenue
227, 302, 303, 305
Gross Revenue
226, 303, 305, 307, 311, 319
Gross Revenue Wording
226
Sum Insured Basis
226
services rendered
226
savings229
H
Heating Processes
Hire of Office Equipment
Historical Accounts

77
121
106, 142, 154, 221

Identification of Risks
2
Increase in Cost of Working
112, 163-164, 175, 184, 192, 211, 299, 326, 328, 333, 336
standing charges
127-128, 166-167, 188
working expenses
167
recognised variable charges
167
necessary and reasonable
169
sole
169-170, 185
sole purpose
170-171
Increase in Cost of Working
112, 163-164, 175, 184, 192, 211, 299, 326
Indemnity Period
135, 145, 220, 223, 297, 300, 305, 327, 329, 335, 337
Principles for Policy Wordings
220
Indemnity Principle
17, 241
Independent Liability Method
240
Insurable Interest
17, 21
Indemnity
18, 103, 145, 220, 297
Value18
Paying the value of the loss
18
Indemnifying the Insured
18
MIA 1906
18
Valued Policies
18
Unvalued Policies
18
Adjustments Clause
19, 54, 135, 141
Insurable Interest
17, 21, 26
Personal interest
30
Insurance
5-6, 120, 124, 239
Insured
10, 34
Insurer34
Insurrection82
Interest Charges
182
Interruption Features
12

Index

Intervening Successive Causes


Joint Insurance

64
247

Late Payment Costs


182
additional expenditure
168, 182, 212
hold harmless
183
damages on damages
183
reasonable time
184
reasonable grounds
184
Legal Costs and Expenses
211, 213
Light and Heat
73, 124
factory costs
124
Lightning78
Loss Assessment
1, 13
Loss of Attraction
53-54
Loss of Records of Book Debts
216
Machinery Repairs/Replacement
178
Machinery11
Manufacturers Stock
206
Market Share
146
Master Wording
283, 292
Material Damage Overlap and Savings
203
Material Damage Policy
78
Gas80
On the premises
80
Material Damage Proviso
17, 26
Material Damage Report
8-9, 14
Materials119
Maximum Indemnity Period
103, 106, 112, 145, 195, 297, 327,329
results103
Maximum Indemnity Period
13, 103, 145, 195, 297, 327
amount payable
195, 197-198
Measure of Loss
69, 245
Measurement of Loss
235
Motor Trade
52, 93
Murder and Suicide
95, 292
Hotels, Restaurants and Public Houses
293
Schools, Private Hospitals etc
294
Food Processors and Distributors
294
National Insurance
No Subrogation Available

120
246

345

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346

Nuclear Risks

84-85

Opening Stock
119, 334
Other ABI Extensions
47
Other Additional Perils
92
Storm and flood
92
Escape of water
94, 264, 289
Subsidence, landslip and ground heave
94
Landslip94
Subsidence94
Ground heave
94
Aircraft95
Impact (third party)
95, 289
Own vehicles
95, 289
Sprinkler leakage
95, 290
Other Circumstances
54-58, 118, 141
Other Expenses
119
Overnight Cash Deposits
126
Overtime178-179
Package Policies
226, 232
Packing116-117
Patterns and Designs at Third Party Premises
50
Pension Contributions
121
Perils
61, 262
Subterranean Fire
76, 264
Escape of Water
94, 264, 289
Impact264
Explosion of Vessels
265, 290
Overheating of Tubes
265
Collapse265
Perils
61, 88, 92, 282
PERILS71
ABI Standard
71
Proximate cause
61, 71
Named perils
61, 71, 73, 159
ABI Standard Fire Policy (Business Interruption)
72-73, 75
GENERAL EXCLUSIONS
72, 75, 81, 256, 266
Disease73
Loss of power and services
73
Plant and Machinery
120, 190
Plant and Tool Maintenance
120
Policy Condition
238, 242
Pollution and Contamination
87-88

Index

Power Generation
230
Premises
10, 38
Premium Adjustment Clauses
128, 130-131, 307
Provisional Premium
128-130, 132, 307
Prevention (or Denial) of Access
52
Hinder53
Prevention
52, 53-54, 315
Vicinity53
Professional Offices
233
paid or payable
233
earned233
Professionals Documents
52
Property Survey Report
8, 10
Proximate Cause
61-65, 71, 223
Causation63
Fortuity63
of the seas
63
Directly or indirectly
64
Caused by
64, 77
Arising from
64
Direct64
Effective64
Immediate64
The consequence of
64
Public Utilities
47, 316
Purchase of Better Machinery
181
Purchases
115-116, 178
Rate of Gross Profit
135, 137, 151, 221, 298, 301, 311, 329, 335, 337
financial year
138
Rate of Gross Profit
135, 137, 151, 221, 329, 335, 337
Raw Materials and Discounts Received
176
Raw Materials
12, 119, 176
Just in time
12
Rebellion82
Insurrection82
War83
Invasion83
Act of Foreign Enemy
83
Civil War
83
Act of war
83
Armed conflict
83
Military or usurped power
81, 84, 256, 267, 318,

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Usurped power
Military power
Reinstate Documents and Data
Related Additional Clauses
Rent
property owners
Research Establishment Expenditure
equitable proportion
Research Establishment ExpenditureSpecification
Residual Value
Restaurants
Retail Shops
Riot
Risk Assessment
loss of goodwill
Arson
Collapse of buildings or machinery
Freezing
Contamination
Kidnap and ransom
Malicious damage
Contagious disease
Product tampering
Risk Management
Royalties
Salvage Sale Clause
Savings
Schedule and Extensions
Schedule
Scope of Coverage
Self-insurance
Shifts and Redundancy Payments
Special Business Interruption Extensions
Notifiable disease
Vermin
Defective sanitary arrangements
Murder and suicide
Excluded causes
Special Conditions
Explosion
Aircraft
Riot
Riot (Fire Only)

81, 84, 256, 318


84
213
127
123, 207
38, 123
217, 326-327
219
326
180
232, 293
234
81-82, 89
1, 27, 43
1
1
1
1
1, 87
1
2
2
2
1, 4, 6, 12-13, 104
126
149-150, 310
187
33
33
19, 240
5
178
95
95
95, 237, 292
95, 292
95, 292
97, 318, 320
283, 292
75, 78, 90, 285
95, 286
81, 89, 286
89, 287

Index

Riot and Malicious Damage


89, 287
Earthquake Fire Risk Only
89, 288
Earthquake Shock Risk Only
89, 288
Earthquake Fire And Shock Risks
89, 288
Subterranean Fire
76, 288
Spontaneous Fermentation
89, 288
Storm
92-93, 288
Explosion and Collapse of Steam Pipes
90, 290
Explosion of Vessels
265, 290
Explosion and Collapse of Vessels
90, 290
Collapse of Boilers
265, 290
Overheating of Tubes
265, 291
Overheating of Boilers and Economisers
90, 291
Subsidence Ground Heave, Landslip
291
Special Perils (including Limited Engineering Perils)
282
Specified Suppliers
44, 46
Spontaneous fermentation or heating
77
Spontaneous combustion
77
Spontaneous Fermentation
77, 89, 288
Standard All Risks Policy
271
Standard Fire and Special Perils Policy
261
Insurer agrees
255, 261, 271, 281
Standard Fire Policy
255
Standard Turnover
135, 140-141, 221, 298, 301, 311, 330, 335, 337
sales140
which corresponds with
141
Storage Premises
48
Subrogation Recovery Action
243
Subrogation Waiver
249, 281
Destruction or Damage
281
Loss Destruction or Damage
281
Subrogation
237, 241, 243, 246, 249, 252, 259, 269, 277, 281
Sub-Section 1 Special Perils
282
Omit282
Sub-section 2 Notifiable Disease
292
Subterranean fire
76, 90
Sum Insured
99, 102-103, 105-110, 212
Net212
Incremental212
additional expenditure
212
Sundry Trade Expenses
122
Suppliers and Customers
44, 47
Suppliers of Suppliers
46
Suppliers to Customers
47

349

Walmsley on Business Interruption Insurance

350

Take or Pay Contracts


176
Terrorism, Civil Commotion and Malicious Acts
85
Terrorism85
Act of terrorism
85
Organisation85
Unlawful association
85
The Insurance Act 2015
201
fair presentation
109-111, 201
sufficient information
109, 111, 201
material circumstances
109, 111, 201
knowledge
109, 111, 201
ought to know
110-111, 201
fraud202
fraudulent claim
202
Traditional Insurance
5-6
Insurance Market
5-6, 84, 86
Business at Premises
6
ABI Gross Profit Form
7, 18, 20, 54, 99
Transit
51, 315
Machinery
11, 51
Transport178
Travel Expenses
121
Trends Clause
54, 141
Incident
55, 296
Adjustments55
CII/CILA BI Report
31, 45, 57, 229
LMA3109
31, 57, 231
LMA3110
31, 57
Turnover
135, 140, 221, 297, 300, 329-330, 334
Typical Instances of Underinsurance
112
Underwriting Process
1, 7
Uninsured Standing Charges Clause
127, 165, 192, 330
standing charges
127-128, 166-167, 188
Uninsured Standing Charges
127, 165, 192, 330
Uninsured Working Expenses
99-100, 112, 114, 136, 298, 300, 329, 334
uninsured114
Insurance Profit
137
Sum Insured Basis
100, 128, 130, 226, 296, 302
sales less variables
101
Unspecified Suppliers
45-46, 314
Utility Services
11
Telecommunication
11, 319

Index

Variations
Vermin
Wages (Payroll)
Wages for Clean-up and Restoration
Waiver of Subrogation Rights
Miscellaneous Clauses
Wide Area Damage and the Adjustments
Work in Progress

142, 211
95, 96, 273, 292-294
119
208
249
249
54
206

351