Endorsement 1000 Cover for Loss of Profits following Loss or Damage Covered under

Civil Engineering Completed Risks Insurance (CECR)

Notwithstanding exclusion 5 of the CECR policy, the Insurers shall

indemnify the Insured in respect of loss of gross profit actually sustained
due to the reduction in turnover and the increased cost of working as
defined in this Endorsement, if at any time during the period of insurance
stated in the Schedule to this Endorsement the items (or any part thereof)
insured under the CECR policy suffer loss or damage covered under the
CECR policy, unless specifically excluded in this Endorsement, thereby
causing interference with or interruption of the insured business.

The amount payable as indemnity hereunder shall be

- in respect of reduction in turnover: the sum produced by applying the
rate of gross profit to the amount by which the turnover during the indem-
nity period, in consequence of the accident, falls short of the standard
turnover,
- in respect of increase in cost of working: the additional expenditure
necessarily and reasonably incurred for the sole purpose of avoiding or
diminishing the reduction in turnover which but for that expenditure would
have taken place during the indemnity period in consequence of the acci-
dent, but not exceeding the sum produced by applying the rate of gross
profit to the amount of the reduction thereby avoided,

less any sum saved during the indemnity period in respect of such of the
charges and expenses of the business payable out of the gross profit as
may cease or be reduced in consequence of the accident,

provided that if the annual sum hereunder is less than the sum produced
by applying the rate of gross profit to the annual turnover, the amount
payable is proportionately reduced.

Definition CECR Policy

The underlying Civil Engineering Completed Risks (CECR) material dam-
age policy to which this Endorsement is attached.

Period of Insurance
The period of insurance shall be the period stated in the Schedule to this
Endorsement. However, it shall automatically cease earlier, ie at the date
the CECR policy expires or is terminated.

Gross Profit
The amount by which the value of the turnover exceeds the amount of
the specified working expenses.

Specified working expenses shall be any variable costs, eg costs in-

curred for the acquisition of goods, materials as well as for supplies and
services (unless required for the upkeep of operations) and any expendi-
ture for turnover tax, purchase tax, licence fees and royalties, etc, insofar
as such costs are dependent on turnover. E 252.1-E 1 e91akl1000 1/7
(Endorsement 1000)

Turnover
The money (less discounts allowed) paid or payable to the Insured for
goods sold and delivered and for services rendered in the course of the
business at the insured location(s).

Indemnity Period
The period not exceeding the indemnity period limit stated in the Sched-
ule commencing with the occurrence of the accident during which the
results of the business are affected in consequence of such accident.

Time Excess
The period stated in the Schedule for which the Insurers are not liable.
The corresponding amount shall be calculated by multiplying the average
daily value of loss sustained during the indemnity period by the number
of days agreed upon as time excess.

Rate of Gross Profit

The rate of gross profit earned on the turnover during the financial year
immediately before the date of the accident.

Standard Turnover
The turnover during that period in the twelve months immediately before
the date of the accident which corresponds to the indemnity period to
which such adjustments are made as may be necessary to provide for
the trend of the business and for variations in or special circumstances
affecting the business either before or after the accident or which would
have affected the business had the accident not occurred, so that the
figures thus adjusted represent as nearly as may be reasonably practi-
cable the results which but for the accident would have been obtained
during the relative period after the accident.

Annual Turnover
The turnover which the Insured would have been able to obtain but for
the accident during the twelve months immediately before either the date
when the business is no longer affected or when the indemnity period
ends, whichever occurs first.

Special Exclusions Applying This Endorsement shall not cover any loss resulting from interruption of
to this Endorsement or interference with the business directly or indirectly attributable to

1 loss or damage covered under the CECR policy by way of endorse-

ment, unless it has been specifically agreed in writing;

2 the imposition of abnormal conditions directly or indirectly resulting

from testing, intentional overloading or experiments;

3 loss or damage for which a supplier, contractor or repairer is respon-

sible either by law or under contract;

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(Endorsement 1000)

4 loss of or damage to operating media or feedstock, interruption of out-

side power supply, shortage, destruction, deterioration of or damage to
any materials necessary for the insured business;

5 non-availability of funds;

6 alterations, additions, improvements, rectification of defects or faults or

elimination of any deficiencies carried out after the occurrence;

7 any law or ordinance regulating any form of pollution or contamination:

8 any restrictions on reconstruction or operation imposed by any public

authority;

9 any loss due to fines or damages for breach of contract, for late or
non-completion of order, for any penalties of whatsoever nature;

10 loss of business due to causes such as suspensions, lapse or can-

cellation of a lease, licence or order, etc which occurs after the date
when the item affected by an accident is again in operating condition and
the business could have been resumed, if said lease, licence or order,
etc had not lapsed or had not been suspended or cancelled.

Provisions Memo 1 - Benefit from Other Locations

If during the indemnity period goods are sold or services are rendered
elsewhere than at the insured location(s) for the benefit of the business
either by the Insured or by others acting on his behalf, the money paid or
payable in respect of such sales or services shall be taken into account
in arriving at the turnover during the indemnity period.

Memo 2 - Return of Premium

If the Insured declares at the latest six months after the expiry of any
policy year that the gross profit earned during the accounting period of
twelve months most nearly concurrent with any period of insurance, as
certified by the Insured’s auditors, was less than the sum insured there-
on, a pro rata return of premium not exceeding one third of the premium
paid on such sum insured for such period of insurance shall be made in
respect of the difference.
If any accident has occurred giving rise to a claim under this Endorse-
ment, such return shall be made in respect only of so much of said differ-
ence as is not due to such accident.

Memo 3 - Overhauls
In calculating the loss, due allowance shall be made for the time spent
on any inspections, overhauls or modifications carried out during any
period of interruption.

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(Endorsement 1000)

Memo 4 - Benefits after Recommissioning

If during a period of six months immediately following the recommis-
sioning of insured items after an accident, the Insured derives benefits
from deferred sales and/or profits as a consequence of the interruption,
such benefits shall be taken into account in determining the indemnity
payable under this Endorsement.

Memo 5 - Reinstatement of Sum Insured

For the period following the occurrence of an accident up to the end of
the policy period the sum insured shall be reinstated by payment of an
additional premium on a pro rata basis, such premium to be calculated
from the part of the sum insured which corresponds to the indemnity
paid; the agreed sum insured shall remain unaltered.

Special Conditions Applying 1 The Insured shall be obliged to keep complete records. All records, eg
to this Endorsement books of account and balance sheets, for the three preceding years shall
be held in safe keeping and as a precaution against their being simulta-
neously destroyed, the Insured shall keep separate sets of such records.

2 In the event of any occurrence which gives rise or is likely to give rise
to a claim under this Endorsement, the Insured shall

a immediately notify the Insurers by telephone or telegram and send

them written confirmation thereof within forty-eight hours of the occur-
rence;

b do and concur in doing and permit to be done all such things as may
be reasonably practicable to minimize or establish the extent of any inter-
ruption of or interference with the business or to avoid or diminish the
loss resulting therefrom;

c as far as may be reasonably practicable, without causing any increase

in the period of interruption or interference, take precautions to preserve
any things which might prove necessary or useful by way of evidence in
connection with any claim;

d discontinue the use of any damaged items unless the Insurers author-
ize otherwise; the Insurers shall not be liable in respect of any further
interruption or interference arising out of the continued use of any dam-
aged items without their having given their consent to such use until
said items have been repaired to the satisfaction of the Insurers.

3 In the event of a claim being made under this Endorsement not later
than thirty days after the expiry of the indemnity period or within such
further times as the Insurers may allow in writing, the Insured shall at his
own expense deliver to the Insurers a written statement setting forth par-
ticulars of his claim together with details of all other policies covering the

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(Endorsement 1000)

accident or any part of it or consequential loss of any kind resulting

therefrom, and the Insured shall at his own expense also produce and
furnish to the Insurers such books of account and other business books,
eg invoices, balance sheets and other documents, proofs, information,
explanation and other evidence as may reasonably be required by the
Insurers for the purpose of investigating or verifying the claim, together
with - if required - a statutory declaration of the truth of the claim and of
any matters connected therewith.

4 In the event of any occurrence in respect of which a claim is or may

be made under this Endorsement, the Insurers and every person author-
ized by the Insurers may, without thereby incurring any liability and with-
out diminishing the right of the Insurers to rely upon any condition of this
Endorsement, enter any location or building where the loss has hap-
pened, for the purpose of direct negotiation with the Insured in order to
establish the possible cause and extent of the loss or damage, its effect
on the insured interest, to examine the possibilities for minimizing the
loss or damage and if necessary to make any reasonable recommenda-
tions for the avoidance or minimization of such delay. This condition shall
be evidence of the leave and licence of the Insured to the Insurers so to
do. If the Insured or anyone acting on his behalf does not comply with
the requirements of the Insurers or hinders or obstructs the Insurers
during any of the above-mentioned acts or does not comply with such
recommendations of the Insurers, then all benefit under this Endorse-
ment shall be forfeited.

5 The Insurers shall not be liable to pay for or contribute to any loss
which but for the existence of this Endorsement is or would be insured
by any Loss of Profits policy covering Marine risks or Fire, Fire and
Extended Coverage (F&EC), Difference in Conditions (DIC), Force
Majeure (FM), and/or Explosion risks.

6 The indemnity shall fall due two weeks after its final determination. If
after the expiry of one month since the beginning of an interruption of or
interference with the business and after the expiry of each further month,
it is possible to determine the minimum amount which the Insurers are
liable to pay for the elapsed period of interruption, the Insured shall be
entitled to demand that such amount be paid to him as an instalment of
the total indemnity.

The Insurers shall be entitled to postpone payment,

a if there is any doubt as to the Insured’s right to receive payment, until

the necessary proof is furnished;

b if, as a result of any interruption of or interference with the business,

police or penal investigations have been initiated against the Insured,
until the completion of such investigations.

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(Endorsement 1000)

The Insurers shall not be liable to pay interest other than interest for de-
fault.

7 Should at any time after the commencement of this Policy

a the business be wound up or carried on by a liquidator or receiver or

be permanently discontinued,

b the Insured’s interest cease otherwise than by death,

c any alteration be made whereby the risk of accident is increased,

d the retention of standby or spare capacities or any other loss-minimiz-

ing factors in existence when the insurance was effected be reduced or
discontinued, or such standby or spare capacity not be maintained in an
efficient working condition and available for immediate use,

then this Policy shall be void unless its continuance is admitted by a spe-
cial written statement signed by or on behalf of the Insurers.

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(Endorsement 1000) Schedule

incorporated Questionnaire Name and address of insured:

and Proposal No

Business:

Period of insurance Location:

from (noon) to (noon)
and any subsequent period for which
the Insured pays and the Insurers
agree to accept a renewal premium

Renewal date:

Subject matter insured: Gross profit First premium:

Annual sum insured:

Time excess: Annual premium:

Specification of Items Insured

Item No Quantity Insured items and location Year of construction Indemnity period limit Share on gross profit in per cent Sum insured

Total sum insured

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