Alternative basis clause

A business interruption policy clause to provide the insured with an alternative basis for adjusting a claim when the interruption is short and the turnover method impractical. The practice is for the insurer and the loss adjuster to calculate the loss on a ‘sales value of output’ basis, provided that the lost output cannot be regained within the indemnity period. Insurers are sufficiently flexible in their approach to allow this practice to be adopted even if the clause is not included.

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