Ordinary breakage

Breakage (not associated with any named perils) of fragile cargo which is regarded as inevitable during transit. It is generally excluded unless caused by the vessel or craft being stranded, sunk, burnt or in collision. The Replacement Clause deals with breakage of machinery.

Ordinary meaning rule

Rule of construction. Words in a policy must be construed in their plain, ordinary and popular meaning, and not in their strictly philosophic or scientific meaning. However, the context may make it clear that the words must, to carry out the intention of the parties, be understood in some special sense. Legal and technical terms are to be given their strict legal meaning unless the policy shows a different intention.

Ordinary payroll

Payroll allotted to employees whose services could be curtailed in event of a long term shutdown of a business without a harmful effect on reopening. This figure is important in calculating business income insurance exposures.