Scope of Cover
This policy operates in the event of damage to the premises of an insured due to any peril insured under the Standard Fire &Special Perils Policy, causing an interruption to his business. It enables the insured to recover
• His Loss of Gross Profit due to a reduction in turnover
• Increased Cost of Working incurred in minimising that loss of Gross Profit
Definitions
Gross Profit is the sum of Net Profit and Insured Standing Charges.
Net Profit is the 'Net Trading Profit' excluding capital receipts, accretions and outlay chargeable to capital after making provisions for all standing charges but prior to deduction of tax.
Standing Charges are expenses which do not diminish proportionately with a reduction in turnover. Indemnity Period commences with the date of the damage, and lasts till such time as the business is restored to its pre-damage level, or the period stipulated in the policy, whichever is earlier. This policy insures earnings of the business lost during the Indemnity Period.
Basis of Sum Insured
This is based on the annual net profit of the business as per the previous year's accounts plus the 'standing charges'. An Insured is entitled to return of premium (not exceeding 50% of the premium paid) in case the Gross Profit earned during the financial year concurrent with the period of insurance is less than the Sum Insured.
Rating
The Basis Rate shall be the Average Fire Rate of the items covering the contents of the process blocks of the business premises occupied by the insured.
Directors & Officers Liability
Directors & Officers Liability is the liability (or exposure to litigation) of corporate board members and officers arising out of their actions pertaining to their management duties of the corporation. Directors & Officers Liability Insurance insures the personal assets of corporate board members and officers [as well as the company's corporate assets] from lawsuits arising out of their capacity as directors or officers of the cooperation.
What are the responsibilities of Corporate Boards?
Directors of corporate boards have many duties and responsibilities. The board of directors of a corporation generally performs the following duties:
• Review & authorize major corporate actions.
• Advise & counsel management on corporate decisions.
• Review & oversee proper audit procedures.
• Review the Cooperation's investments.
• Stay informed about the Corporation's financial status and legal developments.
• Assist management in decision-making.
• Verify the Corporation is in compliance with all applicable statutes, regulations & laws.
• Monitor management´s performance.
