Endorsement 1308 Special insurance cover: failure of public power, water, gas or steam supply

CM insurance – Endorsement 1308
Special insurance cover: failure of public power, water, gas or steam supply



This endorsement forms part of section 2
and is subject otherwise to the terms, provisions, conditions and exclusions
contained in the policy of insurance or endorsed thereon.

 1. Indemnification
1.1. The “Operational business interruption section” shall be extended to cover a
loss of interest insured resulting from an interruption of or interference with the
business insured directly caused by a failure of the public power, water, gas or
steam supply.
1.2. In the event of an interruption of or interference with the insured’s operation due
to failure of the public supply, the insurer shall be liable up to the maximum
indemnity period for any loss of gross profits resulting from this interruption or
interference for the period of failure that exceeds the agreed time excess.

 2. Special exclusions
2.1. The insurer shall not be liable for any loss resulting from the interruption of
public supply directly or indirectly attributable to:
2.1.1. rationing, which was not caused by unforeseen material loss or damage to the
public supply;
2.1.2. water shortage due to climatic or meteorological conditions;
2.1.3. disturbance, loss or damage in the insured’s plant, even if this is caused by
failure of the public supply, unless the damaged property also is covered under this
policy of insurance;
2.1.4. the production in the insured’s plant still being interrupted or disturbed after
the resumption of the public supply, unless otherwise agreed.

 3. Definitions
3.1. Public supply shall mean the supply by public authority of power, water, gas or
steam when required on demand, with sufficient production reserves and alternate
switch-over possibilities.
3.2. Failure of the public supply shall mean stoppage or reduction in supply caused
by sudden and unforeseen material loss or damage occurring beyond the point of
transfer to the plant as specified in the policy of insurance.
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