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 gross rents which but for that expenditure would have taken place during the indemnity period in consequence of the of the destruction or damage, but not exceeding the loss of gross rents thereby avoided; less any sum saved during the “indemnity period” in respect of costs as may cease or be reduced inconsequence of the destruction or damage by the perils insured against, provided that if the amount of insurance be less than the annual gross rents, the amount payable shall be proportionally reduced.
In Respect of Increase in Cost of Working. The additional expenditure (subject to the provisions of the Uninsured Standing Charges Clause) 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 damage 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 Gross Profit as may cease or be reduced in consequence of the damage: provided that if the Sum Insured by this Item be less than the sum produced by applying the rate of Gross Profit to the Annual Turnover (or to a proportionately increased multiple thereof where the Maximum Indemnity Period exceeds twelve months) the amount payable shall be proportionately reduced. DEFINITIONS GROSS PROFIT The amount by which the sum of the Turnover, Closing Stock Xxxxx exceed the sum of Opening Stock, Work-in-progress and the Specified Working Expenses.
