Outstanding debit balances. Outstanding debit balances means the money owed to you by your customers at the date of the damage but adjusted to take account of
13.54.1 bad debts; amounts debited (or invoiced but not debited) and credited (including credit notes and cash not passed through the books at the time of the damage) to customers' accounts in the period between the date to which said last statement relates and the date of the damage; and
13.54.2 any abnormal conditions of trade which had or could have had a material effect on the business; so that the figure thus adjusted shall represent as nearly as reasonably practicable those which would have obtained at the date of the damage had the damage not occurred.
Outstanding debit balances. In the event of the direct physical accidental loss or destruction of or damage by a cause not otherwise excluded to the insured’s records at the premises of the individual amounts owed to them by customers of the insurance provided by this Section extends to cover:
a) Outstanding Debit Balances the amount by which the outstanding debit balances traced or received following the accidental loss or destruction of or damage to the insured’s records shall fall short of the outstanding debit balances on the last statement deposited by the insured with its accountants or bank before the loss or destruction of or damage to the insured’s records occurred, to which adjustments shall be made to allow for the trend and variations in the insured’s business and for other circumstances affecting the amount of the outstanding debit balances so that the adjusted figures shall represent as nearly as may be reasonably practicable those which would have been obtained if the incident had not occurred; and
b) Additional Expenditure the additional expenditure incurred with the prior consent of the underwriter in tracing and establishing the outstanding debit balances. Provided that the liability of the underwriter under this extension shall not exceed GBP10,000 any one occurrence. For the purpose of this extension:
i) the premises shall extend to include any premises in the territorial limits to which the records have been temporarily removed and whilst in transit between them; and
ii) the insured shall maintain duplicate records elsewhere than in the building in which the original records are kept showing the total amount outstanding in the customers’ accounts of business; and
iii) if at the time of an incident the sum insured is less than the outstanding debit balances then the insured shall be considered as being the insurer for the difference and shall bear a rateable share of the loss accordingly.
Outstanding debit balances. We agree that if any records of accounts receivable used by you at the premises for the purpose of the business should sustain damage during the period of insurance and in consequence income is lost resulting from your inability to trace or establish their outstanding debit balances then the insurer will indemnify you for the loss of income resulting from your inability to trace or establish their outstanding debit balances as a direct result of damage by any insured peril provided that:
a) our liability under this section shall not exceed the sum insured for book debts of £25,000;
b) if at the time of any damage the sum insured for book debts is less than the actual balances, the amount payable by us will be proportionately reduced. In addition, we will pay expenses incurred with our consent in tracing and establishing customers‟ debit balances after the damage. After payment of any claim hereunder, all amounts recovered by you on accounts receivable for which you have been indemnified under this section will belong and be paid immediately to us by you up to the total amount of loss paid by us.
