GROSS PROFIT

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The insurance under this item is limited to loss of  Gross Profit due to :

  1. Reduction is turnover and (b) Increase in cost of working and the amount payable as indemnity thereunder shall be :

          In respect of  Reduction in Turnover :

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          The sum produced by applying the rate of gross  profit to the amount by which the Turnover during the Indemnity Period shall, in consequence of the Damage, fall short of  the Standard Turnover.

  1. 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 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 save 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.

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