Common use of Book debts Clause in Contracts

Book debts. 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 stated in the schedule; 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.