Question

The average clause policy is concerned with

Answer 1

Explanation:

The 'average clause' is defined as a clause in an insurance policy requiring that you bear a proportion of any loss if your assets were insured for less than their full replacement value.

Answer 2

The average clause policy is concerned with protecting the interests of the insurer.

Explanation:

The average clause policy is concerned with protecting the interests of the insurer.

• The policy is designed to compensate for possible monetary losses resulting from interruption of enterprise operations due to material loss of property due to the insured event.
• The clause is usually included in a fire policy so that the firm does not insure the home.
• However, the clause cannot be invoked when the entire claim exceeds the total gross profit of the annual turnover.