What is Material Damage Proviso?
Material Damage Proviso is All Business Interruption policies contain a requirement that a Material Damage policy remains in force at all times to protect the property, which is the subject of the business interruption policy. This is usually a Fire policy or secction of a business pack policy, an Industrial Special Risks, a Industrial All Risks policy or a machinery breakdown policy. This is to ensure that in the event of a loss, funds are available to repair the damage and thus minimise the period during which the business will be interrupted. It is important to note that as a result of the material damage proviso, olderstyle wordings may exclude cover under a business interruption policy where the material damage falls below the material damage deductible.