ACCOUNT RECEIVABLE CLAUSE

Subject to the limit of  any one occurrence any one location, this  Policy  insures in respect of any location of the Insured  within the  Territorial  Limits  of  this  Policy :        

1. a. All sums due to the Insured  from  customers provided the Insured  is  unable  to  effect collection as the direct result of  loss  of or damage to records of accounts receivable;     
2. Interest charges  on  any  loan  to  offset impaired collections  pending  repayment  of such sums made uncollectible by such loss or damage;                         
3. Collection expense  in  excess  of   normal collection cost and made  necessary  because of  such  loss  or  damage;        
4. Other expenses, when reasonably incurred by the Insured in re-establishing  records  of accounts receivable following such  loss  or damage.                                          

2. Removal

Such insurance as is afforded by this Policy applies while the records of accounts receivable are being removed to and while at a place of safety because of imminent danger of loss or damage and while  being  returned  from such place. 

3. Exclusions

         This Policy does not apply :                                        

1. to loss due to  bookkeeping, accounting  or billing  errors or  omissions ;                                                 
2. to loss, the proof of which as  to  factual existence, is dependent  upon  an  audit  of records or  an  inventory computation;  but this shall not  preclude  the  use  of  such procedures in  support  of  claim  for  loss which the Insured can prove through evidence wholly apart there from which  is due  to  a risk  of  loss  to   records   of   accounts receivable not otherwise excluded hereunder;
3. to loss, due to alteration,  falsification, manipulation, concealment,  destruction  or disposal of records of  accounts receivable committed to conceal the  wrongful giving, taking, obtaining  or  withholding  of  money securities or other property but only to the extent  of  such  wrongful  giving, taking, obtaining  or  withholding.                     

4. Inspection and Audit

         The Insurer shall be permitted to  inspect  the premises and to examine and audit the Insured’s books and records at any time during the period of insurance and any extension thereto, and  to     verify the amount  of  recoveries  of  accounts receivable on which the Insurer  has  made  any settlement.                                                      

5. Recoveries                                                      

         After payment of loss all amounts recovered  by the Insured on accounts  receivable  for  which the Insured has been indemnified shall  belong and be paid to the insurer by the Insured up to the total amount of loss paid  by  the  Insurer but all recoveries in excess  of  such  amounts shall  belong  to  the Insured.                                                          

6. Deductions                                                      

         There shall be deducted from the  total  amount of  accounts receivable, however  established, the  amounts  of  such accounts  evidenced  by records  not  lost  or  damaged,  or otherwise established or collected by the Insured, and an amount to allow for probable  bad  debts  which would normally have been uncollectible  by  the Insured.  All  unearned  interest  and service shall be deducted.