Common use of Compensation Calculation Clause in Contracts

Compensation Calculation. 6.1. If the amount insured as Gross Profit is less than that determined by applying the Gross Profit rate to the Annual Turnover, the Insured shall be liable for the proportionate share of the losses as if he were the insurer of the surplus. On the other hand, if said sum is greater, the insurance only covers up to the aforementioned amount;