Common use of Loss Mitigation Clause in Contracts

Loss Mitigation. The insurance granted by this section is extended to indemnify you against additional expenditure necessarily and reasonably incurred by you for the sole purpose of: a) preventing or minimising impending damage that would result in the loss of functions normally carried out by or on the building services equipment and for which cover is provided under this clause; b) recompiling or restoring data or software or replacing third party proprietary software in direct consequence of damage to the building services equipment, provided that: i) the damage would be reasonably expected in the absence of such measures; ii) we are satisfied that the damage has been avoided or reduced in consequence of the measures taken; iii) this clause shall not be construed to cover any costs incurred for the regular, scheduled servicing or maintenance of the building services equipment; and iv) our liability under this clause does not extend beyond three (3) months indemnity period and shall not exceed £5,000 any one occurrence.