Material Interruption Clause Samples

The Material Interruption clause defines the circumstances under which a significant disruption to business operations, typically caused by unforeseen events such as fire, flood, or equipment failure, is addressed within a contract or insurance policy. This clause outlines the criteria for what constitutes a 'material' interruption, the process for notifying relevant parties, and the remedies or compensation available, such as coverage for lost income or additional expenses incurred during the downtime. Its core practical function is to allocate risk and provide financial protection in the event that a major disruption impedes normal business activities, ensuring both parties understand their rights and obligations in such scenarios.
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Material Interruption. A disruption or break in the continuity of the Group Policyholder’s normal Business operations, which:
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Material Interruption a disruption or break in the continuity of the Policyholder’s normal business operations, which: a. requires the direct involvement of all of the Policyholder’s board of Directors or senior executives and diverts their concentration from their normal operating duties; and b. is likely to have a significant negative impact on the Policyholder’s revenues, earnings or net worth.
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Related to Material Interruption

  • Interruption A reduction in non-firm transmission service due to economic reasons pursuant to Section 14.7.

  • Interruptions There shall be no abatement of rent and Lessor shall not be liable in any respect whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility or service due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor's reasonable control or in cooperation with governmental request or directions.

  • Service Interruption Except where there exists an emergency situation necessitating a more expeditious procedure, the Licensee may interrupt Service for the purpose of non-routine repairing or testing the Cable Television System only during periods of minimum use and, when practical, only after a minimum of forty-eight (48) hours notice to all affected Subscribers.

  • Postal Interruption A Party to this Agreement will not mail a document it is required to mail under this Agreement if the Party is aware of an actual or impending disruption of postal service.

  • Disruption 41.1 The Contractor shall take reasonable care to ensure that in the performance of its obligations under the Framework Agreement it does not disrupt the operations of the Authority, its employees or any other Contractor employed by the Authority. 41.2 The Contractor shall immediately inform the Authority of any actual or potential industrial action, whether such action be by their own employees or others, which affects or might affect its ability at any time to perform its obligations under the Framework Agreement. 41.3 In the event of industrial action by the Staff, the Contractor shall seek Approval to its proposals to continue to perform its obligations under the Framework Agreement. 41.4 If the Contractor’s proposals referred to in clause 41.3 are considered insufficient or unacceptable by the Authority acting reasonably, then the Authority may by notice terminate the Framework Agreement with immediate effect.