THE ESSENTIALS
Before you start
- An invoice does not guarantee reimbursement of the full expense.
- The limit may depend on gross profit associated with the sales reduction avoided.
- Costs saved and other adjustments also affect the assessment.
A useful expense can have an economic ceiling
In special condition 37 of MAPFRE Multirriscos Empresas wording 34820200900, article 4(1)(b) considers necessary and reasonable extraordinary expenses incurred solely to avoid or reduce a sales reduction during the indemnity period. It caps them by applying the Insured Gross Profit percentage to the reduction in sales thereby avoided.
This is a contractual calculation example, rather than a product recommendation. The condition requires covered material damage under a listed risk, the cover to be in place and the remaining terms to be met. Nuno does not treat equipment being available to hire as the insurer's acceptance of its cost.
An exercise shows why costs and sales differ
Entirely fictional and simplified exercise: a solution costs 1,000 euros and avoids 2,500 euros of reduced sales. If the contractual Insured Gross Profit percentage were 20%, applying that factor would produce 500 euros. Under this isolated test, the ceiling would be below the expense incurred.
The 500 euros is neither an approved payment nor a market rule: other requirements, limits and adjustments remain. Clara uses the arithmetic to identify the missing question: what reduction in sales is attributable to the solution, and which percentage applies? Estimated turnover preserved is not an estimate of profit entirely lost.
The ceiling does not remove the other adjustments
The same condition deducts insured standing charges saved, provides for proportional reduction where the insured sum is insufficient and applies a separate proportion to extraordinary expenses if not all standing charges are insured. A single multiplication therefore does not complete the calculation.
Nuno keeps the quotation and actual cost, the activity maintained and the costs no longer incurred separately. He asks for each adjustment and supporting document to be identified. He does not offset an omitted item by increasing another or attribute all retained sales to one measure without evidence.
Identify the purpose before applying this rule
Costs to preserve property, repair equipment and maintain sales can have different bases. Article 127 of the insurance-contract regime provides for reasonable and proportionate mitigation expenses even if the measure fails. The illustrated special-condition 37 ceiling should not automatically be applied to an expense assessed on another basis.
Before relying on reimbursement, ask which cover and criterion will be considered for the proposed solution. For an existing loss, use Support and claims. To compare future business continuity protection, select Business multirisk in RMACHADO's 'Request a quote'. Clara helps frame the request; she does not approve spending, reopening or payment.
Sources: MAPFRE — MR Empresas CG 34820200900, CE 37 articles 1–6, pp. 72–75; focus 4(1b),2,3,6; read 2 November 2026 ↗ · DR — consolidated RJCS, complete articles 126–127; last amendment shown 17 March 2026; read 2 November 2026 ↗
KEEP THESE QUESTIONS
Your checklist for the next conversation
- Identify the cover and the expense's precise purpose.
- Link the additional cost, sales reduction avoided and contractual percentage.
- Separate costs saved and the calculation's other adjustments.
- Keep the assumptions and seek clarification before relying on reimbursement.
FROM THE ARTICLE TO YOUR SITUATION
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Sources and transparency
Content updated on .
Consultation dates are stated in individual references when available.
Numerical examples are fictional and explain concepts. Editorial interpretations are identified in the text.
- MAPFRE — MR Empresas CG 34820200900, CE 37 articles 1–6, pp. 72–75; focus 4(1b),2,3,6; read 2 November 2026 ↗
- DR — consolidated RJCS, complete articles 126–127; last amendment shown 17 March 2026; read 2 November 2026 ↗
Information from RMACHADO GROUP. This is not an insurance offer or individual advice. Covers, acceptance, exclusions, sums insured and costs depend on the policy. The intermediary does not underwrite the risks.