A ‘Round the Clock (RTC) Reinstatement’ is a provision that allows a ‘fresh’ limit of liability once the full limit has been eroded.
The RTC Reinstatement clause operates by restoring the limit of liability only once the full limit has been eroded (including all excess layers). It is limited to one restoration. The clause can only be triggered in respect of a different claim. For example, on an insurance structure comprised of several layers equalling GBP 100m in total, RTC reinstatements on each layer would mean that each layer would be reinstated. However, that reinstatement would only provide coverage for claims that resulted from a different proximate cause from those claims that eroded the original GBP100m limit.