Summers Gone!

Summers Gone!

And now despite some parts of the country enjoying an Indian Summer, we have seen already the first of the big storms – Agnes (who comes up with these names?!) which tore through great swathes of the country and once again we will see repair and business interruption claims on the rise.

Another busy Summer or Flaxmans

Here at Flaxmans throughout the summer months we have been busy as usual dealing with those difficult, complex and impossible claims that come our way; and of course getting results that clients and brokers alike have been delighted and amazed at.

We have two interesting cases to share that we think you will find interesting.

The disclosure of prior insolvencies

The Insured ran a clothing shop which suffered serious water damage as a result of a faulty water heater.  The company had two directors, one of whom was previously involved in an unconnected business which had gone into liquidation some years earlier.

When the insurer discovered the details of this prior liquidation, the claim was refused and the policy voided from inception.  The insurer was able to show, from its underwriting criteria, that had it known about the liquidation, it would not have accepted the proposal for insurance.

However, in this case, the insurer had employed a statement of Fact.

 

The operation of a ‘floating’ sum insured in a nearby annexe

The Insured was in the business of producing and supplying office stationery.  There was a significant fire in its paper store and a claim was made under the commercial combined policy.
The policy covered four locations within a 20 mile radius of the main property.  However, the location of the discrete paper store had never been specified on the policy and so liability for the claim was rejected by the insurer.

We investigated the matter and ………..