Case Studies

Pub Chain:

Business Interruption

A thorough policy review ensured that exactly the right business interruption cover was in place for our client

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Pub Chain: Business Interruption

Background

An arson attack on adjoining premises caused a significant reduction in turnover at one of our client’s establishments in the West End.

Problem

There was no damage to our client’s building but the scaffolding around the fire-damaged buildings rendered them almost invisible to passing foot traffic. This was going to be the case for a lengthy period while major reconstruction works were carried out to neighbouring buildings.

What we did

Centor’s team had arranged an extensive package of cover for its client’s business following a major review when taking over the arrangement of their insurance. As part of this we had arranged for a “Loss of Attraction” extension to be added to their policy. This contained cover for loss of profits even when there was no physical damage to their own building, which is normally a prerequisite for a business interruption policy to pay out.

Outcome

Our addition of this simple extension to the policy ensured our client received a settlement of £110,000 from the insurer in respect of their loss of profits during the restoration work on the adjoining buildings. Our client commented:

“I think a big thank you is in order to you for the loss of attraction clause in the
insurance policy. I’m certain we would not have thought of putting this in ourselves and it has saved us £110,000. A very good outcome and an even better reason for a beer on Thursday if one were needed!”