Page 7 - The Centor Difference

Supermarket: Business Insurance Background: Our clients store suffered several power cuts/ power surges in quick succession. The power cuts were caused by the electricity company doing cabling works locally. A claim was made for spoilage of frozen and chilled food, business interruption, disposal costs and damage to compressors. Problem: The insurer initially only agreed to pay for the frozen food (which was specifically insured under a frozen food extension) and the compressors. They attempted to exclude the rest of the claim on various policy technicalities. What we did: We decided to combat the insurers arguments by being equally technical. We pointed out to the insurer that this was an “All Risks” wording which covered any accidental cause not specifically excluded. We then pointed out that power cuts/surges were not excluded. We stated that the proximate cause of the loss was the power cuts/surge (quoting Pawsey v Scottish Union 1908), not the change in temperature. It followed therefore that there was a valid claim under the material damage section for the chilled food, compressors and disposal, and that the Business Interruption section of the cover was also therefore triggered. Outcome: After due consideration, the insurer conceded to our arguments and agreed to pay the claim in full by same day BACS transfer and apologised to the client. The claim was concluded for £7,586.63.