Business Interruption – FCA test case

For information about the outcome of the FCA’s test case into how insurance policies respond to business interruption claims as a result of Covid-19 please visit this page.

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Fish And Chips

Line of business: Combined

Trade: Restaurant and Takeaway

We make a promise, that should the unthinkable happen, our comprehensive claims management service will focus on getting the business back on track fast.

This was exactly the case when a fish and chip shop suffered significant damage to its food preparation room, kitchen and restaurant area following an electrical fire.

With the fire having started in the preparation area, it was completely devastated and unusable. Smoke damage meant that the kitchen area and restaurant both needed cleaning and repair. There was also water damage to the basement of the building following the emergency service response. When combined, the result of the fire meant claims were made against Business Interruption (BI) increased costs of working, stock loss and contents.

With cover for contents and BI our responsibility, but building insurance held elsewhere, there was an immediate need to get all parties working together and communicating.

Given the extent of the damage, the investigation and authorisation of work needed to move quickly to get the business back up and running as soon as possible. On site the day after the incident, our adjuster rapidly instructed forensic adjusters who attended just three days later.

In the meantime, the broker, our adjuster and the adjuster for the building’s insurer all worked together with the client to process aspects of the claim and recovery swiftly - organising cleaning and the construction of a temporary preparation room in the restaurant area which allowed the shop to reopen for take-away orders within just 10 days of the fire occurring.

Less than a month after notification, RSA had provided an interim payment to the customer. With the takeaway sustaining business in the short term, repairs and replacements were carried out in the preparation area, the restaurant could finally reopen, and costs could be assessed - the whole claim was settled within 5 months from the start of the fire. 

Pexels Vlada Karpovich 4050291

Business Combined Insurance 

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