Successful £33,000 Business Claim

The Problem

A firm of Cabinet Makers were experiencing ingress of water in their factory every time there was heavy rain. The problem was more of an annoyance than anything causing serious water damage; however they were visited by a council official called in by neighbours concerned about the disintegration of the high cliff and wall under which the factory was sited.

The Council Official, faced with concerns over the safety of both the workforce and the general public, had no choice but to issue an order preventing the factory from being used. The doors were padlocked and everyone sent home.

Their insurance broker knew that their policy could not be invoked to claim for closure as the Council issued the notice under sections 77 (Dangerous Buildings) & 78 (Emergency Measures) of the 1984 Building Act.

Help with the Insurance Claim

Their broker introduced Truman Associates, who identified that the business had had historical difficulties with the local Water Board. They had allegedly dealt with an overflowing drain some time earlier, and the loss assessor from Truman Associates noted that this tied in with the ongoing ingress of water issue.

It became clear that if it could be proven that the cause of the whole problem was a breached watercourse, a claim was possible under the business insurance: escape of water. The insurers could then seek compensation from the water authority under the Water Authorities Legislation as well as the policyholder being able to claim for any uninsured losses.

Results of Our Help

The claim was then made for the temporary relocation and set-up of alternative premises so that the company could continue to trade until the water authority had dealt with the problem sufficiently and move back to their original factory.

Client Testimonial

"We just didn't have a clue how to go about claiming for our losses. All we knew was that we had been shut out of our own factory and there was nothing in our insurance to cover the actions of officials. Without Truman Associates's expertise, we would surely have had to shut down and cease trading altogether".