Property Damage and Business Interruption

The first days or weeks after a major event can be strategically critical to the insured’s business and to the outcome of an insurance claim. Decisions made by the policyholder – such as whether to appoint their own forensic expert; how to retain physical evidence; and, the approach to answering the insurer’s initial questions – often have a significant effect on the subsequent course of the insurer’s coverage investigation. We can help with all these strategic issues to avoid making unnecessary mistakes.

We have advised on most, if not all, types of coverage disputes that typically arise following a major event including: allegations of breach of the duty of fair presentation and of misrepresentation; alteration of risk; underinsurance and average; insurable interest; date of damage or loss where one or more policies are involved; scope of coverage; causation; conditions which require reasonable precautions; minimum storage conditions; security conditions; allegations of dishonesty or fraud in different forms; non-invalidation clauses; notification issues; and, common exclusions such as gradual deterioration or workmanship. We have experience of all forms of dispute resolution in this specialist field.

Major events nearly always result in some degree of business interruption which is often insured alongside the property damage but the extent of the cover and how that loss is calculated often gives rise a broad range of complex quantum only issues requiring close attention and negotiation. We have close working relationships with forensic experts, specialist barristers and surveyors all of whom can help maximise the coverage available. We often advise on quantum only strategies along side these other experts and we can provide advice on quantum only dispute resolution processes – including arbitration – which are often overlooked by policyholders.

• Advised and represented a property management company in a multiparty dispute following a fire that destroyed 13 flats in North London where the policyholder faced allegations of a deliberate or reckless breach of fair presentation through no fault of its own.
• Advised and represented an international waste recycling business following allegations of deliberate misrepresentation when taking out the policy and various alleged breaches of conditions following different perils occurring at different locations under separate (but related) policies.
• Advised and represented an individual facing allegations of dishonesty during the claims investigation stage and successfully overturned the decision using the Financial Ombudsman Service. Successfully pursued the Insurer for damages pursuant to s.13A for late payment of the claim.
• Advised a waste management business in respect of multi-million-pound quantum only issue following a serious fire that caused business interruption across multiple sites.
• Advised a broad range of policyholders in respect of BI claims triggered by the occurrence of Covid including Care-homes, Restaurants, Pubs, International Retail, Hotels, Shopping Outlets, Cinemas on a broad range of issues as the case law has developed but usually where these businesses had multiple claims and/or multiple locations affected.

If you would like to find out how Wynterhill can help you with regard to Property Damage and Business Interruption, please contact:

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